Accidental Release Prevention Requirements: Risk Management Programs Under the Clean Air Act, 13637-13712 [2016-05191]

Download as PDF Vol. 81 Monday, No. 49 March 14, 2016 Part VI Environmental Protection Agency mstockstill on DSK4VPTVN1PROD with PROPOSALS4 40 CFR Part 68 Accidental Release Prevention Requirements: Risk Management Programs Under the Clean Air Act; Proposed Rule VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\14MRP4.SGM 14MRP4 13638 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 68 [EPA–HQ–OEM–2015–0725; FRL–9940–94– OLEM] RIN 2050–AG82 Accidental Release Prevention Requirements: Risk Management Programs Under the Clean Air Act Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA), in response to Executive Order 13650, is proposing to amend its Risk Management Program regulations. The proposed revisions include several changes to the accident prevention program requirements including an additional analysis of safer technology and alternatives for the process hazard analysis for some Program 3 processes, third-party audits and incident investigation root cause analysis for Program 2 and Program 3 processes, enhancements to the emergency preparedness requirements, increased public availability of chemical hazard information, and several other changes to certain regulatory definitions and data elements submitted in risk management plans. These proposed amendments seek to improve chemical process safety, assist local emergency authorities in planning for and responding to accidents, and improve public awareness of chemical hazards at regulated sources. DATES: Comments. Comments and additional material must be received on or before May 13, 2016. Under the Paperwork Reduction Act (PRA), comments on the information collection provisions are best assured of consideration if the Office of Management and Budget (OMB) receives a copy of your comments on or before April 13, 2016. Public Hearing. The EPA will hold a public hearing on this proposed rule on March 29, 2016 in Washington, DC. ADDRESSES: Comments. Submit comments and additional materials, identified by docket EPA–HQ–OEM– 2015–0725 to the Federal eRulemaking Portal: https://www.regulations.gov. Follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from Regulations.gov. The EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business mstockstill on DSK4VPTVN1PROD with PROPOSALS4 SUMMARY: VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. The EPA will generally not consider comments or comment contents located outside of the primary submission (i.e., on the web, cloud, or other file sharing system). For additional submission methods, the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit https://www2.epa.gov/dockets/ commenting-epa-dockets. Public Hearing. A public hearing will be held in Washington, DC on March 29, 2016 at William J. Clinton East Building, Room 1153 (Map Room), 1201 Constitution Ave. NW., Washington, DC 20460. The hearing will convene at 9:00 a.m. through 8:00 p.m. The sessions will run from 9:00 a.m. to 12:00 Noon, with a break between 12:00 Noon and 1:00 p.m., continuing from 1:00 p.m. to 4:30 p.m., with a break from 4:30 to 5:30 p.m., and continuing from 5:30 p.m. to 8:00 p.m. Persons wishing to preregister may be assigned a time according to this schedule. The evening session beginning at 5:30 p.m. will be extended one hour after all scheduled comments have been heard to accommodate those wishing to make a comment as a walkin registrant. Please register at https:// rmp-proposed-rule.eventbrite.com to speak at the hearing. The last day to preregister in advance to speak at the hearing is March 24, 2016. Additionally, requests to speak will be taken the day of the hearing at the hearing registration desk, although preferences on speaking times may not be able to be fulfilled. If you require the service of a translator or special accommodations such as audio description, we ask that you pre-register for the hearing, on or before March 21, 2016, to allow sufficient time to arrange such accommodations. The hearing will provide interested parties the opportunity to present data, views or arguments concerning the proposed action. The EPA will make every effort to accommodate all speakers who arrive and register. Because this hearing is being held at U.S. government facilities, individuals planning to attend the hearing should be prepared to show valid picture identification to the security staff in order to gain access to the meeting room. Please note that the REAL ID Act, passed by Congress in 2005, established new requirements for entering federal facilities. If your driver’s license is issued by Alaska, PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 American Samoa, Arizona, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Montana, New York, Oklahoma or the state of Washington, you must present an additional form of identification to enter the federal building. Acceptable alternative forms of identification include: Federal employee badges, passports, enhanced driver’s licenses and military identification cards. In addition, you will need to obtain a property pass for any personal belongings you bring with you. Upon leaving the building, you will be required to return this property pass to the security desk. No large signs will be allowed in the building, cameras may only be used outside of the building and demonstrations will not be allowed on federal property for security reasons. The EPA may ask clarifying questions during the oral presentations, but will not respond to the presentations at that time. Written statements and supporting information submitted during the comment period will be considered with the same weight as oral comments and supporting information presented at the public hearing. Verbatim transcripts of the hearing and written statements will be included in the docket for the rulemaking. The EPA will make every effort to follow the schedule as closely as possible on the day of the hearing; however, please plan for the hearing to run either ahead of schedule or behind schedule. FOR FURTHER INFORMATION CONTACT: James Belke, United States Environmental Protection Agency, Office of Land and Emergency Management, 1200 Pennsylvania Ave. NW. (Mail Code 5104A), Washington, DC 20460; telephone number: (202) 564–8023; email address: belke.jim@ epa.gov, or: Kathy Franklin, United States Environmental Protection Agency, Office of Land and Emergency Management, 1200 Pennsylvania Ave. NW. (Mail Code 5104A), Washington, DC 20460; telephone number: (202) 564–7987; email address: franklin.kathy@epa.gov. Electronic copies of this Notice of Proposed Rulemaking (NPRM) and related news releases are available on EPA’s Web site at https://www.epa.gov/ rmp. Copies of this NPRM are also available at https://www.regulations.gov. SUPPLEMENTARY INFORMATION: Acronyms and Abbreviations. We use multiple acronyms and terms in this preamble. While this list may not be exhaustive, to ease the reading of this preamble and for reference purposes, the EPA defines the following terms and acronyms here: ACC E:\FR\FM\14MRP4.SGM American Chemistry Council 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules ACUS Administrative Conference of the United States AFPM American Fuel & Petrochemical Manufacturers AMWA Association of Metropolitan Water Agencies AN ammonium nitrate ANSI American National Standards Institute API American Petroleum Institute ASTM American Society for Testing and Materials AUC Allied Universal Corp AWWA American Water Works Association AXPC American Exploration & Production Council BSEE Bureau of Safety and Environmental Enforcement BTMU Bank of Tokyo Mitsubishi CAA Clean Air Act CAAA Clean Air Act Amendments CARB California Air Resources Board CAS Chemical Abstracts Service CBI confidential business information CCHS Contra Costa County Health Services CCPS Center for Chemical Process Safety CEM European Committee for Standardization CFATS Chemical Facility Anti-Terrorism Standards CFR Code of Federal Regulations CGA Compressed Gas Association CI Chlorine Institute CO2 Carbon dioxide COS Center for Offshore Safety CPCD Coalition to Prevent Chemical Disasters CPSC Consumer Product Safety Commission CRA Corn Refiners Association CSAG Chemical Safety Advocacy Group CSB Chemical Safety and Hazard Investigation Board CSD Center for Science and Democracy CSISSFRRA Chemical Safety Information, Site Security and Fuels Regulatory Relief Act DHS Department of Homeland Security DOI Department of the Interior EPA Environmental Protection Agency EPCRA Emergency Planning & Community Right-To-Know Act FCC Federal Communications Commission FDA Food and Drug Administration FEMA Federal Emergency Management Agency FOIA Freedom of Information Act FPC Formosa Plastics Corporation FR Federal Register FRP facility response plan GHG greenhouse gas GHS Globally Harmonized System of Classification and Labelling of Chemicals GPA Gas Processors Association HAZOP hazard and operability study HF hydrofluoric acid IPAA Independent Petroleum Association of America ISD inherently safer design ISO industrial safety ordinance ISOM isomerization ISS inherently safer strategies IST inherently safer technology LEPC local emergency planning committee LPG liquefied petroleum gas MACT maximum achievable control technology VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 MIC methyl isocyanate MKOPSC Mary Kay O’Connor Process Safety Center MOC management of change NACD National Association of Chemical Distributors NAICS North American Industrial Classification System NAM National Association of Manufacturers NAS National Academy of Sciences NASTTPO National Association of SARA Title III Program Officials NIST National Institute of Standards and Technology NJDEP New Jersey Department of Environmental Protection NOPA National Oilseed Processors Association NPRM Notice of Proposed Rulemaking NRC Nuclear Regulatory Commission NSPS New Source Performance Standards NTTAA National Technology Transfer Advancement Act NYDFS New York State Department of Financial Services OCA offsite consequences analysis OCS outer continental shelf OHMERC Oklahoma Hazardous Materials Emergency Response Commission OMB Office of Management and Budget OSHA Occupational Safety and Health Administration PCAOB Public Company Accounting Oversight Board PE professional engineer PHA process hazard analysis PRA Paperwork Reduction Act PREP preparedness for response exercise program PSI process safety information PSM process safety management PSSAP Process Safety Site Assessment Program PVC polyvinyl chloride PwC PricewaterhouseCoopers RAGAGEP recognized and generally accepted good engineering practices RCRA Resource Conservation and Recovery Act RFA Regulatory Flexibility Act RFI request for information RMP Risk Management Plan SARA Superfund Amendments and Reauthorization Act SBAR Small Business Advocacy Review SBREFA Small Business Regulatory Enforcement Fairness Act SDS safety data sheet SDWA Safe Drinking Water Act SEC Securities and Exchange Commission SEMS Safety and Environmental Management Systems SER small entity representative SERC state emergency response commission SOCMA Society of Chemical Manufacturers and Affiliates SOP standard operating procedure STAA safer technology and alternatives analysis TCPA Toxic Catastrophe Prevention Act TEPC tribal emergency planning committees TERC tribal emergency response commission PO 00000 Frm 00003 Fmt 4701 Sfmt 4702 13639 TPA Texas Pipeline Association TQ threshold quantity TSCA Toxic Substances Control Act UMRA Unfunded Mandates Reform Act USCG United States Coast Guard UST underground storage tank USW United Steel Workers VCM vinyl chloride monomer VCS voluntary census standards Organization of this Document. The contents of this preamble are: I. General Information A. Executive Summary B. Does this action apply to me? II. Background III. Additional Information A. What actions are not addressed in this rule? B. What is the agency’s authority for taking this action? IV. Prevention Program Requirements A. Incident Investigation and Accident History Requirements B. Third-Party Compliance Audits C. Safer Technology and Alternatives Analysis (STAA) D. Stationary Source Location and Emergency Shutdown V. Emergency Response Preparedness Requirements A. Emergency Response Program Coordination With Local Responders B. Facility Exercises VI. Information Availability Requirements A. Proposed Public Disclosure Requirements to LEPCs or Emergency Response Officials B. Proposed Revisions to Requirements for Information Availability to the Public C. Alternative Options VII. Risk Management Plan Streamlining, Clarifications, and RMP Rule Technical Corrections A. Deletions From Subpart G B. Revisions to Subpart G C. Additions to Subpart G D. Proposed Amendments and Technical Corrections VIII. Compliance Dates IX. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review B. Paperwork Reduction Act (PRA) C. Regulatory Flexibility Act (RFA) D. Unfunded Mandates Reform Act (UMRA) E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution or Use I. National Technology Transfer and Advancement Act (NTTAA) J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations E:\FR\FM\14MRP4.SGM 14MRP4 13640 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules I. General Information A. Executive Summary mstockstill on DSK4VPTVN1PROD with PROPOSALS4 1. Purpose of the Regulatory Action The purpose of this action is to improve safety at facilities that use and distribute hazardous chemicals. In response to catastrophic chemical facility incidents in the United States, including the explosion that occurred at the West Fertilizer facility in West, Texas, on April 17, 2013 that killed 15 people, President Obama issued Executive Order 13650, ‘‘Improving Chemical Facility Safety and Security,’’ on August 1, 2013.1 Section 6(a)(i) of Executive Order 13650 requires that various Federal agencies develop options for improved chemical facility safety and security that identify ‘‘improvements to existing risk management practices through agency programs, private sector initiatives, Government guidance, outreach, standards, and regulations.’’ One agency program presently in existence is the Risk Management Program implemented by EPA under section 112(r) of the Clean Air Act (42 U.S.C. 7412(r)). Section 6(c) of Executive Order 13650 requires the Administrator of EPA to review the chemical hazards covered by the Risk Management Program and expand, implement and enforce the Risk Management Program to address any additional hazards. As part of this effort to solicit comments and information from the public regarding potential changes to EPA’s Risk Management Program regulations (40 CFR part 68), on July 31, 2014, EPA published a ‘‘Request for Information’’ notice or ‘‘RFI’’ (79 FR 44604). EPA believes that the Risk Management Program regulations have been effective in preventing and mitigating chemical accidents in the United States. However, EPA believes that revisions could further protect human health and the environment from chemical hazards through advancement of process safety management based on lessons learned. These revisions are a result of a review of the existing Risk Management Program and information gathered from the RFI and Executive Order listening sessions. 2. Summary of the Major Provisions of the Regulatory Action This action proposes to amend EPA’s Risk Management Program regulations at 40 CFR part 68. These regulations 1 For more information on the Executive Order see https://www.whitehouse.gov/the-press-office/ 2013/08/01/executive-order-improving-chemicalfacility-safety-and-security. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 apply to stationary sources (also referred to as ‘‘facilities’’) that hold specific ‘‘regulated substances’’ in excess of threshold quantities. These facilities are required to assess their potential release impacts, undertake steps to prevent releases, plan for emergency response to releases, and summarize this information in a risk management plan (RMP) submitted to EPA. The release prevention steps vary depending on the type of process, but progressively gain specificity and rigor over three program levels (i.e., Program 1, Program 2, and Program 3). The major provisions of this proposed rule include several changes to the accident prevention program requirements, as well as enhancements to the emergency response requirements, and improvements to the public availability of chemical hazard information. Each of these proposed revisions is introduced in the following paragraphs of this section and described in greater detail in sections IV through VI, later in this document. Certain proposed provisions would apply to a subset of the processes based on program levels described in 40 CFR part 68 (or in one case, to a subset of processes within a program level). A full description of these program levels is provided in section II of this document. a. Accident Prevention Program Revisions This action proposes three changes to the accident prevention program requirements. First, the proposed rule would require all facilities with Program 2 or 3 processes to conduct a root cause analysis as part of an incident investigation of a catastrophic release or an incident that could have reasonably resulted in a catastrophic release (i.e., a near-miss). This provision is intended to reduce the number of chemical accidents by requiring facilities to identify the underlying causes of an incident so that they may be addressed. Identifying the root causes, rather than isolating and correcting solely the immediate cause of the incident, will help prevent similar incidents at other locations, and will yield the maximum benefit or lessons learned from the incident investigation. Second, the proposed rule would require regulated facilities with Program 2 or 3 processes to contract with an independent third-party to perform a compliance audit after the facility has a reportable release. Compliance audits are required under the existing rule, but are allowed to be self-audits (i.e., performed by the owner or operator of the regulated facility). This provision is intended to reduce the risk of future PO 00000 Frm 00004 Fmt 4701 Sfmt 4702 accidents by requiring an objective auditing process to determine whether the owner or operator of the facility is effectively complying with the accident prevention procedures and practices required under 40 CFR part 68. The third proposed revision to the prevention program would add an element to the process hazard analysis (PHA), which is updated every five years. Specifically, owners or operators of facilities with Program 3 regulated processes in North American Industrial Classification System (NAICS) codes 322 (paper manufacturing), 324 (petroleum and coal products manufacturing), and 325 (chemical manufacturing) would be required to conduct a safer technology and alternatives analysis (STAA) as part of their PHA, and to evaluate the feasibility of any inherently safer technology (IST) identified. The current PHA requirements include consideration of active, passive, and procedural measures to control hazards. The proposed modernization effort continues to support the analysis of those measures and adds consideration of IST alternatives. The proposed provision is intended to reduce the risk of serious accidental releases by requiring facilities in these sectors to conduct a careful examination of potentially safer technology and designs that they could implement in lieu of, or in addition to, their current technologies. Data compiled from RMPs suggest processes in these NAICS codes have a disproportionate share of reportable releases. At this time, EPA is not proposing any additional requirements either for location of stationary sources (related to their proximity to public receptors) or emergency shutdown systems. However, EPA seeks comment on whether such requirements should be considered for future rulemakings, including the scope of such requirements, or whether the Agency should publish guidance. b. Emergency Response Enhancements This action also proposes to enhance the rule’s emergency response requirements. Owners or operators of all facilities with Program 2 or 3 processes would be required to coordinate with the local emergency response agencies at least once a year to ensure that resources and capabilities are in place to respond to an accidental release of a regulated substance. As a result of improved coordination between facility owners and operators and local emergency response officials, EPA believes that some facilities that are currently designated as non-responding facilities may become responding E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules facilities (i.e., develop an emergency response program in accordance with § 68.95). Additionally, all facilities with Program 2 or 3 processes would be required to conduct notification exercises annually to ensure that their emergency contact information is accurate and complete. This provision is intended to reduce the impact of accidents by ensuring that appropriate mechanisms and processes are in place to notify local responders when an accident occurs. One of the factors that can contribute to the severity of chemical accidents is a lack of effective coordination between a facility and local emergency responders. Increasing such coordination and establishing appropriate emergency response procedures can help reduce the effects of accidents. This action also proposes to require that all facilities subject to the emergency response program requirements of subpart E of the rule (or ‘‘responding facilities’’) conduct a full field exercise at least once every five years and one tabletop exercise annually in the other years. Responding facilities that have an RMP reportable accident would also have to conduct a full field exercise within a year of the accident. The purpose of this provision is to reduce the impact of accidents by ensuring that emergency response personnel understand their roles in the event of an incident, that local responders are familiar with the hazards at a facility, and that the emergency response plan is up-to-date. Improved coordination with emergency response personnel will better prepare responders to respond effectively to an incident and take steps to notify the community of appropriate actions, such as shelter-inplace or evacuation. c. Enhanced Availability of Information This action proposes various enhancements to the public availability of chemical hazard information. The proposed rule would require all facilities to provide certain basic information to the public through easily accessible means such as a facility Web site. If no Web site exists, the owner or operator may provide the information at public libraries or government offices, or use other means appropriate for particular locations and facilities. In addition, a subset of facilities would be required, upon request, to provide the Local Emergency Planning Committee (LEPC), Tribal Emergency Planning Committee (TEPC) 2 or other local emergency response agencies with summaries related to: Their activities on compliance audits (facilities with Program 2 and Program 3 processes); emergency response exercises (facilities with Program 2 and Program 3 processes); accident history and investigation reports (all facilities that have had RMP reportable accidents); and any ISTs implemented at the facility (a subset of Program 3 processes). The proposed rule would also require all facilities to hold a public meeting for the local community within a specified timeframe after an RMP reportable accident. This provision will 13641 ensure that first responders and members of the community have easier access to appropriate facility chemical hazard information, which can significantly improve emergency preparedness and their understanding of how the facility is addressing potential risks. In addition to the major provisions described previously in this section, this action proposes revisions to clarify or simplify the RMP submission. These changes are intended to reduce the compliance burden on facilities and increase their understanding of the RMP requirements. We are also proposing technical corrections to various provisions of the rule. 3. Costs and Benefits a. Summary of Potential Costs Approximately 12,500 facilities have filed current RMPs with EPA and are potentially affected by the proposed rule changes. These facilities range from petroleum refineries and large chemical manufacturers to water and wastewater treatment systems; chemical and petroleum wholesalers and terminals; food manufacturers, packing plants, and other cold storage facilities with ammonia refrigeration systems; agricultural chemical distributors; midstream gas plants; and a limited number of other sources, including Federal installations, that use RMPregulated substances. Table 1 presents the number of facilities according to the latest RMP reporting as of February 2015 by industrial sector and chemical use. TABLE 1—NUMBER OF AFFECTED FACILITIES BY SECTOR NAICS codes Administration of environmental quality programs (i.e., governments). Agricultural chemical distributors/wholesalers .. 924 ......................................... 1,923 111, 112, 115, 42491 ............ 3,667 Chemical manufacturing ................................... Chemical wholesalers ....................................... Food and beverage manufacturing .................. Oil and gas extraction ...................................... 325 ......................................... 4246 ....................................... 311, 312 ................................. 211 ......................................... 1,466 333 1,476 741 Other ................................................................. 44, 45, 48, 54, 56, 61, 72 ...... 248 Other manufacturing ......................................... mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Sector Total facilities 313, 326, 327, 33 .................. 384 Other wholesale ................................................ Paper manufacturing ........................................ 423, 424 ................................. 322 ......................................... 302 70 Petroleum and coal products manufacturing ... 324 ......................................... 156 Petroleum wholesalers ..................................... 4247 ....................................... 276 Chemical uses Use chlorine and other chemicals for treatment. Store ammonia for sale; some in NAICS 111 and 115 use ammonia as a refrigerant. Manufacture, process, store. Store for sale. Use—mostly ammonia as a refrigerant. Intermediate processing (mostly regulated flammable substances and flammable mixtures). Use chemicals for wastewater treatment, refrigeration, store chemicals for sale. Use various chemicals in manufacturing process, waste treatment. Use (mostly ammonia as a refrigerant). Use various chemicals in pulp and paper manufacturing. Manufacture, process, store (mostly regulated flammable substances and flammable mixtures). Store for sale (mostly regulated flammable substances and flammable mixtures). 2 Note for the purposes of this document the term TEPC can be substituted for LEPC, as appropriate. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00005 Fmt 4701 Sfmt 4702 E:\FR\FM\14MRP4.SGM 14MRP4 13642 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules TABLE 1—NUMBER OF AFFECTED FACILITIES BY SECTOR—Continued Sector NAICS codes Utilities .............................................................. Warehousing and storage ................................ Water/wastewater Treatment Systems ............ 221 (except 22131, 22132) ... 493 ......................................... 22131, 22132 ......................... 343 1,056 102 Total ........................................................... ................................................ 12,542 Table 2 presents a summary of the annualized costs estimated in the regulatory impact analysis.3 In total, Total facilities EPA estimates annualized costs of $158.3 million at a 3% discount rate Chemical uses Use chlorine (mostly for water treatment). Use mostly ammonia as a refrigerant. Use chlorine and other chemicals. and $161.0 million at a 7% discount rate. TABLE 2—SUMMARY OF ANNUALIZED COSTS [Millions, 2014 dollars] 3 (percent) Provision 7 (percent) Third-party Audits .................................................................................................................................................... Incident Investigation/Root Cause ........................................................................................................................... STAA ........................................................................................................................................................................ Coordination ............................................................................................................................................................. New Responders * ................................................................................................................................................... Notification Exercises .............................................................................................................................................. Facility Exercises ..................................................................................................................................................... Information Sharing (LEPC) .................................................................................................................................... Information Sharing (Public) .................................................................................................................................... Public Meeting ......................................................................................................................................................... Rule Familiarization ................................................................................................................................................. $5.0 0.8 34.8 6.3 33.0 1.4 60.7 11.7 4.0 0.4 0.3 $5.0 0.8 34.8 6.3 35.6 1.4 60.7 11.7 4.0 0.4 0.3 Total Cost + ....................................................................................................................................................... 158.3 161.0 * Reflects costs for some facilities to convert from ‘‘non-responding’’ to ‘‘responding’’ as a result of improved coordination with local emergency response officials. + Totals may not sum due to rounding. The largest average annual cost of the proposed rule is the exercise costs for current responders ($60.7 million), followed by new responders (facilities that will comply with the emergency response program requirements of § 68.95 as a result of local coordination activities or receiving a written request from the facility’s LEPC) ($35.6 million), STAA ($34.8 million), and information sharing (LEPC) ($11.7 million). The remaining provisions impose average annual costs under $10 million each, including coordination ($6.3 million), third-party audits ($5.0 million), information sharing (public) ($4.0 million), notification exercises ($1.4 million), incident investigation/root cause analysis ($0.8 million), public meetings ($0.4 million), and rule familiarization ($0.3 million). b. Summary of Potential Benefits EPA anticipates that promulgation and implementation of this rule would result in a reduction of the frequency and magnitude of damages from releases. Accidents and releases from RMP facilities occur every year, causing fires and explosions; damage to property; acute and chronic exposures of workers and nearby residents to hazardous materials, and resulting in serious injuries and death. Although we are unable to quantify what specific reductions may occur as a result of these proposed revisions, we are able to present data on the total damages that currently occur at RMP facilities each year. The data presented is based on a 10-year baseline period, summarizing RMP accident impacts and, when possible, monetizing them. EPA expects that some portion of future damages would be prevented through implementation of a final rule. Table 3 presents a summary of the quantified damages identified in the analysis. TABLE 3—SUMMARY OF QUANTIFIED DAMAGES [2014 dollars] mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Unit value 10-Year total Average/ year $8,583,113 50,000 ........................ $497,820,554 105,150,000 2,054,895,236 $49,782,055 10,515,000 205,489,524 Average/ accident On-site Fatalities ........................................................................................................... Injuries ............................................................................................................. Property Damage ............................................................................................. 3 A full description of costs and benefits for this proposed rule can be found in the Regulatory Impact Analysis for Proposed Revisions to the VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Accidental Release Prevention Requirements: Risk Management Programs Under the Clean Air Act, Section 112(r)(7). This document is available in the PO 00000 Frm 00006 Fmt 4701 Sfmt 4702 $328,161 69,314 1,354,578 docket for this rulemaking (Docket ID Number EPA–HQ–OEM–2015–0725). E:\FR\FM\14MRP4.SGM 14MRP4 13643 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules TABLE 3—SUMMARY OF QUANTIFIED DAMAGES—Continued [2014 dollars] Unit value 10-Year total Average/ year ........................ 2,657,865,790 265,786,579 1,752,053 Fatalities ........................................................................................................... Hospitalizations ................................................................................................ Medical Treatment ........................................................................................... Evacuations ..................................................................................................... Sheltering in Place ........................................................................................... Property Damage ............................................................................................. $8,583,113 36,000 1,000 181 91 ........................ $8,583,113 6,804,000 14,807,000 6,992,327 40,920,849 11,352,105 $858,311 680,400 1,480,700 699,233 4,092,085 1,135,211 $5,658 4,485 9,761 4,609 26,975 7,483 Offsite Total .............................................................................................. ........................ 89,459,394 8,945,939 58,971 Total ................................................................................................... ........................ 2,747,325,184 274,732,518 1,811,024 On-site Total ............................................................................................. Average/ accident Offsite EPA monetized both on-site and offsite damages. EPA estimated total average annual on-site damages of $265.8 million. The largest monetized average annual on-site damage was onsite property damage, which resulted in average annual damage of approximately $205.5 million. The next largest impact was on-site fatalities ($49.8 million) and injuries ($10.5 million). EPA estimated total average annual offsite damages of $8.9 million. The largest monetized average annual offsite damage was from sheltering in place ($4.1 million), followed by medical treatment ($1.5 million), property damage ($1.1 million), fatalities ($0.9 million), evacuations ($0.7 million), and hospitalizations ($0.7 million). In total, EPA estimated monetized damages from RMP facility accidents of $275 million per year. However, the monetized impacts omit many important categories of accident impacts including lost productivity, the costs of emergency response, transaction costs, property value impacts in the surrounding community (that overlap with other benefit categories), and environmental impacts. Also not reflected in the 10-year baseline costs are the impacts of non-RMP accidents at RMP facilities and any potential impacts of rare high consequence catastrophes. A final omission is related to the information provision. Reducing the probability of chemical accidents and the severity of their impacts, and improving information disclosure by chemical facilities, as the proposed provisions intend, would provide benefits to potentially affected members of society. Table 4 summarizes four broad social benefit categories related to accident prevention and mitigation including prevention of RMP accidents, mitigation of RMP accidents, prevention and mitigation of non-RMP accidents at RMP facilities, and prevention of major catastrophes. The table explains each and identifies ten associated specific benefit categories, ranging from avoided fatalities to avoided emergency response costs. Table 4 also highlights and explains the information disclosure benefit category and identifies two specific benefits associated with it: Improved efficiency of property markets and allocation of emergency resources. TABLE 4—SUMMARY OF SOCIAL BENEFITS OF PROPOSED RULE PROVISIONS Broad benefit category Explanation Specific benefit categories Accident Prevention ........................................... Accident Mitigation ............................................. Non-RMP accident prevention and mitigation .... ........................................................................ Avoided Catastrophes ........................................ Prevention of future RMP facility accidents ..... Mitigation of future RMP facility accidents ...... Prevention and mitigation of future non-RMP accidents at RMP facilities ........................... Prevention of rare but extremely high consequence events. Information Disclosure ........................................ Provision of information to the public and LEPCs. • • • • • • • • • • • • Reduced Fatalities. Reduced Injuries. Reduced Property Damage. Fewer People Sheltered in Place. Fewer Evacuations. Avoided Lost Productivity. Avoided Emergency Response Costs. Avoided Transaction Costs. Avoided Property Value Impacts.* Avoided Environmental Impacts. Improved efficiency of property markets. Improved resource allocation. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 * These impacts partially overlap with several other categories such as reduced health and environmental impacts. B. Does this action apply to me? This rule applies to those facilities (referred to as ‘‘stationary sources’’ under the CAA) that are subject to the chemical accident prevention requirements at 40 CFR part 68. This includes stationary sources holding VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 more than a threshold quantity (TQ) of a regulated substance in a process. Table 5 below provides industrial sectors and the associated NAICS codes for entities potentially affected by this action. The Agency’s goal is to provide a guide for readers to consider regarding entities that potentially could be affected by this PO 00000 Frm 00007 Fmt 4701 Sfmt 4702 action. However, this action may affect other entities not listed in this table. If you have questions regarding the applicability of this action to a particular entity, consult the person(s) listed in the introductory section of this action under the heading entitled FOR FURTHER INFORMATION CONTACT. E:\FR\FM\14MRP4.SGM 14MRP4 13644 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules TABLE 5—INDUSTRIAL SECTORS AND ASSOCIATED NAICS CODES FOR ENTITIES POTENTIALLY AFFECTED BY PROPOSED ACTION Sector NAICS Code Administration of Environmental Quality Programs .................................................................... Agricultural Chemical Distributors: Animal Production and Aquaculture .................................................................................... Crop Production ................................................................................................................... Farm Supplies Merchant Wholesalers ................................................................................ Support Activities for Agriculture and Forestry ................................................................... Beverage Manufacturing ............................................................................................................. Food Manufacturing .................................................................................................................... Chemical and Allied Products Merchant Wholesalers ............................................................... Chemical Manufacturing ............................................................................................................. Oil and Gas Extraction ............................................................................................................... Other 4 ......................................................................................................................................... Other Wholesale: Merchant Wholesalers, Durable Goods .............................................................................. Merchant Wholesalers, Nondurable Goods ........................................................................ Paper Manufacturing .................................................................................................................. Petroleum and Coal Products Manufacturing ............................................................................ Petroleum and Petroleum Products Merchant Wholesalers ...................................................... Utilities ........................................................................................................................................ Warehousing and Storage .......................................................................................................... Water/Wastewater Treatment Systems: Sewage Treatment Facilities ............................................................................................... Water Supply and Irrigation Systems .................................................................................. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 II. Background Recent catastrophic chemical facility incidents in the United States prompted President Obama to issue Executive Order 13650, ‘‘Improving Chemical Facility Safety and Security,’’ on August 1, 2013.5 The purpose of the Executive Order is to enhance the safety and security of chemical facilities and reduce risks associated with hazardous chemicals to owners and operators, workers, and communities. The Executive Order establishes the Chemical Facility Safety and Security Working Group (‘‘Working Group’’), cochaired by the Secretary of Homeland Security, the Administrator of EPA, and the Secretary of Labor or their designated representatives at the Assistant Secretary level or higher, and composed of senior representatives of other Federal departments, agencies, and offices. The Executive Order requires the Working Group to carry out a number of tasks whose overall aim is to prevent chemical accidents, such as the explosion that occurred at the West Fertilizer facility in West, Texas, on April 17, 2013.6 In addition to the tragedy at the West Fertilizer facility, a number of other incidents have 4 For descriptions of NAICS codes, see https:// www.census.gov/cgi-bin/sssd/naics/naicsrch. 5 For more information on the Executive Order see https://www.whitehouse.gov/the-press-office/ 2013/08/01/executive-order-improving-chemicalfacility-safety-and-security. 6 CSB. January 2016. Final Investigation Report, West Fertilizer Company Fire and Explosion, West, TX, April 17, 2013. REPORT 2013–02–I–TX. https:// www.csb.gov/west-fertilizer-explosion-and-fire-/. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 924. 112. 111. 42491. 115. 3121. 311. 4246. 325. 211. 313, 326, 327, 33, 44, 45, 48, 54, 56, 61, 72. 423. 424. 322. 324. 4247. 221 (except 22131 and 22132 described below). 493. 22132. 22131. demonstrated a significant risk to the safety of American workers and communities. On March 23, 2005, explosions at the BP Refinery in Texas City, Texas, killed 15 people and injured more than 170 people.7 On April 2, 2010, an explosion and fire at the Tesoro Refinery in Anacortes, Washington, killed seven people.8 On August 6, 2012, at the Chevron Refinery in Richmond, California, a fire involving flammable fluids endangered 19 Chevron employees and created a large plume of highly hazardous chemicals that traveled across the Richmond, California, area.9 Nearly 15,000 residents sought medical treatment due to the release. On June 13, 2013, a fire and explosion at Williams Olefins in Geismar, Louisiana, killed two people and injured many more.10 7 U.S. Chemical Safety and Hazard Investigation Board (CSB). March 2007. Investigation Report: Refinery Explosion and Fire, BP, Texas City, Texas, March 23, 2005. Report No. 2005–04–I–TX. https:// www.csb.gov/assets/1/19/CSBFinalReportBP.pdf. 8 CSB. May 2014. Investigation Report: Catastrophic Rupture of Heat Exchanger, Tesoro Anacortes Refinery, Anacortes, Washington, April 2, 2010. Report No. 2010–08–I–WA. https:// www.csb.gov/assets/1/7/Tesoro_Anacortes_2014May-01.pdf. 9 CSB. January 2014. Regulatory Report: Chevron Richmond Refinery Pipe Rupture and Fire, Chevron Richmond Refinery #4 Crude Unit, Richmond, California, August 6, 2012. Report No. 2012–03–I– CA. https://www.csb.gov/assets/1/19/CSB_Chevron_ Richmond_Refinery_Regulatory_Report.pdf. 10 CSB. June 27, 2013. Testimony of Rafael Moure-Eraso, Ph.D. Chairperson, CSB Before the U.S. Senate Committee on Environment and Public Works, pg. 8. https://www.csb.gov/assets/1/19/CSB_ Written_Senate_Testimony_6.27.13.pdf. PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 Section 6 of the Executive Order is entitled ‘‘Policy, Regulation, and Standards Modernization.’’ This section, among other things, requires certain Federal agencies to consider possible changes to existing chemical safety and security regulations. To solicit comments and information from the public regarding potential changes to EPA’s Risk Management Program regulations (40 CFR part 68), on July 31, 2014, EPA published an RFI (79 FR 44604). Information collected through the RFI has informed this proposal. Readers are encouraged to review the RFI, as this action will not reiterate the full discussion of all of its topics. EPA received a total of 579 public comments on the RFI. Several public comments were the result of various mass mail campaigns and contained numerous copies of letters or petition signatures. Approximately 99,710 letters and signatures were contained in these several comments. Discussion of RFI public comments pertaining to topics included in this proposal can be found below in section IV. Prevention Program Requirements, section V. Emergency Response Preparedness Requirements and section VI. Information Availability Requirements. EPA seeks comment on the proposed amendments. Any suggestions for alternative options should include an appropriate rationale and supporting data for the Agency to be able to consider it for a final action. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules A. Overview of EPA’s Risk Management Program Regulations mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Both EPA’s 40 CFR part 68 RMP regulation 11 and Occupational Safety and Health Administration’s (OSHA) 29 CFR 1910.119 Process Safety Management (PSM) standard were authorized in the Clean Air Act Amendments of 1990 (1990 CAAA). This was in response to a number of catastrophic chemical accidents occurring worldwide that had resulted in public and worker fatalities and injuries, environmental damage, and other community impacts. OSHA published the PSM standard in 1992 (57 FR 6356, February 24, 1992), as required by section 304 of the 1990 CAAA, using its authority under 29 U.S.C. 653. The 1990 CAAA added accidental release provisions under section 112(r). The statute required EPA to develop a list of at least 100 regulated substances for accident prevention and related thresholds (CAA section 112(r)(3) through (5)), and authorized EPA to issue accident prevention regulations (CAA section 112(r)(7)(A)). The statute also required EPA to develop ‘‘reasonable regulations’’ requiring facilities with over a TQ of a regulated substance to undertake accident prevention steps and submit a ‘‘risk management plan’’ to various local, state, and Federal planning entities (CAA section 112(r)(7)(B)). EPA published the RMP regulation in two stages. The Agency published the list of regulated substances and TQs in 1994 (59 FR 4478, January 31, 1994) (the ‘‘list rule’’) 12 and published the RMP final regulation, containing risk management requirements for covered sources, in 1996 (61 FR 31668, June 20, 1996) (the ‘‘RMP rule’’).13 14 Both the OSHA PSM standard and the EPA RMP rule aim to prevent or minimize the consequences of accidental chemical 11 40 CFR part 68 is titled, ‘‘Chemical Accident Prevention Provisions,’’ but is more commonly known as the ‘‘RMP regulation,’’ the ‘‘RMP rule,’’ or the ‘‘Risk Management Program.’’ This document uses all three terms to refer to 40 CFR part 68. The term ‘‘RMP’’ refers to the document required to be submitted under subpart F of 40 CFR part 68, the Risk Management Plan. See https://www2.epa.gov/ rmp for more information on the Risk Management Program. 12 Documents and information related to development of the list rule can be found in the EPA docket for the rulemaking, docket number A– 91–74. 13 Documents and information related to development of the RMP rule can be found in EPA docket number A–91–73. 14 40 CFR part 68 applies to owners and operators of stationary sources that have more than a TQ of a regulated substance within a process. The regulations do not apply to chemical hazards other than listed substances held above a TQ within a regulated process. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 releases through implementation of management program elements that integrate technologies, procedures, and management practices. In addition to requiring implementation of management program elements, the RMP rule requires covered sources to submit (to EPA) a document summarizing the source’s risk management program—called a Risk Management Plan (or RMP). The RMP rule required covered sources to comply with its requirements and submit initial RMPs to EPA by June 21, 1999. Each RMP must be revised and updated at least once every five years from the date the plan was initially submitted. EPA later revised the list rule and the RMP rule. EPA modified the regulated list of substances by exempting solutions with less than 37% concentrations of hydrochloric acid (62 FR 45130, August 25, 1997). EPA also deleted the category of Department of Transportation Division 1.1 explosives, and exempted flammable substances in gasoline used as fuel and in naturally occurring hydrocarbon mixtures prior to initial processing (63 FR 640, January 6, 1998). EPA subsequently modified the RMP rule five times. First, in 1999, EPA revised the facility identification data and contact information reported in the RMP (64 FR 964, January 6, 1999). Next, EPA revised assumptions for the worst case scenario analysis for flammable substances and clarified what the Agency means by chemical storage not incidental to transportation (64 FR 28696, May 26, 1999). After the Chemical Safety Information, Site Security and Fuels Regulatory Relief Act (CSISSFRRA) was enacted on August 5, 1999, EPA excluded regulated flammable substances when used as a fuel or held for sale as a fuel at a retail facility (65 FR 13243, March 13, 2000). Later, EPA restricted access to offsite consequence analysis (OCA) data for the public and government officials to minimize the security risks associated with posting the information on the Internet (65 FR 48108, August 4, 2000). Finally, EPA revised the RMP executive summary to remove a requirement to describe the OCA; revised reporting deadlines for RMP reportable accidents and emergency contact changes; and made other minor revisions to RMP facility contact information (69 FR 18819, April 8, 2004). The RMP rule establishes three ‘‘program levels’’ for regulated processes: Program 1 applies to processes that would not affect the public in the case of a worst-case release and that have had no accidents with specific offsite PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 13645 consequences within the past five years. Program 1 imposes limited hazard assessment requirements, requires coordination with local response agencies, and requires submission of an RMP. Program 2 applies to processes not eligible for Program 1 or subject to Program 3, and imposes streamlined prevention program requirements, including safety information, hazard review, operating procedures, training, maintenance, compliance audits, and incident investigation elements. Program 2 also imposes additional hazard assessment, management, and emergency response requirements. Program 3 applies to processes not eligible for Program 1 and either subject to OSHA’s PSM standard under Federal or state OSHA programs or classified in one of ten specified industry sectors identified by their 2002 NAICS codes listed at § 68.10(d)(1). These industries were selected because they had a higher frequency of the most serious accidents as compared to other industry sectors. The ten NAICS codes and the industries they represent are 32211 (pulp mills), 32411 (petroleum refineries), 32511 (petrochemical manufacturing), 325181 (alkalies and chlorine manufacturing), 325188 (all other basic inorganic chemical manufacturing), 325192 (cyclic crude and intermediate manufacturing), 325199 (all other basic chemical manufacturing), 325211 (plastics material and resin manufacturing), 325311 (nitrogenous fertilizer manufacturing), or 32532 (pesticide and other agricultural chemicals manufacturing).15 Program 3 imposes elements nearly identical to those in OSHA’s PSM standard as the accident prevention program. The Program 3 prevention program includes requirements relating to process safety information (PSI), PHA, operating procedures, training, mechanical integrity, management of change (MOC), pre-startup review, compliance audits, incident investigations, employee participation, hot work permits, and contractors. Program 3 also imposes the same hazard assessment, management, and emergency response requirements that are required for Program 2. On July 22, 2015, OSHA issued a revised interpretation to its PSM retail exemption at 29 CFR 119(a)(2)(i).16 This 15 NAICS codes 325181 and 325188 are now combined and represented as 2012 revised NAICS code 325180 (other basic inorganic chemical manufacturing). NAICS code 325192 is now 2012 revised NAICS code 325194 (cyclic crude, intermediate, and gum and wood chemical manufacturing). 16 See OSHA PSM Retail Exemption Policy https://www.osha.gov/pls/oshaweb/owadisp.show_ E:\FR\FM\14MRP4.SGM Continued 14MRP4 13646 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules interpretation now only allows facilities in NAICS codes 44 and 45, the retail trade, to be eligible for the retail exemption. As a result of this change, many agricultural chemical distributors who sell bulk anhydrous ammonia and some chemical warehouses, are no longer exempt from the PSM standard. This makes them subject to RMP Program 3 requirements, whereas before most were covered under Program 2. EPA believes the RMP rule has been effective in preventing and mitigating chemical accidents in the United States and protecting human health and the environment from chemical hazards. However, major incidents, such as the West, Texas, explosion, highlight the importance of reviewing and evaluating current practices and regulatory requirements, and applying lessons learned from other incident investigations to advance process safety where needed. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 III. Additional Information A. What actions are not addressed in this rule? Under section 6 of Executive Order 13650, ‘‘Improving Chemical Facility Safety and Security,’’ the Executive Order Working Group (chaired by EPA, OSHA, and Department of Homeland Security [DHS]) was tasked with enhancing safety at chemical facilities by identifying key improvements to existing risk management practices through guidance, policies, procedures, outreach, and regulations. As part of this task, the Working Group solicited public comment on potential options for improving chemical facility safety. Additionally, EPA gathered information from the public regarding potential changes to EPA’s Risk Management Program regulations (40 CFR part 68) via a RFI (79 FR 44604, July 31, 2014). Using the results from these efforts as well as information collected through implementing the Risk Management Program, EPA is proposing revisions to the RMP rule to advance chemical facility safety. However, this proposed rule does not address all of the topics included in the RFI. For example, EPA is not proposing any revisions to the list of regulated substances and is therefore not addressing ammonium nitrate (AN) in this proposed rule. EPA may propose listing additional hazardous substances in a separate action. Currently AN is not listed as a regulated substance under the RMP rule or the OSHA PSM standard. Required safe handling and storage practices for AN are covered under OSHA’s document?p_table=INTERPRETATIONS&p_ id=29528. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Explosives and Blasting Agents Standard (29 CFR 1910.109) and includes coverage of fertilizer grade AN in section 1910.109(i). Section 1910.109(k)(2) requires that manufacturing of explosives must meet requirements under OSHA’s PSM standard (29 CFR 1910.119); this would include any explosive manufacturing process involving AN. OSHA is considering whether AN should be added to the § 1910.119 Appendix A list of chemicals subject to the PSM standard, which could expand the standard’s applicability to include processes at fertilizer mixers, distributors and wholesalers who store and handle AN. OSHA is also considering whether to make changes to the AN storage and handling requirements in their Explosives and Blasting Agents standard, which has requirements for AN stored with and without, explosives and blasting agents. DHS is considering potential modifications of its Chemical Facility Anti-Terrorism Standards (CFATS) regulation, including reviewing the applicability and/or modification of screening TQs for chemicals of interest in Appendix A in 6 CFR part 27, which include AN (79 FR 48693, August 18, 2014).17 We plan to coordinate any potential change to the list of substances 40 CFR part 68 with the actions of these other agencies. Therefore, EPA is not presently proposing that AN be added to the list of substances subject to the RMP rule, but the Agency may elect to propose such a listing at a later date. B. What is the agency’s authority for taking this action? The statutory authority for this action is provided by section 112(r) of the CAA as amended (42 U.S.C. 7412(r)). Each of the portions of the Risk Management Program rule we propose to modify in this document are based on EPA’s rulemaking authority under section 112(r)(7) of the CAA (42 U.S.C. 7412(r)(7)). A more detailed discussion of the underlying statutory authority for the current requirements of the Risk Management Program rule appears in the action that proposed the Risk Management Program (58 FR 54190, 54191–93 [Oct. 20, 1993]). The prevention program provisions discussed below (auditing, incident investigation, and safer technologies alternatives analysis) address the ‘‘prevention and detection of accidental releases.’’ The emergency coordination and exercises provisions in this rule 17 CFATS. 79 FR 48693, August 18, 2014. https:// www.regulations.gov/#!documentDetail;D=DHS2014-0016-0001. PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 modify existing provisions that provide for ‘‘response to such release by the owners or operators of the sources of such releases.’’ (CAA 112(r)(7)(B)(i)). This paragraph calls for EPA’s regulations to recognize differences in ‘‘size, operations, processes, class and categories of sources.’’ In this document, we propose to maintain distinctions in prevention program levels and in response actions authorized by this provision. The information disclosure provisions discussed in this document generally assist in the development of ‘‘procedures and measures for emergency response after an accidental release of a regulated substance in order to protect human health and the environment.’’ This information disclosure ensures the emergency plans for impacts on the community are based on more relevant and accurate information than would otherwise be available and ensures that the public can become an informed participant in such emergency planning. IV. Prevention Program Requirements A. Incident Investigation and Accident History Requirements 1. Summary of Existing Investigation Requirements Currently, owners or operators of facilities with processes subject to Program 2 and Program 3 are required to investigate each incident which resulted in, or could reasonably have resulted in a catastrophic release (§§ 68.60 and 68.81). The RMP rule defines a catastrophic release in § 68.3 as a major uncontrolled emission, fire, or explosion, involving one or more regulated substances that presents an imminent and substantial endangerment to public health and the environment. Imminent and substantial endangerment includes offsite consequences such as death, injury, or adverse effects to human health or the environment, or the need for the public to shelter-inplace or be evacuated to avoid such consequences. Facility owners or operators are required to determine the factors that contributed to the incident and develop recommendations resulting from the investigation. The PHA (§ 68.67 (c)(2)) is required to address previous incidents which had a likely potential for catastrophic consequences. In the preamble to the existing final rule, EPA explained that while most catastrophic releases affect workers first, there are incidents where workers are protected but the public and the environment may be threatened (e.g., emergency relief devices are designed to vent hazardous atmospheres away from the workplace E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 and into the air where they may be carried downwind). The PHA should recognize and address the potential offsite impact associated with safety measures that protect workers (e.g., by installing a control device on an emergency vent). The RMP rule requires that facility owners and operators consider such possibilities and integrate the protection of workers, the public, and the environment into one program. Thus, RMP facility owners and operators must investigate each significant incident which resulted in, or could reasonably have resulted in a catastrophic release with on- or offsite consequences. 2. Catastrophic Release Definition In the 1996 final rule (61 FR 31687, June 20, 1996), EPA developed a definition of catastrophic release similar to the definition OSHA used in the PSM standard, with modifications to cover events that presented imminent and substantial endangerment to public health and the environment.18 This ensured that owners or operators of sources covered by both OSHA and EPA requirements investigated not only accidents that threatened workers, but also those that threatened the public and the environment. Because EPA modified OSHA’s definition of catastrophic releases so that offsite impacts were covered, there has been confusion among some owners and operators of facilities subject to the RMP rule; some believe they should not have to investigate accidents involving only workers for the purposes of fulfilling requirements under the RMP rule. EPA recognized that the PHA process must address potential offsite impacts associated with safety measures that also protect workers, and that the final rule would ensure that all sources routinely consider such possibilities and integrate protection of workers, the public and the environment into one program. In similar fashion, EPA believes that incident investigation was not intended to be and should not be limited to only those incidents with offsite impacts. Learning from accident causes identified from incident investigations involving only workers can also lead to preventing incidents with further impacts to the surrounding community and therefore, findings and recommendations from all incidents, regardless of who is impacted, should 18 The OSHA definition of catastrophic release is similar to the current definition of the term in the RMP rule. However, OSHA’s definition pertains to incidents that present serious danger to employees in the workplace. (see 29 CFR 1910.119(b) for the full definition) VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 be addressed. In the preamble to the 1996 final RMP rule (61 FR 31711, June 20, 1996), EPA emphasized that ‘‘any incident with the potential for catastrophic consequences in the workplace will also have had the potential for catastrophic consequences offsite.’’ Thus, facility owners or operators should be investigating incidents even if they only impacted workers, as these could have potentially been an accident impacting the public or the environment. EPA has not defined or clarified the term ‘‘imminent and substantial endangerment’’ but did make revisions in the 1996 final RMP rule in order to better define accidents to be reported under the RMP accident history requirements. To make the requirement less vague and less subject to a wide variety of interpretations, the final rule required that accident history shall include all accidental releases from covered processes ‘‘that resulted in deaths, injuries, or significant property damage on site, or known offsite deaths, injuries, evacuations, sheltering in place, property damage, or environmental damage.’’ EPA also provided a definition for ‘‘offsite’’ and ‘‘injury.’’ EPA is proposing to modify the definition of catastrophic release to be identical to the description of accidental releases required to be reported under the accident history reporting requirements in § 68.42. The proposed definition, in § 68.3, replaces ‘‘that presents imminent and substantial endangerment to public health and the environment’’ with impacts that resulted in deaths, injuries, or significant property damage on-site, or known offsite deaths, injuries, evacuations, sheltering in place, property damage, or environmental damage. This better defines the impacts for incidents requiring investigations that caused or could have caused these impacts and clarifies EPA’s intent, rather than leaving it open for interpretation. This is consistent with the accident impacts that must be reported under the 5-year accident history, which EPA considered relevant to include in 1996 ‘‘because it may reflect safety practices at the source’’ and because ‘‘accidental releases from covered processes which resulted in deaths, injuries, or significant property damage on-site, involve failures of sufficient magnitude that they have the potential to affect offsite areas.’’ 19 19 EPA. May 24, 1996. Risk Management Plan Rule, Summary and Response to Comments. Volume 1, pp. 3–11 and 17–4. Docket No. A–91– 73, Document No. IX–C–1. PO 00000 Frm 00011 Fmt 4701 Sfmt 4702 13647 As required by section 609(b) of the RFA, the EPA convened a Small Business Advocacy Review (SBAR) Panel to obtain advice and recommendations from small entity representatives (SERs) that would potentially be subject to the rule’s requirements. As part of the SBAR Panel process, some SERs indicated that EPA’s proposed modification of the definition of catastrophic release would in effect expand that definition, and thereby require investigation of incidents that did not fall under the previous definition. SERs noted that EPA’s current definition includes releases that present an imminent and substantial endangerment to public health and the environment, and that such releases represent only ‘‘major’’ accidents, and not smaller releases that endanger only workers or on-site property. As noted above, EPA’s view is that accidents with only on-site impacts warrant investigation because they have the potential to affect offsite areas. Additionally, since such accidents already clearly fall within the accident history reporting criteria, regulated sources would already need to investigate them, even without the incident investigation provisions, in order to determine the accident history information required under § 68.42, which includes data (e.g., initiating event and contributing factors) that could only be determined through an investigation. Therefore, EPA believes that redefining the term catastrophic release to include the categories of accidents that require reporting under the accident history provisions clarifies, rather than expands, that definition. Nevertheless, EPA seeks comment on the proposed revision to the catastrophic release definition, whether it expands the scope of the current definition instead of clarifying it, and whether the definition should be limited to loss of life; serious injury; significant damage; or loss of offsite property. 3. Root Causes The cause of an incident is often the result of a series of other problems that need to be addressed to prevent recurrences. For example, an operator’s mistake may be the result of poor training, inappropriate procedures, or poor design of control systems; and equipment failure may result from improper maintenance, misuse of equipment (e.g., operating at too high a temperature), or use of incompatible materials. These types of causes are commonly referred to as causal factors (also known as contributing causes, contributory causes, contributing E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 13648 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules factors, or critical factors). The Center for Chemical Process Safety (CCPS) defines a causal factor as a major unplanned, unintended contributor to the incident (a negative occurrence or undesirable condition), that if eliminated would have either prevented the occurrence, or reduced its severity or frequency.20 These are factors that facilitate the occurrence of an incident such as physical conditions and management practices. Causal or contributing factors usually have underlying reasons why they occurred, which are known as root causes. Most root causes are associated with weaknesses, defects or breakdowns in management systems.21 Identifying root causes provides the mechanism for understanding the interaction and impact of system management failures, so that the root causes can be addressed and the maximum benefit is obtained from an incident investigation. CCPS defines a root cause as a fundamental, underlying, system-related reason why an incident occurred that identifies a correctable failure(s) in management systems. There is typically more than one root cause for a process safety incident. Correcting only the immediate cause of an incident (e.g., operator error) may prevent the identical incident from occurring at the same location, but may not prevent similar incidents. Instead, identifying and addressing incident contributing factors and their root causes helps eliminate or substantially reduce the risk of reoccurrence of the incident and other similar incidents. The current Risk Management Program incident investigation requirements under §§ 68.60 and 68.81 do not explicitly require root causes to be determined and reported, rather they only require ‘‘the factors that contributed to the incident.’’ Facility owners and operators that conduct incident investigations that only identify ‘‘factors that contributed to the incident’’ may miss identifying the underlying, system-related reason why an incident occurred (which would be revealed in a root cause analysis). Thus EPA is proposing to require a root cause analysis to ensure that facilities determine the underlying causes of an incident to reduce or eliminate the potential for additional accidents 20 CCPS. March 2003. Guidelines for Investigating Chemical Process Incidents, 2nd ed., pp.3, 62, 181, 434. CCPS, American Institute of Chemical Engineers, New York, NY. John Wiley and Sons. 21 EPA recognizes that some root causes could be events that management systems could not have prevented or protected against. The analytic techniques used to identify root causes account for such events. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 resulting from deficiencies of the same process safety management system. 4. Lack of Root Cause Analysis for Prior Incidents Below are examples of incident investigations that identified similar prior incidents within the same facility or company where root causes for the prior incidents were not analyzed and determined. This resulted in missed opportunities to address the proper causes of the incidents, share the lessons learned and prevent further similar incidents. On January 21, 1997, at a Tosco refinery, effluent piping on a hydrocracker reactor ruptured, causing an explosion and fire, killing one operator and injuring 46 other Tosco and contractor personnel. The accident was caused by an uncontrolled temperature excursion in the reactor resulting in an excessively high temperature that caused the pipe to rupture.22 Operators did not follow prescribed emergency depressurizing procedures for extremely high temperature occurrences and attempted to control the temperature by other means. Investigations of prior incidents involving unsafe temperature excursions were inadequate and not all these excursions were documented. Failure to investigate these ‘‘nearmisses’’ resulted in a missed opportunity to determine why operators were not following prescribed emergency depressurizing procedures and to develop solutions to address the cause. After the 1997 accident, the company designed the depressurizing system to activate automatically when the reactor temperature exceeded safe operating limits. On September 10, 1997, an explosion occurred in a resins production unit at Georgia-Pacific Resins, Inc. in Columbus, Ohio, causing the death of one worker, four injuries, extensive damage to the plant, and sheltering in place for nearby residents, a vocational school and businesses.23 Three firefighters received first-degree burns. An accident investigation determined that raw materials and a catalyst were charged too quickly to a reactor, causing a runaway reaction generating too much heat and pressure, which caused the 22 EPA. November 1998. EPA Chemical Accident Investigation Report, Tosco Avon Refinery, Martinez, CA. EPA 550–R–98–009. https:// nepis.epa.gov/Exe/ZyPDF.cgi/ 10003A2E.PDF?Dockey=10003A2E.PDF. 23 EPA, Office of Solid Waste and Emergency Response. August 1999. How to Prevent Runaway Reactions, Case Study: Phenol-Formaldehyde Reaction Hazards. EPA 550–F99–004. https:// archive.epa.gov/emergencies/docs/chem/web/pdf/ gpcasstd.pdf. PO 00000 Frm 00012 Fmt 4701 Sfmt 4702 reactor to explode. Prior to the accident, the facility had recently experienced a near miss involving similar circumstances.24 An operator added chemicals to a batch resin process at too high a rate. Other alert operators noted the procedural deviation and were able to prevent an accident. The company investigated the accident and disciplined the operator, but took no other actions. An accident on June 22, 1997, at a Shell olefins plant involved a release of flammable gases from a structural failure and drive shaft blowout from a 36 inch diameter failed check (nonreturn) valve, resulting in a massive explosion and fire causing extensive damage to the facility, damage to nearby residential property, several worker injuries, and sheltering in place for nearby residents. An EPA/OSHA accident investigation determined that these check valves were not appropriately designed and manufactured for the heavy-duty service to which they were subjected in the olefins production unit.25 Similar problems with the check valves had occurred previously at the facility and at other facilities owned by the company, but the occurrences were not adequately investigated and did not identify all the factors involved in the valves’ failure. The other valve failure occurrences did not result in as severe consequences as the 1997 event and were treated as maintenance failures, not incidents or accidents. Thus, the lessons that could have been learned from these prior failures were not adequately identified, shared, and implemented. On April 8, 1998, at a Morton International chemical plant, a runaway reaction in a process kettle caused an overpressure of the vessel, blew off the top hatch, and spewed a stream of gas and liquid through the roof of the building and down onto the surrounding community. Residents in a 100 city-block area were confined to their homes. Nine workers were injured, two with severe burns. The U.S. Chemical Safety Board (CSB) determined that Morton could have corrected safety problems in the process if they had conducted investigations into any of the eight prior instances when process temperatures exceeded 24 Belke, James C (EPA). 1997. Recurring Causes of Recent Chemical Accidents. https:// psc.che.tamu.edu/wp-content/uploads/recurringcauses-of-recent-chemical-accidents.pdf. 25 EPA and OSHA. June 1998. EPA/OSHA Joint Chemical Accident Investigation Report, Shell Chemical Company, Deer Park, TX. EPA 550–R–98– 005. https://nepis.epa.gov/Exe/ZyPDF.cgi/ 100039YA.PDF?Dockey=100039YA.PDF. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules the normal range.26 Process and design changes resulting from such investigations could have prevented the 1998 explosion. On April 23, 2004, an explosion and fire at the Formosa Plastics Corporation (FPC USA), Illiopolis, Illinois, (Formosa-IL) polyvinyl chloride (PVC) manufacturing facility killed five and severely injured three workers. The explosion and fire destroyed most of the reactor facility and adjacent warehouse and ignited PVC resins stored in the warehouse. Smoke from the smoldering fire drifted over the local community, and as a precaution, local authorities ordered an evacuation of the community for two days. CSB determined that this incident occurred when an operator drained a full, heated, and pressurized PVC reactor and bypassed a pressure interlock.27 The safeguards to prevent bypassing the interlock were insufficient for the high risk associated with this activity. Two similar incidents at FPC USA PVC manufacturing facilities highlighted problems with safeguards designed to prevent inadvertent discharge of an operating reactor. The FPC USA Environmental Health & Safety group had received reports of both incidents, but did not recognize a key similarity: Operators could mistakenly go to the wrong reactor and bypass safeguards to open a reactor bottom valve. On March 23, 2005, at the BP Texas City Refinery in Texas City, Texas, explosions and fires killed 15 people and injured another 180, required shelter-in-place for 43,000 people, damaged nearby houses, and resulted in financial losses exceeding $1.5 billion. The incident occurred during the startup of an isomerization (ISOM) unit when a raffinate splitter tower was overfilled and pressure relief devices opened, resulting in a flammable liquid geyser from a blowdown stack that was not equipped with a flare. The release of flammables led to an explosion and fire. All of the fatalities occurred in or near office trailers located close to the blowdown drum. A CSB investigation found that in the years prior to the incident, eight serious releases of flammable material from the ISOM blowdown stack had occurred, and most ISOM startups experienced high liquid 26 CSB. 2000. Investigation Digest: Morton International Explosion, Paterson, NJ, April 8, 1998. https://www.csb.gov/assets/1/19/Morton_Digest.pdf. 27 CSB. March 2007. Investigation Report: VCM Explosion, Formosa Plastics Corp., Illiopolis, Illinois, April 23, 2004. Report No. 2004–10–I–IL. https://www.csb.gov/assets/1/19/Formosa_IL_ Report.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 levels in the splitter tower.28 The investigation identified root causes of the accident involving senior leadership failures including: • Ineffective safety culture leadership and oversight; • ineffective evaluation of safety implications or organization, personnel, and policy changes; and • inadequate resources to prevent major accidents. Root causes identified involving plant management failures included: • Lack of an effective reporting and learning culture (incidents were often ineffectively investigated); • use of outdated plant policies and procedures; • poor design of the ISOM unit; • inadequate supervision of operators; • inadequate training of operators; and • ineffective consideration of human factors regarding training, staffing, and work schedules for operators. The ineffective investigation of previous incidents resulted in a failure to identify, or act upon, lessons from incidents and near-misses. This includes a failure to incorporate relevant safety lessons from a British government investigation 29 of incidents at BP’s Grangemouth, Scotland, refinery, which were relevant to the Texas City refinery. On August 23, 2010, the Millard Refrigerated Service warehouse in Theodore, Alabama, had a release of approximately 32,000 pounds of anhydrous ammonia from a cracked pipe, when refrigeration equipment malfunctioned. The ammonia travelled directly over a shipyard in Mobile, Alabama, where more than 800 people were working, causing 152 people to be treated at hospitals, four of whom were admitted into intensive care units. An EPA investigation of the incident revealed that Millard failed to adequately address a well-known risk for ammonia production systems called hydraulic shock, which can cause catastrophic equipment failures.30 EPA 28 CSB. March 2007. Investigation Report: Refinery Explosion and Fire, BP, Texas City, Texas, March 23, 2005. Report No. 2005–04–I–TX. https:// www.csb.gov/assets/1/19/CSBFinalReportBP.pdf. 29 Health and Safety Executive (United Kingdom) and Scottish Environment Protection Agency. August 18, 2003. Major Incident Investigation Report—BP Grangemouth Scotland, 29th June–10th May, 2000. A Public Report Prepared on Behalf of the Competent Authority. https://www.hse.gov.uk/ comah/bpgrange/images/bprgrangemouth.pdf. 30 EPA. May 29, 2015. USA vs. Millard Refrigerated Services, LLC, U.S. District Court for the Southern District of Alabama, Civil Action No. 15–186. pp. 9–11, and 19–20. Case 1:15–cv–00186– WS–M Document 5. https://www2.epa.gov/sites/ production/files/2015-06/documents/millard- PO 00000 Frm 00013 Fmt 4701 Sfmt 4702 13649 also discovered that Millard had two prior smaller ammonia releases in April 2007 and January 2010 caused by hydraulic shock. Company investigations of those incidents failed to identify and correct this problem, which could have prevented the catastrophic release that occurred in August 2010. 5. Current Use of Root Cause Analysis Root cause analysis of accidents is an accepted safe management practice used by many industries. The American Chemistry Council (ACC) noted that root cause analysis is conducted routinely under a number of voluntary programs, including Responsible Care.31 The Texas Pipeline Association (TPA) stated that a requirement to perform a root cause analysis was not needed because it is a common industry practice.32 However, the Compressed Gas Association (CGA) stated that they supported modifying current regulations to include a requirement that root cause analyses be conducted for incidents but not for near misses or process upsets because defining a ‘‘near miss’’ or ‘‘process upset’’ is extremely difficult and will likely vary by industry, process, locations and the like.33 EPA addresses the difficulty of defining the term ‘‘near miss’’, in section IV.A.7. Near Misses. ACC also notes that there are a number of recognized industry resources to aid incident investigations of root causes. For example, CCPS offers several resources, including the ‘‘Guidelines for Investigating Chemical Process Incidents,’’ 2nd edition, which provides valuable, practical reference tools, and focuses on process-related incidents with real or potential catastrophic consequences.34 ACC further notes that there are a number of companies that provide excellent root cause failure analysis training. California’s Contra Costa County Health Services (CCHS) and the city of Richmond, California, each have incident investigation regulations in their Industrial Safety Ordinances (ISO) similar to those in § 68.81 and, in cp.pdf. See also https://www2.epa.gov/enforcement/ millard-refrigerated-services-llc-clean-air-act-caasettlement. 31 ACC. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0694 on Risk Management Program RFI, p. 43 of 189. 32 TPA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0617 on Risk Management Program RFI, p. 8. 33 CGA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0633 on Risk Management Program RFI, p. 6 34 CCPS 2003. Center for Chemical Process Safety, Guidelines for Investigating Chemical Process Incidents, 2nd Edition, NY: AIChE. E:\FR\FM\14MRP4.SGM 14MRP4 13650 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules addition, require a root cause analysis for each major chemical accident.35 36 New Jersey’s Toxic Catastrophe Prevention Act (TCPA) requires investigation of all extraordinarily hazardous substance accidents or potential catastrophic events. The TCPA requirements have the same incident investigation requirements found in § 68.81, but the TCPA investigation report requires additional information beyond the requirements in § 68.81.37 The TCPA investigation report must include: • Time and location of the chemical accident or potential catastrophic event; • A description of the chemical accident or potential catastrophic event in chronological order, providing all the relevant facts; • The identity, amount, and duration of the chemical release if these facts can be reasonably determined based on the information obtained through the investigation; • The consequences, if any, of the chemical accident or potential catastrophic event, including the number of evacuees, injured, and fatalities, and the impact on the community; • The factors that contributed to the chemical accident or potential catastrophic event that includes an identification of basic and contributory causes, either direct or indirect; and • The names and position titles of the investigators. Once the incident scenario is understood and contributory causes identified, this information may be used to determine the incident’s root causes which are the underlying systemic reasons related to a failure in a management system. EPA believes that providing the following information is vital for understanding the nature of the incident and should be included in the incident investigation report: mstockstill on DSK4VPTVN1PROD with PROPOSALS4 • The chronological order of details of the incidents, • the chemical identity, • amount and duration of the release, • the impacts of the release, and • basic and contributory causes, either direct or indirect. 35 Contra Costa County Board of Supervisors. 2006. California’s Contra Costa County ISO, pp. 5, 12–13, 17–19. https://cchealth.org/hazmat/pdf/iso/ Chapter-450-8-RISK-MANAGEMENT.pdf. 36 A major chemical accident is defined in the ISO as one meeting a level 2 or 3 incident classification as determined by the county or one resulting in: One or more fatalities; at least three persons hospitalized for at 24 hours; on- and/or offsite property damage (including clean-up and restoration activities) initially estimated at $500,000 or more; or a vapor cloud of flammables and/or combustibles that is more than 5,000 pounds. 37 New Jersey Department of Environmental Protection (NJDEP) TCPA. March 29, 2012. NJDEP. Title 7, Chapter 31 TCPA Program Consolidated Rule Document, p. 62. https://www.state.nj.us/dep/ rpp/brp/tcpa/downloads/conrulerev9_fonts.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Some facility owners or operators may already include this information in incident investigation reports prepared to comply with the RMP rule; however, EPA is proposing that §§ 68.60 and 68.81 be revised to require this information to ensure clarity and consistency among reports. To better address causes of incidents and further reduce the occurrence of catastrophic releases, EPA is proposing to require that for all Program 2 and Program 3 process incidents that resulted in, or could reasonably have resulted in, a catastrophic release, the owner or operator determine and identify the factors that contributed to the incident, including immediate and contributory causes, either direct or indirect, and root causes. EPA is proposing to define ‘‘root cause’’ (see § 68.3 for the proposed definition). Root causes shall be determined by conducting a root cause analysis for each incident using a recognized method or approach. CCPS’ ‘‘Guidelines for Investigating Chemical Process Incidents’’ discusses incident investigation approaches and techniques and root cause analysis methods.38 OSHA plans to develop a fact sheet on existing resources that explain how to conduct root cause analyses so the regulated community can better understand the causes of incidents and can increase its capability to effectively prevent future occurrences.39 In order that lessons learned from incident investigations be applied, EPA is proposing to modify the hazard review requirement in § 68.50(a)(2) and the PHA requirement in § 68.67(c)(2) to require the owner or operator to address findings from all incident investigations required under §§ 68.60 and 68.81, respectively. EPA is also proposing to require that for incident investigations conducted by Program 2 sources, an incident investigation team be established and consist of at least one person knowledgeable in the process involved and other persons with appropriate knowledge and experience to thoroughly investigate and analyze the incident. This requirement is already part of Program 3 incident investigation requirements, and is a necessary component for investigations 38 CCPS. March 2003. Guidelines for Investigating Chemical Process Incidents, 2nd ed. 39 Chemical Facility Safety and Security Working Group. May 2014. Executive Order 13650 Report to the President—Actions to Improve Chemical Facility Safety and Security—A Shared Commitment, p. 47. https://www.osha.gov/ chemicalexecutiveorder/final_chemical_eo_status_ report.pdf. PO 00000 Frm 00014 Fmt 4701 Sfmt 4702 that would include analysis of root causes. EPA seeks comment on the proposed amendments of the incident investigation requirements to require root cause investigations for each incident which resulted in, or could reasonably have resulted in, a catastrophic release and on the proposed definition for root cause. EPA seeks comment on whether a root cause analysis is appropriate for every RMP reportable accident and near miss. Should EPA eliminate the root cause analysis, or revise to limit or increase the scope or applicability of the root cause analysis requirement? If so, how should EPA revise the scope or applicability of this proposed requirement? EPA also seeks comment on proposed amendments to require consideration of incident investigation findings, in the hazard review (§ 68.50) and PHA (§ 68.67) requirements. Finally, EPA seeks comment on the proposed additional requirement in § 68.60 to require personnel with appropriate knowledge of the facility process and knowledge and experience in incident investigation techniques to participate on an incident investigation team. 6. Decommissioned Processes EPA has encountered some cases where a facility chose not to conduct an incident investigation because the owner or operator elected to decommission the process involved, or because the process was destroyed in the incident. While an investigation would have no impact on a decommissioned or destroyed process, other similar processes or operations at the facility, or at similar facilities, could potentially benefit from its findings. CCHS and two industry associations commented that there are lessons that can be learned from requiring investigations to be performed, even in cases where the owner or operator elects to decommission the process involved or where the process is destroyed in the incident.40 41 Therefore, EPA is proposing to revise §§ 68.60 and 68.81 to clarify that incident investigations are required even if the process involving the regulated substance is destroyed or decommissioned following or as the result of an incident. EPA is also proposing to revise § 68.190, which addresses updates to the RMP, to 40 CCHS. October 28, 2014. Comment No. EPA– HQ–OEM–2014–0328–0546 on Risk Management Program RFI, p. 12. 41 Independent Petroleum Association of America (IPAA) AXPC. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0584 on Risk Management Program RFI, p. 33. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules require that prior to any de-registration of a process or stationary source that is no longer subject to the Risk Management Program rule, the owner or operator must report any accidents subject to the requirements of § 68.42 and conduct incident investigations as required under §§ 68.60 and/or 68.81. EPA seeks comment on the proposed revisions to require an owner or operator to meet applicable reporting and incident investigation requirements prior to de-registering a process. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 7. Near Misses The current incident investigation provisions require facilities with Program 2 and/or 3 processes to investigate incidents that could reasonably have resulted in a catastrophic release. These types of incidents are sometimes characterized as ‘‘near misses’’ but there is confusion about what this term means. Several commenters on the Risk Management Program RFI, including the Society of Chemical Manufacturers and Affiliates (SOCMA),42 American Petroleum Institute (API),43 Gas Processors Association (GPA),44 National Oilseed Processors Association (NOPA), & Corn Refiners Association (CRA),45 and American Fuel & Petrochemical Manufacturers (AFPM),46 stated that they interpret the current requirements as including near misses. Other commenters (ACC,47 TPA,48 CGA,49 DPC Industries, Inc.,50 and Allied Universal Corp [AUC]) 51 urged EPA to not require investigations of near misses because the term is vague, inherently situation-specific and not reducible to a singular definition. CCPS defines a near 42 SOCMA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0560 on Risk Management Program RFI, p. 9. 43 API. October 29, 2014. Comment No. EPA–HQ– OEM–2014–0328–0624 on Risk Management Program RFI, p. 32. 44 GPA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0626 on Risk Management Program RFI, p. 12. 45 NOPA & CRA. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0328 on Risk Management Program RFI, pp. 30–31. 46 AFPM. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0665 on Risk Management Program RFI, pp. 46–47. 47 ACC. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0694 on Risk Management Program RFI, PDF pp. 44–45 of 189. 48 TPA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0617 on Risk Management Program RFI, pp. 7–8. 49 CGA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0633 on Risk Management Program RFI, p. 6. 50 DPC Industries, Inc. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0649 on Risk Management Program RFI, p. 4. 51 AUC. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0646 on Risk Management Program RFI, p. 3. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 miss as an event in which an accident causing injury, death, property damage, or environmental impact, could have plausibly resulted if circumstances had been slightly different.52 EPA itself may have contributed to the confusion over the meaning of the term ‘‘near miss.’’ In the 1993 proposed RMP rule (58 FR 54200, October 20 1993), EPA indicated that investigation of near misses could provide facilities with important information on problems that should be addressed before a significant accidental release occurs. EPA considered a near miss as a mishap that did not result in a release for some reason, such as employee actions or luck. However, in the primary interpretive guidance document for the RMP rule, ‘‘General Guidance on Risk Management Programs for Chemical Accident Prevention (40 CFR part 68)’’ (RMP Guidance), originally published in 1999, EPA indicated that while the owner or operator ‘‘must investigate each incident which resulted in, or could have resulted in, a catastrophic release of a regulated substance,’’ the owner or operator was not required to investigate ‘‘minor accidents or near misses:’’ You should also consider investigating minor accidents or near misses because they may help you identify problems that could lead to more serious accidents; however, you are not required to do so under part 68.53 Here, EPA intended to differentiate between incidents, which ‘‘could have resulted in a catastrophic release,’’ and ‘‘minor accidents and [minor] near misses,’’ which are unlikely to have led to a catastrophic release. EPA’s experiences with RMP facility inspections and incident investigations show there have been incidents that were not investigated, even though under slightly different circumstances, the incident could have resulted in a catastrophic release. While these events did not result in deaths, injuries, adverse health or environmental effects, or sheltering-in-place, if circumstances had been slightly different, a catastrophic release could have occurred. For example, a runaway reaction that is brought under control by operators is a near miss that may need to be investigated to determine why the problem occurred, even if it does not directly involve a covered process both because it may have led to a release from a nearby covered process or 52 CCPS. March 2003. Guidelines for Investigating Chemical Process Incidents, 2nd ed., p. 61. 53 See General Guidance on Risk Management Programs for Chemical Accident Prevention (40 CFR part 68), EPA–550–B–04–001, April 2004, page 6–26. https://www2.epa.gov/rmp/guidance-facilitiesrisk-management-programs-rmp#general. PO 00000 Frm 00015 Fmt 4701 Sfmt 4702 13651 because it may indicate a safety management failure that applies to a covered process at the facility. Similarly, fires and explosions near or within a covered process, any unanticipated release of a regulated substance, and some process upsets could potentially lead to a catastrophic release. Facilities regulated under New Jersey’s TCPA program are required to investigate each regulated chemical (‘‘extraordinarily hazardous substance’’), involved in an accident or potential catastrophic event.54 The NJDEP notes that ‘‘potential catastrophic event’’ means an incident that could have reasonably resulted in a catastrophic release of a regulated chemical which includes incidents in which no regulated chemical was released or no regulated chemical was released beyond a permitted level, or in other words, a near miss. Facilities report accidents and potential catastrophic events annually to New Jersey. NJDEP notes that each year, less than fifty percent of the facilities reported that they had one or more incidents.55 Most of the incidents reported involved the release of a regulated chemical. The number of near misses reported averaged less than 1 per facility. In its comments on the Risk Management Program RFI, GPA reasoned that requiring a root cause analysis for minor near misses would be burdensome and costly and would discourage employees and contractors from reporting near misses because of the burden of conducting a rigorous investigation.56 Similarly, some commenters, such as API thought that process upsets should not be included in incident investigation requirements because there is no standard definition; process upsets vary across a wide range from product quality/efficiency issues to ones that represent near-miss situations; and learning from process upset events that do potentially challenge process safety systems can be accomplished via other means. According to API, including all process upsets would overburden the root cause analysis/ 54 NJDEP TCPA. March 29, 2012. NJ Title 7, Chapter 31 TCPA Program Consolidated Rule Document, p. 2. https://www.state.nj.us/dep/rpp/ brp/tcpa/downloads/conrulerev9_fonts.pdf. 55 NJDEP. October 21, 2014. Comment No. EPA– HQ–OEM–2014–0328–0338 on Risk Management Program RFI, p. 16. 56 GPA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0626 on Risk Management Program RFI, p. 14. E:\FR\FM\14MRP4.SGM 14MRP4 13652 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules investigation resources within a facility.57 CCPS’s ‘‘Process Safety Leading and Lagging Metrics—You Don’t Improve What You Don’t Measure’’ explains that a near miss has three essential elements.58 These include: • An event occurs, or a potentially unsafe situation is discovered; • the event or unsafe situation had reasonable potential to escalate, and • the potential escalation would have led to adverse impacts. The CCPS document and the CCPS ‘‘Guidelines for Investigating Chemical Process Incidents’’ contain many examples of near misses, which can be an actual event or discovery of a potentially unsafe situation.59 Examples of incidents that should be investigated include some process upsets, such as: Excursions of process parameters beyond pre-established critical control limits; activation of layers of protection such as relief valves, interlocks, rupture discs, blowdown systems, halon systems, vapor release alarms, and fixed vapor spray systems; and activation of emergency shutdowns. Near misses should also include any incidents at nearby processes or equipment outside of a regulated process if the incident had the potential to cause a catastrophic release from a nearby regulated process. An example would be a transformer explosion that could have impacted nearby regulated process equipment causing it to lose containment of a regulated substance. Near misses could also include process upsets such as activation of relief valves, interlocks, blowdown systems or rupture disks. Because it is difficult to prescribe the various types of incidents that may occur in RMP-regulated sectors that should be considered near misses, and therefore be investigated, EPA is not proposing a regulatory definition. Instead, EPA will rely on facility owners or operators to decide which incidents to investigate, based on the seriousness of the incident, the process(es) involved, and the specific conditions and circumstances involved. In the 1996 Response to Comments on the final rule, EPA acknowledged that mstockstill on DSK4VPTVN1PROD with PROPOSALS4 the range of incidents that reasonably could have resulted in a catastrophic release is very 57 API. October 29, 2014. Comment No. EPA–HQ– OEM–2014–0328–0624 on Risk Management Program RFI, p. 32. 58 CCPS. January 2011. Process Safety Leading and Lagging Metrics—You Don’t Improve What You Don’t Measure, p. 36. CCPS, American Institute of Chemical Engineers, New York, NY. John Wiley and Sons. https://www.aiche.org/sites/default/files/docs/ pages/CCPS_ProcessSafety_Lagging_2011_2–24.pdf. 59 CCPS. March 2003. Guidelines for Investigating Chemical Process Incidents, 2nd ed., p. 68. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 broad and cannot be specifically defined.60 EPA decided to leave it up to the discretion of the owner or operator to determine whether an incident could reasonably have resulted in a catastrophic release and to investigate such incidents. The intent is not to include every minor incident or leak, but focus on serious incidents that could have resulted in a catastrophic release, although EPA acknowledges this will require subjective judgment. Finally, EPA expects that lessons learned from near miss incident investigations be considered when conducting a hazard review or PHA. Therefore, the proposed amendments to §§ 68.50(a)(2) and 68.67(c)(2) would require the hazard review and the PHA to include findings from all incident investigations required under §§ 68.60 and 68.81. This includes incidents that could reasonably have resulted in a catastrophic release (i.e., a near miss). EPA seeks comment on the guidance and examples provided of a near miss. Is further clarification needed in this instance? Should EPA consider limiting root cause analyses only for incidents that resulted in a catastrophic release? 8. Investigation Timeframe EPA believes incident investigations will result in improved process safety through the dissemination of lessons learned and the implementation of recommended corrective actions. Conducting these investigations as soon as possible after an incident may yield better quality data and information, although it may take time to collect, validate, and integrate data from a range of sources. EPA has discovered situations where owners or operators of regulated facilities indefinitely delayed completing incident investigations. Therefore, in the Risk Management Program RFI, EPA considered whether incident investigations should be required to be completed within a certain amount of time. In their comments on the RFI, Mary Kay O’Connor Process Safety Center (MKOPSC) 61 stated that the timeframe requirement for an incident investigation to be completed should be based on the following factors: The consequence, the complexity of the incident, the process, the substance, and the investigation team’s experience, 60 EPA. May 24, 1996. Risk Management Plan Rule, Summary and Response to Comments. Volume 1, p. 16–4. Docket No. A–91–73, Document No. IX–C–1. 61 MKOPSC. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0543 on Risk Management Program RFI, p. 144. PO 00000 Frm 00016 Fmt 4701 Sfmt 4702 knowledge and members. ACC 62 and API 63 noted that the time to complete an investigation is highly dependent on the complexity of the accident and the process and can require assistance from outside process experts that may not immediately be available. CCHS commented that a specific timeframe for incident investigations to be completed would benefit overall safety and noted that most incidents can be investigated within six months.64 However, CCHS stated that it may be appropriate that a specific time be required that could be changed by documented justification. As to timeframes, some of the refineries in Contra Costa County, California, have corporate requirements to complete all investigations within 30 to 60 days. Exceptions can be granted for large events. CCHS noted that there are challenges and limitations to completing an incident investigation within a specified timeframe. Other RFI commenters, such as TPA,65 GPA,66 and JR Simplot,67 noted that having a specific timeline to complete an investigation could cause facilities to focus more on complying with a deadline at the expense of using the appropriate level of rigor and getting the right answer. EPA’s own experience with accident investigation has shown that a major accident investigation can take up to a year or more. Taking into consideration the need for completion of an investigation while allowing the proper time to determine the correct root causes, EPA is proposing to require that facility owners or operators complete an incident investigation report within 12 months of an incident that resulted in, or could reasonably have resulted in, a catastrophic release. For very complex incident investigations that cannot be completed within 12 months, EPA is allowing an extension of time if the implementing agency approves, in writing. EPA believes that 12 months is long enough to complete most complex accident investigations but will allow facilities more time if they consult with their 62 ACC. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0694 on Risk Management Program RFI, p. 44. 63 API. October 29, 2014. Comment No. EPA–HQ– OEM–2014–0328–0624 on Risk Management Program RFI, p. 32. 64 CCHS. October 28, 2014. Comment No. EPA– HQ–OEM–2014–0328–0546 on Risk Management Program RFI, p. 12. 65 TPA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0617 on Risk Management Program RFI, p. 9. 66 GPA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0626 on Risk Management Program RFI, p. 13. 67 JR Simplot. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0667 on Risk Management Program RFI, p. 31. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 implementing agency and receive approval for an extension of time. EPA notes that the Agency’s own requirements under the Petroleum Refinery maximum achievable control technology (MACT) and New Source Performance Standards (NSPS) regulations already require root cause and corrective action analyses for certain release events (see 40 CFR parts 63.648(j)(6) and (j)(7)), and 60.103a(d)) with a more stringent timeframe (i.e., 45 days) for completing these analyses than the 12 months specified in this proposed rule. RMP-regulated facilities that are also required to meet the MACT and NSPS root cause analysis requirements must continue to meet the timeframes specified under those rules as applicable. However, root cause analyses conducted to meet those requirements may also be used to comply with the root cause analysis requirements proposed herein, provided the analysis meets the requirements of § 68.60 or § 68.81, as applicable. EPA seeks comment on the appropriateness of establishing a specific timeframe for incident investigations to be completed and what that timeframe should be. As an alternative, EPA considered whether the incident investigation should be completed prior to restart of the affected process, if the incident resulted in a process shutdown, to ensure that the causes of an incident have been addressed. EPA seeks comment on whether to add this condition to the incident investigation requirements or whether there are other options to ensure that unsafe conditions that led to the incident are addressed before a process is re-started. EPA also seeks comment on whether the different root cause analysis timeframes specified under the MACT and NSPS and proposed herein will cause any difficulties for sources covered under both rules, and if so, what approach EPA should take to resolve this issue. 9. Accident History Reporting Thorough investigations and reporting may help facilities identify and address root causes. Accident history reporting provides an avenue to disseminate lessons learned. Local communities are interested in whether facilities are investigating incidents and taking steps to prevent future accidents. EPA believes it is important to determine and report results of root cause analysis for accidents with reportable impacts in the RMP accident history. Therefore, EPA has proposed that information on root causes analyzed as part of an incident investigation be included in the RMP accident history in § 68.42. Because VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 there can be numerous potential incident root causes identified for a single incident, and in order to simplify reporting for the RMP accident history, EPA believes that the root cause information should be reported as root cause categories. Various methods for identifying root causes have been published. Some methods involve the use of root cause trees which show root cause categories for different PSM systems, where each category can be associated with many specific root cause deficiencies.68 69 One root cause system uses the following list of root cause categories: Procedures; Training; Communications; Administrative/Management System; Personal Performance; Human Factors Engineering; Immediate Supervision; Equipment Design; Equipment/Records; Equipment Reliability/Maintenance; and Equipment Installation/Fabrication. Another uses a slightly different list: Procedures, Training, Quality Control, Communications, Management System, Human Engineering and Immediate Supervision. EPA will modify its online reporting system for RMPs (RMP*eSubmit) to incorporate an appropriate list of root cause categories for RMP facility incident investigations of RMP reportable accidents based on these categories. Because EPA is proposing that the incident investigation be required to be completed within 12 months, root causes may not be known until 12 months after an accidental release. Section 68.195(a) currently requires that the accident history information in § 68.42 be submitted within six months of the release. Because EPA is proposing to add accident root cause categories to § 68.42, EPA is also proposing in § 68.195(a)(2) that the root cause categories be submitted in the RMP within 12 months of the release. EPA seeks comment on the appropriateness of requiring root cause reporting as part of the accident history requirements of § 68.42, as well as the categories that should be considered and the timeframe within which the root cause information must be submitted. 68 Paradies, Mark, Unger, Linda and Busch, David. 1996. TapRooT® Root Cause TreeTM & User’s Manual, Rev. 4. Systems Improvements, Inc., Knoxville, TN. 69 ABS Group Inc. 1999. Root Cause MapTM and Root Cause Analysis Handbook, A Guide to Effective Incident Investigation. ABS Group, Inc., Risk & Reliability Division, Knoxville, TN. PO 00000 Frm 00017 Fmt 4701 Sfmt 4702 13653 10. Proposed Revisions to Regulatory Text a. Definitions (§ 68.3) EPA is proposing to add a definition of ‘‘root cause’’ and modify the definition of ‘‘catastrophic release’’ in § 68.3. b. Five-Year Accident History (§ 68.42) EPA is proposing to amend paragraph (b) by adding a new subparagraph (b)(10) to require of incident investigation root cause categories to be reported. Current subparagraphs (b)(10) and (b)(11) will become subparagraphs (b)(11) and (b)(12), respectively. c. Hazard Review (§ 68.50) EPA is proposing to amend subparagraph (a)(2) by adding a phrase at the end to require the owner or operator to consider findings from incident investigations. This is similar to the revision proposed for Program 3 facilities in § 68.67(c)(2). d. Incident Investigation (§§ 68.60 and 68.81) EPA is proposing to revise § 68.60, which is applicable to Program 2 processes, and § 68.81, which is applicable to Program 3 processes, by revising paragraph (a) to add subparagraphs (a)(1) and (a)(2) to better clarify the scope of incidents that must be investigated. Subparagraph (a)(1) applies to an incident that resulted in a catastrophic release and clarifies that the owner or operator must investigate the incident even if the process involving the regulated substance is destroyed or decommissioned. Subparagraph (a)(2) applies to a nearmiss, which is an incident that could reasonably have resulted in a catastrophic release. EPA is also removing the phrase ‘‘of a regulated substance’’ from paragraph (a) because it is duplicative. The definition of catastrophic release refers to releases of regulated substances. EPA is also proposing to add a new paragraph (c) to § 68.60 requiring that an incident investigation team be established and consist of at least one person knowledgeable in the process involved and other persons with appropriate knowledge and experience to thoroughly investigate and analyze the incident. This is similar to the requirement in § 68.81(c) for Program 3 processes. Current paragraphs (c) through (f) would become paragraph (d) through (g). EPA is also proposing to make changes to the new paragraph (d) in § 68.60 and current paragraph (d) in § 68.81 to revise the incident E:\FR\FM\14MRP4.SGM 14MRP4 13654 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules investigation report requirements. EPA is proposing to change the word ‘‘summary’’ to ‘‘report’’ and require facility owners or operators to complete incident investigation reports within 12 months unless the implementing agency approves, in writing, an extension of time. Furthermore, EPA is proposing to amend and add new subparagraphs in the new paragraph (d) in § 68.60 and current paragraph (d) in § 68.81 requiring additional elements in an incident investigation report. EPA is proposing to: • Revise paragraph (d)(1) to require the time and location of the incident in the investigation report; • Revise paragraph (d)(3) to specify that the description of the incident be in chronological order and provide all relevant facts; • Add new paragraph (d)(4) to require that the investigation report include the name and amount of the regulated substance involved in the release or near miss and the duration of the event; • Add paragraph (d)(5) to require a description of the consequences, if any, of the incident; • Add paragraph (d)(6) to require a description of emergency response actions taken; • Renumber current paragraph (d)(4) to (d)(7) and require additional criteria related to the factors contributing to the incident, including the initiating event, direct and indirect contributing factors, and root causes. Add language to new paragraph (d)(7) to require that root causes must be determined through the use of a recognized method. • Renumber the current paragraph (d)(5) to (d)(8) and add language to require a schedule for addressing recommendations resulting from the investigation to be included in the investigation report. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Finally, EPA is proposing to amend the current paragraph (f) which would be the new paragraph (g) to add the word incident before investigation and change ‘‘summaries’’ to ‘‘reports’’ for consistency. e. Process Hazard Analysis (PHA) (§ 68.67) EPA is proposing to add subparagraph (c)(2) to require the owner or operator to address findings from incident investigations, as well as any other potential failure scenarios (e.g., incidents that occurred at other similar facilities and or processes, failure mechanisms discovered in literature or from other sources of information). This is similar to the revision for Program 2 facilities in § 68.50(a)(2). f. Updates (§ 68.190) EPA is proposing to amend paragraph (c) to require that the owner or operator report any accidents covered by § 68.42 VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 and conduct incident investigations required under §§ 68.60 and/or 68.81 prior to de-registering a process or stationary source that is no longer subject to the RMP rule. 11. Alternative Options EPA considered limiting these requirements to the original universe of Program 3 processes that existed before OSHA changed its PSM retail exemption. Accidents occur at a higher frequency in these processes as compared to processes covered in Program 2. However, with the shift of many Program 2 processes into Program 3 due to OSHA’s revised policy on the PSM retail facility exemption, most of the accidents at remaining Program 2 processes occur at publicly owned water and wastewater treatment facilities that are not in Program 3 because they are not subject to OSHA PSM. State and local government employees at facilities in states under Federal OSHA authority are not covered by the OSHA PSM standard unlike state and local government employees at facilities in states with OSHA approved State Plans. These processes pose the same risk as the publicly owned water/wastewater treatment processes that are in Program 3. EPA decided that there was little justification for limiting the proposed requirements to the changed universe of Program 3 processes after the OSHA retail exemption change; there are fewer than six RMP reportable accidents a year at remaining Program 2 processes. Although the alternative would be slightly less burdensome on the regulated community, it would also likely prevent fewer accidents than the proposed approach. EPA seeks comment on the alternative approach and whether there are any other alternative options that EPA should consider prior to issuing a final action. B. Third-Party Compliance Audits In addition to strengthening the incident investigation requirements, EPA is proposing to strengthen the RMP rule’s compliance audit provisions to require independent third-party compliance audits after an accident or findings of significant non-compliance by an implementing agency for stationary sources with Program 2 and/ or Program 3 processes. Incident investigations often reveal that these facilities have deficiencies in some prevention program requirements related to that process. Compliance audits entail a systematic evaluation of the full prevention program for all covered processes. As described below, in some cases, self-auditing may be insufficient to prevent accidents, PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 determine compliance with the RMP rule’s prevention program requirements, and ensure safe operation. Stationary sources that have had accidents and/or substantial non-compliance with Risk Management Program requirements pose a greater risk to the surrounding communities. EPA therefore believes it is appropriate to require such stationary sources to undergo objective auditing by competent and independent third-party auditors. Such independent third-party auditing can assist the owners and operators, EPA (or the implementing agency), and the public to better determine whether the procedures and practices developed by the owner and/ or operator under subparts C and/or D of the RMP rule (i.e., the prevention program requirements) are adequate and being followed. EPA and the CSB have cited poor compliance audits as a contributing factor to the severity of past chemical accidents. The CSB identified a lack of rigorous compliance audits as a contributing factor behind the March 23, 2005 explosion and fire at the BP Texas City Refinery in Texas City, Texas.70 This explosion and fire killed 15 people, injured another 180, led to a shelter-inplace order that required 43,000 people to remain indoors, and damaged houses as far away as three-quarters of a mile from the refinery. A CSB investigation of the July 2009 fire and explosion at the Citgo Corpus Christi Refinery found that Citgo had never conducted a safety audit of hydrofluoric acid (HF) alkylation operations at either of its U.S. refineries equipped with HF alkylation units pursuant to recommendations in API Recommended Practice 751, Safe Operation of HF Alkylation Units.71 The CSB recommended that within 60 days, Citgo complete a third-party audit of all Citgo HF alkylation unit operations in the United States (Corpus Christi, Texas and Lemont, Illinois) in accordance with API Recommended Practice 751. The CSB also specified qualifications for the selected lead auditor including extensive knowledge of HF hazards, HF alkylation units, and API 751. The CSB found that facility PSM audits failed to detect PSI and operating procedure deficiencies that contributed to the November 2003 chlorine release at DPC Enterprises, L.P. in Glendale, 70 CSB. March 2007. Investigation Report: Refinery Explosion and Fire, BP, Texas City, Texas, March 23, 2005. Report No. 2005–04–I–TX. https:// www.csb.gov/assets/1/19/CSBFinalReportBP.pdf. 71 CSB. December 9, 2009. Urgent Recommendations to Citgo. https://www.csb.gov/csbissues-urgent-recommendations-to-citgo-findsinadequate-hydrogen-fluoride-water-mitigationsystem-during-corpus-christi-refinery-fire-last-july/. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Arizona.72 The CSB recommended that DPC use a qualified, independent auditor to evaluate DPC’s PSM and Risk Management Programs against best practices and implement audit recommendations in a timely manner at all DPC chlorine repackaging sites. The CSB also found numerous auditing deficiencies following the January 2008 explosion at Bayer CropScience, LP, in Institute, West Virginia.73 The CSB recommended that Bayer commission an independent human factors and ergonomics study of all Institute site PSM and Risk Management Program covered process control rooms to evaluate the humancontrol system interface, operator fatigue, and control system familiarity and training. EPA has required third-party audits in enforcement settlement agreements. For example, EPA found multiple occasions of noncompliance with the Risk Management Program requirements at Tyson Foods, Inc. facilities through a series of inspections and information requests. Dating back to October 2006, violations included failures to follow the general industry standards to test or replace safety relief valves, improperly co-located gas-fired boilers and ammonia machinery, as well as failures to abide by the RMP rule’s prevention program and reporting requirements. As part of a 2014 consent decree, Tyson Foods, Inc. agreed, in addition to paying a penalty of $3.95 million, to conduct pipe-testing and third-party audits of its ammonia refrigeration systems to improve compliance with Risk Management Program requirements at all 23 of the company’s facilities in four Midwestern states.74 In March 2015, EPA Region 1 issued an administrative order on consent to Mann Distribution LLC and 3134 Post Road LLC (Respondents) regarding Resource Conservation and Recovery Act (RCRA) and CAA 112(r)(1) (the ‘‘general duty clause’’) violations found during an April 4, 2013 inspection at a chemical distribution facility in Warwick, Rhode Island.75 Like the Risk 72 CSB. February 2007. Investigation Report: Chlorine Release, DPC Enterprises, L.P., Glendale, Arizona, November 17, 2003. Report No. 2004–02– I–AZ. https://www.csb.gov/assets/1/19/DPC_ Report.pdf. 73 CSB. January 2011. Investigation Report: Pesticide Chemical Runaway Reaction Pressure Vessel Explosion, Bayer CropScience LP, Institute, West Virginia, August 28, 2008. Report No. 2008– 08–I–WV. https://www.csb.gov/assets/1/19/Bayer_ Report_Final.pdf. 74 Consent Decree, United States v. Tyson Foods, Inc., et al., E.D. Miss., April 4, 2013. https:// www2.epa.gov/enforcement/tyson-foods-inc. 75 Finding of Violation and Administrative Order on Consent, In the Matter of Mann Distribution LLC VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Management Program requirements, section 112(r)(1) of the CAA addresses safe operation and prevention of accidental releases. Unsafe conditions found during the inspection included, among other things, failure to have a fire suppression system, failure to inspect a fire alarm, co-location of incompatible chemicals, and many RCRA generator violations. The facility also had a prior history of non-compliance. The order requires Respondents to implement an independent third-party inspection program, in addition to imposing other compliance requirements. The proposed independent thirdparty compliance audit requirements include a definition of ‘‘third-party audit’’ in § 68.3; modifications to existing §§ 68.58 and 68.79 to specify when a third-party audit must be performed; and the requirements for third-party auditors and third-party audits in new §§ 68.59 and 68.80. EPA is proposing to require third-party compliance audits to be conducted at stationary sources following an accident meeting the five-year accident history criteria in § 68.42(a). EPA is also proposing a provision to allow an implementing agency to require a thirdparty audit be performed at a facility under certain circumstances that suggest a heightened risk for an accident. These circumstances are: Non-compliance with the Prevention Program requirements of subpart C (Program 2) or subpart D (Program 3), including noncompliance with the competency, independence, or impartiality criteria of § 68.59(b) or § 68.80(b) regarding a previous third-party audit. All other stationary sources with Program 2 and Program 3 processes will continue to follow the current compliance audit requirements of §§ 68.58 and 68.79. Sections 68.58 and 68.79 of the RMP regulation (Program 2 and Program 3 Compliance Audits) require owners or operators of stationary sources with processes subject to Program 2 or Program 3 requirements to audit compliance with the provisions of subpart C (Program 2 Prevention Program requirements) or subpart D (Program 3 Prevention Program requirements) at least every three years. The purpose of the compliance audits is to verify that the procedures and practices developed under subparts C and D of the RMP rule are adequate and being followed. These compliance audit provisions are similar to language to that is found in 29 CFR 1910.119(o) of the OSHA PSM standard. Sections 68.58 and 68.79 of the RMP regulation and and 3134 Post LLC, Docket Nos. RCRA–01–2015– 0028 and CAA–01–2015–0029, March 17, 2015. PO 00000 Frm 00019 Fmt 4701 Sfmt 4702 13655 1910.119(o) of the OSHA PSM standard require that the compliance audit be conducted by at least one person knowledgeable in the process, that audit findings be addressed promptly, and that a report be generated documenting the findings of the audit. Currently, neither EPA nor OSHA requires employers to use independent third-parties in conducting compliance audits. However, third-party compliance auditors exist, both the RMP rule and the PSM standard permit their use, and they are utilized by some of the Risk Management Program and PSM regulated community, both voluntarily, and pursuant to enforcement settlement agreements. EPA discussed the potential to use independent third-party auditors for Risk Management Program compliance audits, in the preamble of the 1996 final RMP rule, as an issue for further consideration.76 The preamble endorsed the concept of using third parties, citing the following reasons: To assist in rule compliance and oversight, provided that any third-party proposal not weaken the compliance responsibilities of facility owners or operators; offer cost savings and benefits to the industry, community, and implementing agencies that significantly exceed the cost of implementing the approach; lead to a net increase in process safety, particularly for smaller, less technically sophisticated facilities; and promote cost-effective Agency prioritization of oversight resources. At the time, EPA did not require the use of third-party auditors because the Agency believed that several key issues, including qualification criteria, certification procedures, liability, and others, needed to be investigated. Based on EPA’s research of other third-party audit programs as well as the Agency’s own experience with third-party auditors in the context of enforcement settlements, the Agency is proposing third-party audit requirements for the rule’s accident prevention program. Third-party audits are required by other Federal programs in appropriate existing rules, and rules currently in development, to ensure safe operations. The Administrative Conference of the United States (ACUS) ‘‘Third-Party Programs Final Report’’ (October 22, 2012) describes a variety of third-party programs in Food and Drug Administration (FDA), Consumer Product Safety Commission, and Federal Communications Commission 76 Accidental Release Prevention Requirements: Risk Management Programs Under CAA Section 112(r)(7), 61 FR 31705, June 20, 1996. https:// www.gpo.gov/fdsys/pkg/FR-1996-06-20/pdf/9614597.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 13656 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules regulations.77 Further examples follow. The Bureau of Safety and Environmental Enforcement (BSEE) promulgated revisions to their Safety and Environmental Management Systems (SEMS II) requirements (78 FR 20423, April 5, 2013) to help ensure the safe operations of offshore oil and natural gas drilling and production facilities. BSEE’s SEMS standard, 30 CFR part 250, subpart S, requires audits conducted by an independent thirdparty, subject to approval by BSEE, or by designated and qualified personnel if the employer implements procedures to avoid conflicts of interest. BSEE’s SEMS II revisions to the standard require that, by June 4, 2015, the team lead for compliance audits must be independent and represent an accredited audit service provider. In the preamble to its SEMS II final rule, BSEE discussed its third-party-auditing requirements as follows: Consistent audits performed by well trained and experienced auditors are critical to ensuring that SEMS programs are successfully implemented and maintained on the [Outer Continental Shelf] OCS. As a result, we are adopting industry best practices related to SEMS audits and auditor qualifications. Industry is already voluntarily adopting these practices in many deepwater operations. We believe that the application of these requirements to all OCS operations will result in more robust and consistent SEMS audits. (78 FR 20430, April 5, 2013.) mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Independent third-party audits or other forms of compliance verification are also required by a variety of EPA rules to promote compliance with regulatory standards. One example of an EPA regulatory program with built-in third-party verification is the EPA CAA wood stoves rule.78 Additionally, EPA is developing a rule for a third-party certification framework for the formaldehyde standards for composite wood products in accordance with the Formaldehyde Standards for Composite Wood Products Act in which Congress mandated that EPA promulgate rules that include a third-party testing and certification program.79 77 McCallister, Lesley. October 22, 2012. ThirdParty Programs Final Report (2012). https:// www.acus.gov/report/third-party-programs-finalreport. 78 Standards of Performance for New Residential Wood Heaters, New Residential Hydronic Heaters and Forced-Air Furnaces, 80 FR 13671, March 16, 2015. https://www.gpo.gov/fdsys/pkg/FR-2015-0316/pdf/2015-03733.pdf. 79 Formaldehyde; Third-Party Certification Framework for the Formaldehyde Standards for Composite Wood Products, 78 FR 34796, June 10, 2013. https://www.gpo.gov/fdsys/pkg/FR-2013-0610/pdf/2013-13254.pdf. See also the Formaldehyde Standards for Composite Wood Products Act https://www.gpo.gov/fdsys/pkg/BILLS-111s1660enr/ pdf/BILLS-111s1660enr.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Third-party verification and certification approaches are also employed in a variety of state regulatory settings. Examples include the CAA Title II vehicle inspection, maintenance, and emissions programs in authorized states,80 California’s mandatory greenhouse gas (GHG) reporting program,81 and Massachusetts Underground Storage Tank (UST) thirdparty inspection program.82 There are advantages to third-party auditing, particularly with strong auditor competence and independence criteria. According to the CCPS, ‘‘Thirdparty auditors (typically, consulting companies who can provide experienced auditors) potentially provide the highest degree of objectivity.’’ 83 ACUS, in its ‘‘Recommendation on Agency Use of Third-Party Programs to Assess Regulatory Compliance’’ (December 6, 2012) (Recommendation), found that, when well-designed and implemented per the Recommendation, ‘‘[s]everal broad reasons support the growing use of third-party programs in Federal regulation.’’ Specifically, ACUS found that . . . Federal regulatory agencies are faced with assuring the compliance of an increasing number of entities and products without a corresponding growth in agency resources. Third-party programs may leverage private resources and expertise in ways that make regulation more effective and less costly. In comparison with other regulatory approaches, third-party programs may also enable more frequent compliance assessment and more complete and reliable compliance data. A leading scholar on regulatory thirdparty programs likewise found that, when well-designed and implemented, ‘‘third-party verification could furnish 80 See, e.g., Missouri Dept. of Nat. Resources and Missouri State Highway Patrol, First Annual Oversight Report of the Decentralized Gateway Vehicle Inspection Program (2008). https:// www.dnr.mo.gov/gatewayvip/docs/enforcement rpt.pdf. 81 Cal. Code of Regs. Accreditation Requirements for Verification Bodies, Lead Verifiers, and Verifiers of Emissions Data Reports and Offset Project Data Reports. tit. 17 § 95132(b)(4) (2010); see also Cal. Code of Regs. tit. 17 § 95132(b)(1) (describing the firm requirement of having a lead verifier); Cal. Code of Regs. tit. 17 § 95132(b)(2) (2010) (describing the lead verifier requirements) and Cal. Code of Regs. tit. 17 § 95132(b)(1). https://govt.westlaw.com/ calregs/Document/I047B3A909A301 1E4A28EDDF568E2F8A2?view Type=FullText&originationContext= documenttoc&transitionType=CategoryPage Item&contextData=%28sc.Default%29. 82 MassDEP. 2015. UST Inspection Program. https://www.mass.gov/eea/agencies/massdep/toxics/ ust/third-party-ust-inspection-program.html. 83 CCPS. March 2007. Guidelines for Risk Based Process Safety. https://www.aiche.org/ccps/ resources/publications/books/guidelines-risk-basedprocess-safety. PO 00000 Frm 00020 Fmt 4701 Sfmt 4702 more and better data about regulatory compliance’’ while providing additional compliance and resource savings benefits.84 An ‘‘independent third-party’’ is a private auditor, inspector, or other type of verifier external to the facility. ‘‘Independent third-party’’ excludes the regulated entity, which is the first party (e.g., the stationary source and its parent company and subsidiaries), second parties within the firm’s industry or business community with whom the regulated entity has a supply-chain relationship, and third parties that are not independent of the first party, which may include contractors, consultants, or purchasers of the facility’s goods or services.85 An independent third-party program should not be confused with a second party program in which a regulated source employs a contractor or consultant, even when the contractor is a separate legal entity from the regulated facility and highly qualified. If a regulated source provides direct or indirect control over the contractor or consultant preparing the audit report, including controlling the report’s scope or findings, or has other non-audit relationships with the auditor, then the auditor is not a true independent third-party. This is important because when developing a third-party audit program, auditor independence can be critical to the success of the program. Third-party compliance audit programs should also establish criteria and standards for auditor independence. As documented in the ACUS Recommendation on Agency Use of Third-Party Programs to Assess Regulatory Compliance (December 6, 2012),86 the ACUS Third-Party Programs Final Report (October 22, 2012), and the McAllister law review article, auditor independence is critical to ensuring accurate and reliable independent third-party auditing.87 The literature on designing independent third-party programs includes peer-reviewed empirical studies emphasizing the importance of 84 Lesley K. McAllister. Jan. 2012. Regulation by Third-Party Verification. 53 B.C. L. Rev. 1, 21–26. https://lawdigitalcommons.bc.edu/bclr/vol53/ iss1/1/. 85 Lesley K. McAllister. Jan. 2012. Regulation by Third-Party Verification. 53 B.C. L. Rev. 1, 22–23 at p. 37. 86 ACUS; Administrative Conference Recommendation 2012–7; Agency Use of ThirdParty Programs to Assess Regulatory Compliance (Adopted December 6, 2012) at 3–4. https:// www.acus.gov/recommendation/agency-use-thirdparty-programs-assess-regulatory-compliance. 87 See, e.g., Lesley K. McAllister. Jan. 2012. Regulation by Third-Party Verification. 53 B.C. L. Rev. 1, pp. 3, 39–40. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules establishing criteria and features for auditor independence to promote accurate audit reports, including those summarized briefly below. While it is not necessary that all audits be conducted only by independent third parties, when independent third-party auditing is necessary and appropriate, the literature indicates that, without sufficient safeguards to ensure auditor independence, auditors are more likely to provide lenient or biased audit reports that can fail to accurately identify problems and violations by the regulated entity. One such study is a randomized control design field experiment in the State of Gujarat in India.88 This study revealed weaknesses in the existing third-party regulatory audit system and the potential for a series of market-based alterations to dramatically improve auditor accuracy. In India, Gujarat Pollution Control Board regulates more than 20,000 industrial plants. From the universe of audit-eligible plants located in two populous and heavily polluted industrial regions, the researchers identified a study sample of 473 randomly-selected plants, stratified by region. Half of the plants were randomly assigned into a control group. The other half of the plants, also randomly assigned, were informed by the State of changes to their audit regulation that included the following: Plants would be randomly assigned auditors they were required to use (i.e., they could no longer choose their own auditors); auditors would be paid from a central pool rather than by the plant for which they worked; auditor fees were set in advance at a flat rate (high enough to cover pollution measurement and give the auditor a modest profit); a random sample of each auditor’s pollution readings would be verified with followup visits to the audited plants by an independent technical agency; in year two of the experiment, the third-party auditors were informed that their pay would be linked to their reporting accuracy as measured by the technical agency’s follow-up visits. The researchers found that, under the status quo system, the third-party auditors systematically reported false pollution levels just below the applicable regulatory standard (also known as strategic misreporting) but the experimental changes significantly improved the truthfulness of the thirdparty auditors’ reports, even for auditors operating in both markets who audited 88 Esther Duflo et al., Truth-Telling By ThirdParty Auditors And The Response of Polluting Firms: Experimental Evidence From India, 128 Q. J. of Econ. 4 at 1499–1545 (2013). VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 firms in both the control and treatment groups. Also, and importantly, once the plants understood that their auditors would henceforth be reporting more accurately to the State, they reduced their actual pollution emissions. A pair of 2013 studies of independent third-party vehicle emission testing in New York also considered factors impacting third-party independence. This research was based on millions of emission test results from thousands of test facilities.89 The authors’ findings include that there is a relationship between testing facilities’ opportunities to ‘‘cross sell’’ other products and services to car owners and the test results. The researchers found that, in pursuit of customer loyalty, facilities with more cross-selling opportunities were incentivized to ‘‘pass’’ cars that facilities with fewer cross-selling opportunities would not.90 Further evidence suggests that many, if not most, of some types of financial audits are flawed due to insufficient auditor competence, independence, and/or lack of public transparency. Third-party auditing is a linchpin of financial reporting. But when the Public Company Accounting Oversight Board (PCAOB) released its third annual report on audits of broker-dealers registered with the Securities and Exchange Commission (SEC), the PCAOB found audit deficiencies in portions of 70 of the 90 audits. Independence problems were found in 21 on the 90 audits where, contrary to SEC rules, firms helped with the bookkeeping or preparation of the financial statements they audited.91 In 2014, the New York State Department of Financial Services (NYDFS) fined PricewaterhouseCoopers (‘‘PwC’’) Regulatory Advisory Services $25 million, suspended it for 24 months from accepting consulting engagements at regulated financial institutions, and required it to implement a series of reforms after PwC improperly altered a 89 Victor Manuel Bennett, et al. August 2013. Customer-Driven Misconduct How Competition Corrupts Business Practices. Management Science Vol. 59, No. 8, pp. 1725–1742. https://www.hbs.edu/ faculty/Pages/item.aspx?num=43347 and Lamar Pierce and Michael W. Toffel. Sept.–Oct. 2013. The Role of Organizational Scope and Governance in Strengthening Private Monitoring. Organization Science Vol. 24, No. 5, pp. 1558–1584. 90 Lamar Pierce and Michael W. Toffel. Sept.-Oct. 2013. The Role of Organizational Scope and Governance in Strengthening Private Monitoring. Organization Science Vol. 24, No. 5, at 1575. https:// www.hbs.edu/faculty/Publication%20Files/11004.pdf. 91 PCAOB. Aug. 18, 2014. Third Progress Report on PCAOB Inspections of Broker and Dealer Auditors Shows Continued High Number of Findings. https://pcaobus.org/Inspections/ Documents/BD_Interim_Inspection_Program_ 2014.pdf. PO 00000 Frm 00021 Fmt 4701 Sfmt 4702 13657 report submitted to regulators on sanctions and anti-money laundering compliance at Bank of Tokyo Mitsubishi (BTMU). Under pressure from BTMU executives who received an advance draft of its report to review, PwC edited the report, and in the final version of the report which was sent to regulators, a number of key provisions were deleted or otherwise significantly edited.92 These recommendations, studies, and reports emphasize the importance of designing independent third-party programs to embody auditor independence by building in appropriate criteria and processes for third-party independence. They identify a range of available design elements to promote such independence. EPA consulted this literature in developing today’s proposed independent thirdparty compliance auditing program. Industry recognizes the benefits of third-party auditing programs and have established programs and standards for third-party audits for some types of operations, many of which are also subject to the RMP rule.93 These programs also demonstrate industry’s understanding that, in appropriate circumstances, third-party auditing can provide benefits and results above those available through self-auditing alone. In addition, these programs and standards illustrate the range and variety of structural design elements that can be, and are, employed in third-party programs to address auditor competence and independence, auditor certification, the audit process, auditor reporting, recordkeeping, and the public disclosure of audit results and associated information. Some industry groups, such as SOCMA and the Center for Offshore Safety (COS), require certain types of third-party audits for their members. SOCMA members are U.S. companies engaging in the manufacturing or handling of synthetic and organic chemicals. Active members have a mandatory requirement to participate in ChemStewards®, a program intended to promote continuous performance improvement in batch chemical manufacturing. The program offers a three-tiered approach to participation. Each tier includes a third-party verified 92 Press Release: NYDFS Announces PwC Regulatory Advisory Services Will Face 24-Month Consulting Suspension; Pay $25 Million; Implement Reforms After Misconduct During Work At BTMU. Aug. 18, 2014. https://www.dfs.ny.gov/ about/press/pr1408181.htm. 93 EPA has not formally evaluated these programs and standards or their outcomes. This discussion is not a formal Agency review or endorsement of them. E:\FR\FM\14MRP4.SGM 14MRP4 13658 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules management system.94 The COS strategy for promoting safety and protection of the environment includes third-party auditing and certification of the COS member company’s SEMS and accreditation of the organizations (Audit Service Providers) providing the audit services. The third-party audits are intended to ensure that COS member companies are implementing and maintaining SEMS throughout their deepwater operations.95 ACC members are required to participate in a Responsible Care management system described by ACC as including, identifying, and acting to address potential hazards and risks associated with their products, processes, distribution and other operations. One of Responsible Care’s program elements is a product safety code consisting of eleven management practices through which chemical manufacturers are encouraged to evaluate, demonstrate and continuously improve their product safety performance while making information about chemical products available to the public.96 Responsible Care also has a process safety code consisting of seven management practices through which chemical manufacturers commit to safe operation of their chemical processes. According to ACC, the Responsible Care Process Safety Code differs from regulatory standards that, by necessity, focus on process safety at an individual facility. ACC contends that the Process Safety Code is more universal—it addresses issues across a division or corporation, and includes a company commitment to set process safety expectations, define accountability for process safety performance and allocate adequate resources to achieve performance expectations.97 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 The Responsible Care management system process includes mandatory certification, by auditors described by ACC as accredited and independent, to ensure the program participants have a structure and system in place to measure, manage and verify performance.98 94 SOCMA. 2015. See https://www.socma.com/ ChemStewards/. 95 COS. 2013. See https:// www.centerforoffshoresafety.org/auditInfo.html. 96 ACC. 2013. Responsible Care Product Safety Code. https:// responsiblecare.americanchemistry.com/ Responsible-Care-Program-Elements/ProductSafety-Code. 97 ACC. 2013. Responsible Care Process Safety Code. https:// responsiblecare.americanchemistry.com/ Responsible-Care-Program-Elements/ProcessSafety-Code. 98 Certification must be renewed every three years, and companies can choose one of two certification options. RCMS® certification in VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 The API, in collaboration with industry partners, has developed a Process Safety Site Assessment Program (PSSAP). According to API, the program is intended to provide for the assessment of API member sites’ process safety systems by third-party teams of independent, industry-qualified process safety expert assessors. Using industrydeveloped protocols, API describes the process safety site assessments as evaluating the quality of written programs and effectiveness of field implementation for the following process safety areas that will be evaluated: Process Safety Leadership; MOC; Mechanical Integrity (focused on fixed equipment); Safe Work Practices; Operating Practices; Facility Siting; Process Safety Hazards; and HF Alkylation/RP 751. The assessment teams produce reports that identify observations that site personnel should consider further but do not provide written recommendations.99 1. Applicability of Third-Party Audit Requirements Currently, there are approximately 12,000 stationary sources with Program 2 and/or Program 3 processes. The proposed rule would not require all of these RMP facilities to use third-party auditors when conducting compliance audits under subpart C or D. Instead, EPA is proposing that owners or operators be required to perform thirdparty compliance audits at their facilities only under the following two conditions. Under the first condition, a thirdparty compliance audit would be required in lieu of an internal compliance audit if there has been an accidental release from an RMP facility meeting the five-year accident history criteria as described in § 68.42(a). The existing five-year accident history criteria include accidental releases from covered processes that resulted in deaths, injuries, or significant property damage on-site; or deaths, injuries, property damage, evacuations, sheltering in place, or environmental damage offsite. EPA and other implementing agencies would learn intended to verify that a company has implemented the Responsible Care Management System. RC14001® certification combines Responsible Care and ISO 14001 certification. See https:// responsiblecare.americanchemistry.com/ Responsible-Care-Program-Elements/ManagementSystem-and-Certification and https:// responsiblecare.americanchemistry.com/ Responsible-Care-Program-Elements/ProcessSafety-Code/Responsible-Care-Process-Safety-CodePDF.pdf. 99 API. 2015. PSSAP. https://www.api.org/ certification-programs/process-safety-siteassessment-programs. PO 00000 Frm 00022 Fmt 4701 Sfmt 4702 about accidents meeting the five-year accident history criteria because such accidents must be included within a facility’s RMP within six months of the accident, in accordance with § 68.195(a). Following such an accident, the RMP facility’s owner or operator would be required to engage a thirdparty auditor to conduct a compliance audit for the source. Pursuant to §§ 68.58(h) and 68.79(h), the third-party audit and associated report shall be completed, and submitted to the implementing agency pursuant to § 68.59(c)(3) or § 68.80(c)(3) as follows, unless a different timeframe is specified by the implementing agency: within 12 months of when the third-party audit is required pursuant to § 68.58(f) and/or (g) or § 68.79(f) and/or (g); or within three years of completion of the previous compliance audit, whichever is sooner. The second condition is if an implementing agency has made a determination that a third-party audit at an RMP facility is necessary, based on information about the facility or a prior third-party audit at the facility. Information about an RMP facility that would lead to such a determination could be obtained from sources including an inspection of a facility by the implementing agency’s representatives. Relevant information to support the determination may include evidence of significant non-compliance with the prevention program requirements of subpart C or D of part 68. Significant non-compliance includes deficiencies relating to a previous thirdparty audit (i.e., failure to meet the competency, independence, or impartiality criteria of § 68.59(b) or § 68.80(b)). If such a determination is made, the implementing agency must provide a written notice to the owner or operator of the facility stating the reasons for the determination that a third-party audit must be performed. The proposed rule provides for an opportunity for the owner or operator to provide information and data to the implementing agency and to consult with the implementing agency about the need to perform a third-party audit at the facility source before the implementing agency representatives make a final determination. EPA seeks comment on these proposed third-party audit applicability requirements. 2. Alternative Options for Third-Party Audit Applicability Criteria EPA considered requiring third-party compliance audits for a larger universe of regulated facilities. We considered whether to require third-party E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules compliance audits for all facilities with processes subject to Program 3 requirements at least every three years. We also considered whether to require third-party compliance audits for all facilities with processes subject to Program 2 or Program 3 requirements every three years. However, because EPA views facilities that have had accidents or significant non-compliance as presenting higher risks to surrounding communities, the Agency is proposing to limit the applicability of this provision to these facilities. EPA seeks comments and suggestions on the proposed third-party audit applicability requirements and whether to eliminate or further limit applicability of this provision. For example, EPA could consider limiting the provision to only Program 3 facilities that have had accidents or to only facilities that have had major accidents with offsite impacts. EPA seeks comments on this alternative approach and to define and characterize ‘‘major accidents with offsite impacts.’’ Alternatively, EPA could revise this provision to reduce its impact on small businesses. When providing suggested alternatives, please include suggestions for how to improve compliance with auditing provisions. EPA also seeks comment on whether there are other criteria that could require RMP facilities to perform thirdparty compliance audits. For example, a third-party audit could be required if an owner or operator of a facility were to learn or know of a condition or conditions at its facility suggesting a concern for, or potential risk of, future accidents. Such conditions would need to be objective and reasonably ascertainable by the facility owners or operators, the implementing agency, and the public. EPA also seeks comment on the benefits and costs of proposing additional requirements for third-party compliance audits and recommendations for appropriate conditions suggesting a concern for, or potential risk of, future accidents. 3. Proposed Third-Party Audit Requirements mstockstill on DSK4VPTVN1PROD with PROPOSALS4 a. Compliance Audit (§§ 68.58 and 68.79) In order to prevent accidents and ensure compliance with part 68 requirements, EPA is proposing to require certain RMP facilities to perform third-party audits. The proposed changes to §§ 68.58 and 68.79 would add this requirement for both Program 2 and Program 3 processes, under certain conditions. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 EPA proposes new paragraphs §§ 68.58(f) and 68.79(f) which describe when a third-party audit is required. Pursuant to these paragraphs, the next required compliance audit for an RMP facility shall be a third-party audit when one of the following conditions apply: (1) An accidental release, meeting the criteria in § 68.42(a), from a covered process has occurred; or (2) an implementing agency requires a thirdparty audit based on non-compliance with the requirements of this subpart, including when a previous third-party audit failed to meet the competency, independence, or impartiality criteria of § 68.59(b) or § 68.80(b). The purpose is to help reduce the risk of future accidents by requiring an objective auditing process to determine whether the owner or operator of the facility is effectively complying with the prevention program requirements of part 68. EPA proposes new paragraphs §§ 68.58(g) and 68.79(g), Implementing agency notification and appeals, which describe the procedure for when a thirdparty audit is required by an implementing agency. Pursuant to these paragraphs, if an implementing agency makes a preliminary determination that a third-party audit is necessary, the implementing agency will provide written notice to the facility owner or operator stating the reasons for the implementing agency’s determination. The owner or operator has an opportunity to provide information to, and to consult with, the implementing agency. The implementing agency then provides a final determination to the owner or operator. If the final determination requires a third-party audit, the owner or operator shall comply with the requirements of § 68.59 and/or § 68.80, but also may choose to appeal the final determination. After the appeal is considered, the implementing agency will provide a written, final decision on the appeal to the owner or operator. EPA proposes new paragraphs §§ 68.58(h) and 68.79(h), which describe the schedule for conducting third-party audits. The audit and associated report shall be completed, and submitted to the implementing agency as follows, unless a different timeframe is specified by the implementing agency: (1) Within 12 months of when any third-party audit is required; or (2) within three years of completion of the previous compliance audit, whichever is sooner. b. Third-Party Audits (§§ 68.59 and 68.80) EPA is proposing new §§ 68.59 and 68.80, which include the requirements PO 00000 Frm 00023 Fmt 4701 Sfmt 4702 13659 for both third-party audits, and thirdparty auditors. Sections 68.59(a) and 68.80(a) state that owners or operators shall engage a third-party auditor to evaluate compliance with the provisions of this subpart in accordance with the requirements of this section when the criteria of § 68.58(f) or § 68.79(f) are met. EPA is proposing, in §§ 68.59(b) and 68.80(b), that owners and operators of RMP facilities subject to these requirements determine and document the competency, independence, and impartiality of their auditors. These sections require that the facility owners or operators be responsible for selfdetermining and documenting that their third-party auditors are competent and independent pursuant to the criteria listed in § 68.59(b)(1) through (3) or § 68.80(b)(1) through (3), by requiring specific provisions and safeguards in their contracts and relationships with their third-party auditors. EPA seeks comment as to whether the requirement that owners and operators of RMP facilities be responsible for determining and documenting the competency, independence, and impartiality of their auditors is appropriate. Alternative Option for Third-Party Auditor Selection and Accreditation EPA also considered an alternative approach, such as requiring auditors to have accreditation from a recognized auditing body or EPA. Most independent third-party regulatory compliance verification programs require the qualifying third-parties to apply for and receive accreditation from a qualified external party to ensure competency and independence. Such an external accreditation approach can add rigor to the process of confirming the competence and independence of the auditors but it also adds procedures and costs. Therefore, while EPA is not proposing that the Agency itself will accredit third-party auditors, EPA seeks comment on whether to require additional accreditation criteria and how to best establish and structure an accreditation program within the context of the RMP rule. Auditor Competence Third-party compliance verification programs should establish criteria and standards for auditor competence. Typically, such criteria and standards combine specified minimum levels of education, knowledge, experience, and training. EPA is proposing to require in proposed §§ 68.59(b)(1)(i) through (iv) and 68.80(b)(1) (i) through (iv) that third-party auditors be: E:\FR\FM\14MRP4.SGM 14MRP4 13660 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 • Knowledgeable with the requirements of part 68; • experienced with the facility type and processes being audited and the applicable recognized and generally accepted good engineering practices (RAGAGEP); • trained or certified in proper auditing techniques; and • be a licensed Professional Engineer (PE), or include a licensed PE on the audit team. EPA is proposing to require a PE as part of the audit team in an attempt to identify competent auditors that also have an ethical obligation to perform unbiased work. EPA seeks comment on whether these criteria are appropriate and sufficient to ensure third-party auditors are competent to perform highquality compliance audits. EPA also seeks comment on whether the proposal to require that a third-party auditor, or a member of the audit team, be a licensed PE is appropriate and whether there are enough licensed PEs to conduct third-party audits for the universe of facilities that may become subject to these requirements. Are there other qualifications who might be appropriate for RMP auditors in lieu of a PE? As part of the SBAR Panel process, SERs suggested to the SBAR Panel that EPA consider substituting other qualified personnel such as: degreed chemists, degreed chemical engineers, Certified Safety Professionals (CSP), Certified Industrial Hygienists (CIH), Certified Fire Protection Specialists (CFPS), Certified Hazardous Materials Managers (CHMM), Certified Professional Environmental Auditors (CPEA) or Certified Process Safety Auditors (CPSA). SERs indicated that these credentials also include ethical obligations to provide sound independent advice. EPA also seeks comment regarding potentially relevant and applicable consensus standards and protocols that might apply to the audits and be built and/or incorporated by reference into the rules. These may include relevant and applicable American National Standards Institute, American Society for Testing and Materials International, European Committee for Standardization, International Organization for Standardization (ISO), and National Institute of Standards and Technology (NIST) standards. Auditor Independence and Impartiality Proposed §§ 68.59(b)(2)(i) through (vi) and 68.80(b) (2)(i) through (vi) set forth the independence and impartiality requirements for third-party auditors and audit teams. These include that third-party auditors: VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 • Act impartially when performing all third-party audit activities; • receive no financial benefit from the outcome of the audit, apart from payment for the auditing services; • not have conducted past research, development, design, construction services, or consulting for the owner or operator within the last 3 years; 100 • not provide other business or consulting services to the owner or operator, including advice or assistance to implement the findings or recommendations in an audit report, for a period of at least 3 years following submission of the final audit report; • Ensure all personnel involved in the audit sign and date a conflict of interest statement; and • ensure all personnel involved in the audit do not accept future employment with the owner or operator of the facility for a period of at least 3 years following submission of the final audit report. For purposes of this requirement, employment does not include performing or participating in third-party audits pursuant to § 68.59 or § 68.80. As part of the SBAR Panel process, SERs raised concerns about the extent of the independence criteria and suggested this might limit the availability of qualified auditors. Specifically, SERs asked how to apply the independence criteria to a company that employs personnel who previously worked for or otherwise engaged in consulting services with the facility. Audit firms with personnel who, before working for the firm, performed services for the owner or operator as an employee, contractor or consultant, meet the rule’s independence criteria when such personnel do not participate on, manage, or advise the audit teams. Additionally, employees of an auditing firm are not prohibited from accepting future employment with the owner/ operator as long as they were not directly involved in performing or managing the audit. Another concern raised by SERs is ensuring that third-party auditors do not pose a terrorism concern or release information that could compromise facility security or CBI. EPA agrees that chemical facility security is a priority and seeks comments on the impacts a third-party auditor may have on a facility’s security and whether there is a need to specify security protections or whether existing non-disclosure and contractual agreements should handle this independently. EPA seeks comment on whether the proposed auditor independence criteria are appropriate and sufficient. If not, we seek comment on how best to adjust the 100 For purposes of this requirement, consulting does not include performing or participating in third-party audits pursuant to § 68.59 or § 68.80. PO 00000 Frm 00024 Fmt 4701 Sfmt 4702 criteria for maximum auditing effectiveness and efficiency, including comments or suggestions on how to provide more flexibility in the auditor independence criteria, or whether to eliminate the requirement for independence. EPA also seeks comments on whether the proposed 3year timeframe to separate the audit from other business arrangements with the owner or operator is appropriate. Furthermore, EPA is requesting comment on whether the proposed auditor independence criteria should be modified so as to not exclude a retired employee from auditing a former employer’s facility if the employee’s sole continuing financial attachment to the owner or operator is an employerfinanced or employer-managed retirement plan. While EPA is concerned such attachments could provide the auditor with incentives to ensure the facilities they audit are not financially negatively impacted by their audits, it could also, as a practical matter, limit the available pool of otherwise qualified and competent auditors. EPA seeks comment on the potential magnitude of such incentives and how to address this concern in the rule. Finally, EPA requests comment on whether to propose streamlined independence criteria for small facilities (i.e., based on the size of the facility) including comments or suggestions on how to streamline the requirements. Auditor Policies and Procedures Proposed §§ 68.59(b)(3) and 68.80(b)(3), if finalized, would require that owner or operators of RMP regulated facilities ensure that thirdparty auditors have written policies and procedures to ensure that all personnel comply with the competency, independence, and impartiality requirements of these sections. EPA seeks comment on these proposed provisions. Alternative Options for Auditor Qualifications EPA considered including alternative options in the proposed rule for owners and operators of stationary sources who cannot, despite best efforts, find a thirdparty auditor meeting all of the independence criteria. Two specific options were considered. Under the first option, owners and operators of RMP facilities, in addition to self-selecting their third-party auditors pursuant to the specified independence criteria, would also selfdetermine when it is impossible or impractical to hire such auditors and self-select their alternative auditors. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules Under this option, the owner or operator would be required to inform the implementing agency and the public of the alternative auditors, which could be accomplished by providing and/or publicly posting information on the alternative auditors and how they were selected. The information could describe the steps taken to identify auditors meeting all of the rule’s independence criteria, the identities and competencies of the alternative auditors, the regulatory independence criteria that the alternative auditors were unable to meet and why, and any steps taken to address or limit the impacts of the auditors’ lack of independence on the outcomes and reliability of their audits. Under the second option, owners and operators who, despite best efforts, could not find auditors meeting all the rule’s independence criteria would be authorized to identify specific alternative auditors to the implementing agency and petition it for approval to engage those auditors. This approach would include a requirement for auditors not fully satisfying the rule’s independence criteria to prepare and implement Conflict of Interest Mitigation Plans similar to those required by the California Air Resources Board (CARB) under its Regulation for the Mandatory Reporting of GHG Emissions,101 with associated reporting, recordkeeping, and due process procedures. Under this option, if, despite best efforts, an owner or operator cannot find a third-party auditor meeting all of the criteria in § 68.59(b) or § 68.80(b), the owner or operator would be required to request approval, in writing, to the implementing agency to use an alternative third-party auditor. The implementing agency would then be required, within a specified timeframe, to approve or disapprove the proposed request and provide notice of its decision to the owner or operator. The owner or operator’s request to use an alternative third-party auditor would include a description of the owner or operator’s efforts to find an independent third-party auditor, identification of the proposed alternative third-party auditor (including the same information required pursuant to this rule for a fully qualified auditor), identification of the specific independence requirements the proposed alternative third-party auditor meets and does not meet, and an organizational chart of the proposed alternative third-party auditor and related entities with brief descriptions 101 CARB. July 23, 2015. Verification of GHG Emissions Data Reports. https://www.arb.ca.gov/cc/ reporting/ghg-ver/ghg-ver.htm. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 of the primary nature of the work each performs. The owner or operator’s request to use an identified alternative third-party auditor would also include a Conflict of Interest Mitigation Plan demonstrating the steps the auditor would take to mitigate its inability to fully meet the independence requirements in § 68.59(b) or § 68.80(b). These steps could include ensuring that any individual or organizational component of the auditor with conflicts of interest or impartiality concerns is removed from the audit and/or isolated from the individuals or organizational component conducting the audit, an explanation of how and why the amount and nature of work previously performed should not be deemed to undermine the auditing team’s credibility and lack of bias, and descriptions of any other adjustments or circumstances taken to address actual or potential sources for conflicts of interest, with an appropriate certification signed and dated by a senior owner or operator official. If, pursuant to this option, the implementing agency approves the alternative third-party auditor, it would provide written notice to the owner or operator and, upon receipt of the approval, the owner or operator may engage the alternative auditor to conduct the audit under this section. If the implementing agency does not approve the identified alternative auditor, the implementing agency would provide a written notice to the owner or operator stating the reasons for the decision. Within a specified timeframe after receipt of such written notice, the owner or operator would be required to submit the name of another proposed auditor for the implementing agency’s consideration. In the alternative, the owner or operator would be able to appeal the implementing agency’s decision pursuant to the applicable agency’s processes. EPA considered but did not propose other third-party auditor independence safeguards than those included in proposed § 68.59(b)(2) or § 68.80(b)(2). Examples include mandating the random assignment of auditors, paying them from a central pool of auditing funds, or requiring mandatory periodic auditor rotation after a specified period of time. Nor has EPA proposed provisions requiring owners and operators to provide advance notice to the implementing agency of third-party auditor site visits to enable the implementing agency to accompany and observe the third-party auditors on such PO 00000 Frm 00025 Fmt 4701 Sfmt 4702 13661 visits.102 EPA seeks comment on these alternative approaches. EPA further seeks comment on whether there are any other alternative approaches to third-party auditor qualifications EPA should consider prior to issuing a final action. For example, EPA could, in the final rule, allow for audits to be performed by auditors with some potential conflicts of interest (e.g., employees of parent company, affiliates, vendors/contractors that participated in developing the facility’s RMP, etc.) and/or allow a person employed at the facility who is a registered PE to conduct the audit. If such approaches are adopted in the final rule, the Agency could seek to place appropriate restrictions on auditors and auditing using third parties with less than full independence from their client facilities in an effort to increase confidence that the auditors will act appropriately when performing their activities under the RMP rule. The purposes of such provisions could include ensuring that auditor personnel who assess a facility’s compliance with the RMP rule do not receive any financial benefit from the outcome of their auditing decisions, apart from their basic salaries or remuneration for having conducted the audits. EPA also specifically requests commenters to identify any supportive literature or data as EPA is presently not aware of literature or data showing that such provisions are effective in counteracting biases due to lack of impartiality or independence. There may be other options, in addition to the approaches taken in the proposed third-party compliance auditing program or identified above, that can also increase owner or operator flexibility without compromising audit accuracy. EPA seeks comment on such alternative auditor/auditing approaches. If non-independent or limited independence third-party auditing, second-party auditing, or enhanced selfauditing is authorized, EPA seeks comment on how best to structure such auditing to maximize auditor independence and accurate auditing outcomes given the lack of complete 102 Compare proposed 40 CFR 770.7(a)(3)(iv) of EPA’s proposed Toxic Substances Control Act (TSCA) formaldehyde in wood products third-party program proposed rule: ‘‘(3) Responsibilities. EPA recognized Laboratory ABs must fulfill the requirements in paragraphs (b)(3)(i) through (xiii) of this section: . . . (iv) Upon request, allow EPA representatives to accompany its assessors during an on-site assessment to observe the audit of a TPC.’’ Formaldehyde; Third-Party Certification Framework for the Formaldehyde Standards for Composite Wood Products, 78 FR 34796, June 10, 2013. https://www.gpo.gov/fdsys/pkg/FR-2013-0610/pdf/2013-13254.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 13662 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 independence. EPA also seeks suggestions for what steps a facility should be required to take if third-party auditors who meet the proposed independence and competence criteria are not available. If RMP facilities are allowed, in the final rule, to use enhanced self-auditing in lieu of independent third-party auditing, examples of the types of restrictions that could be placed on such self-auditing to potentially improve auditor impartiality and auditing outcomes appear in the U.S. and CARB v. Hyundai Motor Company, et al. Consent Decree.103 Third-Party Audit Report Proposed §§ 68.59(c) and 68.80(c), if finalized, would require owners or operators of stationary sources to ensure that their third-party auditors prepare and submit audit reports. Proposed §§ 68.59(c)(1) and 68.80(c)(1), if finalized, would include requirements for the scope and content of these reports, including a statement to be signed by the third-party auditor certifying that the third-party audit was performed in accordance with the requirements of subpart C or D. Proposed §§ 68.59(c)(1) and 68.80(c)(1), if finalized, would also require that the final third-party audit reports must identify any adjustments made by the third-party auditor to any draft thirdparty audit reports provided to the owners or operators for their review or comment. EPA believes that these provisions are important to minimize third-party compliance audit bias. EPA’s intent in allowing for owners and operators to receive and comment on draft third-party compliance audit reports with these additional requirements is to promote factual and informative final third-party compliance audit reports without compromising their accuracy and independence. EPA seeks comment, however, on whether we should also require draft third-party compliance audit reports to be submitted to the implementing agency at the same time, or before, such reports are provided to the owners and operators and whether such a requirement would be further effective in minimizing potential third-party compliance audit bias. Proposed §§ 68.59(c)(2) and 68.80(c)(2), if finalized, would include requirements for the retention of reports and records by the third-party auditors. Proposed §§ 68.59(c)(3) and 68.80(c)(3), if finalized, would require the audit 103 U.S District Court of DC November 11, 2014. Decree of Consent U.S California Air Resources Board v. Hyundai et al. https://www2.epa.gov/sites/ production/files/2014-11/documents/hyundai-kiacd.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 report to be submitted to the implementing agency at the same time, or before, it is provided it to the owner or operator. Finally, EPA is proposing in §§ 68.59(c)(4) and 68.80(c)(4) that the audit report and related records cannot be claimed as attorney-client communications or as attorney work products even if the auditors are themselves, or are managed by or report to, attorneys. With respect to the attorney work product privilege, the audit report and related records are produced to document compliance rather than in anticipation of litigation, just like a monitoring report required by an air emission rule would not be produced in anticipation of litigation. With respect to the attorney-client communication privilege, the thirdparty auditor is arms-length and independent of the stationary source being audited. The auditor lacks an attorney-client relationship with counsel for the audited entity. Therefore, neither the audit report nor the records related to the audit report provided to the third-party auditor are attorney-client privileged (including documents originally prepared with assistance or under the direction of the audited source’s attorney). EPA seeks comment on these proposed requirements including any legal concerns that may result from the provision that limits attorney-related privileges. Other Owner or Operator Obligations Proposed §§ 68.59(d)(1) and 68.80(d)(1), if finalized, would require owners or operators, as soon as possible, but no later than 90 days after receiving the final audit report, to determine an appropriate response to each of the findings in the audit report, and develop and provide to the implementing agency a findings response report. This findings response report would include: A copy of the final audit report; an appropriate response to each of the audit report findings; a schedule for promptly addressing deficiencies; and a statement, signed and dated by a senior corporate officer, certifying that appropriate responses to the findings in the audit report have been identified and deficiencies were corrected, or are being corrected, consistent with the requirements of subpart C or D of 40 CFR part 68. The requirement to determine appropriate responses to findings is similar to existing compliance audit requirements that require the owner or operator to ‘‘promptly determine and document an appropriate response to each of the findings of the compliance audit.’’ EPA seeks comment on these proposed PO 00000 Frm 00026 Fmt 4701 Sfmt 4702 requirements and whether we should provide flexibility on the timeframe for developing the findings response report. EPA also considered prescribing a timeframe within which deficiencies must be corrected, rather than rely on ‘‘promptly’’ address deficiencies. However, EPA was unable to identify an appropriate timeframe given the variety of possible site-specific actions that an owner or operator may take to address audit findings. EPA seeks comment on whether to keep this approach or substitute a specific number of days and, if the latter, what is a reasonable time period to specify and why. Proposed §§ 68.59(d)(2) and 68.80(d)(2), if finalized, would require the owner or operator to implement the schedule and address deficiencies identified in the audit findings response report, and document the action taken to address each deficiency, along with the date completed. Proposed §§ 68.59(d)(3) and 68.80(d)(3), if finalized, would require the owner or operator to provide a copy of documents required under paragraphs (d)(1) and (d)(2) to the owner or operator’s audit committee of the Board of Directors, or other comparable committee, if one exists. EPA seeks comment on these proposed requirements. Proposed §§ 68.59(e) and 68.80(e), if finalized, would require the owner or operator to retain records at the stationary source, including: the two most recent third-party audit reports, related findings response reports, documentation of actions taken to address deficiencies, and related records; and copies of all draft thirdparty audit reports. The owner or operator shall provide draft third-party audit reports, or other documents, to the implementing agency upon request. For proposed § 68.59(e) (Program 2 thirdparty audit recordkeeping provision), these requirements, if finalized, would not apply to any documents that are more than five years old (for Program 3 third-party audit records, as for the existing Program 3 compliance audits, the owner or operator would be required to retain records to support the two most recent audits). EPA seeks comment on these proposed requirements. C. Safer Technology and Alternatives Analysis (STAA) 1. Meaning of STAA Safer technology and alternatives refer to risk reduction strategies developed through analysis using a hierarchy of process risk management strategies (or hierarchy of controls), which consists of those which are inherent, passive, E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules is no clear boundary between IST and passive, active, and procedural risk management strategies. CCPS further stated that ISTs are relative and can only be described as inherently safer when compared to a different technology, including a description of the hazard or set of hazards being considered, their location, and the potentially affected population. Because an option may be inherently safer with regard to some hazards and inherently less safe with regard to others, the decision process must consider the entire life cycle, the full spectrum of hazards and risks, and the potential for • Minimization–using smaller quantities of transfer of risk from one impacted population to another. This report also hazardous substances; noted that there is currently no • Substitution–replacing a material with a less hazardous substance; consensus on either a quantification • Moderation–using less hazardous method for IST or a scientific conditions or a less hazardous form, or assessment method for evaluation of IST designing facilities that minimize the impact options. The report states that risk can of a release of hazardous material or energy; be reduced by many methods, including and ISD, but those methods must include • Simplification–design facilities to the full spectrum of risk reduction eliminate unnecessary complexity and make approaches (passive, active, and operating errors less likely. procedural risk management systems). The hierarchy establishes that Few technologies will be inherently inherently safer options (e.g., minimization, substitution, moderation, safer with respect to all hazards, and other approaches will usually be and simplification) are preferable and occupy the top of the hierarchy. Passive required to manage the full range of hazards and risks. As an example, the strategies (process and equipment report points out that an IST with design) are preferable to active ones such as engineering controls (automatic respect to a catastrophic release hazard may conflict with methods to minimize digital or mechanical system controls), other hazards, such as theft or diversion which are preferable to procedures or of materials, contamination of product, administrative options (controls or degradation of infrastructure. It may requiring human action). However, risk not address other hazards at all, or it reduction of a process hazard may also may create new hazards. be achieved by using a combination of strategies, known as layers of protection. 3. EPA’s Past Approach to STAA EPA is proposing to require analysis of The RMP rule already embodies most safer technology and alternatives as part aspects of the hierarchy of controls. For of the PHA for a subset of Program 3 example, § 68.67 (PHA) requires owners processes. and operators of Program 3 processes to address process hazards using 2. Inherently Safer Technology (IST) engineering and administrative controls. A July 2010 DHS report prepared by the CCPS described IST as a philosophy In most cases, the rule’s requirements for compliance with RAGAGEP should and an iterative process, including eliminating a hazard, reducing a hazard, ensure that equipment and processes are properly designed, using appropriate substituting a less hazardous material, using less hazardous process conditions, passive, active, and procedural controls. The RMP rule also encourages passive and designing a process to reduce the and active mitigation for releases by potential for, or consequences of, allowing a source to account for such human error, equipment failure, or mitigation techniques in its OCA (see 105 It stated that there intentional harm. §§ 68.25 and 68.28). However, the rule does not contain any explicit 104 CCPS. 2009. Inherently Safer Chemical requirement for owners and operators to Processes: A Life Cycle Approach, 2nd ed., American Institute of Chemical Engineers, CCPS address the first tier of the hierarchy of New York, Wiley. controls—i.e. inherent safety. 105 CCPS. July 2010. Final Report: Definition for Although the current rule does not IST in Production, Transportation, Storage, and include IST requirements, EPA has Use. Prepared by: CCPS, American Institute of Chemical Engineers, New York, New York for recognized the importance of Chemical Security Analysis Center, Science & considering IST for improving process Technology Directorate, U.S. DHS Aberdeen safety. The preamble of the 1995 Proving Ground, MD. https://www.aiche.org/ccps/ documents/definition-inherently-safer-technology. supplemental NPRM for the Risk mstockstill on DSK4VPTVN1PROD with PROPOSALS4 active, and procedural.104 This philosophy can be applied initially to all design phases and then continuously throughout a process’s life cycle by identifying and assessing hazards and developing a control strategy. STAA includes concepts known as IST or inherently safer design (ISD), which are those strategies that permanently reduce or eliminate the hazards associated with materials and operations used in a process. IST, ISD, and inherent safety are interchangeable terms that are used in the literature and in the field. The four major inherently safer strategies are: VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00027 Fmt 4701 Sfmt 4702 13663 Management Program recognized ‘‘that there are many opportunities to make processes inherently safer without large scale adoption of new technologies (60 FR 13533, March 13, 1995). EPA also noted in the preamble to the 1996 final RMP rule, ‘‘Application of good PHA techniques often reveals opportunities for continuous improvement of existing processes and operations without a separate analysis of alternatives’’ (61 FR 31674, June 20, 1996). The structure of the applicability provisions of the RMP rule, with TQs, encourages minimizing the presence of regulated substances in processes and encourages sources to continue to examine and adopt viable alternative processing technologies, system safeguards, or process modifications to make new and existing processes and operations inherently safer. EPA’s existing guidance on the ‘‘general duty clause’’ in CAA section 112(r)(1) states that, ‘‘The owners and operators should try to substitute less hazardous substances for extremely hazardous substances or minimize inventories when possible. This is usually the most effective way to prevent accidents and should be the priority of a prevention program.’’ 106 In the 1996 final RMP rule, EPA decided not to mandate IST analysis, stating that ‘‘EPA does not believe that a requirement that owners or operators conduct searches or analyses of alternative process technologies for new or existing processes will produce significant additional benefits.’’ (61 FR 31688, June 20, 1996). However, since 1996 EPA has seen that advances in ISTs and safer alternatives are becoming more widely available and are being adopted by some companies. Voluntary implementation of some ISTs has been identified through surveys and studies and potential opportunities have been identified through EPA inspections and CSB incident investigations. EPA now believes that there is a benefit in requiring that some facilities evaluate whether they can improve risk management of current hazards through potential implementation of ISTs or risk management measures that are more robust and reliable than ones currently in use at the facility. While EPA believes that facilities should look for additional opportunities to increase safety, we believe that the facility owners or operators are in the best position to identify which changes are 106 EPA, Office of Solid Waste and Emergency Response and Office of Enforcement and Compliance Assurance. May 2000. Guidance for Implementation of the General Duty Clause, CAA Section 112(r)(1). EPA 550–B00–002. https:// www2.epa.gov/rmp/guidance-implementationgeneral-duty-clause-clean-air-act-section-112r. E:\FR\FM\14MRP4.SGM 14MRP4 13664 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 feasible to implement for their particular process. As a result, EPA is not proposing to require that a facility implement a particular technology or design. In addition, in CAA section 112(r) enforcement cases, facility owners or operators have occasionally entered into consent agreements involving implementation of safer alternatives. For example, a food processor in San Francisco had a release of anhydrous ammonia from its refrigeration system in 2009, resulting in evacuation of the facility and several neighboring businesses and hospitalization of 17 people. As part of a consent decree, the facility owner or operator converted the anhydrous ammonia refrigeration system to a safer technology that uses glycol and less ammonia, along with implementing other safety measures and system upgrades.107 Following community complaints and a 2011 EPA inspection, the owner or operator of a fertilizer facility chose to remove a total of 99,000 pounds of anhydrous ammonia from the facility, thus reducing the risk to the surrounding population.108 In another case, the owner or operator of a dairy company agreed to reduce the anhydrous ammonia inventory and improve release detection equipment at two facilities after two anhydrous ammonia releases in 2005 and 2007 (the latter causing nine people to spend a night in the hospital) and after EPA identified CAA violations.109 The owner or operator of a Connecticut metal finishing facility that used chlorine gas for treatment of cyanide waste agreed to implement a project to eliminate the use of chlorine by substituting liquid sodium hypochlorite after EPA found violations of accident prevention regulations.110 A release from one of the chlorine cylinders at the facility could 107 EPA News Release. January 31, 2012. South San Francisco Food Processing Factory Will Pay Nearly $700,000 in Penalties, Spend $6 Million to Update Refrigeration System Safety. https:// yosemite.epa.gov/opa/admpress.nsf/0/ 1c6b8ee238fd17d185257996005b892f. 108 EPA News Release. August 14, 2013. Abilene Products Co., Inc., Agrees to $90,660 Settlement for Violations of CAA at Abilene, Kan., Fertilizer Facility. https://yosemite.epa.gov/opa/admpress.nsf/ 0/8BB676093B7826FF85257BC7006B3E4C. 109 EPA News Release. October 1, 2012. Settlement with Suiza Dairy Corporation for Violations at facilities in Puerto Rico will make facilities safer, benefit nearby communities. https:// yosemite.epa.gov/opa/admpress.nsf/0/ 319D803456BF7B0885257A8A005A4238. 110 EPA Region 1. January 20, 2014. Consent Agreement and Final Order—In the Matter of: Metal Finishing Technologies, LLC Docket Number: CAA01-2013-0073. https://yosemite.epa.gov/OA/RHC/ EPAAdmin.nsf/Filings/ 3A95FA64BDE7026C85257C8600214551/$File/ CAFO%20CAA-01-2013-0073.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 potentially have impacted offsite public receptors in a densely populated area.111 Thus, EPA’s historic approach to STAA under CAA section 112(r) has resulted in chemical plant operators introducing safer technology and alternatives through implementation of existing rule provisions that address most of the hierarchy of controls, but the Agency has not mandated the use or analysis of IST alternatives. 4. Public Input on STAA Public feedback and input to the Working Group established to oversee Executive Order 13650, showed there was broad agreement among facility owners and operators, plant workers, community members, and environmental and union organizations of the benefits of implementing safer alternatives where feasible. There was, however, no consensus about the role of government in the implementation of safer technologies and alternatives. Industry representatives are wary about process design and operational decisions, including choices of IST, being imposed through regulations. Process design and operational decisions are technically complex and often difficult to regulate. Conversely, many labor and environmental justice representatives believe the Federal government should have a larger role in encouraging IST, with particular emphasis on the opportunity to reduce the vulnerability of residents and workers from incidents.112 a. Pending Petition on IST In July of 2012, a coalition representing 54 organizations and individuals petitioned EPA to use its rulemaking authority under CAA section 112(r)(7)(A), ‘‘to require the use of IST, where feasible, by facilities that use or store hazardous chemicals.’’ The petitioners also requested that pending completion of such rulemaking, that EPA should: revise its guidance concerning the enforcement of the CAA general duty clause, section 112(r)(1), 42 U.S.C. 7412(r)(1), to 111 EPA Region 1. September 30, 2013. Administrative Complaint—In the Matter of: Metal Finishing Technologies, LLC Docket Number: CAA– 01–2013–0073. https://yosemite.epa.gov/OA/RHC/ EPAAdmin.nsf/Filings/ 1BE4A3485C3E1E6B85257C1C0021490D/$File/ CAA-01-2013-0073%20Complaint.pdf. 112 Chemical Facility Safety and Security Working Group. May 2014. Executive Order 13650 Report to the President—Actions to Improve Chemical Facility Safety and Security—A Shared Commitment. EPA, the Department of Labor (DOL), DHS, the Department of Justice (DOJ), the Department of Agriculture (DOA), and the Department of Transportation. Washington, DC. https://www.osha.gov/chemicalexecutiveorder/ final_chemical_eo_status_report.pdf. PO 00000 Frm 00028 Fmt 4701 Sfmt 4702 make clear that the duty to prevent releases of extremely hazardous substances includes the use, where feasible, of safer technologies to minimize the presence and possible release of hazardous chemicals.113 The petitioners stated that many Americans remain at risk of injury or death from the unforeseen release of harmful chemicals from nearby industrial parks, water treatment plants, etc., and that the DHS CFATS, which impose security measures on facilities presenting a high risk of vulnerability to releases of hazardous substances, do not cover water treatment facilities, many of which use and store significant quantities of chlorine gas. The petitioners cited specific threats or accidents as examples of risks that, in their view, should have been addressed by taking steps to eliminate or minimize extremely hazardous substances 114 where feasible. Examples they cited include a 2009 explosion at a refinery in Corpus Christi, Texas, that resulted in the release of more than a ton of hydrogen fluoride, with a much larger release being narrowly avoided.115 A 2008 explosion and fire at a Bayer CropScience facility in West Virginia narrowly missed causing a breach in piping on the top of an aboveground tank of methyl isocyanate (MIC), which the petitioners claimed, if breached, would have resulted in a deadly release of the same chemical responsible for the Bhopal, India disaster.116 They also 113 Greenpeace et al. July 25, 2012. Petition to Prevent Chemical Disasters from Rick Hind of Greenpeace, Richard Moore of Los Jardines Institute and Scott Nelson of Public Citizen sent to EPA Administrator Lisa Jackson, EPA, Washington, DC, www.documentcloud.org/documents/404584petition-to-epa-to-prevent-chem-disastersfiled.html. 114 This not intended to specifically reference the extremely hazardous substances listed under § 302 of EPCRA. Section 112(r)(1) of the CAA provides a purpose and general duty to prevent the accidental release and to minimize the consequence of any release of any regulated substances promulgated by EPA under § 112(r)(3) (40 CFR part 130) and for ‘‘any other extremely hazardous substance.’’ Although the term ‘‘any other extremely hazardous substance’’ is not defined, the legislative history of the 1990 CAAA indicate that the term would include any agent ‘‘which may or may not be listed or otherwise identified by any Government agency which may as the result of short-term exposures associated with releases to the air cause death, injury or property damage due to its toxicity, reactivity, flammability, volatility, or corrosivity.’’ See: https://www2.epa.gov/sites/production/files/ 2013-10/documents/gdcregionalguidance.pdf. 115 Petitioners are referring to an accident at the CITGO Refinery in Corpus Christi, Texas. For more information on this accident, see CSB. December 9, 2009. CITGO Refinery HF Release and Fire, Corpus Christi, Texas. Final Report, Urgent Recommendation. https://www.csb.gov/citgorefinery-hydrofluoric-acid-release-and-fire/. 116 CSB. January 2011. Investigation Report: Pesticide Chemical Runaway Reaction Pressure Vessel Explosion, Bayer CropScience, LP, Institute, West Virginia, August 28, 2008. Report No. 2008– E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules identified a 2007 propane explosion and fire at a refinery in Texas that resulted in the release of nearly three tons of chlorine gas, with deaths and injuries avoided only by prompt evacuation of workers. The CSB, which reported the chlorine release as 5,332 pounds, recommended the refinery replace chlorine used as a biocide in cooling water treatment with inherently safer materials, such as sodium hypochlorite, at all its refineries.117 The petitioners also cited several examples where readily available IST approaches have already been used, such as substitution of liquid bleach or ultraviolet light for chlorine in water disinfection 118 119 and the use of alternatives to replace HF in gasoline refining.120 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 b. National Academy of Sciences (NAS) and CSB Investigation Findings A 2012 report from the NAS that examined the 2008 Bayer CropScience accident in West Virginia and community concerns surrounding MIC (and other highly toxic materials), found that inherently safer process assessments can be valuable components of PSM that can help facility personnel consider the full range of options in process design.121 The NAS report found that while Bayer and previous owners of the site incorporated some considerations of IST, these companies ‘‘did not perform systematic and complete inherently safer process assessments on the processes for manufacturing MIC or the carbamate pesticides at the Institute site.’’ Thus, large amounts of MIC, phosgene, and other toxic materials were produced or stored at the site for decades. The NAS also found that industry as a whole lacks a common understanding 08–I–WV, pp. 88–89, https://www.csb.gov/assets/1/ 19/Bayer_Report_Final.pdf. 117 CSB. July 9, 2008. Investigation Report: LPG Fire at Valero-McKee Refinery, Sunray, Texas, February 16, 2007. Report No. 2007–05–I–TX. https://www.csb.gov/assets/1/19/ CSBFinalReportValeroSunray.pdf. 118 Orum, Paul and Rushing, Reece. March 2, 2010. Leading Water Utilities Secure Their Chemicals. Center for American Progress, Washington, DC. https:// www.americanprogress.org/issues/security/news/ 2010/03/02/7538/leading-water-utilities-securetheir-chemicals/. 119 M. McCoy. November 9, 2009. Clorox to Stop Using Chlorine. Chemical & Engineering News.https://cen.acs.org/articles/87/i45/CloroxStop-Using-Chlorine.html. 120 Morris, J. and Hamby, C. May 19, 2014. Use of toxic acid puts millions at risk. Center for Public Integrity. Washington, DC.https:// www.publicintegrity.org/2011/02/24/2118/usetoxic-acid-puts-millions-risk. 121 NAS. 2012. Summary—The Use and Storage of MIC at Bayer CropScience. pp. 3, 7. https:// dels.nas.edu/resources/static-assets/materialsbased-on-reports/reports-in-brief/MIC-SummaryFinal.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 of what is needed to identify inherently safer processes and accurately quantify their benefits, including the potential for reduced emergency preparedness costs. The NAS panel noted that the goal of ISD is not only to prevent an accident, but also to reduce the consequences of an accident should one occur, thus allowing emergency preparedness planners to focus on more readily manageable scenarios. NAS found that inherently safer process assessments will not always result in a clear, well-defined, and feasible path forward. Although one process alternative may be inherently safer with respect to one hazard— toxicity of byproducts, for example—the process may present other hazards, such as an increased risk of fire or more severe environmental impacts. Choosing between options for process design involves considering a series of tradeoffs and developing appropriate combinations of inherent, passive, active, and procedural safety systems to manage all hazards. A 2011 analysis of 63 CSB accident investigation reports, studies and bulletins by Canadian university researchers identified over 200 examples of recommendations for risk reduction measures from the hierarchy of controls that apply to the prevention of accidents or consequence mitigation. Thirty-six percent of the examples involved inherent safety, 8% involved passive engineered safety, 14% involved active engineered safety and 42% involved procedural safety. ISD items were observed to be equally split among the four primary ISD principles of minimization, substitution, moderation and simplification.122 The CSB has released reports for two recent accidents that the Board indicated could have been avoided if safer technologies had been employed. CSB found that the use of a safer material, such as high-chromium steel, would have prevented the accelerated corrosion and failure of carbon steel involved in the equipment rupture at the Tesoro Refinery in Anacortes, Washington, in 2010, which resulted in an explosion and fire that killed seven employees.123 One recommendation from this CSB accident investigation 122 Paul R. Amyotte, Dustin K. MacDonald, Faisal I. Khan. September 2011. An analysis of CSB investigation reports concerning the hierarchy of controls. Process Safety Progress. Volume 30, Issue 3, pp. 261–265. https://onlinelibrary.wiley.com/doi/ 10.1002/prs.10461/abstract. 123 CSB. May 2014. Investigation Report: Catastrophic Rupture of Heat Exchanger, Tesoro Anacortes Refinery, Anacortes, Washington, April 2, 2010. Report 2010–08–I–WA. https:// www.csb.gov/assets/1/7/Tesoro_Anacortes_2014May-01.pdf. PO 00000 Frm 00029 Fmt 4701 Sfmt 4702 13665 was that EPA should revise the RMP rule to require the documented use of inherently safer systems analysis and the hierarchy of controls to the greatest extent feasible when facilities are establishing safeguards for identified process hazards. CSB also cited the failure to use more corrosion resistant high-chromium steel as a factor in the 2012 Chevron Refinery accident in Richmond, California, which released hydrocarbons that ignited, endangering 19 employees.124 c. State and Local IST Programs Some state and local governments have included inherent safety requirements in their regulations. An IST Review Rule was adopted under the New Jersey TCPA program in May 2008.125 It requires IST reviews of all facilities covered by the TCPA by evaluating, at a minimum, the four IST principles: minimization, substitution, moderation, and simplification. NJDEP defined ‘‘IST’’ to mean ‘‘the principles or techniques that can be incorporated in a covered process to minimize or eliminate the potential for an Extraordinarily Hazardous Substance release.’’ 126 The rule includes a checklist developed under the direction of the New Jersey Domestic Security Preparedness Task Force. The NJDEP allows any available IST analysis method to be used to perform the IST review, but discusses two methods which are commonly used: (1) Integrating IST into the facility’s PHA study and (2) reviewing and completing a checklist containing a number of practical inherent safety considerations.127 The NJDEP also requires an IST review report that includes: • Information on the review team (name, position, qualifications, etc.); • IST analysis method used; • IST already present in the process; • Additional IST identified; • IST to be implemented, and a schedule for their implementation; and 124 CSB. January 2014. Regulatory Report: Chevron Richmond Refinery Pipe Rupture and Fire, Chevron Richmond Refinery #4 Crude Unit, Richmond, California, August 6, 2012. Report No. 2012–03–I–CA. https://www.csb.gov/assets/1/19/ CSB_Chevron_Richmond_Refinery_Regulatory_ Report.pdf. 125 NJDEP. March 29, 2012. NJDEP Title 7, Chapter 31 TCPA Program Consolidated Rule Document. Pages 17, 66 –68. https://www.state.nj.us/ dep/rpp/brp/tcpa/downloads/conrulerev9_ fonts.pdf. 126 NJDEP uses the term ‘‘Extraordinarily Hazardous Substance’’ to describe the substances that are subject to the NJ TCPA. 127 NJDEP, Bureau of Release Prevention. January 15, 2015. Guidance for TCPA, IST Review, Rev. 1. https://www.nj.gov/dep/rpp/brp/tcpa/downloads/ IST_guidance.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 13666 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules • A list of IST determined to be infeasible. A facility owner or operator must determine an identified alternative’s feasibility, and must provide written justification based on both qualitative and quantitative evaluations of environmental, human health and safety, legal, technological, and economic factors if it decides not to implement it. The ACC noted that NJDEP’s definition of inherent safety allowed ‘‘add-on’’ safety equipment and included routine safety improvements that are not part of the inherent safety concept as defined by CCPS and others.128 NJDEP visited every regulated facility and reviewed the IST report with the facility staff. A January 2010 report prepared by the NJDEP to summarize the Department’s review of 85 IST reports indicated that approximately 48% of facilities reported that they had implemented or scheduled to implement IST measures as a result of conducting the IST review.129 California’s Contra Costa County’s ISO 130 and the City of Richmond, California’s ISO 131 require owners and operators of stationary sources to consider ISS in the development and analysis of mitigation systems resulting from a PHA for each covered process, and in the design and review of new processes and facilities. Contra Costa County’s CC ISO defined ISS as mstockstill on DSK4VPTVN1PROD with PROPOSALS4 ‘‘ISD strategies’’ as discussed in the latest edition of the CCPS publication, ‘‘Inherently Safer Chemical Processes,’’ 132 and to mean feasible alternative equipment, processes, materials, lay-outs, and procedures meant to eliminate, minimize, or reduce the risk of a major chemical accident or release by modifying a process rather than adding external layers of protection. Examples include, but are not limited to, substitution of materials with lower vapor pressure, lower 128 ACC. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0694 on Risk Management Program RFI, pg. 25. 129 NJDEP. January 15, 2010. IST Implementation Summary. https://www.nj.gov/dep/rpp/brp/tcpa/ downloads/IST_SUMWEB.pdf. 130 Contra Costa County CA. 2006. ISO Code, Title 4—Health and Safety, Division 450—Hazardous Materials and Wastes, Chapter 450–8—Risk Management. Contra Costa County, California pp. 5, 21–22. https://cchealth.org/hazmat/pdf/iso/Chapter450-8-RISK-MANAGEMENT.pdf. 131 The Richmond ISO is identical to the Contra Costa County ISO except it does not include the 2006 amendments made to the Contra Costa ISO which require a safety culture assessment, a human factors program, management of change for maintenance, health and safety positions, and a security vulnerability analysis. CCHS. July 26, 2011.ISO. City of Richmond Annual Performance Review and Evaluation Report. CCHS, Contra Costa County, CA. https://cchealth.org/hazmat/pdf/iso/ iso_report_richmond.pdf. 132 CCPS. 2009. Inherently Safer Chemical Processes: A Life Cycle Approach, 2nd ed., American Institute of Chemical Engineers, CCPS New York, Wiley. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 flammability, or lower toxicity; isolation of hazardous processes; and use of processes which operate at lower temperatures and/or pressures. The Contra Costa County ISO requires that the stationary source must select and implement ISS to the greatest extent feasible and as soon as administratively practicable. If a stationary source concludes that implementation of an ISS is not feasible, the stationary source must document the basis for this conclusion in meaningful detail. Contra Costa County requires the documentation to include sufficient evidence to demonstrate to CCHS’s satisfaction that implementing the ISS is not feasible and the reasons for this conclusion. A claim that implementation of an ISS is not feasible cannot be based solely on evidence of reduced profits or increased costs. A February 2013 report prepared by CCHS on their ISO program indicated that 4 of 7 facilities covered under the ordinance’s ISS provision implemented at least one inherently safer measure within the previous year.133 The February 2014 CCHS ISO report 134 indicated that 3 of the 7 facilities reported three or more ISS implemented during the last reporting year. In the city of Richmond, California, as of July 2011, the two facilities covered by the Richmond ISO had implemented 62 safer alternative measures involving ISSs.135 In June 2014, the Contra Costa County ISO requirements were expanded to require evaluation and documentation of ISS analysis for new projects and processes and for existing processes, whenever major changes resulting from incident investigation recommendations, root cause analysis, or MOC review indicate that change could reasonably result in a major chemical accident or release. d. Industry and Trade Association Input Numerous trade associations (ACC,136 SOCMA,137 Independent Petroleum Association of America [IPAA] and American Exploration & Production 133 CCHS. February 26, 2013. Annual Performance Review and Evaluation-ISO. 134 CCHS. December 9, 2014. Annual Performance Review and Evaluation-ISO. https://cchealth.org/ hazmat/pdf/iso/iso-report.pdf. 135 CCHS. July 26, 2011. ISO. City of Richmond Annual Performance Review and Evaluation Report. https://cchealth.org/hazmat/pdf/iso/iso_report_ richmond.pdf. 136 ACC. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0694 on Risk Management Program RFI, PDF pp. 16–28 of 189. 137 SOCMA. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0560 on Risk Management Program RFI, pp. 3–6. PO 00000 Frm 00030 Fmt 4701 Sfmt 4702 Council [AXPC],138 API,139 Association of Metropolitan Water Agencies [AMWA],140 National Association of Chemical Distributors [NACD],141 National Association of Manufacturers [NAM],142 CGA,143 Chlorine Institute [CI],144 AFPM,145 Chemical Safety Advocacy Group [CSAG] 146), one company, Axiall Corporation,147 and the Mary Kay O’Connor Process Safety Center [MKOPSC],148) noted in their comments on EPA’s RFI, that IST is only one of many approaches that may be employed to achieve risk reduction. They also noted that identification and evaluation of a safer alternative is not an off-the-shelf concept, but requires a holistic and often complex evaluation involving various factors. The commenters also indicated that IST decisions must be process-, site-, and hazard-specific, technically and economically feasible, and avoid shifting risk. These commenters stated that a regulatory program focused exclusively on eliminating a safety hazard would overlook other important considerations and risks that must be factored into an evaluation of a process change. They further contended that improper implementation of a seemingly safer alternative may lead to undesired consequences. The commenters argued that because an option may be inherently safer with regard to some hazards and inherently less safe with regard to others, decisions about the optimum strategy for 138 IPAA and AXPC. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0584 on Risk Management Program RFI, pp. 21–24. 139 API. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0624 on Risk Management Program RFI, pp. 24–26. 140 AMWA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0639 on Risk Management Program RFI, pp. 1–7. 141 NACD. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0614 on Risk Management Program RFI, pgs. 6–7. 142 NAM. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0625 on Risk Management Program RFI, pg. 2. 143 CGA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0633 on Risk Management Program RFI, pg. 4. 144 CI. October 29, 2014. Comment No. EPA–HQ– OEM–2014–0328–0642 on Risk Management Program RFI, pgs. 7–8. 145 AFPM. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0665 on Risk Management Program RFI, pgs. 35–38. 146 CSAG. October 29, 2013. Comment No. EPA– HQ–OEM–2014–0328–0691 on Risk Management Program RFI, pgs. 38–21. 147 Axiall Corp. October 29, 2013. Comment No. EPA–HQ–OEM–2014–0328–0549 on Risk Management Program RFI, pg. 5. 148 MKOPSC. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0543 on Risk Management Program RFI, pgs. 101–108. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules managing risks from all hazards are required. In their comments on the RFI, AMWA 140 also stated that decisions to select the most appropriate water treatment methods are best made by water utility managers based on a variety of factors. Most importantly, they stated, these managers should also determine which chemical will most effectively make water safe for public consumption and achieve compliance with the requirements of the Safe Drinking Water Act.149 According to AMWA, allowing Federal officials to ‘‘second-guess’’ these local decisions— with a focus on minimizing potential terror attack consequences offsite, rather than ensuring the appropriate treatment and safety of drinking water—could lead to inadequately treated water and even detriments to public health. AMWA also stated that if utilities were simply instructed to consider whether an alternative might be appropriate for them, the costs could be relatively small. But, in AMWA’s view, if this analysis were required to include numerous prescribed steps, calculations and justifications for subsequent decisions, then costs could quickly escalate beyond what is reasonable and affordable. MunicpalH2O, a Risk Management Program/PSM compliance consultant for the water/wastewater treatment industry, commented that implementing these changes is very expensive and cost prohibitive. The commenter suggested that if a new requirement is placed on regulated water and wastewater facilities to perform an analysis of safer technology and alternatives, those facilities that have previously completed an analysis of safer technology and alternatives for their operation should be allowed to utilize their already completed analysis and be exempt from any future requirement in this area.150 The American Water Works Association (AWWA) stated that it has found that options often classified as inherently safer may in fact have impacts that counter other Federal initiatives associated with the nation’s transportation systems, energy consumption, and carbon dioxide emissions.151 Because of these risk tradeoffs, critical factors and variables, 149 AMWA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0639 on Risk Management Program RFI, pgs. 4–5. 150 MunicipalH2O. October 28, 2103. Comment No. EPA–HQ–OEM–2014–0328–0588 on Risk Management Program RFI, pgs. 6–7. 151 AWWA. October 29, 2013. Comment No. EPA–HQ–OEM–2014–0328–0648 on Risk Management Program RFI, pgs. 3–5. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 AWWA maintained that the choice of disinfectant should lie with qualified local officials, who are best acquainted with the specifics of their local situation. NACD stated that requiring manufacturers to hold smaller quantities of hazardous materials on site would exhaust their limited inventories faster.141 The commenter also indicated that distributors would need to deliver hazardous chemicals to these facilities more frequently, thereby significantly increasing the number of miles driven to deliver the same amount of product and ultimately increasing and shifting risk to the public roadways. In addition, NACD suggested there is a higher risk of incident during product loading and unloading, and that more shipments would increase the number of times chemicals must be loaded and unloaded, thereby increasing risk. NACD also stated that fixed-site risks are more manageable than those with a transportation component. 5. Proposed Revisions to Regulatory Text Based on the considerations discussed above, EPA is proposing to modify the PHA provisions in § 68.67 to require analysis of potential safer technology and alternatives that would include, in the following order of preference: IST or ISD, passive measures, active measures, and procedural measures. EPA is limiting the proposed provisions to Program 3 processes in the petroleum and coal products manufacturing (NAICS 324), chemical manufacturing (NAICS 325), and paper manufacturing (NAICS 322) sectors for reasons discussed in section IV.C.6. STAA Applicability. EPA is also proposing to require owners or operators to evaluate the feasibility of implementing any IST or ISD considered. EPA believes a feasibility analysis of any considered IST or ISD is necessary to ensure the facility owner or operator seriously considers whether IST or ISD modifications could further reduce risks and prevent accidents at the facility. EPA is proposing to use the term ‘‘feasibility’’ to describe this analysis because it is already widely used in the context of IST. However, this term has a distinct meaning under the Occupational Safety and Health Act, where the courts look to whether a safety measure is capable of being done.152 In the enforcement context, feasibility means that technical know152 See American Textile Mfrs. Inst. v. Donovan, 452 U.S. 490, 509 (1981); Seaworld of Florida, LLC v. Perez, 748 F.3d 1202, 1215 (D.C. Cir. 2013). PO 00000 Frm 00031 Fmt 4701 Sfmt 4702 13667 how about materials and methods is available or adaptable to specific circumstances, which when applied creates a reasonable possibility that employee exposure to occupational hazards will be reduced, and that the firm is financially able to implement the measure without severe adverse economic effect.153 Because of the potential for confusion, OSHA has indicated that it would be unable to adopt the term feasible, as defined in this notice, under its PSM standard if OSHA considers similar revisions involving IST. EPA seeks comment on whether it would be better if EPA used another term, such as ‘‘practicability’’ for this analysis. EPA is not proposing to require sources affected by this provision to implement an evaluated IST or ISD. The decision to implement such measures must consider the numerous factors related to processes, facilities, and society at large. Improper implementation of a seemingly safer alternative may lead to undesired consequences. While EPA believes that sources should look for additional opportunities to increase safety, we believe that the facility owners or operators are in the best position to identify which changes are feasible to implement for their particular process. This decision should be based on a careful analysis and take into account: The chemicals present and their associated hazards; the operations and process conditions involved; consequences to workers, nearby populations and the environment; and the types of equipment used that are specific to the facility’s process. The analysis may consider the potential to shift risk between populations, locations, environmental media (air, water land), etc. a. Definitions (§ 68.3) EPA is proposing to add several definitions that relate to a STAA in § 68.3. EPA is adding these definitions to describe risk reduction strategies that the owner or operator may use when considering safer technology and alternatives. First, EPA is proposing a definition for inherently safer technology or design (see § 68.3 for the proposed definition). The proposed definition includes risk management measures that would replace or reduce the use of regulated substances or make operating conditions less hazardous or less complex. Adopting the use of IST or ISD 153 OSHA CPL 02–00–159, Field Operations Manual 3–22 (2015); Avcon, Inc., 23 O.S.H. Cas. (BNA) 1440, 1454 n.24 (O.S.H.R.C. Apr. 5, 2011). E:\FR\FM\14MRP4.SGM 14MRP4 13668 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 eliminates or reduces hazards by using different materials and/or process conditions which would make accidental releases less likely, or the impacts of such releases less severe. Second, EPA is proposing a definition for ‘‘passive measures’’ (see § 68.3) that relies on measures that reduce a hazard without human, mechanical, or other energy input. Examples of passive measures include pressure vessel designs, dikes, berms, and blast walls. The third risk reduction measure that EPA is proposing to define is ‘‘active measures.’’ These involve engineering controls that rely on mechanical, or other energy input to detect and respond to process deviations. Examples of active measures include alarms, safety instrumented systems, and detection hardware (such as hydrocarbon sensors). Lastly, ‘‘procedural measures’’ would include policies, operating procedures, training, administrative controls, and emergency response actions to prevent or minimize incidents (see § 68.3). Examples of procedural measures may include administrative limits on process vessel fill levels, procedural steps taken to avoid releases, etc. In order to evaluate the ISTs and ISDs considered, EPA is proposing to define ‘‘feasible’’ to include consideration of economic, environmental, legal, social, and technological factors when determining if the IST or ISD can be accomplished in a successful manner within a reasonable period of time (see § 68.3). Environmental factors could include consideration of risks transferred elsewhere if a new risk reduction measure is adopted. EPA requests comment on these proposed definitions. Furthermore, EPA requests comment on whether the term ‘‘feasible’’ is appropriate to characterize the viability of IST alternatives being considered. Is there another term, such as ‘‘practicable,’’ that may be more appropriate? b. Process Hazard Analysis (PHA) (§ 68.67) EPA is proposing to modify the PHA provisions by adding paragraph (c)(8) to § 68.67, to require that the owner or operator of a facility with Program 3 processes in NAICS codes 322, 324, and 325 address safer technology and alternative risk management measures applicable to eliminating or reducing risk from process hazards. EPA is proposing to add paragraph (c)(8)(i) to specify that the analysis include, in the following order of preference: IST or design, passive measures, active measures, and procedural measures. The owner or operator may evaluate a VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 combination of risk management measures to reduce risk. EPA is also proposing to add paragraph (c)(8)(ii) to require that the owner or operator determine the feasibility of the IST or ISD considered. The results of the feasibility analysis must be documented as part of the current PHA requirements in § 68.67(e), which requires the owner or operator to document actions to be taken and resolution of recommendations. EPA seeks comment on whether the proposed requirements to document feasibility are adequate or if these requirements should be modified to require a more extensive documentation of feasibility. For example, EPA could require that the source document the basis for this conclusion in meaningful detail (similar to California’s Contra Costa County’s ISO 154 requirements). The PHA must be updated and revalidated every five years in accordance with paragraph § 68.67(f) and as such, this provides the owner or operator opportunities to evaluate the feasibility of IST or ISD considered since the last PHA review. EPA believes that five-year revalidation will give the owner or operator the opportunity to identify new risk reduction strategies, as well as revisit strategies that were previously evaluated to determine whether they are now feasible. EPA seeks comment on these proposed revisions. Additionally, EPA requests comment on whether to require STAA documentation be submitted to EPA and/or the implementing agency. 6. STAA Applicability EPA is proposing to limit the applicability of the STAA provisions to sources in the petroleum and coal products manufacturing (NAICS 324), chemical manufacturing (NAICS 325), and paper manufacturing (NAICS 322) sectors for two reasons. First, EPA believes that while most sectors regulated under 40 CFR part 68 could identify safer technology and alternatives, sources involved in complex manufacturing operations have the greatest range of opportunities to identify and implement safer technology, particularly in the area of inherent safety. These sources generally produce, transform, and consume large quantities of regulated substances under sometimes extreme process conditions and using a wide range of complex technologies. Therefore, such sources 154 Contra Costa County CA. 2006. ISO Code, Title 4—Health and Safety, Division 450—Hazardous Materials and Wastes, Chapter 450–8—Risk Management. Contra Costa County, California pp. 5, 21–22. https://cchealth.org/hazmat/pdf/iso/Chapter450-8-RISK-MANAGEMENT.pdf. PO 00000 Frm 00032 Fmt 4701 Sfmt 4702 can often consider the full range of inherent safety options, including minimization, substitution, moderation, and simplification, as well as passive, active, and procedural measures. This contrasts with regulated sources that simply sell or distribute a particular regulated substance, such as bulk anhydrous ammonia. Although such sources may also have opportunities to identify and implement IST, the existence of such sources is predicated on handling and distributing a specific regulated substance. Therefore, their opportunities to implement certain IST strategies such as substitution or minimization may be limited. Similarly, sources involving relatively simpler chemical processes may have opportunities to implement chemical substitution strategies but may be limited in their ability to apply moderation and simplification strategies. Second, EPA notes that RMP facilities in the three selected sectors have been responsible for a relatively large number of accidents, deaths, injuries, and property damage.155 EPA compared the number of RMP accidents that occurred between January 1, 2004, and December 31, 2013, reported by twelve industry sectors to the number of facilities in each sector. Each sector was comprised of industries based on similar operations involving the RMP substances and complexity. The twelve sectors were: Petroleum and coal products manufacturing (NAICS 325), paper manufacturing (NAICS 322), chemical manufacturing (NAICS 324), food and beverage manufacturing (NAICS 311, 312), other manufacturing (all other NAICS 31–33), agricultural chemical distributors (NAICS 11, 42491), chemical/petroleum wholesalers (NAICS 4246, 4247), other wholesalers (all other NAICS 423, 424), warehouses (NAICS 493), water supply/wastewater treatment (NAICS 22131, 22132, 924), oil/gas extraction (NAICS 211) and all other (NAICS 211 (except 22131 and 22132), 44, 45, 48, 54, 56, 61, 72). The sector accident rates (number of accidents divided by the number of facilities in each sector) ranged from 1.08 to 0.04. Three sectors have significantly higher accidents rates as compared to other sectors: 1.08 (petroleum and coal products manufacturing), 0.66 (paper manufacturing) and 0.36 (chemical manufacturing). The petroleum and coal products manufacturing accident rate 155 EPA. January 27, 2016. Technical Background Document for Notice of Proposed Rulemaking: Risk Management Programs under the Clean Air Act, Section 112(r)(7). E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules their STAA, such as approaches discussed by CCPS (e.g., Hazard and Operability Study (HAZOP), What-If?, Checklist, Consequence-based methods),157 the NJ TCPA IST guidance materials,158 the Inherently Safer Systems Checklist provided by Contra Costa Hazardous Materials Program,159 or the information on OSHA’s Web page, ‘‘Transitioning to Safer Chemicals: A Toolkit for Employers and Workers.’’ 160 CCPS provides guidelines for what should be provided in an inherent safety analysis and provides example rationales for why inherent safety review recommendations were rejected.161 Examples for why inherent safety review recommendations may not be feasible, include when the recommendation: 7. Guidance on Evaluating Safer Technologies and Alternatives mstockstill on DSK4VPTVN1PROD with PROPOSALS4 was 6–27 times higher, the paper manufacturing accident rate was about 4–6 times higher, and the chemical manufacturing accident rate was 2–9 times higher than other sectors. Therefore, implementation of safer technology and alternatives by these facilities in the pulp/paper manufacturing, chemical manufacturing, and petroleum refining sectors may prevent serious accidental releases in the future. EPA seeks comment on whether the proposal to limit the STAA provisions to Program 3 regulated processes in NAICS 322, 324, and 325 is appropriate. EPA also seeks comment on whether the Agency should further limit applicability of the STAA provisions (e.g., to apply only during the design stage of new processes or facilities, or only to certain processes). As part of the SBAR Panel process, SERs cited limitations with flexibility to evaluate alternatives for custom formula blends and compliance with FDA approval requirements and, therefore, requested that EPA consider eliminating this provision and/or exempting batch toll manufacturers from this requirement. EPA seeks comment on these alternatives. Finally EPA seeks comment on whether there are other sectors that should be subject to the proposed STAA provision. For example, should EPA require RMP regulated water supply/ wastewater treatment facilities to analyze safer technology and alternatives and document feasibility of the alternatives? 8. Alternative Options As an alternative option, EPA seeks comment on whether to require facility owners or operators to implement any of the feasible options identified in the facility’s analysis. This option would Some owners or operators have already made process changes considered to be inherently safer, but others may not have sufficient information available to effectively assess whether their existing processes can incorporate inherently safer measures. To assist owners or operators with evaluating options for safer alternatives, EPA and OSHA developed a chemical safety alert in June 2015 illustrating the concepts, principles and examples of safer technology and alternatives to make industry more aware of this information, while providing sources of information for further investigation and review.156 EPA and OSHA have said owners or operators may use any available methodology or guidance to conduct 156 EPA and OSHA. June 2015. Chemical Safety Alert: Safer Technology and Alternatives. EPA 550– F–15–503. s https://www.epa.gov/rmp/chemicalsafety-alert-safer-technology-and-alternatives. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 • Is in conflict with existing Federal, state and local laws. • Is in conflict with RAGAGEP. • Is economically impractical, such that the process unit would stop being fiscally feasible. This can include consideration of: • Capital investment; • Product quality; • Total direct manufacturing costs; • Operability of the plant; and/or • Demolition and future clean-up and disposal cost. • Would have a negative social impact. Some examples could include an unacceptable visual or noise impact on the community, or increased traffic congestion. • May violate a license agreement that cannot be modified, and so must remain in effect. • May decrease the hazard, but would increase the overall risk. • Provides less risk reduction than an alternative recommendation. 157 CCPS. 2009. Inherently Safer Chemical Processes: A Life Cycle Approach, 2nd ed., American Institute of Chemical Engineers, CCPS New York, Wiley. 158 NJDEP, Bureau of Release Prevention. January 15, 2015. Guidance for TCPA, IST Review. https:// www.nj.gov/dep/rpp/brp/tcpa/downloads/IST_ guidance.pdf. See also NJWEC. May 5, 2008. New Rule for IST Review by NJDEP. https:// www.njwec.org/PDF/Factsheets/CS_IST_ FactSheet.pdf. 159 Contra Costa Hazardous Materials Program. June 15, 2011. ISS Checklist (extracted from IST Checklist found in the CCPS Inherently Safer Chemical Processes, 2nd ed., with incorporation of additional considerations). https://cchealth.org/ hazmat/pdf/iso/attachment_c.pdf. 160 OSHA. Transitioning to Safer Chemicals, a Toolkit for Employers and Workers. https:// www.osha.gov/dsg/safer_chemicals/. 161 CCPS. 2009. Inherently Safer Chemical Processes: A Life Cycle Approach, 2nd ed. American Institute of Chemical Engineers, CCPS. New York, Wiley, 2009. Pgs. 200–202. PO 00000 Frm 00033 Fmt 4701 Sfmt 4702 13669 rely on the owner or operator to select the specific technology or design to implement. EPA seeks comment on the factors EPA should consider when determining whether to require implementation of feasible options. EPA evaluated the NJDEP 125 and CCHS 134 IST analysis programs as possible models to use in the Risk Management Program requirements. EPA seeks comment on whether we should include the following in our proposed STAA provisions: • Aspects of the NJDEP’s program, such as more prescribed documentation of STAA; or • Other aspects of CCHS’s program, such as requiring ISS analysis during the design of new processes, for PHA recommendations, or for major changes from an incident investigation recommendations, root cause analysis or MOC review that could reasonably result in a major chemical accident or release. Finally, EPA seeks comment on whether either EPA or a third-party should create a ‘‘clearinghouse’’ of safer technology and alternatives that allow source owners or operators to share useful information and/or consult to identify technologies to evaluate for their process. We note that the concept of a clearinghouse has drawn support in comments on the RFI from state and local officials, labor and environmental stakeholders, academics, and industry representatives.162 One mechanism of collecting relevant information could be the National Working Group on Chemical Safety and Security’s best practices Web site,163 which collects and shares chemical safety and security best practices, including safer alternatives. Alternatively, EPA could require submission of STAA analyses, 162 AMWA. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0639 on Risk Management Program RFI, p. 3; BlueGreen Alliance. October 27, 2014. Comment No. EPA–HQ–OEM–2014–0328– 0579 on Risk Management Program RFI. p. 6. www.bluegreenalliance.org; BWD. October 24, 2014. Comment No. EPA–HQ–OEM–2014–0328–0654 on Risk Management Program RFI. p. 3. Beaver Water District (BWD), Lowell, Arkansas; CCHS. October 28, 2014. Comment No. EPA–HQ–OEM–2014– 0328–0546 on Risk Management Program RFI, p. 8; CPCD. October 29, 2014. Comment No. EPA–HQ– OEM–2014–0328–0644 on Risk Management Program RFI, pgs. 16, 18–19; MKOPSC. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328– 0543 on Risk Management Program RFI, p. 105; Tickner, J. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0688 on Risk Management Program RFI. p. 6. University of Massachusetts, Lowell, Massachusetts; TURI. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0539 on Risk Management Program RFI. Toxics Use Reduction Institute (TURI), University of Massachusetts, Lowell, Massachusetts. p. 5; United Steelworkers. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0547 on Risk Management Program RFI, p. 5. 163 OSHA. 2014. Executive Order 13650 Best Practices. https://www.osha.gov/ chemicalexecutiveorder/LLIS/. E:\FR\FM\14MRP4.SGM 14MRP4 13670 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules or information from those analyses, directly to EPA, and develop its own Web site. The information shared on such a Web site may include practicable risk reduction measures that could be applied at various facilities to mitigate threats to the public, worker, health, environment, and facility during the production, transport, and use of chemicals. D. Stationary Source Location and Emergency Shutdown Serious accidents often highlight numerous safety concerns and emphasize the need to consider existing regulations, industry standards, recommended practices and guidance to reduce risks of future incidents. Two issues of particular importance include the location of stationary sources and their emergency shutdown capabilities. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 1. Stationary Source Location The location of stationary sources, and the location and configuration of regulated processes and equipment within a source, can significantly affect the severity of an accidental release. The location of the stationary source in relation to public and environmental receptors may exacerbate the impacts of an accidental release, such as blast overpressures or concentrations of toxic gases, or conversely may allow such effects to dissipate prior to reaching receptors. The lack of sufficient distance between the source boundary and neighboring residential areas was a significant factor in the severity of several major chemical accidents, including, among others, the Bhopal disaster 164 and the recent West Fertilizer accident. In the Bhopal disaster, most of the deaths and injuries occurred in a residential area that had grown up next to the plant. In the West Fertilizer accident, an apartment complex and a nursing home located approximately 450 feet and 600 feet, respectively, from the source of the explosion were heavily damaged, resulting in three public fatalities (a total of 15 people were killed in the explosion). The explosion also caused over 260 injuries, as well as damage to over 350 homes and three schools located near the plant.165 Facility designers have long recognized the potential benefits of 164 Lees, Frank P. 1996. Loss Prevention in the Process Industries, Volume 3, 2nd ed. Appendix 5 Bhopal. Butterworth-Heinemann, Oxford, Great Britain. 165 CSB. January 2016. Final Investigation Report, West Fertilizer Company Fire and Explosion, West, TX, April 17, 2013. Report 2013–02–I–TX, pp. 13, 30, 49, 53, 54. https://www.csb.gov/west-fertilizerexplosion-and-fire-/. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 adding buffer or safety zones (i.e., controlled areas separating the public and other facilities from the consequences of process incidents) when selecting the location for new chemical facilities. For existing facilities, owners have sometimes compensated nearby residents to relocate away from the facility boundary in order to create a buffer zone where one did not previously exist, or where adjacent residential areas had been developed after the facility itself was constructed. The selection of locations of processes and process equipment within a stationary source can impact the surrounding community not only by the proximity of the accidental release to offsite receptors near the facility boundary (e.g., people, infrastructure, environmental resources) but also by increasing the likelihood of subsequent releases from other nearby processes compromised by the initial release. The 1984 disaster at the PEMEX liquefied petroleum gas (LPG) tank farm in San Juan Ixhuatepec, Mexico, illustrates the potential for such effects. In this accident, an LPG pipeline rupture resulted in a large ground fire that spread to nearby LPG storage vessels, initiating a series of massive explosions. The cascading explosions and fires ultimately destroyed the entire facility and many nearby residences, resulting in over 500 fatalities and thousands of severe injuries.166 In the United States in 2007, a large fire at the Valero McKee refinery in Sunray, Texas, resulted in the release of chlorine gas and sulfuric acid from an adjacent process, which prevented responders from entering the area and extinguishing the fire for more than two days.167 At West Fertilizer, the Risk Management Program-regulated anhydrous ammonia process was located near the AN storage area. Although the AN explosion did not cause any catastrophic failure of the ammonia storage vessels, the potential for a release existed. A 1994 explosion involving AN solution at Terra Industries in Port Neal, Iowa, which killed four workers, also damaged onsite ammonia tanks, creating an 166 Lees, Frank P. 1996. Loss Prevention in the Process Industries, Volume 3, 2nd ed. Appendix 4 Mexico City. Butterworth-Heinemann, Oxford, Great Britain. 167 CSB. July 9, 2008. Investigation Report: LPG Fire at Valero-McKee Refinery, Sunray, Texas, February 16, 2007. Report No. 2007–05–I–TX. https://www.csb.gov/valero-refinery-propane-fire/. PO 00000 Frm 00034 Fmt 4701 Sfmt 4702 ammonia cloud that resulted in the evacuation of 2,500 people.168 The PSM standard and RMP rule both require that facility siting be addressed as one element of a PHA (see 29 CFR 1910.11 9(e)(2) and (3)(v)), and 40 CFR 68.67(c)). While EPA has not provided any guidance on how to adequately address stationary source siting in the PHA, RMP facility owners or operators can refer to industry guidance on siting considerations. The following publications provide guidance on facility siting: • API Recommended Practice 752, Management of Hazards Associated With Location of Process Plant Buildings, 3rd Edition, December 2009; • API Recommended Practice 753, Management of Hazards Associated with Location of Process Plant Portable Buildings, First Edition, June 2007; • CCPS Guidelines for Evaluating Process Plant Buildings for External Explosions, Fires, and Toxic Releases, Second Edition, 2012; and • CCPS Guidelines for Facility Siting and Layout (2003). The first three references listed above focus on providing guidance and best practices on establishing the location of occupied buildings within a facility, but generally do not address the potential risks to offsite receptors associated with the location of the facility or processes within the facility, nor do they consider the potential for releases caused by natural hazards that may occur in particular locations. The CCPS Guidelines for Facility Siting and Layout address both external factors influencing site selection, as well as factors internal to the source that could influence site layout and equipment spacing. At this time, EPA is not proposing any additional requirements for location of stationary sources. EPA seeks comment on whether such requirements should be considered for future rulemakings, including the scope of such requirements, or whether the Agency should publish guidance. 2. Emergency Shutdown In addition to properly locating stationary sources in relation to surrounding receptors, and locating processes within sources so as to minimize the possibility of cascading release events, accidents such as these highlight the importance of being able to quickly and safely shut down processes 168 EPA, Region 7, Emergency Response and Removal Branch (Kansas City, KS). January 1996. Chemical Accident Investigation Report: Terra Industries, Inc., Nitrogen Fertilizer Facility, Port Neal, Iowa (January 1996). https://archive.epa.gov/ emergencies/docs/chem/web/pdf/cterra.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules where accidental releases are occurring or may imminently occur. The RMP regulation requires owners and operators of stationary sources to develop and implement written operating procedures for the safe and timely emergency shutdown of Program 2 and Program 3 processes, to ensure operator training for these procedures, and for maintaining the mechanical integrity of emergency shutdown systems. However, the regulation does not explicitly require that all covered processes must include emergency shutdown systems. EPA encourages owner and operators of stationary sources to consider location of stationary sources and process equipment and the adequacy of emergency shutdown systems at their facilities to determine if changes are necessary to both reduce risks of an accidental release and ensure that procedures are in-place to mitigate those effects. Emergency shutdown or putting a process into a safe operation mode in the event of an emergency is a preventive safeguard to address hazard(s) identified as part of hazard review or PHA. Thus, the hazard review required under § 68.50 or the PHA required under § 68.67 should identify the use of this safeguard, when appropriate. At this time, EPA is not proposing any additional requirements for emergency shutdown systems. However, EPA seeks comment on whether such requirements should be considered for future rulemakings, including the scope of such requirements, or whether the Agency should publish guidance. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 V. Emergency Response Preparedness Requirements A. Emergency Response Program Coordination With Local Responders Subpart E of the RMP rule, the emergency response provisions, applies to facilities with Program 2 or 3 processes. These provisions require owners or operators of regulated facilities with Program 2 or 3 processes to coordinate with local response authorities and in some cases develop an emergency response program in accordance with § 68.95 to address how the owner or operator of the facility will respond to accidental releases.169 The rule requires the owner or operator to prepare and implement an emergency response program to protect public 169 Owners or operators of stationary sources with Program 1 processes are required to coordinate emergency response procedures with local emergency planning and response organizations under § 68.10(b)(3)). This proposal would not affect that requirement. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 health and the environment, unless the stationary source is included in the community emergency response plan developed under section 303 of Emergency Planning & Community Right-to-Know Act (EPCRA) (for sources with regulated toxic substances) and has coordinated response actions with the local fire department (for sources with only regulated flammable substances). An owner or operator that needs to develop an emergency response program (i.e., be a ‘‘responding’’ facility), will need to include the following elements in that program: • An emergency response plan; • Procedures for the use of emergency response equipment and for its inspection, testing, and maintenance; • Training for employees; and • Procedures to review and update the emergency response plan to reflect changes at the stationary source and ensure that employees are informed of changes. The emergency response plan must also be coordinated with local response authorities. An owner or operator of a facility who is relying on local responders to respond to an accidental release (i.e., a ‘‘non-responding’’ facility) when the stationary source has been included in the community emergency response plan developed under section 303 of EPCRA (for sources with regulated toxic substances) or has coordinated response actions with the local fire department (for sources with only regulated flammable substances, and without regulated toxic substances) is not required to develop an emergency response program. However, the owner or operator must also ensure that appropriate notification mechanisms are in place to notify emergency responders when there is a need for a response. Risk Management Program regulated facilities must indicate within their RMP whether or not they are a responding facility (i.e., by indicating compliance with mandatory elements of emergency response plans required in § 68.95(a)(1)). Our review of the RMP*Info database has indicated that the majority of RMP facilities claim to be non-responding facilities.170 However, during facility inspections, EPA has often found that facilities either are not included in the community emergency plan or have not properly coordinated response actions with local authorities.171 172 173 State and local 170 EPA. January 27, 2016. Technical Background Document for Notice of Proposed Rulemaking: Risk Management Programs under the Clean Air Act, Section 112(r)(7). 171 EPA Press Release. July 20, 2011. National Chemical Company will Upgrade Facilities and Pay Fine to Settle Clean Air Violations. https:// PO 00000 Frm 00035 Fmt 4701 Sfmt 4702 13671 response officials echoed this concern during listening sessions conducted under Executive Order 13650, and in feedback provided to EPA in conjunction with the RFI.174 175 This problem occurs with both responding and non-responding facilities, but it is particularly troublesome for nonresponding facilities, because if the facility itself does not maintain the capability to respond to emergencies, and local authorities are not able to respond, then a proper response to an accidental release at the facility may not occur or may be significantly delayed. Also, when local responders are unfamiliar with the hazards of the facility, they may not be prepared to safely respond. Poor coordination between chemical facilities and local emergency responders has been identified as a factor contributing to the severity of chemical accidents. For example, following the August 2008 explosion and fire at the Bayer CropScience facility in Institute, West Virginia, the CSB found that lack of effective coordination between facility and local responders prevented responding agencies from receiving timely information updates about the continually changing conditions at the scene, prevented a public shelter-inplace order from reaching the local community, and may have resulted in toxic exposure to on-scene public emergency responders. Additionally, facility authorities initially prevented local responders from gaining access to the site of the incident.176 The April 17, 2013 accident at West Fertilizer resulted in the deaths of 12 yosemite.epa.gov/opa/admpress.nsf/1e5ab1124055 f3b28525781f0042ed40/9884f5d5e5e6368 c852578d300642a3e!OpenDocument. 172 EPA Press Release. February 13, 2013. Koch Nitrogen Company to Pay $380,000 Civil Penalty for CAA Violations at Facilities in Iowa and Kansas. https://yosemite.epa.gov/opa/admpress.nsf/ d0cf6618525a9efb85257359003fb69d/a9537cb21 3c0371985257b1100738628!OpenDocument. 173 EPA Press Release. May 27, 2014. EPA Moves to Improve Emergency Planning at Facilities in NJ and NY; Inspections Focus on Information on Chemical Hazards Needed by First Responders during Emergency Responses. https:// yosemite.epa.gov/opa/admpress.nsf/0/ C6DB6A8A0918857F85257CE5005FEE24. 174 Gablehouse, T. October 28, 2014. Comment No. EPA–HQ–OEM–2014–0328–0679 on Risk Management Program RFI, PDF pp. 5–6, NASTTPO, Denver, CO. 175 Elder, M., October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0641 on Risk Management Program RFI, Oklahoma Hazardous Materials Emergency Response Commission (OHMERC). 176 CSB. January 2011. Investigation Report: Pesticide Chemical Runaway Reaction Pressure Vessel Explosion, Bayer CropScience, LP, Institute, West Virginia, August 28, 2008. Report No. 2008– 08–I–WV, https://www.csb.gov/assets/1/19/Bayer_ Report_Final.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 13672 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules first responders. During its investigation of the accident, the CSB found that the LEPC did not include the facility in the community emergency response plan.177 Another example is the August 2002 accidental chlorine release at the DPC Enterprises facility in Festus, Missouri, that resulted in sixty-three people from the surrounding community seeking medical evaluation at the local hospital for symptoms of respiratory distress. The CSB investigation found that the DPC emergency response plan did not provide clear guidance on when facility emergency response personnel should respond to a release or when response by an offsite community hazardous materials response team is required. The CSB also found that coordination between local emergency planning and response entities and DPC was insufficient to ensure that the emergency plan would provide for timely community notification and mitigation of the release.178 CAA section 112(r) clearly anticipated that the Risk Management Program regulation would require regulated stationary sources to develop an emergency response program and provide for a response to releases of regulated substances. Section 112(r)(7)(B)(ii) states that the regulations shall require the owner or operator to ‘‘provide a prompt emergency response to any such releases in order to protect human health and the environment,’’ and that the RMP shall include: a response program providing for specific actions to be taken in response to an accidental release of a regulated substance so as to protect human health and the environment, including procedures for informing the public and local agencies responsible for responding to accidental releases, emergency health care, and employee training measures. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Accordingly, in the preamble discussion of the 1996 final RMP rule, EPA explained that the option to be a non-responding facility was contingent on local community responders’ ability to appropriately respond to the stationary source’s hazards. The final rule also provides relief for sources that are too small to respond to releases with their own employees; these sources will not be required to develop emergency response plans provided that 177 CSB. January 2016. Final Investigation Report, West Fertilizer Company Fire and Explosion, West, TX, April 17, 2013. Report 2013–02–I–TX, pgs. 201–203. https://www.csb.gov/west-fertilizerexplosion-and-fire-/. 178 CSB. May 2003. Investigation Report: Chlorine Release, DPC Enterprises, L.P., Festus, Missouri, August 14, 2002. Report No. 2002–04–I–MO. https:// www.csb.gov/assets/1/19/DPC_Report.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 procedures for notifying non-employee emergency responders have been adopted and that appropriate responses to their hazards have been addressed in the community emergency response plan developed under EPCRA (42 U.S.C. 11003) for toxics or coordinated with the local fire department for flammables. (61 FR 31673, 31698, June 20, 1996.) EPA recognizes that some sources will only evacuate their employees in the event of a release. For these sources, EPA will not require the development of emergency response plans, provided that appropriate responses to their hazards have been discussed in the community emergency response plan developed under 42 U.S.C. 11003 for toxics or coordinated with the local fire department for flammables. (61 FR 31681, June 20, 1996.) Because many sources covered by this rule may be too small to handle emergency response themselves, EPA has provided, in this new section, the actions they must take if they will not respond to releases. Specifically, for sources with regulated toxic substances, the source must be addressed in the community emergency response plan developed under EPCRA section 303. Sources with regulated flammable substances must coordinate response actions with the local fire department. These sources must also establish a mechanism to contact local emergency responders. Sources that do not meet these requirements must comply with EPA’s emergency response program requirements. (61 FR 31712, June 20, 1996.) EPA also explained this point in the RMP Guidance: 179 If your employees will not respond to accidental releases of regulated substances, you need not comply with the emergency response plan and program requirements provided you coordinate with local response agencies to ensure that they will be prepared to respond to an emergency at your facility. These excerpts from the 1996 final rule and RMP Guidance indicate that from its inception, the RMP rule has required that owners and operators of regulated sources must either meet the full emergency response program requirements of § 68.95 or ensure that local responders are capable of responding to releases at the source. In spite of this fact, the history of poor emergency response coordination during accidental releases, EPA’s findings during compliance inspections, and recent feedback provided to EPA’s RFI and during Executive Order 13650 listening sessions indicate that many regulated sources have not provided for an adequate emergency response. 179 General Guidance on Risk Management Programs for Chemical Accident Prevention (40 CFR part 68), EPA–550–B–04–001, April 2004, p. 8– 1. https://www2.epa.gov/rmp/guidance-facilitiesrisk-management-programs-rmp#general. PO 00000 Frm 00036 Fmt 4701 Sfmt 4702 1. Proposed Revisions to Emergency Response Coordination Requirements EPA proposes to amend the rule requirements to clarify the obligations of the owner or operator of the stationary source to coordinate emergency response with local authorities. In order to provide clarity, EPA is proposing to reorganize subpart E to address the applicability provisions for responding and non-responding sources in § 68.90, describe required coordination activities in new § 68.93, and include a new requirement in § 68.95 for owners or operators of responding stationary sources to review and update their emergency response program at least annually. EPA is proposing to reorganize § 68.90 to specifically describe the applicability of the emergency response program requirements for non-responding and responding facilities in paragraphs (a) and (b), respectively. The proposed revisions to § 68.90 paragraph (a) describe the applicability provisions for non-responding facilities. The owner or operator of a stationary source need not comply with the emergency response program requirements in § 68.95 provided that after conducting coordination activities required under the proposed § 68.93, the local response authorities and the owner or operator of the stationary source determine that local public emergency response capabilities are adequate to respond to accidental releases at the stationary source; appropriate mechanisms are in place to notify emergency responders when an accident occurs; and the LEPC or equivalent local response authorities have not requested in writing that the owner or operator develop an emergency response program for the stationary source in accordance with § 68.95. Section 68.90 paragraph (b) describes applicability provisions for responding facilities. The owner or operator of the stationary source would be required to comply with the emergency response program requirements of § 68.95 when the outcome of the annual coordination activities with local response authorities required under § 68.93 indicates that local public emergency response capabilities are not adequate to respond to accidental releases of regulated substances at the stationary source. If, as a result of the annual coordination, the facility owner or operator must develop an emergency response program in accordance with § 68.95, the owner or operator should develop the program as soon as reasonably practicable. The owner or operator would also be required to comply with § 68.95 upon E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules receiving a written request to do so from the LEPC, local fire department, or other local emergency response officials having jurisdiction. EPA believes that it is appropriate to provide a mechanism for the local emergency response officials to request that the owner or operator of the stationary source comply with the emergency response program requirements of § 68.95 because it is the presence of the source and its attendant hazards that create a risk to the surrounding community of accidental releases. Therefore, in the event that the outcome of the coordination activities with local response authorities indicates that local public emergency response capabilities are not adequate, the ultimate burden of providing for an appropriate response to releases of regulated substances from the source should rest with the owner or operator. This philosophy is consistent with the general duty clause of CAA section 112(r)(1), which among other things requires the owner or operator to minimize the consequences of accidental releases that do occur. EPA is proposing to add § 68.93 to clarify emergency response coordination activities and require that these activities be documented and occur annually. Section 68.93 would require the owner or operator of a stationary source with a Program 2 or 3 process to coordinate with local response authorities to ensure that appropriate resources and capabilities are in place to respond to an accidental release of a regulated substance. As part of the coordination, the owner or operator and the local response authorities would work together to determine who will respond if an incident occurs, and what would be an appropriate response. Paragraph (a) would require coordination to occur at least annually, and more frequently if necessary, to address changes at the source; in the source’s emergency action plan; in local authorities’ response resources and capabilities; or in the local community emergency response plan. Paragraph (b) would require the owner or operator to document coordination with local authorities, including the names of individuals involved and their contact information (phone number, email address, and organizational affiliations), dates of coordination activities, and the nature of coordination activities. The proposed paragraph (c) specifies who should be involved in the coordination for both stationary sources with regulated toxic and flammable substances. If a stationary source involves a regulated toxic substance, then the source must be included in the VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 community emergency response plan developed under EPCRA. EPA also proposes to revise § 68.95 to ensure that notification procedures include notifications to Federal, Tribal, and state agencies and to require that emergency response plans be updated at least annually. Specifically, EPA is revising § 68.95(a)(1)(i) to add a reference to Federal and state agencies. EPA is also proposing to revise § 68.95(a)(4) to specify that the owner or operator review and update the program annually or more frequently if necessary (e.g., to incorporate lessons learned from incident investigations, or if changes occur in emergency notification systems, local responder organizations, stationary source hazards, or other critical emergency response planning information). EPA is also proposing to revise § 68.95(c) to replace local emergency planning committee with the acronym LEPC. Additionally, EPA is proposing to revise § 68.3 to add LEPC for local emergency planning committee. The term is used throughout the rule and means the LEPC as established under 42 U.S.C. 11001(c). Finally, EPA is proposing to revise § 68.12 (General requirements) to be consistent with these proposed coordination requirements. EPA is proposing revisions to Program 2 requirements under § 68.12(c) in which EPA would renumber paragraph § 68.12(c)(4) and (c)(5) as § 68.12(c)(5) and (c)(6). New paragraph § 68.12(c)(4) would specify the owner or operator’s requirements to coordinate response actions with local emergency planning and response agencies as provided in § 68.93. EPA is proposing similar revisions to Program 3 requirements under § 68.12(d). EPA would renumber paragraph § 68.12(d)(4) and (d)(5) as § 68.12(d)(5) and (d)(6). New paragraph § 68.12(d)(4) would specify the owner or operator’s requirements to coordinate response actions with local emergency planning and response agencies as provided in § 68.93. EPA believes that these proposed amendments clarify existing obligations and prevent situations where neither regulated stationary sources nor local authorities are prepared to appropriately respond to accidental releases at the source. EPA recognizes that an appropriate response—even for responding facilities—may sometimes involve evacuation of facility employees, evacuation or sheltering of nearby residents, and implementation of other defensive measures to prevent harm to workers, responders, and the public. However, planning for such situations should occur in advance, so PO 00000 Frm 00037 Fmt 4701 Sfmt 4702 13673 that either the source or local responders are prepared to implement response measures that are appropriate to the hazards of the stationary source. If local public responders are not capable of responding to accidental releases at a stationary source, the owner or operator can continue to satisfy the applicable requirements of subpart E (Emergency Response) in a number of different ways beyond training and equipping the source’s own employees to respond to releases. For example, EPA has observed situations where stationary source owners or operators supplement their on-site response capability using response contractors, or via mutual aid agreements with other nearby sources. In the RMP Guidance, EPA explained that this may be the most appropriate course of action to comply with the emergency response requirements of subpart E, particularly for small sources with few employees: 180 EPA recognizes that, in some cases (particularly for retailers and other small operations with few employees), it may not be appropriate for employees to conduct response operations for releases of regulated substances. For example, it would be inappropriate, and probably unsafe, for an ammonia retailer with only one full-time employee to expect that a tank fire could be handled without the help of the local fire department or other emergency responder. EPA does not intend to force such facilities to develop emergency response capabilities. At the same time, you are responsible for ensuring effective emergency response to any releases at your facility. If your local public responders are not capable of providing such response, you must take steps to ensure that effective response is available (e.g., by hiring response contractors). Such arrangements would continue to be acceptable to the Agency as a means to meet a facility’s emergency response program obligations. Alternatively, stationary source owners or operators can work with local emergency response officials to identify gaps in local responder capabilities, and assist local authorities in supplementing those capabilities, as appropriate, by providing the equipment or training needed to allow local public responders to prepare for and carry out an appropriate response to accidental releases at the source. Close and ongoing coordination between stationary source owners or operators and local responders will allow such capability gaps to be quickly identified and corrected and appropriate response 180 See General Guidance on Risk Management Programs for Chemical Accident Prevention (40 CFR part 68), EPA–550–B–04–001, April 2004, page 8–1. https://www2.epa.gov/rmp/guidance-facilitiesrisk-management-programs-rmp#general. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 13674 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules plans to be developed. Coordination will also assist local responders in complying with other Federal, state, and local emergency preparedness, planning, and response requirements, such as planning requirements under EPCRA, training requirements under the OSHA Hazardous Waste Operations and Emergency Response standard (29 CFR 1910.120), and other applicable requirements. As part of the SBAR Panel process, SERs expressed frustration with the requirement to coordinate with local emergency response officials because some LEPCs are not active or do not have sufficient resources to fully implement EPCRA requirements. SERs requested clarification on how to comply with coordination requirements when facility owners or operators make good faith efforts to coordinate with local emergency response officials who do not respond to coordination attempts. EPA recommends that these coordination attempts be documented and maintained at the facility. However, if the LEPC is inactive and has not developed a community emergency response plan or has not included the facility in the plan (for toxic substances), or the owner or operator is unable to coordinate response actions with the local fire department (for flammable substances), then the owner or operator must develop an emergency response program in accordance with § 68.95. EPA seeks comment on this approach. Will the proposed amendments contribute to improvements in emergency response planning and coordination? Are there additional practices that EPA should consider that significantly improve planning and coordination? Should EPA further clarify what is necessary for RMP facility owners or operators to adequately coordinate their emergency response program with local authorities? Should coordination activities and emergency plan updates be required annually, or is some other frequency appropriate? How should disagreements between local authorities and the source owner or operator concerning which party should provide for an emergency response to releases of regulated substances at the source be resolved? When an LEPC makes a written request for the owner or operator to comply with the emergency response program requirements of § 68.95, should the LEPC be required to provide a rationale for the request that meets certain criteria, to ensure that the request is reasonable? If so, what criteria should be established? VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 2. Alternative Options EPA considered an alternative that would require owners and operators of all stationary sources with Program 2 or Program 3 processes to comply with the full emergency response program requirements of § 68.95. Under this option, RMP facilities would still be required to perform the annual local coordination and to document activities described previously. However, it would eliminate the flexibility of the current rule and require all Program 2 and Program 3 facilities to be ‘‘responding’’ facilities. EPA did not propose this approach because it does not consider the existing capabilities of local responders and shifts to the regulated stationary sources the burden associated with developing and maintaining an appropriate and effective emergency response capability from local responders in communities that may have adequate capabilities. Additionally, EPA believes that this approach would place an unnecessary burden on small facilities. EPA seeks comment on this alternative approach and whether there are any other alternative options that EPA should consider prior to issuing a final action. B. Facility Exercises Exercising an emergency response plan is critical to ensure that response personnel understand their roles, that local emergency responders are familiar with the hazards at the facility, and that the emergency response plan is appropriate and up-to-date. It ensures that personnel are properly trained and lessons learned from exercises can be used to identify future training needs. Poor emergency response procedures during some recent accidents have highlighted the need for facilities to conduct periodic emergency response exercises. For example, the CSB’s investigation of the April 2004 vinyl chloride monomer (VCM) explosion at the FPC USA in Illiopolis, Illinois, found that the facility’s failure to rehearse a response to a large VCM release made the consequences of the accident significantly worse, and likely contributed to the deaths of operators at the facility.181 The CSB found that after the VCM release began, and despite knowingly working directly over a toxic and highly flammable VCM cloud, two operators did not put on protective breathing apparatus, activate emergency alarms, or evacuate the facility, contrary 181 CSB. March 2007. Investigation Report: VCM Explosion, FPC., Illiopolis, Illinois, April 23, 2004; Report No. 2004–10–I–IL. https://www.csb.gov/ assets/1/19/Formosa_IL_Report.pdf. PO 00000 Frm 00038 Fmt 4701 Sfmt 4702 to emergency response actions outlined in facility emergency procedures. These operators consequently died as a result of injuries received during the ensuing explosion. Failure to conduct emergency exercises involving local authorities may also have resulted in injuries and fatalities to local responders. As previously indicated, 12 local responders died as a result of injuries received during the West Fertilizer explosion, and the CSB investigation report findings show that inadequate emergency planning contributed to the severity of the accident and that responders were not sufficiently aware of the risks at the facility.182 According to accident history information obtained from EPA’s RMP national database, accidents occurring between 2004 and 2014 resulted in at least 44 responder injuries and 2 additional fatalities.183 The 2002 accident involving a chlorine release at DPC Enterprises in Festus, Missouri, resulted in 66 people seeking medical attention at the local hospital, including 63 members of the community surrounding the facility. The CSB’s investigation found that DPC’s emergency response plan had inadequate procedures for training and drills, and that these deficiencies resulted in DPC’s inadequate preparation for a large uncontrolled chlorine release.184 In 2003, another DPC Enterprises facility in Glendale, Arizona, had an accident involving a large chlorine release. In that accident, 11 Glendale police officers responding to the accident were exposed to chlorine and required medical treatment. The CSB’s investigation found that police officers responding to the accident to assist in evacuation of nearby residents entered the hazardous area without any respiratory protection. The CSB recommended that the Glendale fire and police departments schedule periodic hazardous materials incident drills to ensure safe and effective responses to future hazardous materials incidents.185 182 CSB. January 2016. Final Investigation Report: West Fertilizer Company Fire and Explosion, West, TX, April 17, 2013. Report No. 2013–02–I–TX, pp. 14, 116–117, 200–204, 241–242. https:// www.csb.gov/west-fertilizer-explosion-and-fire-/. 183 EPA. January 27, 2016. Technical Background Document for Notice of Proposed Rulemaking: Risk Management Programs under the Clean Air Act, Section 112(r)(7). 184 CSB. May 2003. Investigation Report: Chlorine Release, DPC Enterprises, L.P., Festus, Missouri, August 14, 2002. Report No. 2002–04–I–MO. https:// www.csb.gov/assets/1/19/DPC_Report.pdf. 185 CSB. February 2007. Investigation Report: Chlorine Release, DPC Enterprises, L.P., Glendale, Arizona, November 17, 2003. Report No. 2004–02– I–AZ. https://www.csb.gov/assets/1/19/DPC2-_ Final.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules On April 12, 2004, a runaway chemical reaction at MFG Chemical, Inc., in Dalton, Georgia, resulted in the release of toxic vapor clouds of allyl alcohol and allyl chloride into the surrounding community. The accident resulted in the evacuation of more than 200 families and medical treatment for 154 people, including 15 responders. The CSB found that MFG did not train or equip employees to conduct emergency mitigation actions, and that local emergency response agencies did not adequately prepare for responding to emergencies involving hazardous chemicals. The CSB recommended that the facility obtain equipment and provide emergency response training to employees, and that local agencies conduct drills for emergencies at fixed facilities.186 Other EPA and Federal agency programs require exercises as an element of their emergency response programs. For example, under the Oil Pollution Prevention regulation (40 CFR part 112), facilities subject to the Facility Response Plan (FRP) provisions are required to conduct exercises, including evaluation procedures (§ 112.21). FRP facility owners and operators are encouraged to follow the National Preparedness for Response Exercise Program (PREP) Guidelines,187 which were developed to provide a mechanism for compliance with EPA, U.S. Coast Guard (USCG), and U.S. Department of the Interior (DOI) exercise requirements for oil pollution response. The PREP guidelines include both internal and external exercise components. Internal exercises include notification exercises, emergency procedure exercises, spill management team tabletop exercises, and equipment deployment exercises. External exercises include area exercises that include members of the response community, and government-initiated unannounced exercises. Other examples include exercises that the U.S. Nuclear Regulatory Commission (NRC), in conjunction with the Federal Emergency Management Agency, requires commercial nuclear power plant operators to perform with state and local governments. These exercises evaluate both on-site and offsite emergency response capabilities. The NRC requires all nuclear reactor emergency plans to address the 186 CSB. April 2006. Investigation Report: Toxic Chemical Vapor Cloud Release, MFG Chemical, Inc., Dalton, Georgia, April 12, 2004. Report No. 2004–09–I–GA. https://www.csb.gov/assets/1/19/ MFG_Report.pdf. 187 USCG, EPA, and DOI. August 2002. National PREP Guidelines. https://www.au.af.mil/au/awc/ awcgate/uscg/prep_gid.pdf. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 necessary provisions for coping with radiological emergencies at each facility in accordance with 10 CFR 50.54(q), Appendix E to 10 CFR 50, and for commercial nuclear power reactors only, 10 CFR 50.47(b). Reactor operators are required to train personnel and perform emergency preparedness exercises in order to test the adequacy of the plans, ensure personnel are familiar with their duties, and maintain response capabilities. Some state and local regulations also require emergency response exercises. For example, the New Jersey TCPA, which incorporates the requirements of 40 CFR part 68, contains certain additional provisions imposed under state law, including a requirement for regulated facilities to perform at least one emergency response exercise per calendar year. Non-responding facilities are required to invite at least one outside responding agency designated in the emergency response plan to participate in the exercise, and employees of the facility are required to perform their assigned responsibilities for all emergency response exercises. Owners or operators of all other facilities are required to perform at least one full scale emergency response exercise in which the emergency response team as well as containment, mitigation, and monitoring equipment are deployed at a strength appropriate to demonstrate the adequacy and implementation of the plan.188 In comments received from the Agency’s recent RFI, the National Association of Superfund Amendments and Reauthorization Act (SARA) Title Three Program Officials (NASTTPO), which represents members of State Emergency Response Commissions (SERCs), Tribal Emergency Response Commissions (TERCs), and LEPCs, has encouraged EPA to require RMP facilities to conduct exercises that include local first responders and realistic accident scenarios.189 In addition to specific Federal and state requirements for conducting exercises and the NASTTPO comments, industry guidelines recommend conducting exercises. The CCPS Guidelines for Risk Based Process Safety recommend periodically testing the adequacy of emergency response plans and level of preparedness of responders, 188 NJDEP, Title 7, Chapter 31 Toxic Catastrophe Prevention Act Program, Consolidated Rule Document, Section 7:31–5.2; https://www.state.nj.us/ dep/rpp/brp/tcpa/downloads/conrulerev9_ no%20fonts.pdf. 189 Gablehouse, T. October 28, 2014. Comment No. EPA–HQ–OEM–2014–0328–0679 on Risk Management Program RFI, PDF pg 5–6, NASTTPO, Denver, CO. PO 00000 Frm 00039 Fmt 4701 Sfmt 4702 13675 including contractors and local response agencies.190 In the original proposed RMP rule (58 FR 54190, October 20, 1993), EPA had included within the emergency response program provisions a proposed requirement for regulated sources to conduct emergency exercises. In the final RMP rule (61 FR 31668, June 20, 1996), EPA decided not to finalize this requirement (and several other additional emergency response program provisions), for two reasons. First, the Agency decided to limit the emergency response program requirements to the minimum requirements contained in CAA section 112(r)(7) in order to avoid inconsistency with other emergency response planning regulations. Second, the Agency indicated that the additional requirements were already addressed in other Federal regulations and therefore, sources were already doing them. However, EPA’s experience with implementing the RMP rule over nearly two decades, along with incidents such as those described above, indicate that many regulated sources do not regularly conduct emergency exercises that involve local response authorities. The Agency now believes that adding this provision to the regulation will likely reduce the severity of some accidents that do occur. 1. Proposed Exercise Program Requirements In order to further improve coordination with community responders and ensure that both facility personnel and local responders have practice responding to accidental releases at RMP facilities, EPA is proposing to require most regulated facilities to perform exercises as an element of the emergency response program identified under subpart E. Proposed § 68.96 would require both responding and non-responding RMP facilities with any Program 2 or 3 process to perform emergency exercises. a. Notification Exercises EPA proposes a new paragraph § 68.96(a) to require facilities with any Program 2 or Program 3 process to annually perform an exercise of the source’s emergency notification system. This exercise would include contacting the Federal, Tribal, state, and local public emergency response authorities, and other external responders that would respond to accidental releases at the source. The purpose of these notifications is to ensure facility 190 CCPS. 2007. Guidelines for Risk Based Process Safety. American Institute of Chemical Engineers, CCPS, NY, Wiley. pp. 513, 524–526, 538–540. E:\FR\FM\14MRP4.SGM 14MRP4 13676 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 personnel understand how to initiate the notification system and to test the emergency contact information to ensure it is up-to-date. As part of the notification exercise, the individual making the notifications should clearly indicate that the call is part of an exercise to test the notification system. The owner or operator would be required to document these notification exercises and maintain a written record of each exercise conducted for a period of five years. The owner or operator would also be required to provide copies of the report to local response officials, and to make the report available to the public in accordance with §§ 68.205 and 68.210. As non-responding facilities will rely on local authorities to respond to accidental releases at the source, EPA believes that the proposed facility notification exercises will be an important supplement to the existing requirement for local emergency plan exercises under EPCRA section 303(c)(9), which requires local emergency plans to include methods and schedules for exercising the plan. Responding facilities will be required to meet additional field and tabletop exercise requirements below, which in many cases will also involve the participation of local authorities. Notifications to Federal, state, and local officials conducted as part of the field or tabletop exercise may also serve to meet the annual notification exercise requirements provided that the owner or operator documents these notification exercises. EPA is also proposing to modify § 68.95(a)(1)(i) to clarify that the emergency response program should include procedures for performing appropriate notifications to Federal and state emergency response agencies, as well as the public and local emergency response agencies, about accidental releases. This could include, for example, any required notifications to the National Response Center, as required by section 103(a) of CERCLA, and/or notifications to the SERC as required by section 304 of EPCRA. b. Responding Facility Field and Tabletop Exercises EPA is proposing a new paragraph § 68.96(b) to require responding facilities to develop and implement an emergency response exercise program that uses the emergency response plan required under § 68.95(a)(1). EPA is proposing to require two types of exercises—field exercises and tabletop exercises. The owner or operator would be required to coordinate with local public emergency response officials in VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 planning and conducting exercises, and invite local officials to participate in exercises. However, participation in an exercise by local responders is not required for a facility to comply with the exercise provisions. i. Field Exercises Field exercises involve the actual performance of emergency response functions during a simulated accidental release event. Field exercises involve mobilization of firefighters and/or hazardous materials response teams, activation of an incident command structure, deployment of response equipment, evacuation or sheltering of facility personnel as appropriate, and notification and mobilization of law enforcement, emergency medical, and other response personnel as determined by the scenario and the source’s emergency response plan.191 Section 68.96(b)(1) would require the owner or operator to conduct an emergency response field exercise involving the simulated accidental release of a regulated substance at least once every five years and within one year of any accidental release meeting the criteria in § 68.42(a). If the facility is required to conduct a field exercise as a result of an RMP reportable accident, then this would effectively reset the timeframe for when the next five-year field exercise is due. EPA is proposing that the scope of the field exercises would include tests of: • Procedures for informing the public and the appropriate Federal, state, and local emergency response agencies about an accidental release; • procedures and measures for emergency response after an accidental release of a regulated substance including evacuations and medical treatment; • communications systems; • mobilization of facility emergency response personnel; • coordination with local emergency responders; • equipment deployment, and • other actions identified in the source’s emergency response plan, as appropriate. ii. Tabletop Exercises Tabletop exercises are discussionbased exercises without the actual deployment of response equipment. During tabletop exercises, responders typically assemble in a meeting location and simulate procedural and communications steps for response to a simulated accidental release, as determined by the scenario and the source’s emergency response plan. 191 EPA. May 1988. Guide to Exercises in Chemical Emergency Preparedness Programs, OSWER 88006. PO 00000 Frm 00040 Fmt 4701 Sfmt 4702 In § 68.96(b)(2) EPA is proposing to require the owner or operator to annually conduct an emergency tabletop exercise involving the simulated accidental release of a regulated substance, except during years when field exercises are conducted. The scope of a tabletop exercise would include tests of: • Procedures for informing the public and the appropriate Federal, state, and local emergency response agencies about an accidental release; • procedures and measures for emergency response after an accidental release of a regulated substance including evacuations and medical treatment; • identification of facility emergency response personnel and responsibilities; • coordination with local emergency responders; • procedures for the use of emergency response equipment, and other actions identified in the source’s emergency response plan, as appropriate. c. Exercise Reports & Program Updates EPA is proposing in § 68.96(b)(3) to require the owner or operator to evaluate each exercise and prepare a written report within 90 days of the exercise. The report would include: • A description of the exercise scenario; • names and associations of each exercise participant; • an evaluation of the results of the exercise including lessons learned; • recommendations for improvement or revisions to the emergency exercise program and emergency response program; and • a schedule to promptly address and resolve recommendations. The report would also include an evaluation of the adequacy of coordination with local emergency response authorities, and other external responders, as appropriate. Section 68.96(b)(3) would also require the owner or operator to update the emergency exercise program and emergency response program at least annually, and more frequently if necessary to incorporate recommendations and lessons learned from emergency response exercises, incident investigations, or other available information. The owner or operator would also be required to provide schedules of exercises and copies of exercise reports to local response officials, and to make exercise reports available to the public in accordance with §§ 68.205 and 68.210. Exercise reports would be maintained for five years. d. Updates to § 68.12 (General Requirements) EPA is proposing to revise § 68.12 (General Requirements) to be consistent E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 with these proposed exercise requirements. EPA is proposing to revise the Program 2 and Program 3 requirements under § 68.12 by renumbering paragraph § 68.12(c)(4) as § 68.12(c)(5) (for Program 2) and § 68.12(d)(4) as § 68.12(d)(5) (for Program 3), adding a reference to exercise requirements, and correcting citations to subpart E. EPA is aware that while not all facilities regulated under the RMP rule conduct emergency exercises, many do, and the Agency believes that exercises conducted in accordance with other Federal, state, or local requirements, or exercises conducted in conjunction with a facility’s trade association membership or code of practice, etc., may be used to satisfy the new requirements to the extent those exercises address the specific regulatory provisions contained herein. EPA seeks comment on this approach. Are there additional exercise provisions that EPA should consider to improve the ability of RMP facility personnel and local authorities to respond to accidental releases? Are annual exercises sufficient or should EPA consider alternative frequencies? What information regarding exercises would be most helpful to the public while maintaining a balance for security?’’ Some SERS expressed concern that local emergencies could force a facility to postpone an exercise. EPA seeks comments on how best to address emergency postponement and rescheduling of exercises. EPA also seeks comment on whether to eliminate the requirement for tabletop and field exercises. 2. Alternative Options EPA considered two alternative approaches to requiring emergency exercises. The first alternative option would also require responding and nonresponding facilities to conduct an annual emergency notification system exercise. However, under this option responding facilities would additionally be required to conduct only annual tabletop exercises; emergency field exercises would not be required. This alternative option would be a lower cost option for responding facilities, as field deployment of the source’s equipment and personnel would not be required. However, it may also result in less realistic and less effective emergency exercises. The second alternative approach considered by EPA would contain the same provisions for notification exercises as in the proposed option, but would require responding facilities to conduct field exercises annually, VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 instead of tabletop exercises. This approach would be similar to the New Jersey TCPA emergency exercise provisions, and provide for a comprehensive test of all systems under the emergency exercise program for responding facilities. However, the costs of this approach would be significantly higher than the proposed approach. EPA seeks comment on these alternative approaches and whether there are any other alternative options that EPA should consider prior to issuing a final action. VI. Information Availability Requirements Ensuring that communities, local planners, local first responders, and the public have appropriate chemical facility hazard-related information is critical to the health and safety of the responders and the local community. Throughout the many public meetings and outreach efforts related to Executive Order 13650, LEPCs, first responders, and members of the public stated that chemical facility information and datasharing efforts need significant improvement.192 Specifically, LEPCs and first responders want to have access to the most relevant chemical hazard and risk information for their needs, in a user-friendly format, to better support planning and preparedness efforts. Community residents, operators of community facilities (such as daycares and nursing homes) and organizations consistently noted that they need basic information regarding chemical risks at facilities, presented in a clear and consistent manner, so that they can effectively participate in preparedness and planning to address such issues as effective emergency notification procedures, evacuation, and sheltering in place. In response to these issues, EPA is proposing ways to enhance information sharing and collaboration between chemical facility owners and operators, tribal and local emergency planning committees, first responders, and the public, in a manner that balances security and proprietary considerations. Some public commenters responding to EPA’s RMP RFI elaborated the need for more public access to information about the RMP facilities. The Center for Science and Democracy (CSD) stated that public access to information is key to enabling communities to hold facility owners and 192 Chemical Facility Safety and Security Working Group. May 2014. Executive Order 13650 Report to the President—Actions to Improve Chemical Facility Safety and Security—A Shared Commitment, pgs. 93–94. https://www.osha.gov/ chemicalexecutiveorder/final_chemical_eo_status_ report.pdf. PO 00000 Frm 00041 Fmt 4701 Sfmt 4702 13677 operators accountable for reducing risks as much as possible, and for being prepared should an accident occur. According to CSD, facility owners and operators should be responsible for ensuring that appropriate measures are in-place to handle an emergency and should be fully communicating with local authorities on the development of community emergency response plans that include chemical facilities.193 NASTTPO requested EPA consider providing information on emergency planning and exercises, audit reports, and RMP Executive summaries that include information such as accident histories, and names of RMP-regulated substances.194 Oklahoma Hazardous Materials Emergency Response Commission (OHMERC) also commented and requested posting of chemical information including an RMP summary along with Tier2 information on a company Web site at a minimum. They also requested making the following information available to LEPCs: The facility emergency response plan, accident history, along with OCA.195 The MKOPSC stated that most of the information is already available online and from LEPCs and need not be provided on a Web site. But MKOPSC noted that LEPCs can utilize the information to understand the risk in the communities and involve local facilities, local officials, SERCs, local citizens and EPA to have dialogues to improve regulatory compliance and promote safety. MKOSPSC also believes it is also important to let the public understand how the facilities address the hazard present in their community and keep the risk at or below the ‘‘acceptable level.’’ When local citizens have adequate information and knowledge, facility owners and operators may be motivated to continuously improve their safety in response to community pressure and oversight.196 CCHS noted that requiring facility owners or operators to make this information available on the company Web site would promote improved regulatory compliance, because the more willing a facility is to be open and 193 CSD. October 20, 2014. Comment No. EPA– HQ–OEM–2014–0328–0424 on Risk Management Program RFI, pgs. 2–3. 194 Gablehouse, T. October 28, 2014. Comment No. EPA–HQ–OEM–2014–0328–0679 on Risk Management Program RFI, PDF p. 2, 4, & 6, NASTTPO, Denver, CO. 195 Elder, M., October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0641 on Risk Management Program RFI, p. 3, OHMERC. 196 MKOPSC. October 29, 2014. Comment No. EPA–HQ–OEM–2014–0328–0543 on Risk Management Program RFI, pgs. 162, 165. E:\FR\FM\14MRP4.SGM 14MRP4 13678 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules transparent the greater that company is willing to address issues that relate to safety.197 The United Steel Workers (USW) stated that making unrestricted RMP information publicly available would increase compliance, as it enables communities to hold facilities accountable and gives facilities greater incentive to strengthen safety measures and to comply with regulations.198 The Coalition to Prevent Chemical Disasters (CPCD) believes that schools located within vulnerability zones of RMP facilities need to have chemical disaster drills in place, but that many schools are unaware of any risks. In CPCD’s view, not informing communities about chemical risks reduces their ability to prepare for potential disasters involving specific chemical releases. CPCD argues that first responders need to know what chemicals they are facing and what emergency equipment to use. CPCD believes that information, such as compliance audits and incident investigation reports, should be disclosed to LEPCs and that with this information, active LEPCs can better include local communities in emergency planning and training.199 CPCD made reference to testimony made six years prior to the West disaster by a former CSB chairperson about her concern for: a lack of chemical emergency preparedness that our investigations have found among many communities where accidents strike. Preventing accidents and mitigating their impact requires an active partnership between communities and industrial facilities. If that partnership is missing, the stage is set for a potentially severe impact on the community.200 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Poor communication between facility personnel and first responders, as well as poor communication between facility personnel and communities, has been shown to contribute to the severity of chemical accidents. One example is the Bayer CropScience explosion that occurred in Institute, West Virginia, in 2008. According to the CSB, 197 CCHS. October 28, 2014. Comment No. EPA– HQ–OEM–2014–0328–0546 on Risk Management Program RFI pg. 13. 198 USW. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0547 on Risk Management Program RFI, pg. 6. 199 CPCD. October 29, 2014. Comment No. EPA– HQ–OEM–2014–0328–0644 on Risk Management Program RFI, pgs. 36–37. 200 CSB. July 10, 2007. CSB News Release: CSB Chairman Merritt Describes the Lessons from Five Years of Board Investigations to Senate Committee, Urges Additional Resources and Clearer Authorities for Federal Safety Efforts. https://www.csb.gov/csbchairman-merritt-describes-the-lessons-from-fiveyears-of-board-investigations-to-senate-committeeurges-additional-resources-and-clearer-authoritiesfor-federal-safety-efforts/. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 The Bayer fire brigade was at the scene in minutes, but Bayer management withheld information from the county emergency response agencies that were desperate for information about what happened, what chemicals were possibly involved . . . The Bayer incident commander, inside the plant, recommended a shelter in place; but this was never communicated to 911 operators. After a few hours of being refused critical information, local authorities ordered a shelter in place, as a precaution.201 Improper communication between the facility and the first responders during the accident led to a delay in implementing a public shelter-in-place order for the local community, and may have resulted in toxic exposure to onscene public emergency responders. After a release of HF from the Citgo Refinery in Corpus Christi, Texas, in July 2009, nearby residents complained of headaches, nausea, and respiratory issues, though Citgo claimed that the toxic cloud stopped at the plant fence line. According to reports, neighbors could see the flames and smoke coming from the refinery, but they were unable to get information on the accident and potential risks to their community.202 The previous examples and public comments demonstrate the need for better communication of the potential risks associated with accidental releases at stationary sources. However, in making information more readily available EPA must also recognize and balance the associated security concerns because the public sharing of certain specific facility information and any associated vulnerabilities has the potential to aid terrorists in planning an attack. The RMP rule was published in 1996, before many computer-based and other information-sharing methods were widely used. At the time of initial publication of the rule, EPA expected information to be disclosed to the public through disclosure of the entire RMP. After the CSISSFRRA was enacted on August 5, 1999, EPA restricted access to OCA data for the public and government officials to minimize the security risks associated with posting the information on the internet (65 FR 48108, August 4, 2000). Governmental officials continue to have electronic access to OCA 201 CSB. January 20, 2011. CSB issues report on 2008 Bayer Cropscience explosion: Finds multiple deficiencies led to runaway chemical reaction; recommends states create chemical plant oversight regulation. https://www.csb.gov/csb-issues-report-on2008-bayer-cropscience-explosion-finds-multipledeficiencies-led-to-runaway-chemical-reactionrecommends-state-create-chemical-plant-oversightregulation/. 202 Morris, Jim and Chris Hamby, Center for Public Integrity. February 24, 2011; Updated May 19, 2014. Fueling Fears—Use of toxic acid puts millions at risk. https://www.publicintegrity.org/ 2011/02/24/2118/use-toxic-acid-puts-millions-risk. PO 00000 Frm 00042 Fmt 4701 Sfmt 4702 information, subject to certain restrictions, while the public may view OCA information only at Federal Reading Rooms around the country and only for a limited number of RMPs at any one time. The non-OCA portions of the RMPs are available from EPA to the public either through Freedom of Information Act (FOIA) request, by inspection at Federal Reading Rooms, or from a person’s SERC, LEPC, or related state or local government agencies.203 EPA is proposing to require certain information to be made available, upon request, to LEPCs and emergency response officials to help them to understand the potential risks at RMP regulated facilities, as well as to aid them in emergency planning and response activities. EPA is also proposing to amend the information sharing provisions for the public to make existing information more easily accessible to neighboring communities to encourage them to prepare for an emergency. EPA also believes that the revisions will likely contribute to the prevention of future chemical accidents. Cognizant of the spirit and intent of the CSISSFRRA, the proposed revisions do not disclose the substance or form of information subject to restriction under CAA 112(r)(7)(H) or 40 CFR part 1400. EPA has two objectives for improving public information sharing provisions of the RMP rule. The first is to ensure that local emergency response and planning officials have the information they need to prepare for an emergency response to an accidental release at a stationary source. This includes determining what information is appropriate to improve community emergency response plans and ensure the safety of the local responders and the community. EPA must also determine the appropriate frequency for updating this information to avoid overwhelming local planners while ensuring information is current. While developing emergency response plans, LEPCs and facility owners or operators should also involve local citizens to help them understand the appropriate actions they should take in the event of an accidental release. This may reduce public panic and enable residents to act quickly and appropriately to protect themselves. The second objective is to help improve public awareness of risks in their communities and provide information on where they can learn more about preparedness and 203 See 40 CFR part 1400: Accidental Release Prevention Requirements; Risk Management Programs Under the CAA Section 112(r)(7); Distribution of OCA Information (65 FR 48108, August 4, 2000). https://www.gpo.gov/fdsys/pkg/FR2000-08-04/pdf/00-19785.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules community emergency response plans. Any publicly available information should be in a format that is easily accessible. The goal is to encourage residents to learn about community emergency response plans and understand what actions they need to take during an emergency to protect themselves. EPA is proposing to add provisions for sharing information, upon request, with LEPCs and/or emergency response officials and revise the existing provisions for sharing information with the public. EPA is also proposing that facility owners and operators conduct public meetings within 30 days of an RMP reportable accident to discuss chemical hazards present at facilities and provide information on accidental releases. These meetings can provide opportunities for facilities to engage the public to address concerns following an accidental release and explain how facilities will prevent future accidents. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 A. Proposed Public Disclosure Requirements to LEPCs or Emergency Response Officials EPA is proposing to add requirements to subpart H—Other Requirements that apply to all facilities regulated under the RMP rule, including facilities with Program 1 processes. EPA proposes to add § 68.205 to require owners and operators to provide information to local emergency responders and LEPCs upon request. If information required under this proposal is already available to the public on a company Web site, the owner or operator may comply by providing the Web site link to the first responders and LEPC. Paragraph § 68.205(a) would require that the RMP be accessible to local emergency responders and LEPCs in the exact same manner as the current requirement under § 68.210(a). A reference to 42 U.S.C. 7414(c), which covers information and reports (such as the RMP) required under section 42 U.S.C. 7412, is included to show the authority under which the non-OCA portion of an RMP shall be available to the public, except for any information that would divulge methods or processes entitled to protection of CBI or trade secrets. This reference is already part of the current § 68.210(a). A reference to 40 CFR part 1400 has been added to address the disclosure restrictions under CSISSFRRA (i.e., restrictions on the disclosure of OCA information). EPA is not changing its policy regarding OCA information. The reference to 40 CFR part 1400 only clarifies the statutory obligations that relate to securing this information. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Under paragraph § 68.205(b), EPA would require the owner or operator to develop summaries of specific chemical hazard information for all of their regulated processes and provide this information, upon request, to the LEPC or local emergency response officials as part of their emergency response coordination efforts. The facility should make information available in a manner that is understandable and avoids technical jargon. The information should be conveyed without revealing CBI or trade secret information. The information must adequately explain the findings, results, or analysis being provided. The specific information that must be provided to LEPCs or emergency response officials upon request is outlined below: Information on Regulated Substances. Information related to the names and quantities of regulated substances at the source (paragraph § 68.205(b)(1)). This only applies to regulated substances held in a process above the TQ. Accident History Information. The facility’s accident history information required under § 68.42 (paragraph § 68.205(b)(2)). Compliance Audit Reports. Summaries of compliance audit reports required under §§ 68.58 and 68.59 (for Program 2 processes), or §§ 68.79 and 68.80 (for Program 3 processes), as applicable (paragraph § 68.205(b)(3)). The audit report summary shall include: • The date of the report; • The name and contact information of the auditor and the facility contact person; • A brief description of the audit findings; • An appropriate response to each of the findings; and • A schedule for addressing each of the findings. Incident Investigation Reports. Summaries of incident investigation reports required under § 68.60(d) (for Program 2 processes) or § 68.81(d) (for Program 3 processes), as applicable (paragraph § 68.205(b)(4)). The incident investigation report summary shall include: • A description of the incident and events leading up to it, including a timeline; • A brief description of the process involved; • The names and contact information of personnel on the investigation team; • The direct cause, contributing cause, and root cause of the incident; • The on-site and offsite impacts; • The emergency response actions taken; • Any recommendations; and • A schedule for implementing recommendations, as applicable. Inherently Safer Technologies (IST). For each process in NAICS codes 322, PO 00000 Frm 00043 Fmt 4701 Sfmt 4702 13679 324, and 325, a summary of the IST or ISD identified in accordance with § 68.67(c)(8) that the owner or operator has implemented or plans to implement (paragraph § 68.205(b)(5)). The owner or operator shall update this summary as part of the calendar year submission if any of the summary information has been revised as a result of the safer technology analysis that is conducted as part of the update to the PHA prepared in accordance with § 68.67(f). The calendar year submission should also identify whether any revisions were incorporated. The IST/ISD summary shall include, at a minimum: • The RMP process ID and process description, if provided, of the process affected; • A brief description of the IST or ISD and which type of measure best characterizes it: Minimization, substitution, modernization, or simplification; • The names of the regulated substance(s) whose hazard, potential exposure, or risk was or will be reduced as a result of the implementation and whether the substance is listed as toxic or flammable. If the chemicals affected are a mixture of flammable substances, the name ‘‘flammable mixture’’ may be used, instead of the individual flammable substance names; and • The dates of implementation or planned implementation. Exercises. Information on emergency response exercises conducted under § 68.96, including, at a minimum, schedules for upcoming exercises, reports for completed exercises, and other related information (paragraph § 68.205(b)(6)). EPA believes that summary information on findings from incident investigations, compliance audits, exercises, and IST employed can demonstrate to local emergency response officials how a facility is improving its management of chemical risks and assist local emergency planners to understand and better prepare for these risks when developing community emergency response plans. Furthermore, EPA believes that disclosing information related to IST can help responders and planners to prioritize and allocate response resources. For example, IST implementation information may be relevant for emergency response personnel who are maintaining response capabilities to address a specific hazard that would no longer apply once an IST is implemented (such as by substituting a less hazardous chemical for an RMPregulated substance). Table 6 below summarizes the information to be developed under § 68.205(b) and identifies the applicable program level for each provision. The owner or operator need only provide E:\FR\FM\14MRP4.SGM 14MRP4 13680 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules § 68.205(b)(2), compliance audit report summaries to LEPC or emergency response officials in accordance with § 68.205(b)(3), incident investigation report summaries in accordance with § 68.205(b)(4), and exercise schedules and report summaries in accordance with § 68.205(b)(6). Owners and operators of Program 3 processes must upon the LEPC’s request information developed for this provision that is applicable to the program-level for each regulated process at the facility. For example, owners or operators of Program 2 processes must provide information on regulated substances in accordance with § 68.205(b)(1), accident history information in accordance with provide all of the above information, as well as the IST information required under § 68.205(b)(5). Owners and operators of Program 1 processes would be required to provide only information on regulated substances in accordance with § 68.205(b)(1) and accident history information in accordance with § 68.205(b)(2). TABLE 6—LEPC DISCLOSURE INFORMATION Information to be provided, upon request, to LEPCs or emergency response officials in § 68.205. (b)(1) (b)(2) (b)(3) (b)(4) (b)(5) (b)(6) Information on regulated substances ................................................................................................................................ Accident history information .............................................................................................................................................. Compliance audit report summaries ................................................................................................................................. Incident investigation report summaries ........................................................................................................................... IST summary ..................................................................................................................................................................... Exercise schedules and report summaries ....................................................................................................................... Program level(s) applicability— program 1, 2, or 3 1, 2, 3 1, 2, 3 2, 3 2, 3 *3 2, 3 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 * Applies only to Program 3 facilities in NAICS codes 322, 324, and 325. Submission Dates and Updates. According to § 68.205(c), EPA is proposing that the owner or operator update summary information every calendar year, including all applicable information that was revised since the last submission, and provide this information upon request. Classified Information. EPA is proposing to add § 68.205(d) to address protection of classified information from disclosure. This provision is identical to the current § 68.210(b). Confidential Business Information. EPA is proposing to add the acronym CBI to § 68.3 and to add § 68.205(e) to describe the process for claiming and handling CBI. EPA is proposing that an owner or operator asserting a CBI claim for information requested by an LEPC or local emergency response official under this section should submit a sanitized version to the LEPC or emergency response officials, and submit to EPA both the sanitized version and a version containing the CBI along with a substantiation of the CBI claim at the time it is asserted. This process for assertion and substantiation of CBI claims is the same as that required in §§ 68.151 and 68.152 for information contained in the RMP. As provided under § 68.151(b)(3), an owner or operator of a stationary source may not claim five-year accident history information as CBI. As provided in § 68.151(c)(2), an owner or operator of a stationary source asserting that a chemical name is CBI shall provide a generic category or class name as a substitute in its submission. An owner or operator should be aware that anything they send to their LEPC in accordance with § 68.205(e) becomes public information. For any information VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 claimed as CBI when submitted to EPA and later submitted to the LEPC, the CBI claim regarding such information is waived. Therefore, if an owner or operator wants to maintain the confidentiality of information, when submitting such information to the LEPC, they should submit a sanitized version. With these proposed requirements, EPA intends to ensure that LEPCs and emergency response officials have information on chemical hazards at regulated facilities and are better prepared to understand and prepare for risks to the communities and emergency responders. EPA encourages local emergency response officials to coordinate with owners or operators of regulated facilities and participate in emergency response exercises as time and resources allow. LEPC and local emergency response officials should use the information identified in § 68.205(b) to assist in revising the community emergency response plan developed under 42 U.S.C 11003 and related purposes. EPA seeks comment on this approach. Will the proposed requirements improve the community emergency planning and preparedness? Is there additional information that should be shared with LEPCs or emergency response officials? For example, should EPA require the full safer technologies and alternatives analysis to be submitted to the LEPC? EPA also seeks comment on whether to require less information to be shared (e.g., limit incident investigation information to incidents with offsite impacts). Some SERs suggested that information be limited to a one page summary of each significant chemical hazard and PO 00000 Frm 00044 Fmt 4701 Sfmt 4702 suggested including only the following elements: The name of the substance, its properties, its location, and recommended firefighting and emergency response measures. EPA seeks comment on this narrowed approach. Should EPA require owners or operators to periodically submit information to the LEPC or local responders, and if so, what timeframe should EPA consider? Is the proposed timeframe for updating information sufficient to ensure information is up-todate? Should EPA require information to be updated only after the source receives a request from an LEPC or local emergency response official? If so, how much time is sufficient to allow development and submission of summaries following requests for information under this proposed provision? Should EPA specify a standard format for summary information in order to make it easier for local officials to interpret the information (e.g., specify a summary template for information on regulated substances, compliance audits reports, incident investigation reports, IST)? B. Proposed Revisions to Requirements for Information Availability to the Public Under paragraph § 68.210(a), EPA is proposing to add a reference to 40 CFR part 1400 to address CSISSFRRA disclosure restrictions (i.e., for OCA information). EPA is not changing its policy regarding OCA information. The reference to 40 CFR part 1400 only clarifies the statutory obligations that relate to securing this information. EPA is proposing to redesignate the current paragraph § 68.210(b) that addresses the non-disclosure of E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules classified information by the Department of Defense or other Federal agencies or their contractors as § 68.210(e). EPA is proposing a new paragraph (b) to require the owner or operator of a stationary source to distribute certain chemical hazard information for all regulated processes to the public in an easily accessible manner. EPA is proposing to require the owner or operator to distribute the following information, as applicable: mstockstill on DSK4VPTVN1PROD with PROPOSALS4 • Names of regulated substances held in a process above TQs; • Safety Data Sheets (SDSs) for all regulated substances held above TQs at the facility; • The facility’s accident history required under § 68.42; • Information concerning the source’s compliance with § 68.10(b)(3) or the emergency response provisions of subpart E, including: Æ Whether the source is a responding stationary source or a non-responding stationary source; Æ Name and phone number of local emergency response organizations with which the source last coordinated emergency response efforts, pursuant to § 68.180; and Æ For sources subject to § 68.95, procedures for informing the public and local emergency response agencies about accidental releases. • Information on emergency response exercises required under § 68.96, including schedules for upcoming exercises, reports for completed exercises as described in § 68.96(b)(3), and any other related information; and • LEPC contact information, including LEPC name, phone number, and Web site address as available. EPA believes that providing this information to the general public will allow people that live or work near a regulated facility to improve their awareness of risks to the community and to be prepared to protect themselves in the event of an accidental release. EPA also thinks that requiring facilities to provide summary information on the facility’s emergency response plans and emergency exercises to the public, will provide assurance to the community that the facility is adequately prepared to properly handle a chemical emergency, should it arise. An additional benefit of sharing exercise schedules is to avoid unnecessary public alarm when exercises are conducted. The facility owner or operator can make all the required information available to the public in a variety of ways. For example, the owner or operator could comply by making the information available on the facility or company Web site, if one is available. If the facility doesn’t have a Web site, the VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 owner or operator could establish one. Alternatively, there are free or low cost internet platforms, file sharing services, and social media tools that are designed to share information with the public. As another option, the facility could make the information available in hard copy at publicly accessible locations such as a public library or a local government office. If the facility has the means to handle public visitors, it could choose to make the information available at the facility location. The facility could alternatively provide the information by email, upon request. EPA encourages the facility owner or operator to coordinate information distribution with the LEPC or local emergency response officials to determine the best way to reach public stakeholders. EPA seeks comment on this approach. Is there additional information that should be shared with the public? For example, should EPA require the STAA proposed under § 68.67(c)(8), or a summary of that analysis, be shared with the public? Alternatively, should EPA further limit the information elements proposed? For example, how should EPA limit the disclosure of information in exercise reports that might reveal security vulnerabilities about the facility or emergency responders? Should EPA not require disclosure of names of individuals involved in exercises or facility security vulnerabilities revealed by the exercise? Is there an alternative way to improve community preparedness for safety purposes while balancing the security concerns to limit a terrorist’s ability to use the information for an attack? Is there other information that community residents and operators of community facilities (such as schools, nursing homes, daycares) need in order to participate in emergency preparedness planning, particularly as it relates to effective incident notification, sheltering in place, and evacuation? EPA also seeks comment on the feasibility of these various options for providing information to the public and requests suggestions for other ways that the data could be made available. Lastly, EPA seeks comment on any challenges facility owners or operators would have in providing the information or challenges public stakeholders would have in obtaining the information. In order to inform the public of the location of the information, EPA is proposing to require under § 68.160(b) that the facility report in their RMP the location or means of public access to the information proposed to be disclosed under this subsection. Submission Dates and Updates. EPA is proposing that the owner or operator PO 00000 Frm 00045 Fmt 4701 Sfmt 4702 13681 shall update and submit information required under § 68.210(b) every calendar year, including all applicable information that was revised since the last update. Confidential Business Information. In § 68.210(f), an owner or operator asserting CBI shall submit a sanitized version of the information required under this section to the public. Assertion of claims of CBI and substantiation of CBI claims shall be in the same manner as required in §§ 68.151 and 68.152 for information contained in the RMP required under subpart G. As provided in § 68.151(c)(2), an owner or operator of a stationary source asserting that a chemical name is CBI shall provide a generic category or class name as a substitute. If an owner or operator has already claimed CBI for a portion of the RMP, then that claim still applies for the disclosure elements here. The owner or operator should provide a sanitized version as described in the RMP*eSubmit User’s Manual.204 EPA seeks comment on this approach. Will the proposed requirements improve the knowledge sharing between regulated facilities and the public? Is there additional information that should be shared with the public stakeholders? Should EPA only require information to be shared upon request by the public? Alternatively, should EPA further limit the information we are proposing to be required, such as requiring only a one page summary that addresses chemical hazard information and emergency response measures? EPA could alternatively eliminate some of the required information elements or further limit information, such as by limiting accident history information to only those with offsite impact. Some SERs asked whether the existing RMP data or the RMP executive summary available to the public through existing sources (FOIA, Federal Reading rooms or other public sources who have compiled the data) are adequate to meet the information needs of the public. Public Meetings. When the CSISSFRRA was enacted in 1999, it included a section that required owners or operators of all facilities regulated under the RMP rule to hold a public meeting within 180 days of enactment.205 The purpose of the public meeting was to describe and discuss the local implications of the RMP on the community. Two or more stationary 204 See EPA. March 2014. RMP*eSubmit User’s Manual. https://www2.epa.gov/rmp/rmpesubmitusers-manual. 205 Chemical Safety Information, Site Security and Fuels Regulatory Relief Act, Public Law 106– 40, August 5, 1999. See https://www.gpo.gov/fdsys/ pkg/STATUTE-113/pdf/STATUTE-113-Pg207.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 13682 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules sources were allowed to conduct a joint meeting, while small businesses were allowed to instead post a summary of their OCA information no later than 180 days after enactment. In paragraph § 68.210(d) EPA is proposing to require regulated facilities that have any accident meeting the fiveyear accident history criteria of § 68.42 to hold a public meeting within 30 days after the accident. This provides an opportunity for the owner or operator of the RMP facility to inform the community about the accident including, at a minimum, the information reportable under § 68.42. This includes information on: mstockstill on DSK4VPTVN1PROD with PROPOSALS4 • When the accident occurred; • The nature of the accident including initiating event and contributing factors if known; • Chemicals involved and quantities released; • Weather conditions, if known; • On-site and offsite impacts; • Emergency response notifications; and • Operational or process changes that resulted, thus far, from investigation of the release. EPA expects that, in some cases, sources will have completed the incident investigation required under § 68.60 or § 68.81 prior to holding the public meeting. This would allow the owner or operator to share appropriate information about the accident with the local community. However, in some cases, such as for complex, protracted investigations, the source may need to hold a public meeting prior to completing the incident investigation. In such cases, the owner or operator should consider holding a second public meeting after completing the incident investigation. Additionally, a public meeting must be held after accidents that destroy a process or stationary source or cause the process or source to be subsequently decommissioned. Stationary sources may combine public meetings with LEPC meetings or other events as long as those events/meetings are available for public participation. Public meetings must also address other relevant chemical hazard information such as that described in § 68.210(b) and any other appropriate information that may improve safety and emergency preparedness activities in the community. The facility representative should describe the risks that are associated with the facility, and what the facility is doing to protect the public from those risks. In addition, the facility personnel should relay information that would assist the public to prepare for accidental releases. For example, at the meeting, the facility VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 representative should discuss the process for public emergency notification, procedures for sheltering in place or evacuating, and where to obtain further updates on the status of an emergency incident. The discussion should also address how the public can access community emergency response plans and identify what the community may expect to see during a field exercise. As part of the SBAR Panel process, several SERs questioned the value of having any public meetings and noted that, when held in the past, public meetings were not well attended. Some SERs suggested altering the requirement to allow for the request of a public meeting if an LEPC or community felt it was necessary. Additionally, SERs expressed concern about the requirement to hold public meetings 30 days after an accident; the SER suggestions included expanding the timeframe from 60 days to 9 months. SERs also indicated that many small business may still be handling the aftermath of accidents, conducting incident investigations, and arranging audits in this time period, with limited attention to devote to educating the public. EPA seeks comment on the proposed approach and whether there are other options that EPA should consider for public meetings. For example, should EPA require regular public meetings rather than only after an accident subject to reporting requirements under § 68.42? Should EPA require public meetings upon request by LEPCs, emergency responders or the public? Alternatively, should the public meeting requirement be restricted to an RMP reportable accidents with offsite impacts? Instead of requiring a public meeting after RMP reportable accidents, should EPA require owners and operators to meet only with LEPCs and emergency responders? If EPA finalizes the requirement to hold post-accident public meetings, should EPA extend the required timeframe to hold the meeting beyond 30 days (e.g. to 90 days), in order to give the owner or operator more time to learn about accident causal factors and prepare for a public meeting? If so, what extended timeframe should EPA choose and should EPA require the implementing agency to approve any extensions? C. Alternative Options EPA considered an option to require all facilities to hold public meetings at least once every five years (and within 30 days after an accident) to share chemical hazard information described under § 68.210(b) and any other PO 00000 Frm 00046 Fmt 4701 Sfmt 4702 appropriate information that may improve safety and emergency preparedness activities in the community. However, EPA did not propose this requirement as our preferred option because of concerns raised by the SBAR Panel process that periodic public meetings are often sparsely attended. EPA also considered limiting the requirement for periodic and postaccident public meetings to only Program 2 and Program 3 facilities; however, EPA did not propose this option as our preferred option because even though accidents at Program 1 facilities should not have significant public impacts, some communities near these facilities may still be interested in understanding the risks at the facility and the procedures and controls that are in place to limit offsite impacts. Additionally, if a Program 1 facility does have an RMP reportable accident with offsite impacts, EPA believes they should be held to the same standard as other facilities and be required to hold a public meeting within 30 days of the incident to provide additional information on the accidental release. Nevertheless, EPA is interested in receiving public feedback on whether EPA should consider requiring periodic public meetings and whether the requirement should be limited to Program 2 and Program 3 facilities. EPA is also considering an option for supporting the public disclosure provisions with a ‘‘score card’’ or a ‘‘grade’’ system that could be provided by an independent third-party. The score or grade would be made available to the LEPCs and public to demonstrate the facility’s compliance with the RMP rule. This method could be used either instead of or in addition to what EPA is proposing. EPA requests information and recommendations on how to develop such a program, including the types of scoring criteria that should be used and any other issues that the Agency should consider when developing such a system. EPA seeks comment on these alternative approaches and whether there are any other alternative options that EPA should consider for future actions. VII. Risk Management Plan Streamlining, Clarifications, and RMP Rule Technical Corrections A stationary source subject to the RMP rule is required to submit a RMP in a method and format specified by the EPA, pursuant to § 68.150(a). The CAA and 40 CFR subpart G require that the RMP indicate compliance with the regulations at 40 CFR part 68 and also E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 include information regarding the hazard assessment, prevention program, and emergency response program. The RMP also includes stationary source registration information, such as name, location and contact information. The EPA may review RMPs for information gathering, inspection preparation, errors in submissions, and changes requiring a correction or re-submission of the RMP. The CAA requires that RMPs be made available to states, local entities responsible for planning or responding to accidental releases at the source, the CSB, and the public. As a result, the information provided in an RMP is intended to be easily understood, thus encouraging the public, local entities, and governmental agencies to interact with stationary sources on issues related to accident prevention and preparedness. The RMP format consists of a combination of check-off boxes, yes/no answers, numerical entries, and write-in information pertaining to the data best describing the various elements of the risk management program at a source. The nine sections of an RMP are: Registration Information; Toxics Worst Case; Toxics Alternative Release; Flammables Worst Case; Flammables Alternative Release; Accident History; Prevention Program: Program Level 3; Prevention Program: Program Level 2; and Emergency Response. Data elements in these sections address compliance with each of the rule elements. Some sections may not be applicable to all stationary sources, as some sections apply only to processes with certain program levels, and some apply only to certain types of regulated substances (toxics or flammables). The RMP also includes an Executive Summary, which allows stationary sources to provide a brief description of the source’s prevention and preparedness activities as they relate to covered processes, in a format that is easy to understand. Based on feedback received from the regulated community and EPA’s own experience, EPA is proposing to revise several data elements in subpart G and to make technical corrections to the RMP rule. The following sections provide an overview of the proposed revisions. A. Deletions From Subpart G EPA is proposing to delete data elements that do not effectively assist the Agency in evaluating compliance with the RMP rule. EPA is also proposing to delete some data elements because the information can be obtained through improved coordination with Federal, state, and local agencies resulting from Executive Order 13650, VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 such as information currently required by §§ 68.160(b)(13) (the date of the last safety inspection of the stationary source by a Federal, state, or local government agency) and 68.160(b)(19) (OSHA Voluntary Protection Program status). EPA is proposing to delete other data elements because we believe an onsite inspection or formal information request are better ways to evaluate compliance with these Risk Management Program requirements (for example, some data elements pertaining to training, contractor safety, and maintenance/mechanical integrity). By removing several RMP data elements, EPA expects that the regulated community will find it easier to comply with subpart G requirements. In addition to burden relief for the regulated community, EPA expects that removing several RMP data elements will reduce the number of errors in RMPs submitted to the Agency. B. Revisions to Subpart G EPA is proposing to revise existing provisions in subpart G as follows: • Modernize requirements to include electronic contact information if it exists, such as email addresses and Web site homepages; • Revise provisions to remove a portion of select data elements that would be better evaluated during an on-site inspection or information request; • Provide consistency with RMP*eSubmit; • Provide more consistency in the data collected for similar data elements in the Program 2 and Program 3 prevention programs; and • Replace data elements that were not effective in demonstrating a stationary source’s compliance with the rule, with one that will demonstrate compliance. Data elements that require a date to demonstrate compliance can become irrelevant during the typical five-year RMP resubmission cycle. An example is a stationary source that submitted an RMP to the EPA on January 8, 2015, that included an annual operating procedures review date of January 1, 2015, in its RMP in accordance with § 68.175(f). Assuming the stationary source will not have any changes that would require a resubmission of the RMP and the stationary source will not voluntarily correct the RMP with newer annual standard operating procedure (SOP) review dates, the January 1, 2015, annual SOP review date does not provide compliance information for years 2016–2019. As a result, the annual SOP review date in this example only provides compliance information for 2015. Because the dates of most recent review or update of a process safety element in an RMP do not always reflect compliance with regulatory PO 00000 Frm 00047 Fmt 4701 Sfmt 4702 13683 requirements, EPA is proposing to replace most of these dates with the RMP Certifying Official’s attestation that the stationary source complies with each Risk Management Program requirement. Data elements for which the last review or revision dates are being replaced include: • For Program 2 and Program 3: Safety information, operating procedures, training programs, maintenance procedures, changes triggering review of any of the previous data elements or the hazard review/PHA; • For Program 3 only: MOC, pre-startup review, employee participation plans, hot work permit procedures, contractor safety procedures and performance; and, • For sources with Emergency Response Programs: Emergency response plans and emergency response training of employees. EPA will still require the date of the most recent hazard review or PHA or their update (required every 5 years), date of most recent compliance audit (required every 3 years), and date of most recent incident investigation (required only when an incident occurs). These data elements are not updated as frequently as the other program elements, and are therefore more likely to indicate current compliance with regulatory requirements. C. Additions to Subpart G In addition to removing and revising several RMP data elements, EPA is proposing to add several RMP data elements in subpart G based on the proposed rule requirements discussed in this document. This includes new data elements to address compliance with: • Third-party audit requirements, • Root cause analysis requirements as part of incident investigations; • IST analysis requirements in the PHA; • Emergency response preparedness requirements including information on local coordination and emergency response exercises; and • Information sharing provisions. By adding these data elements to the RMP requirements in subpart G EPA will be able to evaluate a stationary source’s compliance with these proposed rule requirements once they are finalized. D. Proposed Amendments and Technical Corrections 1. Proposed Revisions to § 68.160 (Registration) EPA is proposing to delete and reserve: • § 68.160(b)(13)—The date of the last safety inspection of the stationary source by E:\FR\FM\14MRP4.SGM 14MRP4 13684 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules a Federal, state, or local government agency and the identity of the inspecting agency; and • § 68.160(b)(19)—OSHA Voluntary Protection Program status (Optional). EPA is proposing to revise: • § 68.160(b)(1) by removing the method for obtaining latitude and longitude (but keep the rest of § 68.160(b)(1)); • § 68.160(b)(4) by requiring an email address for the owner or operator, if that person has an email address, rather than making it optional; • § 68.160(b)(5) by removing ‘‘position’’ and requiring an email address for the person with overall responsibility for RMP elements and implementation, if that person has an email address (rather than making it optional); • § 68.160(b)(9) by adding ‘‘equivalent’’ to clarify that the number of full-time employees means full-time equivalent employees to be consistent with RMP*eSubmit; • § 68.160(b)(12) by adding the phrase ‘‘and if so’’ to clarify that if the stationary source has a CAA Title V operating permit, then the RMP plan must include the permit number; • § 68.160(b)(14) by requiring an email address for the contractor who prepared the RMP (if any), if the contractor has an email address; • § 68.160(b)(15) by requiring an email address for the source or parent company, if the source or parent company has an email address; • § 68.160(b)(16) by requiring a source internet address, if the source has an internet address; • § 68.160(b)(17) by requiring a phone number at the source for public inquiries, if the source has a public inquiries phone number; • § 68.160(b)(18) by requiring the name, phone number, email address, and internet address for the LEPC, if the LEPC has such information available; and • § 68.160(b)(20) by changing facility to stationary source in subparagraphs (b)(20)(ii) and (b)(20)(iv). mstockstill on DSK4VPTVN1PROD with PROPOSALS4 EPA is proposing to add the following RMP data elements that relate to the information sharing provisions being proposed in this document: • § 68.160(b)(21) would require an attestation that chemical hazard-related information is available to the LEPC or emergency response officials, as set forth in § 68.205; • § 68.160(b)(22) would require an attestation that chemical hazard-related information is available to the public, as set forth in § 68.210; and • § 68.160(b)(23) would require the date of most recent public meeting, as set forth in § 68.210(d). 2. Proposed Revisions to § 68.170 (Prevention Program/Program 2) EPA is proposing to delete the requirement in § 68.170(k) which identify the date of the most recent change that triggered a review or VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 revision of safety information, the hazard review, operating or maintenance procedures, or training. EPA is proposing to revise: • § 68.170(a) by changing the reference to paragraph (k) to paragraph (j) because we are proposing to delete paragraph (k). • § 68.170(d) by reorganizing into subparagraphs (d)(1) and (d)(2). EPA is proposing to replace the date of the most recent review or revision of the safety information with an attestation that the safety information requirements, in § 68.48, are implemented. EPA is also proposing to move the requirement to list all Federal and state regulations, industry specific and established company or stationary source design codes and standards that are applicable, and the requirement to identify those followed, into subparagraph (d)(2). • § 68.170(e) by reorganizing the date of completion of the most recent hazard review or hazard review update to § 68.170(e)(1) and removing from § 68.170(e)(1), the requirement to identify an expected date of completion of any changes resulting from the hazard review; • § 68.170(f) by replacing the date of the most recent review or revision of operating procedures with an attestation that the operating procedures requirements, in § 68.52, are implemented; • § 68.170(g) by replacing the date of the most recent review or revision of training programs with an attestation that training requirements, in § 68.54, are implemented. EPA is also proposing to delete the requirements to identify the types of training provided and competency testing used in subparagraphs (g)(1) and (g)(2); • § 68.170(h) by replacing the date of the most recent review or revision of maintenance procedures and the date of the most recent equipment inspection or test and the equipment inspected or tested with an attestation that the maintenance requirements, in § 68.56, are implemented; • § 68.170(i) by reorganizing into subparagraphs. EPA would add an attestation that the compliance audit requirements of § 68.58 are implemented in subparagraph (i)(1) and move the requirement to identify the date of the most recent compliance audit to subparagraph (i)(2). EPA would remove the requirement to identify the date of completion of any changes resulting from the compliance audit; and, in subparagraph (i)(3), add a requirement that the owner or operator identify whether the most recent compliance audit was a third-party audit, pursuant to §§ 68.58 and 68.59; and • § 68.170(j) by reorganizing into subparagraphs. EPA would add an attestation that the incident investigation requirements, in § 68.60, are implemented in subparagraph (j)(1) and move the date of the most recent incident investigation into subparagraph (j)(2). EPA would delete the requirement to identify the expected date of completion of any changes resulting from the investigation, and, in subparagraph (j)(3), would add a requirement that the plan indicate whether root cause analyses have been completed for all accidents and incidents that are subject to the requirements of § 68.60. PO 00000 Frm 00048 Fmt 4701 Sfmt 4702 3. Proposed Revisions to § 68.175 (Prevention Program/Program 3) EPA is proposing to delete paragraph § 68.175(p) because we are addressing the data elements for contractor safety procedures in paragraph (o). EPA is proposing to revise the following provisions: • § 68.175(a) by changing the reference to paragraph (p) to paragraph (o) because we are proposing to combine the data elements in paragraphs (p) and (o) that show compliance with the requirements for contractor safety procedures. • § 68.175(d) by reorganizing into subparagraphs (d)(1) and (d)(2). EPA is proposing to replace the date of the most recent review or revision of the safety information with an attestation that the PSI requirements, in § 68.65, are implemented. EPA is also proposing to move the requirement to list all Federal and state regulations, industry-specific and established company or stationary source design codes and standards that are applicable, and the requirement to identify those followed, into subparagraph (d)(2); • § 68.175(e) by reorganizing existing requirements into subparagraphs (e)(1) and (e)(2) and adding new requirements addressing safer technology and alternatives in new subparagraph (e)(2). Subparagraph (e)(1) would apply to information on the PHA or PHA update and revalidation information. EPA would move the date of completion of the most recent PHA or update and require the plan identify the technique used to § 68.170(e)(1)(i). EPA would delete the requirement to identify the expected date of completion of any changes resulting from the PHA. Additional PHA information would move to subparagraph (e)(1)(ii) through (vi). EPA would add subparagraph (e)(2) to address requirements for safer alternatives including: An attestation that the PHA address safer technology and risk management measures, as required in § 68.67(c)(8); whether any IST or ISD were implemented and if so, the technology category that describes the IST or ISD (i.e., substitution, minimization, simplification, and/or moderation); • § 68.175(f) by replacing the date of the most recent review or revision of operating procedures with an attestation that the operating procedures requirements, in § 68.69, are implemented; • § 68.175(g) by replacing the date of the most recent review or revision of training programs with an attestation that training requirements, in § 68.71, are implemented. EPA is also proposing to delete the requirements to identify the types of training provided and competency testing used in subparagraphs (g)(1) and (g)(2); • § 68.175(h) by replacing the date of the most recent review or revision of maintenance procedures and the date of the most recent equipment inspection or test and the equipment inspected or tested with an attestation that the mechanical integrity requirements, in § 68.73, are implemented; • § 68.175(i) by replacing the date of the most recent change that triggered MOC E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 procedures and the date of the most recent review or revision of MOC procedures with an attestation that the MOC requirements, in § 68.75, are implemented; • § 68.175(j) by replacing the date of the most recent pre-startup review with an attestation that the pre-startup review requirement, in § 68.77, are implemented; • § 68.175(k) by reorganizing into subparagraphs. EPA would add an attestation that the compliance audit requirements of § 68.79 are implemented in subparagraph (k)(1) and move the requirement to identify the date of the most recent compliance audit to subparagraph (k)(2). EPA would remove the requirement to identify the expected date of completion of any changes resulting from the compliance audit; and, in subparagraph (k)(3), add a requirement that the owner or operator identify whether the most recent compliance audit was a third-party audit, pursuant to §§ 68.79 and 68.80; • § 68.175(l) by reorganizing into subparagraphs. EPA would add an attestation that the incident investigation requirements, in § 68.81, are implemented in subparagraph (l)(1) and move the date of the most recent incident investigation into subparagraph (l)(2). EPA would delete the requirement to identify the expected date of completion of any changes resulting from the investigation; and, in subparagraph (l)(3), would add a requirement that the plan indicate whether root cause analyses have been completed for all accidents and incidents that are subject to the requirements of § 68.81; • § 68.175(m) by replacing the date of the most recent review or revision of employee participation plans with an attestation that employee participation requirements, § 68.83, are implemented; • § 68.175(n) by replacing the date of the most recent review or revision of hot work permit procedures with an attestation that the hot work permit requirements, in § 68.85, are implemented; and • §§ 68.175(o) and 68.175(p) by replacing the date of the most recent review or revision of contractor safety procedures and the date of the most recent evaluation of contractor safety performance with an attestation in § 68.175(o) that the contractor safety requirements, in § 68.67, are implemented. 4. Proposed Revisions to § 68.180 (Emergency Response Program) Subpart G § 68.180 contains the emergency response program data elements that must be included in the RMP. Although the data elements in § 68.180 are intended to help identify whether stationary source personnel will respond to an accidental release of a regulated substance, the existing data elements do not clearly distinguish between responding stationary sources and non-responding stationary sources. As a result, many non-responding stationary sources are submitting RMPs to the EPA with errors, because they appear to be answering questions that were only meant to be answered by responding sources. Consequently, the RMP data do not indicate with certainty, VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 whether a stationary source is a responding or non-responding stationary source. The proposed revisions to add emergency response exercises and revise local coordination provisions of the rule are intended to improve coordination with local response authorities and to bolster emergency response capabilities and preparedness for accidental releases. Because of the proposed regulatory changes to subpart E- emergency response, and due to the difficulty in distinguishing between responding and non-responding facilities in subpart G § 68.180, the EPA is proposing to completely revise and reorganize subpart G § 68.180 into the following three parts: Requirements for (1) all non-responding and responding stationary sources, (2) non-responding stationary sources, and (3) responding stationary sources. The EPA believes that splitting subpart G § 68.180 into three parts will aid facilities’ understanding of the reporting requirements, reduce errors in submitted RMPs, and improve compliance with the RMP requirements. The proposed revisions to subpart G § 68.180 will also improve EPA’s ability to evaluate a facility’s compliance with the proposed Emergency Response Program requirements. EPA is proposing to revise: • § 68.180(a) by deleting the phrase ‘‘the following information.’’ The text in subparagraphs (a)(1) through (a)(3) would be reorganized and/or replaced. Subparagraph (a)(1) would require the RMP to identify the name, organizational affiliation, phone number, and email address of local emergency planning and response organizations with which the stationary source last coordinated emergency response efforts, pursuant to § 68.10(b)(3) or § 68.93. Subparagraph (a)(2) would require the RMP to identify whether coordination with the local emergency response organizations is occurring at least annually, pursuant to § 68.93(a). Subparagraph (a)(3) would require the RMP to identify a list of Federal or state emergency plan requirements to which the stationary source is subject. EPA would delete subparagraphs (a)(4) through (a)(6); • § 68.180(b) by replacing the current text with a requirement to identify whether the facility is a responding or non-responding stationary source, pursuant to § 68.90. EPA would reorganize the paragraph into subparagraphs as follows: Æ Subparagraph (b)(1) would apply to nonresponding stationary sources. In subparagraphs (b)(1)(i) through (b)(1)(iii) the owner or operator would be required to identify whether the owner or operator has confirmed that local responders are capable of responding to accidental releases at the source, whether appropriate notification mechanisms are in place, and whether a notification exercise occurs at least annually. PO 00000 Frm 00049 Fmt 4701 Sfmt 4702 13685 Æ Subparagraph (b)(2) would apply to responding stationary sources. In subparagraphs (b)(2)(i) through (b)(2)(v) the owner or operator would be required to identify whether the LEPC or local response entity requested that the stationary source be a responding facility; whether the stationary source complies with requirements in § 68.95; whether a notification exercises occurs at least annually, as required in § 68.96(a); whether a field exercise is conducted every five years and after any RMP reportable accident, pursuant to § 68.96(b)(1)(i); and whether a tabletop exercise occurs at least annually, except during the calendar year when a field exercise is conducted, as required in § 68.96(b)(2)(i). EPA is proposing to delete § 68.180(c), which requires the owner or operator to list other Federal or state emergency plan requirements to which the stationary source is subject. 5. Technical Corrections a. Proposed Revisions to § 68.10 (Applicability) EPA is proposing to correct a typographical error in § 68.10(b)(2). Section 68.10(b)(2) uses the term public receptor and indicates that public receptor is defined in § 68.30; however the term public receptor is defined in § 68.3, not § 68.30. The proposed rule language corrects this typographical error. b. Proposed Revisions to § 68.48 (Safety information) EPA is proposing to remove the word ‘‘material’’ from the term Material Safety Data Sheet in § 68.48(a)(1) to conform with OSHA’s revised terminology for SDS. In 2012, OSHA made changes to its Hazard Communication Standard at 29 CFR 1910.1200 in order to align with the UN Globally Harmonized System of Classification and Labelling of Chemicals (GHS), Revision 3 (77 FR 17574, March 26, 2012). One change was the change in nomenclature from ‘‘Material Safety Data Sheets’’ to ‘‘Safety Data Sheets.’’ Consequently, OSHA made this change to the PSM standard at 1910.119(d)(1)(vii) (78 FR 9311, February 8, 2013). Chemical producers and users must comply with new SDS requirements by June 1, 2015.206 In order to be consistent with OSHA and the UN GHS, EPA is proposing to replace ‘‘Material Safety Data Sheet’’ with ‘‘Safety Data Sheet’’ in § 68.48(a)(1). 206 OSHA Fact Sheet- Hazard Communication Standard Final Rule. https://www.osha.gov/dsg/ hazcom/HCSFactsheet.html. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 13686 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules c. Proposed Revisions to §§ 68.54 and 68.71 (Training) The RMP rule requires initial and refresher training for employees operating a Program 2 or Program 3 covered process. Since the inception of the rule, however, there has been confusion on the types of employees that are considered workers operating a covered process. Although ‘‘employee’’ is not defined in § 68.3, EPA has traditionally interpreted an employee to be any worker that is involved in operating a process, including supervisors. This is consistent with the OSHA definition of employee set forth at 29 CFR 1910.2(d). EPA has noted during facility inspections that some owners and operators are confused about how the existing training requirements apply to supervisors involved in process operations. If a supervisor is involved in decision-making for process operations, such as making changes to operating parameters, developing or approving operating procedures, or conducting emergency operations, then EPA expects that the supervisor receives initial and refresher training appropriate to the supervisor’s responsibilities. In such cases, the training of a supervisor might not need to be as extensive as that of an operator, but EPA expects that the supervisor training would include process operations for which the supervisor might have decision-making authority. For this reason, EPA is proposing to clarify that the training requirements in §§ 68.54 and 68.71 (for Program 2 and Program 3 facilities, respectively) apply to supervisors who are involved in operating a covered process by adding paragraph (e) to indicate that the term employee includes supervisors. Similarly, the EPA realizes that there may be other employee types involved in operating a covered process besides operators. For example, process engineers and maintenance technicians may occasionally be involved in process operations. The degree of involvement for these other employee types may vary greatly. Therefore, EPA is proposing to revise § 68.54(d) to clarify that the requirement applies to employees involved in operating a process. For employees other than operators and supervisors, EPA expects that initial and refresher training will be appropriate to the employee’s responsibilities in operating the process. Finally, EPA believes that Program 3 requirements in §§ 68.71(a) and 68.71(b) provides clearer regulatory language regarding the applicability of employees subject to initial and refresher training VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 requirements than the similar Program 2 requirements §§ 68.54(a) and 68.54(b). Specifically, §§ 68.71(a) and 68.71(b) indicates that initial and refresher training is required for employees ‘‘involved in’’ operating a covered process. Because EPA believes that this language can better facilitate compliance for Program 2, the EPA is proposing to add similar language for Program 2 facilities at §§ 68.54(a) and 68.54(b). d. Proposed Revisions to § 68.65 (PSI) EPA is proposing to revise § 68.65(a) in order to remove irrelevant text regarding the timeframe for initial development of PSI and to more clearly demonstrate that PSI must be kept upto-date. The EPA believes that these proposed changes will help Program 3 facilities to better comply with PSI requirements. EPA is proposing to revise § 68.65(a) to remove the phrase ‘‘In accordance with the schedule set forth in § 68.67.’’ This language appears to have been adopted from OSHA’s PSM PHA completion schedule of May 1994 to May 1997 and is not relevant to the RMP rule because the compliance date of June 21, 1999 is after OSHA’s PSM PHA completion schedule. Additionally, the only schedule currently referenced in § 68.67 is in § 68.67(e), which pertains to a written schedule of PHA corrective actions. Because § 68.67(e) does not pertain to when a PHA must be completed, EPA is proposing to remove the phrase ‘‘In accordance with the schedule set forth in § 68.67’’ from § 68.65(a). Furthermore, EPA is proposing to add the phrase: ‘‘and shall keep PSI up-todate.’’ EPA has always intended that PSI be kept up-to-date for Program 3 facilities. Updated PSI is necessary to properly update or revalidate the PHA every 5 years as required by § 68.67(f). PSI items that that need to be kept upto-date include, but are not limited to, piping and instrumentation diagrams, SDSs, hazard information, and changes to the design of the process. Although PSI must be updated for Program 3 facilities through MOC requirements in § 68.75(d), EPA believes that the proposed change makes it clearer that PSI must be kept up-to-date. This proposed change also ensures consistency with the safety information requirement for Program 2 facilities, where § 68.48(a) indicates ‘‘The owner or operator shall compile and maintain the following up-to-date safety information. . .’’ EPA expects that revising § 68.65(a) in this manner will further clarify the requirement that PSI PO 00000 Frm 00050 Fmt 4701 Sfmt 4702 must be completed prior to conducting a PHA. Finally, in order to be consistent with OSHA and the GHS, EPA is proposing to replace ‘‘Material Safety Data Sheet’’ with ‘‘Safety Data Sheet’’ in the note to § 68.65(b). e. Proposed Revisions to § 68.130 List of Substances EPA is proposing revisions to Tables 1, 2, and 4 in § 68.130 as follows: Table 1 to § 68.130—List of Regulated Toxic Substances and TQs for Accidental Release Prevention. EPA is proposing to correct a typographical error in the Chemical Abstracts Service (CAS) number (no.) for allyl alcohol in Table 1 in § 68.130. The incorrect CAS no. of 107–18–61 for allyl alcohol would be corrected to 107–18–6. Table 4 to § 68.130—List of Regulated Flammable Substances and TQs for Accidental Release Prevention. EPA is proposing to correct a typographical error to the CAS no. for 1, 3-Butadiene, to read 106–99–0, instead of 196–99–0, right justify the first CAS nos. column and delete the second CAS nos. column because it is redundant. f. Proposed Revisions to § 68.200 (Recordkeeping) EPA is proposing to revise § 68.200 to clarify that records must be maintained at the stationary source. VIII. Compliance Dates The initial Risk Management Program rule applied 3 years after promulgation of the rule on June 20, 1996, which is consistent with the last sentence of CAA section 112(r)(7)(B)(i). The provisions of this proposal modify terms of the existing rule, and, in some cases, clarify existing requirements. The statute does not directly address when amendments should become applicable. Therefore, in modifications to § 68.10, EPA is proposing to: • Require compliance with emergency response coordination activities within one year of an effective date of a final rule; • Provide up to three years for the owner or operator of a non-responding stationary source to develop an emergency response program in accordance with § 68.95 following an LEPC or equivalent’s written request to do so; • Comply with new provisions, unless otherwise stated, four years after the effective date of the final rule; and • Provide regulated sources one additional year (i.e., five years after the effective date of the final rule) to correct or resubmit RMPs to reflect new and revised data elements. EPA is proposing that within one year of the effective date of a final rule, the owner or operator of a stationary source comply with emergency response E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules coordination activities in §§ 68.93(a) and 68.93(b). This includes coordinating response needs annually with local emergency planning and response organizations to ensure resources and capabilities are in place to respond to an accidental release of a regulated substance, and documenting coordination activities. EPA believes one year is sufficient to arrange for and document coordination activities. The coordination activities in this proposed rule mostly are clarifications of current requirements rather than new provisions. EPA is also proposing to require three years for the owner or operator of a stationary source to comply with emergency response program requirements of § 68.95 after receiving a written request by an LEPC or equivalent to develop an emergency response program. This timeframe is consistent with the time established in the original rule to comply with risk management program requirements and submit initial RMPs. Additionally, EPA is proposing to provide additional time for compliance with other proposed provisions (i.e., third-party compliance audits, root cause analyses as part of incident investigations, STAA, emergency response exercises, and information availability provisions). For these provisions, the proposed rule requires affected facilities to comply by four years after the effective date of the rule. Our reasons for the four year phase for these modified requirements are set out below. For the third-party audit, incident investigation root cause analysis, and public meeting provisions, this means that for any RMP reportable accident occurring later than four years after the effective date of the rule, the owner or operator of a source must conduct a third-party audit; investigate an incident, including a root cause analysis; and hold a public meeting within 30 days of the accident. For any incident that could reasonably have resulted in a catastrophic release (near miss), the owner or operator has four years after the effective date of the rule to comply with the proposed incident investigation root cause analysis requirements. For the STAA, emergency exercise, and information availability provisions, this means that the owner or operator must have completed or updated their PHA to include the STAA; conducted a notification exercise and at least one tabletop or field exercise; and prepared the required information to be provided to the public or, upon request, to the LEPCs. EPA is proposing to provide this additional time for several reasons. First, EPA believes that for most sources, the incident investigation root cause analysis and emergency response exercise requirements will involve training and program development activities that may reasonably require significant time to complete. Second, the extended compliance timeframe will allow potential auditors enough time to meet the competency and independence criteria necessary to serve as a thirdparty auditor. Third, for sources subject to the STAA provisions, EPA believes that in many cases these sources will prefer to perform a full PHA update when implementing the STAA requirements. Sources subject to this provision are among the largest and most complex sources regulated under 40 CFR part 68, and therefore PHAs and PHA updates at these sources typically require a significant level of effort. Since PHA updates are normally done at five year intervals, EPA believes it would be appropriate to allow most sources to adopt these provisions in their normal PHA update cycle if they so choose. Sources that performed their most recent PHA update immediately prior to 13687 the rule publication date would have up to four years to perform their next PHA update and adopt the STAA provisions. Most sources could schedule their PHA updates to incorporate the new STAA provisions on their normal PHA update schedule. Lastly, EPA intends to publish guidance for certain provisions, such as STAA, root cause analysis, and emergency response exercises. Once these materials are complete, owners and operators will need time to familiarize themselves with the new materials and incorporate them into their risk management programs. EPA is also proposing to provide one additional year for owners or operators to update RMPs to reflect proposed new or revised data elements in subpart G of the rule. The additional year will allow owners and operators an opportunity to begin to comply with revised rule provisions prior to certifying compliance in the RMP. Additionally, the Agency will need to make significant revisions to its online RMP submission system, RMP*eSubmit, to accommodate the newly required and revised data elements, and sources will not be able to update RMPs with new or revised data elements until the submission system is ready. Also, once it is ready, allowing an additional year for sources to update RMPs will prevent potential problems with thousands of sources submitting updated RMPs on the same day. Examples for Compliance and Submission Dates The following examples assume a hypothetical effective date of June 5, 2017 for a final rule that includes the proposed provisions in Table 7: Proposed Rule Provisions and Corresponding Compliance Dates with corresponding proposed compliance dates. TABLE 7—PROPOSED RULE PROVISIONS AND CORRESPONDING COMPLIANCE DATES Hypothetical compliance date Initiated after an RMP reportable accident? mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Rule provision Proposed compliance date Third-party audit .................................... Root cause analysis .............................. STAA ..................................................... Emergency response coordination activities. LEPC requires compliance with § 68.95 (emergency response program). Emergency response exercises ............ Four years after effective date .............. Four years after effective date .............. Four years after effective date .............. Within one year of effective date .......... June June June June Within three years of receipt of written request. Four years after effective date .............. N/A ....................... No. June 5, 2021 ........ Information sharing ................................ Four years after effective date .............. June 5, 2021 ........ Update RMP .......................................... Five years after effective date .............. June 5, 2022 ........ Partially—field exercise within one year. Partially—public meeting within 30 days. No (but previously existing correction requirements of § 68.195 still apply). VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00051 Fmt 4701 Sfmt 4702 5, 5, 5, 5, 2021 2021 2021 2018 ........ ........ ........ ........ E:\FR\FM\14MRP4.SGM Yes. Yes (also required after near misses). No. No. 14MRP4 13688 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules Example 1: Proposed Provisions That Would Apply to a Non-Responding Stationary Source Source A (see Table 8) is a nonresponding stationary source with a regulated process subject to Program 2 requirements. Source A’s owner submitted the latest RMP update to EPA on January 20, 2015 and completed its latest compliance audit on August 11, 2017. The source is not in NAICS 322, 324, or 325, and therefore is not subject to the proposed STAA provisions. The source has not had any RMP reportable accidents since the effective date of a final rule. TABLE 8—EXAMPLE 1, SOURCE A Source A—Program 2, non-responding stationary source Date of last RMP update Last compliance audit January 20, 2015 .. August 11, 2017 ... Last accident N/A. In this example, the following proposed provisions would apply: • Annual emergency response coordination activities in accordance with proposed § 68.93; • Notification exercises (proposed § 68.96(a)); and • Information availability provisions (proposed §§ 68.205 and 68.210). The owner or operator must coordinate response needs with local emergency planning and response organizations to ensure resources and capabilities are in place to respond to an accidental release of a regulated substance. Coordination activities must occur annually and be documented. Source A is a non-responding facility, and the owner or operator would be required to conduct annual notification exercises. The owner or operator would also be required to annually update information for the LEPC and provide the information upon request, and make certain information easily accessible to the public. Finally, beginning 5 years after the rule effective date, the owner or operator must update the RMP to include all revised data elements specified in subpart G and § 68.42. In this case, the owner or operator would update their RMP no later than January 20, 2020 (the source’s next scheduled five-year update), and again by June 5, 2022 (the required resubmission date for the proposed rule). Table 9: Summary of proposed provisions that would apply to a nonresponding stationary source summarizes the proposed provisions that would apply to Source A. TABLE 9—SUMMARY OF PROPOSED PROVISIONS THAT WOULD APPLY TO A NON-RESPONDING STATIONARY SOURCE Applicable provisions Timeframe Additional information Emergency response Within one year of efcoordination activities. fective date of a final rule. Notification exercise .... By four-years after effective date. When to complete * Occurs annually .............................................. Complete coordination activities before June 5, 2018 and document coordination. Occurs annually .............................................. Complete first notification exercise by June 5, 2021. Information availability provisions Information to LEPC .... By four-years after effective date. Information to the public. By four-years after effective date. Update RMP ................ By five years after effective date. Update information annually. Includes information on regulated substances; accident histories; compliance audits; incident investigations (as applicable) and exercises. Provide to LEPC upon request. Occurs annually. Includes information on: Regulated substances including Safety Data Sheets; accident history; emergency response program; exercises; and LEPC contact information. Owner’s next 5-year resubmission date occurs prior to effective date for provision, so owner must update RMP twice. Develop by June 5, 2021 and provide upon request. Complete first calendar year submission by June 5, 2021. Update RMP on regular schedule (by January 20, 2020) and again to include new information by June 5, 2022. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 * Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017. If the LEPC submits a request to Source A’s owner requesting the source comply with the emergency response program requirements of § 68.95, then Source A’s owner would have three years from the date of the letter to develop and implement an emergency response plan, obtain equipment, and train personnel in relevant procedures. Once the owner has developed an emergency response program, the source is a responding facility and must also comply with tabletop and field exercise requirements for responding facilities. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Example 2A: Proposed Provisions That Would Apply to a Responding Stationary Source Source B (see Table 10) is a responding stationary source with a process subject to Program 3 requirements. Its latest RMP update was submitted June 30, 2020 (i.e., three years after the rule effective date). Its latest compliance audit was performed on April 6, 2020. The source is not in NAICS 322, 324, or 325, and therefore is not subject to the proposed STAA provisions, and the source has not had any RMP reportable accidents since the effective date of a final rule. PO 00000 Frm 00052 Fmt 4701 Sfmt 4702 TABLE 10—EXAMPLE 2A, SOURCE B Source B—Program 3, responding stationary source Date of last RMP update Last compliance audit June 30, 2020 ....... April 6, 2020 ......... Last accident N/A. In this example, the following proposed provisions would apply: • Annual emergency response coordination activities in accordance with proposed § 68.93; • Emergency response exercises (proposed § 68.96); and • Information availability provisions (proposed §§ 68.205 and 68.210). E:\FR\FM\14MRP4.SGM 14MRP4 13689 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules The owner or operator must coordinate response needs with local emergency planning and response organizations to ensure resources and capabilities are in place to respond to an accidental release of a regulated substance. Coordination activities must occur annually and be documented. Additionally, since Source B is a responding facility, the owner or operator would be required to conduct annual notification exercises, annual tabletop exercises (with a field exercise substituting for a tabletop exercise once every five years). The owner or operator would be required to update information annually and provide the information upon request, to the LEPC and make information easily accessible to the public. Finally, by five years after the rule effective date, the owner or operator must update the RMP to include all revised data elements specified in subpart G and § 68.42. Table 11: Summary of proposed provisions that would apply to Source B summarizes the proposed provisions that would apply to Source B. TABLE 11—SUMMARY OF PROPOSED PROVISIONS THAT WOULD APPLY TO SOURCE B Applicable provisions Timeframe Emergency response coordination activities. Additional information Within one year of effective date of a final rule. When to complete * Occurs annually ................................... Complete coordination activities before June 5, 2018. Emergency response exercises (proposed § 68.96) Notification exercise ............................... Field and tabletop exercises .................. Four-years after effective date. Four-years after effective date. Occurs annually ................................... Tabletop exercise annually, field exercise once every five years. No tabletop exercises in the year of a field exercise. Complete first notification exercise by June 5, 2021. Complete first tabletop or field exercise by June 5, 2021. Information availability provisions Information to LEPC ............................... Four-years after effective date. Information to the public ......................... Four-years after effective date. Update RMP ........................................... By five years after effective date. Update information annually. Includes information on regulated substances; accident histories; compliance audits; incident investigations (as applicable) and exercises. Provide to LEPC upon request. Occurs annually. Includes information on: Regulated substances including Safety Data Sheets; accident history; emergency response program; exercises; and LEPC contact information. ............................................................... Develop by June 5, 2021 and provide upon request. Complete first calendar year submission by June 5, 2021. Update RMP to include new information by June 5, 2022. * Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017. Example 2B: Additional Proposed Provisions That Would Apply to a Responding Stationary Following an RMP Reportable Accident See Table 12 below. TABLE 12—EXAMPLE 2B, SOURCE B Source B—Program 3, responding stationary source Last compliance audit June 30, 2020 ................................................................... mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Date of last RMP update April 6, 2020 .................................................................... In this example, Source B has an accidental release on July 5, 2021 that meets the reporting requirements of § 68.42. As a result of the accident, Source B’s owner would be required to comply with the following additional proposed provisions: VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 • Accident history provisions of § 68.42 (to report root causes identified during the incident investigation); • Third-party audit provisions of § 68.80; • Incident investigation and root cause analysis requirements of § 68.81; • Field exercise provisions of § 68.96(b)(1)(i) (i.e., requiring a field exercise within one year of any accidental release required to be reported under § 68.42); and PO 00000 Frm 00053 Fmt 4701 Sfmt 4702 Last accident July 5, 2021. • Public meeting within 30 days of an RMP reportable accident, pursuant to § 68.210(d). Chronologically, the first provision that would apply is the requirement to host a public meeting. Section 68.210(d) requires the owner or operator to hold a public meeting within 30 days after the accident to inform the public about E:\FR\FM\14MRP4.SGM 14MRP4 13690 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules the accident, including information required under § 68.42, and other relevant information. An incident investigation must be initiated promptly, but no later than 48 hours following an incident. The proposed incident investigation provisions would require the owner or operator to complete an incident investigation that includes a root cause analysis and other elements specified in § 68.81(d), and an incident investigation report, within 12 months of the incident, unless the implementing agency approves an extension of time. A summary of the incident investigation report must be provided to the LEPC, upon request. The proposed third-party audit provisions would require the owner or operator to hire a third-party auditor to perform a third-party compliance audit and submit an audit report to the implementing agency and owner or operator within 12 months of the accident (if the source’s next scheduled compliance audit was required sooner than one year following the incident, the third-party audit would be required to be completed by the scheduled compliance audit date unless the implementing agency approved an extension). The owner or operator must also complete an audit findings response report and submit it to the implementing agency within 90 days of receiving the audit report from the third-party auditor. The owner or operator must also provide the audit findings response report, as well as a schedule to address deficiencies identified in the audit findings response report and documentation of actions taken to address deficiencies, to the owner or operator’s audit committee of the Board of Directors, or other comparable committee, if one exists. The owner or operator would also be required to conduct a field exercise meeting the requirements of § 68.96 within one year of the accidental release, and prepare an evaluation report within 90 days of completing the exercise. By five years after the rule effective date, the owner or operator must update the RMP to include all revised data elements specified in subpart G and § 68.42. Table 13 summarizes the additional provisions that would apply to Source B following an RMP reportable accident (in addition to complying with new requirements triggered by an RMP reportable accident, the owner or operator must annually coordinate response needs with local emergency planning and response organizations, document coordination activities, and comply with the other information disclosure provisions as previously described). TABLE 13—SUMMARY OF ADDITIONAL PROPOSED PROVISIONS THAT WOULD APPLY TO SOURCE B FOLLOWING AN RMP REPORTABLE ACCIDENT Applicable provisions following an RMP reportable accident Public meeting ........................ Incident investigations ............ Timeframe Additional information Four-years after effective date. Four-years after effective date. Third-party audit ..................... Four-years after effective date. Field exercise .......................... Four-years after effective date. Include new accident history information in RMP. Five-years after effective date. When to complete * Within 30 days after an accident ......... Hold public meeting by August 4, 2021. Complete report by July 5, 2022. Initiate within 48 hours, complete investigation and root cause analysis within 12 months. Within 12 months of the accident or three years of previous audit, whichever is sooner. At least once every five years, and within one year of an RMP reportable accident. Correct RMP within 6 months of accident (existing requirement); report complete accident information in next five-year RMP update. Complete third-party audit by July 5, 2022; complete findings response report within 90 days of completing audit. Complete field exercise by July 5, 2022; complete an evaluation report within 90 days of the exercise. Correct RMP by January 5, 2022; report complete accident information by June 5, 2025. * Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Example 3: Compliance Date Example For Sources Subject to STAA Requirements Source C (see Table 14) is a petroleum refinery in NAICS 32411. Its latest RMP update was submitted on March 31, 2018 (i.e., the year after the rule effective date). Its latest PHA revalidation was completed on March 7, 2017 (i.e., approximately three months before the rule effective date). TABLE 14—EXAMPLE 3, SOURCE C Source C—Program 3, NAICS 32411 Date of last RMP update March 31, 2018 ......... VerDate Sep<11>2014 Last PHA revalidation March 7, 2017. 16:39 Mar 11, 2016 Jkt 238001 Because the source is in NAICS 32411, it is subject to the proposed STAA provisions of § 68.67(c)(8). Therefore, by four years after the rule effective date, the owner or operator must complete a PHA revalidation that addresses safer technology and alternative risk management measures, and determine the feasibility of the ISTs and ISDs considered. Under the proposed information availability requirements of § 68.205, the owner or operator must also submit to their LEPC a summary of the ISTs or ISDs implemented or planned, and annually update the summary as part of the calendar year submission described in § 68.205(c). By June 5, 2018 the owner or operator of Source C must comply with the new PO 00000 Frm 00054 Fmt 4701 Sfmt 4702 emergency response coordination provisions, and by June 5, 2021, the owner or operator must also comply with other applicable proposed rule provisions including: Third-party audits; incident investigations; emergency response exercises; and information availability (including public meetings). By five years after the rule effective date, the owner or operator of Source C must update the RMP to include all revised data elements specified in subpart G and § 68.42. Table 15: Compliance date example for sources subject to STAA requirements, summarizes the proposed STAA provisions that would apply to Source C. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules 13691 TABLE 15—COMPLIANCE DATE EXAMPLE FOR SOURCES SUBJECT TO STAA REQUIREMENTS Applicable provisions STAA ...................................... Information availability to LEPC, upon request. Update RMP ........................... Timeframe Additional information Four-years after effective date. Four-years after effective date. Five years after rule effective date. When to complete * Occurs every five years as part of PHA revalidation. In addition to other information availability provisions, include information on IST or ISD to be implemented. Update every five years as part of information to provide to LEPC upon request. ............................................................... By June 5, 2021. Develop in first calendar year after completion of STAA or June 5, 2021, whichever is later and provide to LEPC upon request. By June 5, 2022. * Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017. IX. Statutory and Executive Order Reviews mstockstill on DSK4VPTVN1PROD with PROPOSALS4 A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review This action is an economically significant regulatory action that was submitted to the OMB for review. Any changes made in response to OMB recommendations have been documented in the docket. The EPA prepared a Regulatory Impact Analysis (RIA) of the potential costs and benefits associated with this action. This RIA is available in the docket and is summarized here (Docket ID Number EPA–HQ–OEM–2015–0725). 1. Why EPA Is Considering This Action In response to catastrophic chemical facility incidents in the United States, President Obama issued Executive Order 13650, ‘‘Improving Chemical Facility Safety and Security,’’ on August 1, 2013. The Executive Order establishes the Chemical Facility Safety and Security Working Group (Working Group), co-chaired by the Secretary of Homeland Security, the Administrator of EPA, and the Secretary of Labor or their designated representatives at the Assistant Secretary level or higher, and comprised of senior representatives of other Federal departments, agencies, and offices. The Executive Order requires the Working Group to carry out a number of tasks whose overall goal is to prevent chemical accidents, such as the explosion that occurred at the West Fertilizer facility in West, Texas, on April 17, 2013, which killed 15 people, most of whom were first responders, caused multiple injuries, and resulted in extensive building damage to the town. Section 6(a)(i) of Executive Order 13650 requires the Working Group to develop options for improved chemical facility safety and security that identify ‘‘improvements to existing risk management practices through agency programs, private sector initiatives, VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Government guidance, outreach, standards, and regulations.’’ Section 6(c) of Executive Order 13650 requires the Administrator of EPA to review the Risk Management Program. As part of this effort to solicit comments and information from the public regarding potential changes to EPA’s RMP regulations (40 CFR part 68), on July 31, 2014, EPA published an RFI (79 FR 44604). EPA believes that the RMP regulations have been effective in preventing and mitigating chemical accidents in the United States; however, EPA believes that revisions could further protect human health and the environment from chemical hazards through advancement of PSM based on lessons learned. These revisions are a result of a review of the existing Risk Management Program and information gathered from the RFI and Executive Order listening sessions, and are proposed under the statutory authority provided by CAA section 112(r) as amended (42 U.S.C. 7412(r)). 2. Description of Alternatives to the Proposed Rule The RIA analyzed the proposed new requirements and revisions to existing requirements as well as several alternatives for each. Third-Party Audits—(Proposed Revisions Apply to Existing §§ 68.58 and 68.79 and New §§ 68.59 and 68.80) The existing rule requires Program 2 and Program 3 processes to conduct a compliance audit at least once every 3 years. The proposed rule would require facilities to contract with an independent third-party to conduct the next scheduled compliance audit following an RMP reportable accident or after an implementing agency determines that certain circumstances exist that suggest a heightened risk for an accident. The third-party would have to be someone with whom the facility does not have an existing or recent relationship and who meets specific PO 00000 Frm 00055 Fmt 4701 Sfmt 4702 qualification criteria. The low cost alternative would apply only for Program 2 and Program 3 processes after an RMP reportable accident or at the request of the implementing agency. The medium cost alternative would apply every three years for all compliance audits conducted for all Program 3 processes. The high cost alternative would apply every three years for all compliance audits conducted for Program 2 and Program 3 processes. Root Cause Analysis—(Proposed Revisions Apply to §§ 68.60 and 68.81) The proposed rule would require facilities to conduct a root cause analysis as part of an incident investigation following an RMP reportable accident or an incident that could reasonably have resulted in an RMP reportable accident (i.e., ‘‘near miss’’). A root cause analysis is a formal process to identify underlying reasons for failures that lead to accidental releases. These analyses usually require someone trained in the technique. The low cost alternative would apply the provision only to RMP reportable accidents or near misses in Program 3 processes. The medium/high cost alternative would apply to RMP reportable accidents or near misses involving Program 2 and Program 3 processes. Safer Technology and Alternatives Analysis (STAA)—(Proposed Revisions Apply to § 68.67) Under the proposed rule, facilities in NAICS codes 322 (paper manufacturing), 324 (petroleum and coal products manufacturing), and 325 (chemical manufacturing) with Program 3 processes would be required to conduct a STAA for each process as part of their PHA, which occurs every 5 years. The STAA includes two parts: The initial analysis to identify alternatives, and a feasibility study to determine the costs and assess the reasonableness of implementing E:\FR\FM\14MRP4.SGM 14MRP4 13692 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules technology alternatives. The proposed rule is the low cost alternative, which would apply to all facilities with Program 3 processes in NAICS codes 322, 324, and 325. The medium cost alternative would apply the requirement to all Program 3 processes. The high cost alternative would apply the requirement to all Program 3 processes and require facilities to implement feasible IST/ISD. Coordination Activities—(Proposed Revisions Apply to §§ 68.90, New 68.93, and 68.95) mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Under the proposed rule, all facilities with Program 2 or Program 3 processes would be required to coordinate with local response agencies annually to determine response needs and ensure that response resources and capabilities are in place to respond to an accidental release of a regulated substance. The owner or operator would also be required to document coordination activities. The proposed rule also includes a provision enabling the LEPC or local emergency response official to request, in writing, that the RMP-facility owner or operator comply with the emergency response program requirements of § 68.95. Section 68.95 requires the owner or operator to develop an emergency response program that includes an emergency response plan, procedures for use, inspection and maintenance of response equipment, training for responding employees, and procedures to review and update the program. Alternatives to this provision are similar to the proposed requirements. One alternative that imposes the same costs as the proposed option would eliminate the option for local officials to request that a facility owner or operator comply with the requirements of § 68.95. A second alternative is a high cost alternative and would require all facilities with Program 2 or Program 3 processes to comply with § 68.95, regardless of local response capability. This would be analogous to the requirements under the Oil Pollution Prevention regulation (40 CFR part 112) where all facilities subject to the FRP provisions at § 112.20 are required to prepare and implement an emergency response plan for oil discharges into navigable waters or adjoining shorelines. Exercises—(Proposed Revisions Apply to New § 68.96) Notification Exercises. All facilities with Program 2 or Program 3 processes would be required to conduct a notification exercise annually to ensure that the contact list to be used in an emergency is complete, accurate, and up-to-date. Tabletop and Field Exercises. The proposed rule would require responding facilities to conduct annual exercises of their emergency response plans and invite local emergency response officials to participate. Under the low cost alternative, facilities would conduct tabletop exercises annually. Under the proposed rule, which is the medium cost alternative, facilities would conduct a full field exercise at least once every five years and tabletop exercises annually in the interim years. Facilities with an RMP reportable accident would also have to conduct a full field exercise within a year of an RMP reportable accident, but this may not impose any additional burden under the medium alternative as it would count as the required field exercise for the next 5-year period. Under the high cost alternative, facilities would conduct full field exercises annually. Information Availability—(Proposed Revisions Apply to New § 68.205 and Existing § 68.210) The proposed rule would require all facilities to disclose certain chemical hazard information to the public. The facility or its parent company, if applicable, would have to make the information available in an easily accessible manner, which might be presenting information on a company Web site, posting the information at public libraries, publishing it in local papers, or other means appropriate for particular communities and facilities. The information to be disclosed includes names of regulated substances at the facility; SDS; accident history information; emergency response program information; and LEPC or local response agency contact information. In addition, facility owners or operators would be required to provide information upon request to the LEPC or other local response agencies on all of the following that apply to the facility: Names and quantities of regulated substances; five-year RMP reportable accident history; summaries of compliance audit reports; summaries of incident investigation reports; summaries of implementation of IST; and information on emergency response exercises, including schedules for upcoming exercises. Facilities owners or operators would be required to update this information annually. Although EPA did not analyze alternatives for this provision, the different applicability for the STAA provision alternatives increases the cost of the medium/high alternative for disclosure to the LEPC because more facilities would have to report on that analysis. Public Meeting—(Proposed Revisions Apply to § 68.210) The proposed rule would require facilities to hold a public meeting for the local community within 30 days of an RMP reportable accident. The medium cost alternative would require Program 2 and Program 3 facilities to hold a public meeting at least once every 5 years and within 30 days of an RMP reportable accident. The high cost alternative would require all facilities (i.e., including Program 1 facilities) to hold a public meeting at least once every 5 years and within 30 days of an RMP reportable accident. 3. Summary of Costs Approximately 12,500 facilities have filed current RMPs with EPA and are potentially affected by the proposed rule changes. These facilities range from petroleum refineries and large chemical manufacturers to water and wastewater treatment systems; chemical and petroleum wholesalers and terminals; food manufacturers, packing plants, and other cold storage facilities with ammonia refrigeration systems; agricultural chemical distributors; midstream gas plants; and a limited number of other sources that use RMPregulated substances. Table 16 presents the number of facilities according to the latest RMP reporting as of February 2015 by industrial sector and chemical use. TABLE 16—NUMBER OF AFFECTED FACILITIES BY SECTOR Sector NAICS Codes Total facilities Administration of environmental quality programs (i.e., governments). Agricultural chemical distributors/wholesalers .... 924 1,923 111, 112, 115, 42491 3,667 Chemical manufacturing ...................................... 325 1,466 VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00056 Fmt 4701 Sfmt 4702 Chemical uses Use chlorine and other chemicals for treatment. Store ammonia for sale; some in NAICS 111 and 115 use ammonia as a refrigerant. Manufacture, process, store. E:\FR\FM\14MRP4.SGM 14MRP4 13693 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules TABLE 16—NUMBER OF AFFECTED FACILITIES BY SECTOR—Continued Sector NAICS Codes Total facilities Chemical wholesalers ......................................... Food and beverage manufacturing ..................... Oil and gas extraction ......................................... 4246 311, 312 211 333 1,476 741 Other .................................................................... 44, 45, 48, 54, 56, 61, 72 248 Other manufacturing ............................................ 313, 326, 327, 33 384 Other wholesale .................................................. Paper manufacturing ........................................... 423, 424 322 302 70 Petroleum and coal products manufacturing ...... 324 156 Petroleum wholesalers ........................................ 4247 276 Utilities ................................................................. Warehousing and storage ................................... Water/wastewater Treatment Systems ............... 221 (except 22131, 22132) 493 22131, 22132 343 1,056 102 Total ............................................................. ............................................ Chemical uses 12,542 Table 17 presents a summary of the annualized costs estimated in the regulatory impact analysis. In total, EPA estimates annualized costs of $158.3 Store for sale. Use (mostly ammonia as a refrigerant). Intermediate processing (mostly regulated flammable substances and flammable mixtures). Use chemicals for wastewater treatment, refrigeration, store chemicals for sale. Use various chemicals in manufacturing process, waste treatment. Use (mostly ammonia as a refrigerant). Use various chemicals in pulp and paper manufacturing. Manufacture, process, store (mostly regulated flammable substances and flammable mixtures). Store for sale (mostly regulated flammable substances and flammable mixtures). Use chlorine (mostly for water treatment). Use mostly ammonia as a refrigerant. Use chlorine and other chemicals. million at a 3% discount rate and $161.0 million at a 7% discount rate. TABLE 17—SUMMARY OF ANNUALIZED COSTS [Millions, 2014 dollars] Provision 3 (percent) 7 (percent) Third-party Audits .................................................................................................................................................... Incident Investigation/Root Cause ........................................................................................................................... STAA ........................................................................................................................................................................ Coordination ............................................................................................................................................................. New Responders * ................................................................................................................................................... Notification Exercises .............................................................................................................................................. Facility Exercises ..................................................................................................................................................... Information Sharing (LEPC) .................................................................................................................................... Information Sharing (Public) .................................................................................................................................... Public Meeting ......................................................................................................................................................... Rule Familiarization ................................................................................................................................................. $5.0 0.8 34.8 6.3 33.0 1.4 60.7 11.7 4.0 0.4 0.3 $5.0 0.8 34.8 6.3 35.6 1.4 60.7 11.7 4.0 0.4 0.3 Total Cost + ....................................................................................................................................................... 158.3 161.0 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 * Reflects costs for some facilities to convert from ‘‘non-responding’’ to ‘‘responding’’ as a result of improved coordination with local emergency response officials. + Totals may not sum due to rounding. The largest average annual cost of the proposed rule is the exercise cost for current responders ($60.7 million), followed by new responders ($35.6 million), STAA ($34.8 million), and information sharing (LEPC) ($11.7 million). The remaining provisions impose average annual costs under $10 million, including coordination ($6.3 million), third-party audits ($5.0 million), information sharing (public) ($4.0 million), notification exercises ($1.4 million), incident investigation/ root cause analysis ($0.8 million), public meetings ($0.4 million), and rule familiarization ($0.3 million). The proposed rule includes three prevention program provisions—third VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 party audits, root cause analysis, and STAA—involving information collection and analysis activities that can lead to a wide range of outcomes, and therefore costs, if and when the owner acts upon the findings and/or recommendations generated by the audit, investigation, or analysis. Although resolving audit and investigation findings is required under the existing rule provisions, and the proposed rule does not require implementation of feasible IST alternatives, EPA believes it is possible that there may be costs associated with resolving findings from the proposed third-party audit and root cause analysis provisions that go beyond the costs of PO 00000 Frm 00057 Fmt 4701 Sfmt 4702 the existing provisions, and that some owners or operators may have additional costs due to voluntary implementation of IST. Due to the wide range of outcomes from these proposed provisions and the significant uncertainties associated with their costs, EPA seeks further information on their potential costs, and whether these costs should accrue to this proposal. What types of costs result from independent audits (other than the cost of the audit) that are different from self-audit costs? What types of costs result from root cause investigations as compared to non-root-cause investigations? For the STAA provisions, what information exists to project what changes facilities E:\FR\FM\14MRP4.SGM 14MRP4 13694 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules are likely to voluntarily undertake? EPA particularly requests cost data or studies for implementation of IST changes from any commenters who may prefer the high option for this provision, which would require implementation of feasible IST alternatives. Summary of Potential Benefits EPA anticipates that promulgation and implementation of this rule would result in a reduction of the frequency and magnitude of damages from releases. Accidents and releases from RMP facilities occur every year, resulting in fires and explosions, property damage, acute and chronic exposures of workers and nearby residents to hazardous materials, and resultant damages to health. Although we are unable to quantify what specific damage reductions may occur as a result of these proposed revisions, we are able to present data on the total damages that currently occur at RMP facilities each year. The data presented are based on a 10-year baseline period, summarizing RMP accident impacts and, when possible, monetizing them. EPA expects that some portion of future damages would be prevented through implementation of a final rule. Table 18 presents a summary of the quantified damages identified in the analysis. TABLE 18—SUMMARY OF QUANTIFIED DAMAGES Unit value 10-Year total Average/year Average/ accident On-site Fatalities ................................................................................................... Injuries ..................................................................................................... $8,583,113 50,000 $497,820,554 105,150,000 $49,782,055 10,515,000 $328,161 69,314 Property Damage ..................................................................................... ........................ 2,054,895,236 205,489,524 1,354,578 On-site Total ..................................................................................... ........................ 2,657,865,790 265,786,579 1,752,053 Offsite Fatalities ................................................................................................... Hospitalizations ........................................................................................ Medical Treatment ................................................................................... Evacuations ............................................................................................. Sheltering in Place ................................................................................... $8,583,113 36,000 1,000 181 91 $8,583,113 6,804,000 14,807,000 6,992,327 40,920,849 $858,311 680,400 1,480,700 699,233 4,092,085 $5,658 4,485 9,761 4,609 26,975 Property Damage ..................................................................................... ........................ 11,352,105 1,135,211 7,483 Offsite Total ...................................................................................... Total ........................................................................................... ........................ ........................ 89,459,394 2,747,325,184 8,945,939 274,732,518 58,971 1,811,024 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 EPA monetized both on-site and offsite damages. EPA estimated total average annual on-site damages of $265.8 million. The largest monetized average annual on-site damage was avoided on-site property damage, which resulted in an average annual damage of approximately $205.5 million. The next largest impact was avoided on-site fatalities ($49.8 million) and injuries ($10.5 million). EPA estimated total average annual offsite damages of $8.9 million. The largest monetized average annual offsite damage was from sheltering in place ($4.1 million), followed by medical treatment ($1.5 million), property damage ($1.1 million), fatalities ($0.9 million), evacuations ($0.7 million), and hospitalizations ($0.7 million). VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 In total, EPA estimated monetized potential damages of $275 million per year. However, the monetized impacts omit many important categories of accident impacts including lost productivity, the costs of emergency response, transaction costs, property value impacts in the surrounding community (that overlap with other benefit categories), and environmental impacts. Also not reflected in the 10year baseline costs are the impacts of non-RMP accidents at RMP facilities and any potential impacts of rare high consequence catastrophes. A final omission is related to the information provision. Reducing the probability of chemical accidents and the severity of their impacts, and improving information disclosure by chemical PO 00000 Frm 00058 Fmt 4701 Sfmt 4702 facilities, as the proposed provisions intend, would provide benefits to potentially affected members of society. Table 19 summarizes four broad social benefit categories related to accident prevention and mitigation including prevention of RMP accidents, mitigation of RMP accidents, prevention and mitigation of non-RMP accidents at RMP facilities, and prevention of major catastrophes. The table explains each and identifies ten associated specific benefit categories, ranging from avoided fatalities to avoided emergency response costs. Table 19 also highlights and explains the information disclosure benefit category and identifies two specific benefits associated with it: Improved efficiency of property markets and allocation of emergency resources. E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules 13695 TABLE 19—SUMMARY OF SOCIAL BENEFITS OF PROPOSED RULE PROVISIONS Broad benefit category Explanation Specific benefit categories Accident Prevention ........................................... Accident Mitigation ............................................. Non-RMP accident prevention and mitigation .... ........................................................................ Avoided Catastrophes ........................................ ........................................................................ Prevention of future RMP facility accidents ..... Mitigation of future RMP facility accidents ...... Prevention and mitigation of future non-RMP accidents at RMP facilities. .......................... Prevention of rare but extremely high con- ..... sequence events. ......................................... Information Disclosure ........................................ Provision of information to the public and LEPCs. • • • • • • • • • • • • Reduced Fatalities. Reduced Injuries. Reduced Property Damage. Fewer People Sheltered in Place. Fewer Evacuations. Avoided Lost Productivity. Avoided Emergency Response Costs. Avoided Transaction Costs. Avoided Property Value Impacts.* Avoided Environmental Impacts. Improved efficiency of property markets. Improved resource allocation. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 * These impacts partially overlap with several other categories such as reduced health and environmental impacts. B. Paperwork Reduction Act (PRA) The information collection activities in this proposed rule have been submitted for approval to the OMB under the PRA. The Information Collection Request (ICR) document that the EPA prepared has been assigned EPA ICR number 2537.01. You can find a copy of the ICR in the docket for this rule, and it is briefly summarized here. This ICR would amend a previously approved ICR (1656.15), OMB Control No. 2050–0144. That ICR covers the risk management program rule, originally promulgated on June 20, 1996; the current rule, including previous amendments, is codified as 40 CFR part 68. This ICR addresses the following proposed information requirements that are part of a proposed revision to the rule: (1) Make certain information related to the risk management program available to the local community. (2) Provide information, upon request, to the LEPC and local emergency response officials with summaries of certain activities under the risk management program. (3) Hold a public meeting within 30days of an accident subject to reporting under § 68.42. (4) Hire a third-party to conduct the compliance audit after a reportable release. (5) Conduct and document a root cause analysis after a reportable release. (6) Conduct and document an incident investigation, including root cause analysis, after a near miss. (7) Conduct and document a safer technology and alternatives analysis. (8) Meet and coordinate with local responders to ensure adequate response capability exists. (9) Conduct a notification drill to verify information. (10) Conduct and document emergency response exercises. (11) Come into compliance with requirements for developing an VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 emergency response program, including developing an emergency response plan, conducting emergency response exercises, documenting training, and providing information to the LEPC. EPA believes that the RMP regulations have been effective in preventing and mitigating chemical accidents in the United States. However, EPA is proposing revisions to further protect human health and the environment from chemical hazards through advancement of PSM based on lessons learned—resulting in better coordination between facilities, LEPC’s, and the public. State and local authorities will use the information in RMPs to modify and enhance their community response plans. The agencies implementing the RMP rule will use RMPs to evaluate compliance with part 68 and to identify sources for inspection because they may pose significant risks to the community. Citizens may use the information to assess and address chemical hazards in their communities and to respond appropriately in the event of a release of a regulated substance. These revisions are a result of a review of the existing Risk Management Program and are proposed under the statutory authority provided by section 112(r) of the CAA as amended (42 U.S.C. 7412(r)). Some of the elements mandated in the regulation for the RMP may require the submittal of data viewed as proprietary, trade secret, or confidential. As described above, EPA has adopted procedures for sources to claim certain information as confidential business information. EPA encourages facilities that have CBI claims to submit substantiation with the RMP. Respondents/affected entities: Manufacturers, utilities, warehouses, wholesalers, food processors, ammonia retailers, and gas processors. Respondent’s obligation to respond: Mandatory (CAA sections 112(r)(7)(B)(i) PO 00000 Frm 00059 Fmt 4701 Sfmt 4702 and (ii), CAA section 112(r)(7)(B)(iii), 114(c), CAA 114(a)(1)). Estimated number of respondents: 12,542. Frequency of response: On occasion. Total estimated burden: 623,970 hours (per year). Burden is defined at 5 CFR 1320.3(b). Total estimated cost: $55,278,216 (per year), includes $4,303,435 annualized capital or operation & maintenance costs. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for the EPA’s regulations in 40 CFR are listed in 40 CFR part 9. Submit your comments on the Agency’s need for this information, the accuracy of the provided burden estimates and any suggested methods for minimizing respondent burden to the EPA using the docket identified at the beginning of this rule. You may also send your ICR-related comments to OMB’s Office of Information and Regulatory Affairs via email to oria_ submissions@omb.eop.gov, Attention: Desk Officer for the EPA. Since OMB is required to make a decision concerning the ICR between 30 and 60 days after receipt, OMB must receive comments no later than April 13, 2016. The EPA will respond to any ICR-related comments in the final rule. C. Regulatory Flexibility Act (RFA) Pursuant to section 603 of the RFA, the EPA prepared an initial regulatory flexibility analysis (IRFA) that examines the impact of the proposed rule on small entities along with regulatory alternatives that could minimize that impact. The complete IRFA is available for review in the docket and is summarized here. E:\FR\FM\14MRP4.SGM 14MRP4 13696 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules 1. Why EPA Is Considering This Action The purpose of this action is to improve safety at facilities that use and distribute hazardous chemicals. In response to catastrophic chemical facility incidents in the United States, including the explosion that occurred at the West Fertilizer facility in West, Texas, on April 17, 2013 that killed 15 people, President Obama issued Executive Order 13650, ‘‘Improving Chemical Facility Safety and Security,’’ on August 1, 2013. Section 6(a)(i) of Executive Order 13650 requires that various Federal agencies develop options for improved chemical facility safety and security, including modernizing regulations. As a result, EPA is proposing revisions to the Risk Management Program (40 CFR part 68). For more information on Executive Order 13650, see section II. Background of this document. 2. Objectives of, and Legal Basis for, the Proposed Rule EPA believes that the RMP regulations have been effective in preventing and mitigating chemical accidents in the United States; however, EPA believes that revisions could further protect human health and the environment from chemical hazards through the advancement of process safety based on lessons learned. These revisions are a result of a review of the existing Risk Management Program and information gathered from the RFI and Executive Order listening sessions, and are proposed under the statutory authority provided by CAA section 112(r) as amended (42 U.S.C. 7412(r)). 3. Estimate of the Number of Small Entities to Which the Proposed Rule Will Apply The RMP rule affects a broad range of sectors (296 separate NAICS codes are listed in RMP filings; 240 of these are associated with small entities). The RMP data include facility and parent company name as well as the number of full time equivalents (FTE) for the facility and the NAICS codes. To develop an estimate of the number of small entities, the analysis required a series of reviews of the data to identify the large entities and the small entities that were part of small firms owning multiple facilities. The data were reviewed to identify parent companies that were clear from the facility name, but not included in the parent company field. That made it possible to determine the total FTE for facilities belonging to the same parent company and compare that number to the Small Business Administration (SBA) standard (when in FTEs). If the total FTE exceeded the standard, all the facilities were classified as large. Where the facilities listed different NAICS codes, the analysis applied either the code used for a majority of the facilities or, if no single code dominated, the code with the highest threshold. For example, if a firm had facilities in sectors where the standards were 500 and 1,000 FTE, the 1,000 FTE standards was used to determine if the firm was large. For remaining facilities, if there were multiple facilities belonging to a single firm and the total FTE approached the threshold or if the name included ‘‘USA’’ or ‘‘US holdings,’’ which implied an international company, Internet searches were conducted to identify whether the facilities belonged to a firm with other facilities or employees. The RFA defines small governments as governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand.207 Most governmental RMP facilities are water and wastewater treatment systems and listed a city or county as the owning entity. A check of budgets that were available for some of the smallest cities indicated that (1) the systems are sub-agencies of the city/ county and (2) obtain some revenues from the general fund although most of their revenues are derived from user fees. To determine which facilities belong to small governments, the populations for each of cities or counties were determined by checking the 2014 estimates from the Census. For special water and irrigation districts, their Internet sites were checked for information on the population served. Table 20 below presents the number of small and large facilities by program level. TABLE 20—NUMBER OF FACILITIES OWNED BY SMALL AND LARGE ENTITIES BY PROGRAM LEVEL RMP program Small private Large private Small government Large government Total Program 3 ............................................................................ Program 2 ............................................................................ Program 1 ............................................................................ 3,545 174 213 6,097 176 414 451 521 6 522 414 9 10,615 1,285 642 Total .............................................................................. 3,932 6,687 978 945 12,542 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 4. Projected Reporting, Recordkeeping and Other Compliance Requirements of the Proposed Rule Under the proposed rule, all facilities would be required to make certain information available to the public and, upon request, to the LEPC or local emergency response officials. Program 1 facilities would not likely have to spend more than an hour a year on this disclosure because the information disclosed to the public is information every facility should have readily available and because the additional information that would be provided, 207 5 upon request, to the LEPC relates to provisions that do not apply to Program 1 facilities. Therefore, the IRFA has not considered Program 1 small facilities in the analysis of impacts. Program 2 and Program 3 facilities would incur the same costs for the other proposed provisions except the STAA. Each facility would be required to update information to be disclosed annually, coordinate with the local responders, and conduct a notification drill annually. If the facility is a responder, it would have to hold an annual exercise, including at least one full field exercise every 5 years. Program 3 facilities in NAICS codes 322, 324, and 325 would have to conduct an STAA as part their PHA every 5 years. If a facility has an accident, it would incur costs to hold a public meeting within 30 days of an RMP reportable accident. It would also incur additional costs for obtaining a third-party to conduct their next scheduled compliance audit and to conduct a root cause analysis as part of the incident investigation. Facilities would also be required to conduct root cause investigations of near misses. Finally, if U.S.C. 602. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00060 Fmt 4701 Sfmt 4702 E:\FR\FM\14MRP4.SGM 14MRP4 13697 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules a facility has to become a responder, it would incur costs to develop an emergency response plan, train personnel to respond, purchase and maintain equipment, and conduct exercises. Table 21 presents three sets of costs: low year, annualized, and high year (excludes costs incurred after an accident or a near miss). Low-year costs represent costs for years in which routine annual costs apply. These include costs for coordinating with local responders, conducting notification exercises (applies to all Program 2 and Program 3 facilities), conducting tabletop exercises (applies only to responders), and updating disclosure information to LEPC and the public. High-year costs represent a year in which every applicable provision would occur, except costs incurred after an accident or ‘‘near miss.’’ This includes the routine annual costs and periodic costs that apply either every 3 or 5 years (i.e., field exercise in lieu of a tabletop exercise, public meeting, all public disclosure requirements, and STAA). Because the STAA provisions would only apply to a subset of facilities (i.e., those in NAICS 322, 324, and 325), these facilities are broken out separately in the last two rows of the table. Complex facilities are those categorized as NAICS 324 or 325 and simple facilities are all others. Annualized costs average the low costs incurred for four years with the high costs incurred every fifth year. TABLE 21—LOW, ANNUALIZED, AND HIGH YEAR COMBINED COSTS FOR SMALL ENTITIES BY GROUP Low year cost Simple Annualized Complex Simple High year cost Complex Simple Complex Program 2 and Program 3 facilities (excludes Program 3 facilities subject to STAA) Non Responder ........................................ Responder 0–19 FTE .............................. Responder 20+ FTE ................................ $808 6,743 7,870 $1,223 9,289 10,761 $808 8,158 11,885 $1,223 10,898 15,261 $808 9,572 15,900 $1,223 12,507 19,761 17,295 26,970 n/a n/a 33,366 44,650 Program 3 facilities subject to STAA mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Non Responder ........................................ Responder <20 FTE ................................ n/a n/a 5. Related Federal Rules The Risk Management Program is one of several programs regarding chemical facility safety and security. Executive Order 13650 directed Federal agencies to identify ways to modernize policies, regulations, and standards to enhance safety and security in chemical facilities. The Executive Order established a Chemical Facility Safety and Security Working Group to oversee this effort, which is tri-chaired by the EPA, DOL, and DHS. Members of the Working Group (at the management and staff level) regularly share information in order to coordinate activities on any work involving revisions in regulations, such as revisions to OSHA’s PSM standard and DHS’ CFATS regulations. These efforts also serve to avoid unnecessary duplication, overlap and conflicts with the Risk Management Program requirements. OSHA’s 29 CFR 1910.119 PSM standard. Mandated by the CAAA of 1990 and issued in 1992, the PSM standard sets requirements for the management of highly hazardous substances to prevent and mitigate hazards associated with catastrophic releases of flammable, explosive, reactive, and toxic chemicals that may endanger workers. The PSM standard covers the manufacturing of explosives and processes involving threshold quantities of flammable liquids and flammable gasses, as well as 137 other highly hazardous chemicals. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 1,223 9,289 n/a n/a The OSHA PSM standard, similar to the EPA RMP rule, aims to prevent or minimize the consequences of accidental chemical releases through implementation of management program elements that integrate technologies, procedures, and management practices. The EPA RMP regulation closely tracks the accident prevention measures contained in the OSHA PSM standard because Section 112(r)(7)(D) of the CAA requires EPA to coordinate the RMP regulation with ‘‘any requirements established for comparable purposes’’ by OSHA. Consequently, the OSHA PSM standard and EPA RMP regulation are closely aligned in content, policy interpretations, Agency guidance, and enforcement. Since the inception of these regulations, EPA and OSHA have coordinated closely on their implementation in order to minimize regulatory burden and avoid conflicting requirements for regulated facilities. For example, owners and operators of RMP covered processes also subject to the OSHA PSM standard will generally have met their RMP accident prevention program obligations if they have properly implemented their PSM program. Occupational Safety and Health Act General Duty Clause. Section 5(a)(1) of the Occupational Safety and Health (OSH) Act requires employers to provide its employees with a workplace PO 00000 Frm 00061 Fmt 4701 Sfmt 4702 free from recognized hazards that are causing, or are likely to, cause death or serious physical harm. EPA’s EPCRA regulations (40 CFR 350–372). Following the 1984 release of approximately 40 tons of MIC into the air in Bhopal, India, that killed over 3,700 people and the 1985 leak of 500 gallons of aldicarb oxime from a Union Carbide facility in Institute, West Virginia, Congress passed EPCRA in October 1986. The purpose of EPCRA is twofold: (1) To encourage and support emergency planning efforts at the state and local levels, and (2) to provide the public and local governments with information concerning potential chemical hazards present in their communities. EPCRA created state and local infrastructure designed to (1) prepare for and mitigate the effects of a chemical incident and (2) ensure that information on chemical risks in the community is provided to the first responders and the public. These state and local entities are the SERCs, TERCs, LEPCs, and TEPCs. Representatives on the LEPCs include local officials and planners, facility owners and operators, first responders, health and hospital personnel, environmental groups, and citizen/ members of the public. A central requirement of LEPCs and TEPCs is to develop a local emergency response plan. These plans are required to: E:\FR\FM\14MRP4.SGM 14MRP4 13698 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules • Identify facilities and transportation routes of extremely hazardous substances and assess the risk based on chemical information from facilities; • Describe on-site and offsite emergency response procedures; • Designate a community coordinator and facility emergency coordinator(s) to implement the plan; • Describe emergency notification procedures; • Describe how to determine the probable affected area and population by releases (including identification of critical community receptors and assets); • Describe local emergency equipment and facilities and the persons responsible for them; • Describe evacuation plans; • Identify the training program for emergency responders (including schedules); and • Identify the methods and schedules for exercising emergency response plans. Under the community right-to-know section of EPCRA, certain facilities that manufacture, process, or store any hazardous chemicals are required to submit an SDS or list of hazardous chemicals, grouped into hazard categories, to SERCs, TERCs, LEPCs, TEPCs, and local fire departments. Under the Hazard Communication Standard, OSHA requires SDSs that describe the properties, hazards, and health effects of these chemicals as well as emergency response procedures and appropriate personal protection equipment. Facilities must also annually report their inventories of all on-site chemicals for which SDSs are required that are stored above reporting threshold quantities to SERCs, LEPCs, and local fire departments. LEPCs must use information about chemical inventories at facilities and SDSs in developing their local emergency plans; this information must also be available to the public. Standards for Owners and Operators of Hazardous Waste Treatment, Storage, and Disposal Facilities (40 CFR 264 and 265). These regulations establish minimum national standards which define the acceptable management of hazardous waste including requirements for arrangements that owners and operators of hazardous waste facilities make with local authorities. In sections 264.37 and 265.37, hazardous waste generators are required to attempt to make arrangements for emergency response activities with local authorities, and document the refusal of local or State authorities to complete such arrangements in the operating record. CAA section 112(r)(1) general duty clause. The statute requires facility owners and operators to identify hazards; design, maintain and safely operate a facility; and prevent and minimize releases of any regulated substances under § 112(r)(3) (40 CFR part 130) and ‘‘any other extremely hazardous substance.’’ 208 DHS’s 6 CFR part 27 CFATS rule. The CFATS program, established in 2007, regulates chemical facilities that present a high level of security risk to ensure they have security measures in place to reduce the risks associated with their possession of chemicals of interest (COI). There are 325 COI and 137 of the 140 RMP regulated substances are included on the list of COI. The CFATS program requires the development, submission, and implementation of Site Security Plans (SSPs) (or Alternative Security Programs in lieu of SSPs), which document the security measures high-risk chemical facilities use to satisfy the applicable risk-based performance standards (RBPS) under CFATS. These plans are not ‘‘one-size-fits-all,’’ but in-depth, highly customized, and dependent on each facility’s unique circumstances. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) requirements for explosives. ATF is responsible for enforcing Federal explosives laws that govern commerce in explosives in the United States, including licensing, storage, recordkeeping, and conduct of business. ATF conducts inspections of Federal explosives licensees who manufacture, import, sell, or store explosives in the United States to ensure that explosives are managed in accordance with Federal law. 6. Description of Alternatives to the Proposed Rule The RIA analyzed the proposed new requirements and revisions to existing requirements as well as several alternatives for each. In most cases, EPA chose regulatory alternatives that had reduced impacts on small businesses relative to other alternatives that EPA considered. In this section, we discuss each regulatory provision, explain whether and how the proposed provision minimizes impacts on small businesses, and discuss additional recommendations resulting from the SBAR Panel that could further mitigate small business impacts. EPA has requested comment on these recommendations. Third-Party Audits—(Proposed Revisions Apply to Existing §§ 68.58 and 68.79 and New §§ 68.59 and 68.80) EPA evaluated three options for this provision and selected the lowest cost alternative, which would apply the requirement only to sources with Program 2 and/or Program 3 processes that have had an RMP reportable accident. The other alternatives would have required that all compliance audits be conducted by third parties for sources with either Program 3 processes or Program 2 and Program 3 processes. Limiting the applicability of this proposed provision to sources that have had RMP reportable accidents minimizes its impact to the overall universe of RMP facilities, and particularly to small businesses. As indicated in Exhibit 5–25 in the RIA, the estimated cost of the high option ($96.2 million annualized) is nearly 20 times higher than the estimated costs of the proposed option ($5.0 million annualized). Furthermore, a majority of the costs for the proposed option would likely be borne by large businesses, as historically, most RMP accidents have occurred at facilities that do not meet SBA small business criteria. Table 22 shows the percentage of accidents from 2004–2013 that occurred at small and large facilities. TABLE 22—PERCENTAGE OF ACCIDENTS AT SMALL AND LARGE RMP FACILITIES, 2004–2013 Program 1 Program 2 Program 3 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Sector Total Small NAICS 325—Chemical Manufacturing ................................ NAICS 311, 312—Food/Beverage Manufacturers .............. NAICS 322—Paper Manufacturing ...................................... 208 Although the term ‘‘any other extremely hazardous substance’’ is not defined, the legislative history of the 1990 CAA amendments indicates that the term would include any agent ‘‘which may or VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 Large 0 0 0 Small 6 0 0 Large 1 2 0 may not be listed or otherwise identified by any Government agency which may as the result of short-term exposures associated with releases to the air cause death, injury or property damage due to PO 00000 Frm 00062 Fmt 4701 Sfmt 4702 Small 5 0 0 53 58 9 Large 465 210 37 530 270 46 its toxicity, reactivity, flammability, volatility, or corrosivity.’’ See: https://www2.epa.gov/sites/ production/files/2013-10/documents/ gdcregionalguidance.pdf. E:\FR\FM\14MRP4.SGM 14MRP4 13699 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules TABLE 22—PERCENTAGE OF ACCIDENTS AT SMALL AND LARGE RMP FACILITIES, 2004–2013—Continued Program 1 Program 2 Program 3 Sector Total Small Large Small Large Small Large NAICS 331, 332, 333, 334, 336, 339—Other Manufacturing ................................................................................. NAICS 11, 12, 15, 42491—Agricultural Chemical Distributors .................................................................................... NAICS 4246, 4247—Chemical/petroleum wholesale .......... NAICS 4244, 4245—Other wholesale ................................. NAICS 493—Warehouse ..................................................... NAICS 324—Petroleum and Coal Products Manufacturing NAICS 22131, 22132—Water/POTW .................................. NAICS 211—Oil/Gas exploration ......................................... Other .................................................................................... 0 0 4 0 12 27 43 0 0 0 0 2 0 4 3 0 2 0 1 6 0 4 7 0 0 0 0 0 14 1 7 0 0 0 0 0 20 0 4 91 7 7 18 15 17 10 7 65 29 13 53 146 24 34 17 156 38 20 72 169 75 53 45 Total .............................................................................. 9 26 29 29 304 1,120 1,517 While the proposed third-party audit provision should have fairly low impact on small businesses, the SBAR Panel made additional recommendations to further minimize the impacts of this provision on small businesses. The Panel recommended that EPA consider proposing streamlined independence requirements for small businesses (i.e. based on size of the facility). The Panel also recommended that EPA limit the independence criteria to individuals participating in the audit rather than the entire company. The Panel further recommended that EPA seek comments on: • Eliminating the independence requirement, in its entirety, and retaining existing requirement for compliance audits; • Limiting applicability of the third-party audit provision by only requiring third-party audits, for Program 3 facilities, triggered by major accidents that have offsite impacts and how to define or characterize ‘‘major accidents with offsite impacts’’; • Deleting the current PE requirement and considering other independent accreditation for third-party auditors which also carry ethical requirements, such as CSP, CIH, CFPS, CHMM, CPEA, or CPSA; and • The impacts a third-party auditor may have on a facility’s security and the measures that should be included in the rule provision to protect facilities from terrorism or release of CBI from a third-party auditor. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 EPA incorporated preamble language to address these Panel recommendations in section IV.B of this document. Incident Investigation/Root Cause Analysis—(Proposed Revisions Apply to §§ 68.60 and 68.81) In this case, EPA considered two potential regulatory options, and proposed the higher cost option, which would apply the requirement for an incident root cause analysis to all RMP- VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 reportable accidents and near misses involving Program 2 and Program 3 processes. The lower cost option would apply the requirement to accidents and near misses at only Program 3 processes. Although the Agency chose the higher cost option, this provision is estimated to be one of the least costly provisions of the proposed rule. In fact, the costs for both options considered were nearly indistinguishable—as indicated in Exhibit 5–25 in the RIA, both the low and proposed options are estimated to cost approximately $0.8 million annually. Therefore, EPA believes that the additional safety benefit of requiring owners and operators of Program 2 processes to also conduct root cause analyses after incidents and near misses was warranted. The SBAR Panel also made recommendations to further minimize the impacts of this provision on small businesses. The Panel recommended that EPA clarify our intent that incident investigations are not intended to cover minor accidents or minor near misses that could not reasonably have resulted in a catastrophic release. The Panel further recommended that EPA consider proposing to require root cause analysis only for reportable releases, not including near misses. The Panel recommended that EPA clarify in the preamble the comparative advantages of a root cause analysis to the current incident investigation requirements in §§ 68.60 and 68.81 of the rule. Finally, the Panel recommended that EPA seek comments on: • Whether the root cause analysis requirement should be eliminated; • The revised definition of catastrophic release and whether it should be limited to loss of life, serious injury or significant damage or loss of offsite property; and PO 00000 Frm 00063 Fmt 4701 Sfmt 4702 • Examples of near misses. EPA incorporated preamble language to address these Panel recommendations in section IV.A of this document. STAA—(Proposed Revisions Apply to § 68.67) For STAA, EPA examined three potential alternative regulatory options, and chose the least costly option. The proposed option, which would apply the STAA requirement to Program 3 processes in NAICS 322 (paper manufacturing), 324 (petroleum and coal products manufacturing), and 325 (chemical manufacturing), costs $34.8 million annually and is approximately half as costly as the medium option ($71.7 million annually), which would apply the requirement to all Program 3 processes, and likely far less costly than the high option, which would require implementation of feasible safer alternatives for all Program 3 processes. The low-cost STAA option not only minimizes the overall number of sources that are subject to it, but is also biased toward larger sources. This is because the three sectors selected for regulation under this proposed provision all have a lower percentage of small entities than the overall percentage of small entities within the RMP facility universe. As indicated in Table 23, approximately 39% of facilities regulated under the RMP regulation are owned by small entities. In comparison, NAICS 322 (paper manufacturing) has about 20% RMPregulated small businesses within the sector, while NAICS 324 (petroleum and coal products manufacturing) and 325 (chemical manufacturing) each have approximately 10% small businesses. E:\FR\FM\14MRP4.SGM 14MRP4 13700 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules TABLE 23—PERCENTAGE OF SMALL BUSINESSES IN NAICS 322, 324, 325 AND OVERALL Sector Small NAICS 322—Paper Manufacturing .............................................................................................. NAICS 324—Petroleum and Coal Products Manufacturing ........................................................ NAICS 325—Chemical Manufacturing ........................................................................................ All Sectors .................................................................................................................................... The SBAR Panel also made recommendations to further minimize the impacts of this provision on small businesses. The Panel recommended that EPA explain what evidence we have that caused us to reconsider the 1996 assessment that IST analysis was unlikely to yield additional benefits. The Panel further recommended that EPA seek comments on: • Whether to eliminate this requirement; • Limiting this provision to require analyses only to be conducted at the design stage of new processes; and • Exempting batch toll manufacturers from this requirement. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 EPA incorporated preamble language to address these Panel recommendations in section IV.C of this document. Emergency Response Program Coordination With Local Responders— (Proposed Revisions Apply to §§ 68.90, New 68.93, and 68.95) The proposed option (medium option) would require all facilities with Program 2 or Program 3 processes to coordinate with local response agencies annually and document coordination activities. This option would also allow the LEPC or local emergency response officials to require that the RMP-facility owner or operator comply with the emergency response program requirements of § 68.95. EPA considered, but did not propose, the more stringent option of requiring all facilities with Program 2 or Program 3 processes to implement an emergency response program and respond to accidental releases at the facility. The proposed option is estimated to cost $6.3 million annually and is far less costly than the high option, which would likely have exceeded $100 million annually. Therefore, by selecting the medium option, EPA substantially reduced the cost impact for the many small entities that may rely on local response organizations to respond to accidental releases at the source (see Exhibit 3–8 and Appendix B in the RIA for more information on the number, size, and industrial categories of non-responding facilities). While EPA does not believe it is necessary to require that all facilities develop an in-house response VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 capability, the Agency believes that non-responding facilities, even if they are small businesses, must still coordinate with local public responders so that they are prepared to handle emergencies at the facility. EPA expects that these coordination activities will result in some sources, including some small entities, becoming responding facilities, which may involve additional costs for those facilities (see section 5.6 of the RIA). EPA believes this is necessary to meet the objectives of Clean Air Act section 112(r), which requires the Agency to promulgate regulations to (among other things) provide for a prompt emergency response to any accidental releases in order to protect human health and the environment. We also note that the 2013 accident at West Fertilizer, which was one of several accidents that triggered the Executive Order that ultimately led to this rule proposal, occurred at a facility that would likely have been considered a small entity under the established SBA criteria. The Agency believes it is appropriate to require that such facilities conduct adequate emergency coordination, and if necessary, develop adequate emergency response capabilities, even if they are small. The SBAR Panel also made recommendations to further minimize the impacts of this provision on small businesses. The Panel recommended that EPA explain how coordination should occur between local emergency response officials and small facilities and clarify requirements for facilities that make a ‘‘good faith’’ effort to coordinate with local emergency response officials. The Panel also recommended that EPA seek comment on the proposed frequency for annual coordination. EPA incorporated preamble language to address these Panel recommendations in section V.A of this document. Exercises—(Proposed Revisions Apply to New § 68.96) Notification Exercises. The proposed rule would require all facilities with Program 2 or Program 3 processes to annually conduct an emergency notification exercise to ensure that their PO 00000 Frm 00064 Fmt 4701 Sfmt 4702 Total 9 17 54 4,910 46 169 530 12,542 Percentage small 19.6 10.1 10.2 39.1 emergency contact list is complete, accurate, and up-to-date. This proposed provision is expected to be one of the least costly rule provisions at $1.4 million annually (only the incident investigation root cause analysis and public meetings provisions are estimated to cost less). Therefore EPA did not consider any alternatives to reduce the impact of this provision on small businesses, nor did the SBAR Panel make any such recommendations. Tabletop and Field Exercises The proposed option was the medium option, and would require responding facilities to conduct a full field exercise at least once every five years and tabletop exercises annually in the interim years. This option was substantially less costly than the high option ($61 million vs $104 million annually), which would require annual field exercises. As this provision only affects responding facilities, which tend to more often be large facilities (see Exhibit 3–8 in the RIA), EPA has proposed an option that mitigates the impact on small entities. EPA also considered a low option that would only require annual tabletop exercises. This option would have saved approximately $11 million annually. We did not propose the low option because the Agency believes that periodic field exercises are an important component of a comprehensive emergency response program. Nevertheless, this was also a recommendation from the SBAR panel and we have requested comment on the low option provision in the preamble to the proposed rule. The SBAR Panel also made other recommendations to further minimize the impacts of this provision on small businesses. The Panel recommended that EPA clarify that participation by local responders is not required for a facility to comply with exercise requirements and that field exercises and drills required by other state and Federal regulations could meet this requirement if the facility’s emergency response plan is tested as part of those exercises. The Panel also recommended that EPA seek comments on: • Whether the exercise provision should be eliminated; E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules • How to address postponement and rescheduling issues (which SERs have indicated may take up to a year); • Limiting the requirement to only tabletop exercises; and • The frequency of required field and tabletop exercises. EPA incorporated preamble language to address these Panel recommendations in section V.B of this document. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Information Availability—(Proposed Revisions Apply to New § 68.205 and Existing § 68.210) The Panel also recommended that EPA seeks comments on: There are three proposed information disclosure requirements. Under the proposed requirements, all facilities would be required to make certain information available to the public. Upon receiving a request from their LEPC or local emergency response official, regulated facilities would also be required to provide certain information to the LEPC or emergency response officials. Lastly, facilities would be required to hold public meetings within 30 days of any RMP reportable accident. In the preamble to the proposed rule, EPA has requested public comments on whether all regulated facilities should be required to hold a public meeting every five years and after an RMP reportable accident, or whether a requirement for periodic and post-accident public meetings should be limited to only Program 2 and Program 3 facilities. Although EPA has not proposed specific alternatives to minimize the impact of the information disclosure provisions on small businesses, the Agency believes that in general, smaller facilities will bear lower costs to comply with these provisions. By requiring certain information disclosure elements (i.e., incident investigation and public meeting provisions) only following an RMP reportable accident, EPA is minimizing the impact to the overall universe of RMP facilities, and particularly to small businesses. Most RMP reportable accidents have generally occurred at facilities that do not meet SBA small business criteria (see Exhibit 7–11 in the RIA). Also, small facilities will generally have fewer processes, fewer chemicals, fewer accidental releases, etc., on which to provide information to LEPCs and the public. The SBAR Panel also made recommendations to further minimize the impacts of this provision on small businesses. The Panel recommended that EPA: • Consider only requiring facilities to develop chemical hazard information summaries and allowing LEPCs to make VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 reasonable requests for additional information; • Make chemical hazard information available upon request by the LEPC rather than requiring it to be automatically submitted by the facility; • Require that a public meeting be held only after an RMP reportable accident; and • Allow public meetings to be combined with any meeting open to the general public (e.g. city council, municipal board, or LEPC meeting). • Narrowing the approach to require a one page summary of each significant chemical hazard during a fire identifying the product, its properties, its location and firefighting measures for responders—a one-page summary of information that addresses chemical hazard information and emergency response measures; • Limiting the amount of information to be shared with LEPCs; • Whether EPA should specify a format for summary information to make it easier for local officials to find and interpret the information that they need: • Ways to limit the scope of the information elements shared with the public as well as the format in which information should be provided (e.g. a one-page summary of information that addresses chemical hazard information and emergency response measures); • Whether the existing RMP data, including the executive summary, are adequate for the public in the absence of a specific request, and • Whether additional information should only be provided to the public upon request. • Whether it is appropriate to require public meetings; • Whether to eliminate the public meeting requirement and instead require the facility to schedule a meeting with the LEPC and/or emergency responders 60 to 90 days after an accident or incident; • Whether public meetings should be held upon request (e.g., LEPC or its community equivalent) rather than automatically within an established timeframe; and • Extending the timeframe from 30 to 90 days or whether there is a more appropriate timeframe for scheduling a meeting following an RMP reportable accident and who should be included in the invitation (e.g. limit to local emergency response officials and LEPCs). EPA incorporated preamble language to address these Panel recommendations in section VI of this document. EPA also revised the proposed rule to incorporate the following two Panel recommendations as the proposed options: • Make chemical hazard information available upon request by the LEPC rather than requiring it to be automatically submitted by the facility; and • Require that a public meeting be held only after an RMP reportable accident. PO 00000 Frm 00065 Fmt 4701 Sfmt 4702 13701 7. Small Business Advocacy Review As required by section 609(b) of the RFA, the EPA also convened a SBAR Panel to obtain advice and recommendations from SERs that potentially would be subject to the rule’s requirements. The SBAR Panel evaluated the assembled materials and small-entity comments on issues related to elements of an IRFA. The SBAR report contains the recommendations to the EPA Administrator from the three Federal Panel members (EPA, the Small Business Administration Office of Advocacy and the OMB Office of Information and Regulatory Affairs). This proposal was informed by the small entity comments and the Panel report recommendations were used in the development of this proposal, as provided in section 609(b) of the RFA. A copy of the full SBAR Panel Report is available in the rulemaking docket. D. Unfunded Mandates Reform Act (UMRA) This action contains a Federal mandate under UMRA, 2 U.S.C. 1531– 1538, that may result in expenditures of $100 million or more for state, local, and tribal governments, in the aggregate, or the private sector in any one year. Accordingly, the EPA has prepared a written statement required under section 202 of UMRA. The statement is included in the docket for this action and briefly summarized here. Over the 16 years of implementing the RMP program and, most recently through Executive Order 13650 listening sessions, webinars, and consultations, EPA has engaged states and local communities to discuss chemical safety issues. In the nine Executive Order 13650 Improving Chemical Facility Safety and Security listening sessions and webinars, held between November 2013 and January 2014, states and local communities identified lack of chemical facility participation and coordination in local emergency contingency planning as a key barrier to successful local community preparedness. Additionally, EPA has had consultations with states and local communities through participation in the NASTTPO annual meetings to discuss key issues related to chemical facility and local community coordination and what areas of the RMP regulations need to be modernized to facilitate this coordination and improve local emergency preparedness and prevention. Key priority options discussed with NASTTPO states and local communities included: Improving emergency response coordination between RMP facilities and LEPCs/first E:\FR\FM\14MRP4.SGM 14MRP4 13702 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules responder and requiring emergency response exercises of the RMP facility plan to involve LEPCs, first responders and emergency response personnel. This action may significantly or uniquely affect small governments. The EPA consulted with small governments concerning the regulatory requirements that might significantly or uniquely affect them. Through the July 31, 2014, RFI (79 FR 44604), EPA sought feedback from governmental entities while formulating the proposed revisions in this action. Additionally, EPA participated in ongoing consultations with affected SERs (including small governmental entities) through the SBAR panel. EPA convened an SBAR panel in accordance with the requirements of the RFA, as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA). H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution or Use This proposed action is not a ‘‘significant energy action’’ because it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. This proposed action is not anticipated to have notable impacts on emissions, costs or energy supply decisions for the affected electric utility industry. F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments This action has tribal implications. However, it will neither impose substantial direct compliance costs on federally recognized tribal governments, nor preempt tribal law. EPA will be consulting with tribal officials as it develops this regulation to permit them to have meaningful and timely input into its development. Consultation will include conference calls, webinars, and meetings with interested tribal representatives to ensure that their concerns are addressed before the rule is finalized. In the spirit of Executive Order 13175 and consistent with EPA policy to promote communications between EPA and tribal governments, EPA specifically solicits comment on this proposed rule from tribal officials. I. National Technology Transfer and Advancement Act (NTTAA) This action involves technical standards. The EPA proposes to require third-party auditors to be experienced with applicable RAGAGEP, which include Voluntary Consensus Standards as well as other measures, for regulated processes being audited. Numerous different standards apply to processes regulated under the proposed rule and their application will vary depending on the particular process and chemicals involved. EPA is not proposing to list all the various codes, standards and practices that would apply to the wide variety of chemical processes covered by this rule as doing so would be impracticable, given that this rule affects sectors across many industries and listing the applicable RAGAGEP measures would require the EPA to update that list every time there was a change in the industry standards or best practices. The proposed rule would require third-party auditors to be familiar with standards applicable to processes they audit, and to obtain their own copies of applicable standards where needed. Auditors must be knowledgeable of applicable consensus standards because the accident prevention program provisions of the existing rule (subparts C and D) require owners or operators to comply with RAGAGEP. Therefore, auditors must be knowledgeable of those practices in order to perform an effective audit. EPA seeks comment on this proposed RAGAGEP requirement. G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks This action is not subject to Executive Order 13045 because the EPA does not believe the environmental health risks or safety risks addressed by this action J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations The EPA believes the human health or environmental risk addressed by this action will not have potential E. Executive Order 13132: Federalism This action does not have Federalism implications. The EPA believes, however, that these proposed regulatory revisions may be of significant interest to local governments. Consistent with the EPA’s policy to promote communications between the EPA and state and local governments, and to better understand the concerns of local governments, EPA sought feedback through the July 31, 2014, RFI (79 FR 44604). Additionally, consultations with governmental entities occurred through the SBREFA process. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 present a disproportionate risk to children. The EPA believes that the proposed revisions to the Risk Management Program regulations would further protect human health, including the health of children, through advancement of process safety. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00066 Fmt 4701 Sfmt 4702 disproportionately high and adverse human health or environmental effects on minority, low income, or indigenous populations. The results of this evaluation are included in the RIA, located in the docket. List of Subjects 40 CFR part 68 Environmental protection, Administrative practice and procedure, Air pollution control, Chemicals, Hazardous substances, Intergovernmental relations, Reporting and recordkeeping requirements. Dated: February 25, 2016. Gina McCarthy, Administrator. For the reasons set out in the preamble, title 40, chapter I, part 68, of the Code of Federal Regulations is proposed to be amended as follows: PART 68—CHEMICAL ACCIDENT PREVENTION PROVISIONS 1. The authority citation for part 68 continues to read as follows: ■ Authority: 42 U.S.C. 7412(r), 7601(a)(1), 7661–7661f. 2. Amend § 68.3 by: a. Adding in alphabetical order the definition ‘‘Active measures’’; ■ b. Revising the definition ‘‘Catastrophic release’’, and ■ c. Adding in alphabetical order, the definitions, ‘‘CBI’’, ‘‘Feasible’’, ‘‘Inherently safer technology or design’’, ‘‘LEPC’’, ‘‘Passive measures’’, ‘‘Procedural measures’’, ‘‘Root cause’’, and ‘‘Third-party audit’’. The additions and revisions read as follows: ■ ■ § 68.3 Definitions. * * * * * Active measures means risk management measures or engineering controls that rely on mechanical, or other energy input to detect and respond to process deviations. Examples of active measures include alarms, safety instrumented systems, and detection hardware (such as hydrocarbon sensors). * * * * * Catastrophic release means a major uncontrolled emission, fire, or explosion, involving one or more regulated substances that results in deaths, injuries, or significant property damage on-site, or known offsite deaths, injuries, evacuations, sheltering in place, property damage, or environmental damage. CBI means confidential business information. * * * * * E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules Feasible means capable of being successfully accomplished within a reasonable time, accounting for economic, environmental, legal, social, and technological factors. Environmental factors would include consideration of potential transferred risks for new risk reduction measures. * * * * * Inherently safer technology or design means risk management measures that minimize the use of regulated substances, substitute less hazardous substances, moderate the use of regulated substances, or simplify covered processes in order to make accidental releases less likely, or the impacts of such releases less severe. * * * * * LEPC means local emergency planning committee as established under 42 U.S.C. 11001(c). * * * * * Passive measures means risk management measures that use design features that reduce the hazard without human, mechanical, or other energy input. Examples of passive measures include pressure vessel designs, dikes, berms, and blast walls. * * * * * Procedural measures means risk management measures such as policies, operating procedures, training, administrative controls, and emergency response actions to prevent or minimize incidents. * * * * * Root cause means a fundamental, underlying, system-related reason why an incident occurred that identifies a correctable failure(s) in management systems. * * * * * Third-party audit means a compliance audit conducted pursuant to the requirements of §§ 68.59 and/or 68.80, by an entity (individual or firm) meeting the competency, independence and impartiality criteria in those sections. * * * * * ■ 3. Amend § 68.10 by: ■ a. Revising paragraphs (a) introductory text; (a)(2) and (3); and adding paragraph (a)(4); ■ b. Redesignating paragraphs (b) through (f) as paragraphs (f) through (j); ■ c. Adding new paragraphs (b) through (e); and ■ d. Revising the newly designated paragraph (f)(2). The revisions and additions read as follow: § 68.10 Applicability. (a) Except as provided in paragraphs (b) through (e) of this section, an owner VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 or operator of a stationary source that has more than a threshold quantity of a regulated substance in a process, as determined under § 68.115, shall comply with the requirements of this part no later than the latest of the following dates: * * * * * (2) Three years after the date on which a regulated substance is first listed under § 68.130; (3) The date on which a regulated substance is first present above a threshold quantity in a process; or (4) For any revisions to this part, the effective date of the final rule. (b) Within 1 year of [DATE 1 YEAR AFTER THE EFFECTIVE DATE OF THE FINAL RULE] the owner or operator of a stationary source shall comply with the emergency response coordination activities in § 68.93(a) and (b). (c) Within 3 years of the LEPC or equivalent requesting in writing, pursuant to § 68.90(b)(2), the owner or operator must develop and implement an emergency response program in accordance with § 68.95. (d) By [DATE 4 YEARS AFTER THE EFFECTIVE DATE OF THE FINAL RULE], the owner or operator shall comply with the following provisions promulgated on [PUBLICATION DATE OF FINAL RULE]: (1) Third-party audit provisions in §§ 68.58(f), 68.58(g), 68.58(h), 68.59, 68.79(f), 68.79(g), 68.79(h), and 68.80; (2) Incident investigation root cause analysis provisions in §§ 68.60(d)(7) and 68.81(d)(7) and the incident root cause category information provision in § 68.42(b)(10); (3) Safer technology and alternative analysis provisions in § 68.67(c)(8); (4) Emergency response exercise provisions of § 68.96, and; (5) Availability of information provisions in §§ 68.205, 68.210(b), 68.210(c), and 68.210(d). (e) By [DATE 5 YEARS AFTER EFFECTIVE DATE OF THE FINAL RULE], the owner or operator shall comply with the risk management plan provisions of subpart G promulgated on [PUBLICATION DATE OF FINAL RULE]. (f) * * * (2) The distance to a toxic or flammable endpoint for a worst-case release assessment conducted under subpart B and § 68.25 is less than the distance to any public receptor, as defined in § 68.3; and * * * * * ■ 4. Amend § 68.12 by: ■ a. Revising paragraphs (c)(4) and (5), and adding paragraph (c)(6); and ■ b. Revising paragraphs (d)(4) and (5), and adding paragraph (d)(6). PO 00000 Frm 00067 Fmt 4701 Sfmt 4702 13703 The revisions and additions read as follows: § 68.12 General requirements. * * * * * (c) * * * (4) Coordinate response actions with local emergency planning and response agencies as provided in § 68.93; (5) Develop and implement an emergency response program, and conduct exercises, as provided in §§ 68.90 to 68.96; and (6) Submit as part of the RMP the data on prevention program elements for Program 2 processes as provided in § 68.170. (d) * * * (4) Coordinate response actions with local emergency planning and response agencies as provided in § 68.93; (5) Develop and implement an emergency response program, and conduct exercises, as provided in §§ 68.90 to 68.95 96 of this part; and (6) Submit as part of the RMP the data on prevention program elements for Program 3 processes as provided in § 68.175. ■ 5. Amend § 68.42 by redesignating paragraphs (b)(10) and (b)(11) as paragraphs (b)(11) and (b)(12) and adding a new paragraph (b)(10) to read as follows: § 68.42 Five-year accident history. * * * * * (b) * * * (10) Categories of root causes identified based on the root cause analysis required in the incident investigation in accordance with § 68.60(d)(7) or § 68.81(d)(7); * * * * * ■ 6. Amend § 68.48 by revising paragraph (a)(1) to read as follows: § 68.48 Safety information. (a) * * * (1) Safety Data Sheets (SDS) that meet the requirements of 29 CFR 1910.1200(g); * * * * * ■ 7. Amend § 68.50 by revising paragraph (a)(2) to read as follows: § 68.50 Hazard review. (a) * * * (2) Opportunities for equipment malfunctions or human errors that could cause an accidental release, including findings from incident investigations; * * * * * ■ 8. Amend § 68.54 by revising paragraphs (a), (b), and (d); and Adding a new paragraph (e) to read as follows: § 68.54 Training. (a) The owner or operator shall ensure that each employee presently involved E:\FR\FM\14MRP4.SGM 14MRP4 13704 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules in operating a process, and each employee newly assigned to a covered process have been trained or tested competent in the operating procedures provided in § 68.52 that pertain to their duties. For those employees already operating a process on June 21, 1999, the owner or operator may certify in writing that the employee has the required knowledge, skills, and abilities to safely carry out the duties and responsibilities as provided in the operating procedures. (b) Refresher training. Refresher training shall be provided at least every three years, and more often if necessary, to each employee involved in operating a process to ensure that the employee understands and adheres to the current operating procedures of the process. The owner or operator, in consultation with the employees operating the process, shall determine the appropriate frequency of refresher training. * * * * * (d) The owner or operator shall ensure that employees involved in operating a process are trained in any updated or new procedures prior to startup of a process after a major change. (e) For the purposes of this section, the term employee also includes supervisors responsible for directing process operations. ■ 9. Amend § 68.58 by revising paragraph (a) and adding paragraphs (f) through (h) to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS4 § 68.58 Compliance audits. (a) The owner or operator shall certify that they have evaluated compliance with the provisions of this subpart for each covered process, at least every three years to verify that the procedures and practices developed under the rule are adequate and are being followed. When required as set forth in paragraph (f), the compliance audit shall be a third-party audit. * * * * * (f) Third-party audit applicability. The next required compliance audit shall be a third-party audit when one of the following conditions apply: (1) An accidental release meeting the criteria in § 68.42(a) from a covered process at a stationary source has occurred; or (2) An implementing agency requires a third-party audit based on noncompliance with the requirements of this subpart, including when a previous third-party audit failed to meet the competency, independence, or impartiality criteria of § 68.59(b). (g) Implementing agency notification and appeals. (1) If an implementing agency makes a preliminary VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 determination that a third-party audit is necessary pursuant to paragraph (f)(2) of this section, the implementing agency will provide written notice to the owner or operator stating the reasons for the implementing agency’s determination. (2) Within 30 days of receipt of such written notice, the owner or operator may provide information and data to, and may consult with, the implementing agency on the determination. Thereafter, the implementing agency will provide a final determination to the owner or operator. (3) If the final determination requires a third-party audit, the owner or operator shall comply with the requirements of § 68.59, pursuant to the schedule in paragraph (h) of this section. (4) Appeals. The owner or operator may appeal a final determination made by an implementing agency under paragraph (g)(2) of this section within 30 days of receipt of the final determination. The appeal shall be made to the EPA Regional Administrator, or for determinations made by other implementing agencies, the administrator or director of such implementing agency. The appeal shall contain a clear and concise statement of the issues, facts in the case, and any relevant additional information. In reviewing the appeal, the implementing agency may request additional information from the owner or operator. The implementing agency will provide a written, final decision on the appeal to the owner or operator. (h) Schedule for conducting a thirdparty audit. The audit and audit report shall be completed, and the audit report submitted to the implementing agency pursuant to § 68.59(c)(3) as follows, unless a different timeframe is specified by the implementing agency: (1) Within 12 months of when any third-party audit is required pursuant to paragraphs (f) and/or (g) of this section; or (2) Within three years of completion of the previous compliance audit, whichever is sooner. ■ 10. Section 68.59 is added to subpart C to read as follows: § 68.59 Third-party audits. (a) Applicability. The owner or operator shall engage a third-party auditor to evaluate compliance with the provisions of this subpart in accordance with the requirements of this section when either criterion of § 68.58(f) is met. (b) Auditor qualifications. The owner or operator shall determine and document that the auditor and/or audit PO 00000 Frm 00068 Fmt 4701 Sfmt 4702 team are independent and impartial, and that the auditor’s or audit team’s credentials address the following competency requirements: (1) Competency requirements. The auditor/auditor team shall be: (i) Knowledgeable with the requirements of this part; (ii) Experienced with the stationary source type and processes being audited and applicable recognized and generally accepted good engineering practices; (iii) Trained or certified in proper auditing techniques; and (iv) A licensed Professional Engineer (PE), or shall include a licensed PE on the audit team. (2) Independence and impartiality requirements. The auditor/audit team shall: (i) Act impartially when performing all activities under this section; (ii) Receive no financial benefit from the outcome of the audit, apart from payment for the auditing services; (iii) Not have conducted past research, development, design, construction services, or consulting for the owner or operator within the last 3 years. For purposes of this requirement, consulting does not include performing or participating in third-party audits pursuant to § 68.59 or § 68.80; (iv) Not provide other business or consulting services to the owner or operator, including advice or assistance to implement the findings or recommendations in an audit report, for a period of at least 3 years following submission of the final audit report; (v) Ensure that all personnel involved in the audit sign and date the conflict of interest statement in § 68.59(c)(1)(v); and (vi) Ensure that all personnel involved in the audit do not accept future employment with the owner or operator of the stationary source for a period of at least 3 years following submission of the final audit report. For purposes of this requirement, employment does not include performing or participating in third-party audits pursuant to § 68.59 or § 68.80. (3) The auditor shall have written policies and procedures to ensure that all personnel comply with the competency, independence, and impartiality requirements of this section. (c) Third-party audit report. The owner or operator shall ensure that the auditor prepares and submits an audit report as follows: (1) The scope and content of each audit report shall: (i) Identify the lead auditor or manager, participating individuals, and any other key persons participating in E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules the audit, including names, titles, and summaries of qualifications demonstrating that the competency requirements in paragraph (b)(1) of this section are met; (ii) Document the auditor’s evaluation, for each covered process, of the owner or operator’s compliance with the provisions of this subpart to determine whether the procedures and practices developed by the owner or operator under this rule are adequate and being followed; (iii) Document the findings of the audit, including any identified compliance or performance deficiencies; (iv) Include a summary of the owner’s or operator’s comments on, and identify any adjustments made by the auditor to, any draft audit report provided by the auditor to the owner or operator for review or comment; and (v) Include the following certification, signed and dated by the auditor or supervising manager for the audit: mstockstill on DSK4VPTVN1PROD with PROPOSALS4 I certify that this RMP compliance audit report was prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information upon which the audit is based. I further certify that the audit was conducted and this report was prepared pursuant to the requirements of subpart C of 40 CFR part 68 and all other applicable auditing, competency, independence, impartiality, and conflict of interest standards and protocols. Based on my personal knowledge and experience, and inquiry of personnel involved in the audit, the information submitted herein is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fines and imprisonment for knowing violations. (2) The auditor shall retain copies of all audit reports and related records for a period of five years, and make them available if directed by the owner or operator, to the owner or operator and/ or the implementing agency. (3) The auditor shall submit the audit report to the implementing agency at the same time, or before, it provides it to the owner or operator. (4) The audit report and related records shall not be privileged as attorney-client communications or attorney work products, even if written for or reviewed by legal staff. (d) Third-party audit findings. (1) Findings response report. As soon as possible, but no later than 90 days after receiving the final audit report, the owner or operator shall determine an appropriate response to each of the findings in the audit report, and develop and provide to the implementing agency a findings response report that includes: (i) A copy of the final audit report; VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 (ii) An appropriate response to each of the audit report findings; (iii) A schedule for promptly addressing deficiencies; and (iv) A certification, signed and dated by a senior corporate officer, or an official in an equivalent position, of the owner or operator of the stationary source, stating: I certify under penalty of law that the attached RMP compliance audit report was received, reviewed, and responded to under my direction or supervision by qualified personnel. I further certify that appropriate responses to the findings have been identified and deficiencies were corrected, or are being corrected, consistent with the requirements of subpart C of 40 CFR part 68, as documented herein. Based on my personal knowledge and experience, or inquiry of personnel involved in evaluating the report findings and determining appropriate responses to the findings, the information submitted herein is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fines and imprisonment for knowing violations. (2) Schedule to address deficiencies. The owner or operator shall implement the schedule to address deficiencies identified in the audit findings response report in paragraph (d)(1)(iii) of this section and document the action taken to address each deficiency, along with the date completed. (3) Submission to board of directors. The owner or operator shall immediately provide a copy of each document required under paragraphs (d)(1) and (d)(2) of this section, when completed, to the owner or operator’s audit committee of the Board of Directors, or other comparable committee, if one exists. (e) Recordkeeping. The owner or operator shall retain at the stationary source, the following: (1) The two most recent third-party audit reports, related findings response reports, documentation of actions taken to address deficiencies, and related records. This requirement does not apply to any document that is more than five years old. (2) Copies of all draft third-party audit reports. The owner or operator shall provide draft third-party audit reports to the implementing agency upon request. This requirement does not apply to any draft audit reports that are more than five years old. ■ 11. Amend § 68.60 by: ■ a. Revising paragraph (a); ■ b. Redesignating paragraphs (c) through (f) as paragraphs (d) through (g); ■ c. Adding a new paragraph (c); and ■ d. Revising the newly designated paragraphs (d) and (g). The revisions and additions read as follows: PO 00000 Frm 00069 Fmt 4701 Sfmt 4702 § 68.60 13705 Incident investigation. (a) The owner or operator shall investigate each incident that: (1) Resulted in a catastrophic release (including when the affected process is decommissioned or destroyed following, or as the result of, an incident); or (2) Could reasonably have resulted in a catastrophic release (i.e., was a near miss). * * * * * (c) An incident investigation team shall be established and consist of at least one person knowledgeable in the process involved and other persons with appropriate knowledge and experience to thoroughly investigate and analyze the incident. (d) A report shall be prepared at the conclusion of the investigation. The report shall be completed within 12 months of the incident, unless the implementing agency approves, in writing, an extension of time. The report shall include: (1) Date, time, and location of incident; (2) Date investigation began; (3) A description of the incident, in chronological order, providing all relevant facts; (4) The name and amount of the regulated substance involved in the release (e.g., fire, explosion, toxic gas loss of containment) or near miss and the duration of the event; (5) The consequences, if any, of the incident including, but not limited to: injuries, fatalities, the number of people evacuated, the number of people sheltered in place, and the impact on the environment; (6) Emergency response actions taken; (7) The factors that contributed to the incident including the initiating event, direct and indirect contributing factors, and root causes. Root causes shall be determined by conducting an analysis for each incident using a recognized method; and (8) Any recommendations resulting from the investigation and a schedule for addressing them. * * * * * (g) Incident investigation reports shall be retained for five years. ■ 12. Amend § 68.65 by revising the first sentence of paragraph (a) and the note to paragraph (b) to read as follows: § 68.65 Process safety information. (a) The owner or operator shall complete a compilation of written process safety information before conducting any process hazard analysis required by the rule, and shall keep process safety information up-to-date. * * * E:\FR\FM\14MRP4.SGM 14MRP4 13706 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules (b) * * * Note to paragraph (b): Safety Data Sheets (SDS) meeting the requirements of 29 CFR 1910.1200(g) may be used to comply with this requirement to the extent they contain the information required by this subparagraph. * * * * * ■ 13. Amend § 68.67 by: ■ a. Revising paragraph (c)(2); ■ b. In paragraph (c)(6) removing the word ‘‘and’’; ■ c. In paragraph (c)(7) removing the period at the end of the paragraph and adding ‘‘; and’’ in its place; and ■ d. Adding paragraph (c)(8). The revisions and additions read as follows: § 68.67 Process hazard analysis. * * * * * (c) * * * (2) The findings from all incident investigations required under section 68.81, as well as any other potential failure scenarios; * * * * * (8) For processes in NAICS 322, 324, and 325, safer technology and alternative risk management measures applicable to eliminating or reducing risk from process hazards. (i) The owner or operator shall consider, in the following order of preference, inherently safer technology or design, passive measures, active measures, and procedural measures. A combination of risk management measures may be used to achieve the desired risk reduction. (ii) The owner or operator shall determine the feasibility of the inherently safer technologies and designs considered. * * * * * ■ 14. Amend § 68.71 by adding paragraph (d) to read as follows: § 68.71 Training. * * * * (d) For the purposes of this section, the term employee also includes supervisors with process operational responsibilities. ■ 15. Amend § 68.79 by revising paragraph (a) and adding paragraphs (f) through (h) to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS4 * § 68.79 Compliance audits. (a) The owner or operator shall certify that they have evaluated compliance with the provisions of this subpart for each covered process, at least every three years to verify that the procedures and practices developed under the rule are adequate and are being followed. When required as set forth in paragraph VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 (f), the compliance audit shall be a third-party audit. * * * * * (f) Third-party audit applicability. The next required compliance audit shall be a third-party audit when one of the following conditions apply: (1) An accidental release meeting the criteria in § 68.42(a) from a covered process at a stationary source has occurred; or (2) An implementing agency requires a third-party audit based on noncompliance with the requirements of this subpart, including when a previous third-party audit failed to meet the competency, independence, or impartiality criteria of § 68.80(b). (g) Implementing agency notification and appeals. (1) If an implementing agency makes a preliminary determination that a third-party audit is necessary pursuant to paragraph (f)(2) of this section, the implementing agency will provide written notice to the owner or operator stating the reasons for the implementing agency’s determination. (2) Within 30 days of receipt of such written notice, the owner or operator may provide information and data to, and may consult with, the implementing agency on the determination. Thereafter, the implementing agency will provide a final determination to the owner or operator. (3) If the final determination requires a third-party audit, the owner or operator shall comply with the requirements of § 68.80, pursuant to the schedule in paragraph (h) of this section. (4) Appeals. The owner or operator may appeal a final determination made by an implementing agency under paragraph (g)(2) of this section within 30 days of receipt of the final determination. The appeal shall be made to the EPA Regional Administrator, or for determinations made by other implementing agencies, the administrator or director of such implementing agency. The appeal shall contain a clear and concise statement of the issues, facts in the case, and any relevant additional information. In reviewing the appeal, the implementing agency may request additional information from the owner or operator. The implementing agency will provide a written, final decision on the appeal to the owner or operator. (h) Schedule for conducting a thirdparty audit. The audit and audit report shall be completed, and the audit report submitted to the implementing agency pursuant to § 68.80(c)(3) as follows, unless a different timeframe is specified by the implementing agency: PO 00000 Frm 00070 Fmt 4701 Sfmt 4702 (1) Within 12 months of when any third-party audit is required pursuant to paragraphs (f) and/or (g) of this section; or (2) Within three years of completion of the previous compliance audit, whichever is sooner. ■ 16. Section 68.80 is added to subpart D to read as follows: § 68.80 Third-party audits. (a) Applicability. The owner or operator shall engage a third-party auditor to evaluate compliance with the provisions of this subpart in accordance with the requirements of this section when either criterion of § 68.79(f) is met. (b) Auditor qualifications. The owner or operator shall determine and document that the auditor and/or audit team are independent and impartial, and that the auditor’s or audit team’s credentials address the following competency requirements: (1) Competency requirements. The auditor/auditor team shall be: (i) Knowledgeable with the requirements of this part; (ii) Experienced with the stationary source type and processes being audited and applicable recognized and generally accepted good engineering practices; (iii) Trained or certified in proper auditing techniques; and (iv) A licensed PE, or shall include a licensed PE on the audit team. (2) Independence and impartiality requirements. The auditor/audit team shall: (i) Act impartially when performing all activities under this section; (ii) Receive no financial benefit from the outcome of the audit, apart from payment for the auditing services; (iii) Not have conducted past research, development, design, construction services, or consulting for the owner or operator within the last 3 years. For purposes of this requirement, consulting does not include performing or participating in third-party audits pursuant to § 68.59 or § 68.80; (iv) Not provide other business or consulting services to the owner or operator, including advice or assistance to implement the findings or recommendations in an audit report, for a period of at least 3 years following submission of the final audit report; (v) Ensure that all personnel involved in the audit sign and date the conflict of interest statement in § 68.59(c)(1)(v); and (vi) Ensure that all personnel involved in the audit do not accept future employment with the owner or operator of the stationary source for a period of at least 3 years following submission of E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS4 the final audit report. For purposes of this requirement, employment does not include performing or participating in third-party audits pursuant to §§ 68.59 or 68.80. (3) The auditor shall have written policies and procedures to ensure that all personnel comply with the competency, independence, and impartiality requirements of this section. (c) Third-party audit report. The owner or operator shall ensure that the auditor prepares and submits an audit report as follows: (1) The scope and content of each audit report shall: (i) Identify the lead auditor or manager, participating individuals, and any other key persons participating in the audit, including names, titles, and summaries of qualifications demonstrating that the competency requirements in paragraph (b)(1) of this section are met; (ii) Document the auditor’s evaluation, for each covered process, of the owner or operator’s compliance with the provisions of this subpart to determine whether the procedures and practices developed by the owner or operator under this rule are adequate and being followed; (iii) Document the findings of the audit, including any identified compliance or performance deficiencies; (iv) Include a summary of the owner’s or operator’s comments on, and identify any adjustments made by the auditor to, any draft audit report provided by the auditor to the owner or operator for review or comment; and (v) Include the following certification, signed and dated by the auditor or supervising manager for the audit: ‘‘I certify that this RMP compliance audit report was prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information upon which the audit is based. I further certify that the audit was conducted and this report was prepared pursuant to the requirements of subpart D of 40 CFR part 68 and all other applicable auditing, competency, independence, impartiality, and conflict of interest standards and protocols. Based on my personal knowledge and experience, and inquiry of personnel involved in the audit, the information submitted herein is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fines and imprisonment for knowing violations.’’ (2) The auditor shall retain copies of all audit reports and related records for a period of five years, and make them available if directed by the owner or VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 operator, to the owner or operator and/ or the implementing agency. (3) The auditor shall submit the audit report to the implementing agency at the same time, or before, it provides it to the owner or operator. (4) The audit report and related records shall not be privileged as attorney-client communications or attorney work products, even if written for or reviewed by legal staff. (d) Third-party audit findings. (1) Findings response report. As soon as possible, but no later than 90 days after receiving the final audit report, the owner or operator shall determine an appropriate response to each of the findings in the audit report, and develop and provide to the implementing agency a findings response report that includes: (i) A copy of the final audit report; (ii) An appropriate response to each of the audit report findings; (iii) A schedule for promptly addressing deficiencies; and (iv) A certification, signed and dated by a senior corporate officer, or an official in an equivalent position, of the owner or operator of the stationary source, stating: ‘‘I certify under penalty of law that the attached RMP compliance audit report was received, reviewed, and responded to under my direction or supervision by qualified personnel. I further certify that appropriate responses to the findings have been identified and deficiencies were corrected, or are being corrected, consistent with the requirements of subpart D of 40 CFR part 68, as documented herein. Based on my personal knowledge and experience, or inquiry of personnel involved in evaluating the report findings and determining appropriate responses to the findings, the information submitted herein is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fines and imprisonment for knowing violations.’’ (2) Schedule to address deficiencies. The owner or operator shall implement the schedule to address deficiencies identified in the audit findings response report in paragraph (d)(1)(iii) of this section and document the action taken to address each deficiency, along with the date completed. (3) Submission to board of directors. The owner or operator shall immediately provide a copy of each document required under paragraphs (d)(1) and (d)(2) of this section, when completed, to the owner or operator’s audit committee of the Board of Directors, or other comparable committee, if one exists. (e) Recordkeeping. The owner or operator shall retain at the stationary source, the following: PO 00000 Frm 00071 Fmt 4701 Sfmt 4702 13707 (1) The two most recent third-party audit reports, related findings response reports, documentation of actions taken to address deficiencies, and related records. This requirement does not apply to any document that is more than five years old. (2) Copies of all draft third-party audit reports. The owner or operator shall provide draft third-party audit reports to the implementing agency upon request. This requirement does not apply to any draft audit reports that are more than five years old. ■ 17. Amend § 68.81 by revising paragraphs (a), (d) introductory text, (d)(1), (d)(3) through (5), and adding paragraphs (d)(6) through (8) to read as follows: § 68.81 Incident investigation. (a) The owner or operator shall investigate each incident that: (1) Resulted in a catastrophic release (including when the affected process is decommissioned or destroyed following, or as the result of, an incident); or (2) Could reasonably have resulted in a catastrophic release (i.e., was a near miss). * * * * * (d) A report shall be prepared at the conclusion of the investigation. The report shall be completed within 12 months of the incident, unless the implementing agency approves, in writing, an extension of time. The report shall include: (1) Date, time, and location of incident; * * * * * (3) A description of the incident, in chronological order, providing all relevant facts; (4) The name and amount of the regulated substance involved in the release (e.g., fire, explosion, toxic gas loss of containment) or near miss and the duration of the event; (5) The consequences, if any, of the incident including, but not limited to: Injuries, fatalities, the number of people evacuated, the number of people sheltered in place, and the impact on the environment; (6) Emergency response actions taken; (7) The factors that contributed to the incident including the initiating event, direct and indirect contributing factors, and root causes. Root causes shall be determined by conducting an analysis for each incident using a recognized method; and (8) Any recommendations resulting from the investigation and a schedule for addressing them. * * * * * E:\FR\FM\14MRP4.SGM 14MRP4 13708 ■ Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules 18. Revise § 68.90 to read as follows: § 68.90 Applicability. (a) Non-responding stationary source. The owner or operator of a stationary source need not comply with § 68.95 of this part provided that: (1) The coordination activities required under § 68.93 indicate that adequate local public emergency response capabilities are available to appropriately respond to any accidental release of the regulated substances at the stationary source; (2) Appropriate mechanisms are in place to notify emergency responders when there is a need for a response; and (3) The LEPC or equivalent has not requested in writing that the owner or operator comply with the requirements of § 68.95. (b) Responding stationary source. The owner or operator of a stationary source shall coordinate response activities as described in § 68.93. The owner or operator shall also comply with the requirements of § 68.95 when: (1) The outcome of the response coordination activities demonstrates that local public emergency response capabilities are not adequate to appropriately respond to an accidental release of the regulated substances at the stationary source; or (2) The LEPC or equivalent requests in writing that the owner or operator of the stationary source comply with the requirements of § 68.95. ■ 19. Section 68.93 is added to subpart E to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS4 § 68.93 Emergency response coordination activities. The owner or operator of a stationary source shall coordinate response needs with local emergency planning and response organizations to ensure resources and capabilities are in place to respond to an accidental release of a regulated substance. (a) Coordination shall occur at least annually, and more frequently if necessary, to address changes: At the source; in the source’s emergency action plan; in local authorities’ response resources and capabilities; or in the local community emergency response plan. (b) The owner or operator shall document coordination with local authorities, including: The names of individuals involved and their contact information (phone number, email address, and organizational affiliations); dates of coordination activities; and nature of coordination activities. (c) The owner or operator shall coordinate potential response actions as follows: VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 (1) For stationary sources with any regulated toxic substance held in a process above the threshold quantity, the owner or operator shall coordinate potential response actions with the LEPC or equivalent and ensure that the stationary source is included in the community emergency response plan developed under 42 U.S.C. 11003; and/ or (2) For stationary sources with only regulated flammable substances held in a process above the threshold quantity, the owner or operator shall coordinate response actions with the local fire department. ■ 20. Amend § 68.95 by: ■ a. Revising paragraph (a)(1)(i); ■ b. Adding a sentence to the end of paragraph (a)(4); and ■ c. Revising paragraph (c). The revisions and addition read as follows: 68.95 Emergency response program. (a) * * * (1) * * * (i) Procedures for informing the public and the appropriate Federal, state, and local emergency response agencies about accidental releases; * * * * * (4) * * * The owner or operator shall review and update the program annually, or more frequently if necessary, to incorporate recommendations and lessons learned from emergency response exercises and/ or incident investigations, or other available information. * * * * * (c) The emergency response plan developed under paragraph (a)(1) of this section shall be coordinated with the community emergency response plan developed under 42 U.S.C. 11003. Upon request of the LEPC or emergency response officials, the owner or operator shall promptly provide to the local emergency response officials information necessary for developing and implementing the community emergency response plan. ■ 21. Section 68.96 is added to subpart E to read as follows: § 68.96 Emergency response exercises. (a) Notification exercises. At least once each calendar year, the owner or operator of a stationary source with any Program 2 or Program 3 process shall conduct an exercise of the source’s emergency response notification mechanisms required under § 68.90(a)(2) or § 68.95(a)(1)(i), as appropriate. Owners or operators of responding stationary sources may perform the notification exercise as part of the tabletop and field exercises PO 00000 Frm 00072 Fmt 4701 Sfmt 4702 required in § 68.96(b). The owner/ operator shall maintain a written record of each notification exercise conducted over the last five years. (b) Emergency response exercise program. The owner or operator of a stationary source subject to the requirements of § 68.95 shall develop and implement an exercise program for its emergency response program, including the plan required under § 68.95(a)(1). When planning emergency response field and tabletop exercises, the owner or operator shall coordinate with local public emergency response officials and invite them to participate in the exercise. The emergency response exercise program shall include: (1) Emergency response field exercises. The owner or operator shall conduct a field exercise involving the simulated accidental release of a regulated substance (i.e., toxic substance release or release of a regulated flammable substance involving a fire and/or explosion). (i) Frequency. The field exercise shall be conducted at least once every five years, and within one year of any accidental release required to be reported under § 68.42. (ii) Scope. The field exercise shall include tests of: Procedures to notify the public and the appropriate Federal, state, and local emergency response agencies about an accidental release; procedures and measures for emergency response actions including evacuations and medical treatment; communications systems; mobilization of facility emergency response personnel, including contractors, as appropriate; coordination with local emergency responders; equipment deployment; and any other action identified in the emergency response program, as appropriate. (2) Tabletop exercises. The owner or operator shall conduct a tabletop exercise involving the simulated accidental release of a regulated substance. The exercise shall involve facility emergency response personnel, response contractors, and local emergency response and planning officials, as appropriate. (i) Frequency. The owner or operator of a stationary source shall conduct tabletop exercises annually, except during the calendar year when a field exercise is conducted. (ii) Scope. The exercise shall include tests of: Procedures to notify the public and the appropriate Federal, state, and local emergency response agencies; procedures and measures for emergency response including evacuations and medical treatment; identification of facility emergency response personnel E:\FR\FM\14MRP4.SGM 14MRP4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules and/or contractors and their responsibilities; coordination with local emergency responders; procedures for equipment deployment; and any other action identified in the emergency response plan, as appropriate. (3) Documentation. The owner/ operator shall prepare an evaluation report within 90 days of each exercise. The report shall include: A description of the exercise scenario; names and organizations of each participant; an evaluation of the exercise results including lessons learned; recommendations for improvement or revisions to the emergency response exercise program and emergency response program, and a schedule to promptly address and resolve recommendations. ■ 22. Amend § 68.130 by: 13709 a. In Table 1, ‘‘List of Regulated Toxic Substances and Threshold Quantities for Accidental Release Prevention’’, under second column entitled ‘‘CAS No.’’, removing the number ‘‘107–18– 61’’ adding ‘‘107–18–6’’ in its place; and ■ b. Revising Table 4, ‘‘List of Regulated Flammable Substances and Threshold Quantities for Accidental Release Prevention’’. The revisions read as follows: ■ TABLE 4 TO § 68.130—LIST OF REGULATED FLAMMABLE SUBSTANCES1 AND THRESHOLD QUANTITIES FOR ACCIDENTAL RELEASE PREVENTION [CAS Number Order—63 Substances] Threshold quantity (lbs) mstockstill on DSK4VPTVN1PROD with PROPOSALS4 CAS No. Chemical name 60–29–7 ....................................... 74–82–8 ....................................... 74–84–0 ....................................... 74–85–1 ....................................... 74–86–2 ....................................... 74–89–5 ....................................... 74–98–6 ....................................... 74–99–7 ....................................... 75–00–3 ....................................... 75–01–4 ....................................... 75–02–5 ....................................... 75–04–7 ....................................... 75–07–0 ....................................... 75–08–1 ....................................... 75–19–4 ....................................... 75–28–5 ....................................... 75–29–6 ....................................... 75–31–0 ....................................... 75–35–4 ....................................... 75–37–6 ....................................... 75–38–7 ....................................... 75–50–3 ....................................... 75–76–3 ....................................... 78–78–4 ....................................... 78–79–5 ....................................... 79–38–9 ....................................... 106–97–8 ..................................... 106–98–9 ..................................... 106–99–0 ..................................... 107–00–6 ..................................... 107–01–7 ..................................... 107–25–5 ..................................... 107–31–3 ..................................... 109–66–0 ..................................... 109–67–1 ..................................... 109–92–2 ..................................... 109–95–5 ..................................... 115–07–1 ..................................... 115–10–6 ..................................... 115–11–7 ..................................... 116–14–3 ..................................... 124–40–3 ..................................... 460–19–5 ..................................... 463–49–0 ..................................... 463–58–1 ..................................... 463–82–1 ..................................... 504–60–9 ..................................... 557–98–2 ..................................... 563–45–1 ..................................... 563–46–2 ..................................... 590–18–1 ..................................... 590–21–6 ..................................... 598–73–2 ..................................... 624–64–6 ..................................... 627–20–3 ..................................... 646–04–8 ..................................... 689–97–4 ..................................... 1333–74–0 ................................... 4109–96–0 ................................... 7791–21–1 ................................... 7803–62–5 ................................... 10025–78–2 ................................. Ethyl ether [Ethane, 1,1′-oxybis-] ...................................................... Methane ............................................................................................ Ethane ............................................................................................... Ethylene [Ethene] .............................................................................. Acetylene [Ethyne] ............................................................................ Methylamine [Methanamine] ............................................................. Propane ............................................................................................. Propyne [1-Propyne] ......................................................................... Ethyl chloride [Ethane, chloro-] ......................................................... Vinyl chloride [Ethene, chloro-] ......................................................... Vinyl fluoride [Ethene, fluoro-] ........................................................... Ethylamine [Ethanamine] .................................................................. Acetaldehyde ..................................................................................... Ethyl mercaptan [Ethanethiol] ........................................................... Cyclopropane .................................................................................... Isobutane [Propane, 2-methyl] .......................................................... Isopropyl chloride [Propane, 2-chloro-] ............................................. Isopropylamine [2-Propanamine] ...................................................... Vinylidene chloride [Ethene, 1,1-dichloro-] ....................................... Difluoroethane [Ethane, 1,1-difluoro-] ............................................... Vinylidene fluoride [Ethene, 1,1-difluoro-] ......................................... Trimethylamine [Methanamine, N, N-dimethyl-] ............................... Tetramethylsilane [Silane, tetramethyl-] ............................................ Isopentane [Butane, 2-methyl-] ......................................................... Isoprene [1,3,-Butadiene, 2-methyl-] ................................................. Trifluorochloroethylene [Ethene, chlorotrifluoro-] .............................. Butane ............................................................................................... 1-Butene ............................................................................................ 1,3-Butadiene .................................................................................... Ethyl acetylene [1-Butyne] ................................................................ 2-Butene ............................................................................................ Vinyl methyl ether [Ethene, methoxy-] .............................................. Methyl formate [Formic acid, methyl ester] ...................................... Pentane ............................................................................................. 1-Pentene .......................................................................................... Vinyl ethyl ether [Ethene, ethoxy-] .................................................... Ethyl nitrite [Nitrous acid, ethyl ester] ............................................... Propylene [1-Propene] ...................................................................... Methyl ether [Methane, oxybis-] ........................................................ 2-Methylpropene [1-Propene, 2-methyl-] .......................................... Tetrafluoroethylene [Ethene, tetrafluoro-] ......................................... Dimethylamine [Methanamine, N-methyl-] ........................................ Cyanogen [Ethanedinitrile] ................................................................ Propadiene [1,2-Propadiene] ............................................................ Carbon oxysulfide [Carbon oxide sulfide (COS)] .............................. 2,2-Dimethylpropane [Propane, 2,2-dimethyl-] ................................. 1,3-Pentadiene .................................................................................. 2-Chloropropylene [1-Propene, 2-chloro-] ........................................ 3-Methyl-1-butene ............................................................................. 2-Methyl-1-butene ............................................................................. 2-Butene-cis ...................................................................................... 1-Chloropropylene [1-Propene, 1-chloro-] ........................................ Bromotrifluorethylene [Ethene, bromotrifluoro-] ................................ 2-Butene-trans [2-Butene, (E)] .......................................................... 2-Pentene, (Z)- .................................................................................. 2-Pentene, (E)- .................................................................................. Vinyl acetylene [1-Buten-3-yne] ........................................................ Hydrogen ........................................................................................... Dichlorosilane [Silane, dichloro-] ....................................................... Chlorine monoxide [Chlorine oxide] .................................................. Silane ................................................................................................ Trichlorosilane [Silane,trichloro-] ....................................................... VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00073 Fmt 4701 Sfmt 4702 E:\FR\FM\14MRP4.SGM 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 14MRP4 Basis for listing g f f f f f f f f a, f f f g g f f g g g f f f g g g f f f f f f f g g g g f f f f f f f f f f f g f g f g f f g g f f f f f g 13710 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules TABLE 4 TO § 68.130—LIST OF REGULATED FLAMMABLE SUBSTANCES1 AND THRESHOLD QUANTITIES FOR ACCIDENTAL RELEASE PREVENTION—Continued [CAS Number Order—63 Substances] Threshold quantity (lbs) CAS No. Chemical name 25167–67–3 ................................. Butene ............................................................................................... Basis for listing 10,000 f 1A flammable substance when used as a fuel or held for sale as a fuel at a retail facility is excluded from all provisions of this part (see § 68.126). NOTE: Basis for Listing: a Mandated for listing by Congress. f Flammable gas. g Volatile flammable liquid. 23. Amend § 68.160 by: a. Revising paragraphs (b)(1), (4), (5), (9), and (12); ■ b. Removing and reserving paragraph (b)(13); ■ c. Revising paragraphs (b)(14) through (18); ■ d. Removing and reserving paragraph (b)(19); ■ e. Revising paragraphs (b)(20)(ii) and (iv); and ■ f. Adding paragraphs (b)(21) through (23). The revisions and additions reads as follows: ■ ■ § 68.160 Registration. mstockstill on DSK4VPTVN1PROD with PROPOSALS4 * * * * * (b) * * * (1) Stationary source name, street, city, county, state, zip code, latitude and longitude, and description of location that latitude and longitude represent; * * * * * (4) The name, telephone number, mailing address, and email address of the owner or operator; (5) The name and title of the person with overall responsibility for RMP elements and implementation, and the email address for that person; * * * * * (9) The number of full-time equivalent employees at the stationary source; * * * * * (12) If the stationary source has a CAA Title V operating permit, and if so, the permit number; * * * * * (14) The name, mailing address, email address, and telephone number of the contractor who prepared the RMP (if any); (15) Source or parent company email address (if an email address exists); (16) Source internet address (if an internet address exists); (17) Phone number at the source for public inquiries (if a public inquiries phone number exists); (18) LEPC name, phone number, email address, and internet address (if applicable and available); * * * * * VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 (20) * * * (ii) Corrections under § 68.195 or for purposes of correcting minor clerical errors, updating administrative information, providing missing data elements or reflecting stationary source ownership changes, and which do not require an update and re-submission as specified in § 68.190(b); * * * * * (iv) Withdrawals of an RMP for any stationary source that was erroneously considered subject to this part 68; (21) Whether chemical hazard information has been provided to the LEPC or emergency response officials, pursuant to § 68.205; (22) Location or means of public access for chemical hazard information made available to the public, pursuant to § 68.210; and (23) Whether a public meeting has been held following an RMP reportable accident, pursuant to § 68.210(d). ■ 24. Amend § 68.170 by: ■ a. Revising paragraph (a); ■ b. Revising paragraph (d); ■ c. Revising paragraphs (e) introductory text, (e)(1), and (f) through (h); ■ d. Revising paragraphs (i) and (j); ■ e. Removing paragraph (k). The revisions and additions read as follows: § 68.170 Prevention program/Program 2. (a) For each Program 2 process, the owner or operator shall provide in the RMP the information indicated in paragraphs (b) through (j) of this section. If the same information applies to more than one covered process, the owner or operator may provide the information only once, but shall indicate to which processes the information applies. * * * * * (d)(1) Whether safety information requirements, in § 68.48, are implemented. (2) A list of all Federal and state regulations, industry-specific and established company or stationary source design codes and standards that are applicable, and identify those PO 00000 Frm 00074 Fmt 4701 Sfmt 4702 followed, to demonstrate compliance with the safety information requirements. (e) The most recent hazard review or hazard review update information, pursuant to § 68.50, including: (1) The date of completion of the most recent hazard review or hazard review update; * * * * * (f) Whether operating procedure requirements, in § 68.52, are implemented. (g) Whether training requirements, in § 68.54, are implemented. (h) Whether maintenance requirements, in § 68.56, are implemented. (i)(1) Whether compliance audit requirements, in § 68.58, are implemented. (2) The date of the most recent compliance audit. (3) Whether the most recent compliance audit was a third-party audit, pursuant to §§ 68.58 and 68.59. (j)(1) Whether incident investigation requirements, in § 68.60, are implemented. (2) The date of the most recent incident investigation. (3) Whether root cause analyses have been completed for all accidents and incidents that are subject to the incident investigation requirements in § 68.60. ■ 25. Amend § 68.175 by revising paragraphs (a) and (d) through (o) and removing paragraph (p) to read as follows: § 68.175 Prevention program/Program 3. (a) For each Program 3 process, the owner or operator shall provide the information indicated in paragraphs (b) through (o) of this section. If the same information applies to more than one covered process, the owner or operator may provide the information only once, but shall indicate to which processes the information applies. * * * * * (d)(1) Whether process safety information requirements, in § 68.65, are implemented. E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules (2) A list of all Federal and state regulations, industry-specific and established company or stationary source design codes and standards that are applicable, and identify those followed, to demonstrate compliance with the process safety information requirements. (e)(1)The most recent process hazard analysis (PHA) or PHA update and revalidation information, pursuant to § 68.67, including: (i) The date of completion of the most recent PHA or update and the technique used; (ii) Major hazards identified; (iii) Process controls in use; (iv) Mitigation systems in use; (v) Monitoring and detection systems in use; and (vi) Changes since the last PHA. (2)(i) Whether the current PHA addresses safer technology and alternative risk management measures, as required in § 68.67(c)(8). (ii) Whether any inherently safer technology or design measures were implemented. (iii) If any inherently safer technology or design measures were implemented, identify the measure and the technology category (substitution, minimization, simplification, and/or moderation). (f) Whether operating procedure requirements, in § 68.69, are implemented. (g) Whether training requirements, in § 68.71, are implemented. (h) Whether mechanical integrity requirements, in § 68.73, are implemented. (i) Whether management of change requirements, in § 68.75, are implemented. (j) Whether pre-startup review requirements, in § 68.77, are implemented. (k)(1) Whether compliance audit requirements, in § 68.79, are implemented. (2) The date of the most recent compliance audit. (3) Whether the most recent compliance audit was a third-party audit, pursuant to §§ 68.79 and 68.80. (l)(1) Whether incident investigation requirements, in § 68.81, are implemented. (2) The date of the most recent incident investigation. (3) Whether root cause analyses have been completed for all accidents and incidents that are subject to the incident investigation requirements in § 68.81. (m) Whether employee participation requirements, in § 68.83, are implemented. (n) Whether hot work permit requirements, in § 68.85, are implemented. VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 (o) Whether contractor safety requirements, in § 68.87, are implemented. ■ 26. Revise § 68.180 to read as follows: § 68.180 Emergency response program and exercises. (a) The owner or operator shall provide in the RMP: (1) Name, organizational affiliation, phone number, and email address of local emergency planning and response organizations with which the stationary source last coordinated emergency response efforts, pursuant to § 68.10(b)(3) or § 68.93; (2) Whether coordination with the local emergency response organizations is occurring at least annually, pursuant to § 68.93(a); and (3) A list of Federal or state emergency plan requirements to which the stationary source is subject. (b) The owner or operator shall identify whether the facility is a responding stationary source or a nonresponding stationary source, pursuant to § 68.90. (1) For non-responding stationary sources, the owner or operator shall identify: (i) Whether the owner or operator of the stationary source has confirmed that the local emergency response entity is capable of responding to accidental releases at the stationary source; (ii) Whether appropriate mechanisms are in place to notify public emergency responders when there is a need for emergency response; and (iii) Whether a notification exercise occurs at least annually, as required in § 68.96(a). (2) For responding stationary sources, the owner or operator shall identify: (i) Whether the LEPC or local response entity requested the stationary source to be a responding stationary source as required in § 68.90(a)(3); (ii) Whether the stationary source complies with emergency response program requirements in § 68.95; (iii) Whether a notification exercise occurs at least annually, as required in § 68.96(a); (iv) Whether a field exercise is conducted every five years and after any RMP reportable accident, pursuant to § 68.96(b)(1)(i); and (v) Whether a tabletop exercise occurs at least annually, except during the calendar year when a field exercise is conducted, as required in § 68.96(b)(2)(i). ■ 27. In § 68.190 amend paragraph (c) by adding a sentence at the end to read as follows: § 68.190 * PO 00000 * Updates. * Frm 00075 * Fmt 4701 * Sfmt 4702 13711 (c) * * * Prior to de-registration the owner or operator shall meet applicable reporting and incident investigation requirements in accordance with §§ 68.42, 68.60, and/or 68.81. ■ 28. Amend § 68.195 by revising paragraph (a) to read as follows: § 68.195 Required corrections. * * * * * (a) New accident history information. (1) For any accidental release meeting the five-year accident history reporting criteria of § 68.42 and occurring after April 9, 2004, the owner or operator shall submit the data required under § 68.168, except for root cause information required in § 68.42(b)(10), with respect to that accident within six months of the release or by the time the RMP is updated under § 68.190, whichever is earlier. (2) Root cause information required under § 68.42(b)(10) shall be submitted within 12 months, or by the alternative timeframe provided by an implementing agency, as specified in §§ 68.60(d) or 68.81(d). * * * * * ■ 29. Revise § 68.200 to read as follows: § 68.200 Recordkeeping. The owner or operator shall maintain records supporting the implementation of this part at the stationary source for five years, unless otherwise provided in subpart D of this part. ■ 30. Section § 68.205 is added to subpart H to read as follows: § 68.205 Availability of information to the LEPC or emergency response officials. (a) RMP availability. The RMP required under subpart G of this part shall be available to local emergency responders and LEPCs under 42 U.S.C. 7414(c) and 40 CFR part 1400. (b) Chemical hazard information. The owner or operator of a stationary source shall develop summaries of chemical hazard information for all regulated processes and provide the information, upon request, to the LEPC or emergency response officials. Information shall include, as applicable: (1) Information on regulated substances. Names and quantities of regulated substances held in a process. (2) Accident history information. Provide the five-year accident history information required to be reported under § 68.42. (3) Compliance audit reports. Summaries of compliance audit reports developed in accordance with §§ 68.58, 68.59, 68.79, or 68.80, as applicable, updated as part of the calendar year submission described in subparagraph (c). The summary shall include: E:\FR\FM\14MRP4.SGM 14MRP4 mstockstill on DSK4VPTVN1PROD with PROPOSALS4 13712 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Proposed Rules (i) The date of the report; (ii) Name and contact information of auditor and facility contact person; (iii) Brief description of the findings; (iv) An appropriate response to each of the findings; and (v) Schedule for addressing each of the findings, as applicable. (4) Incident investigation reports. Summaries of incident investigation reports developed in accordance with § 68.60(d) or § 68.81(d), as applicable. The summary shall include: (i) Description of the incident and events leading up to it, including a timeline; (ii) Brief description of the process involved; (iii) Names and contact information of personnel on the investigation team; (iv) Direct, contributing, and root causes of the incident; (v) On-site and offsite impacts; (vi) Emergency response actions taken; (vii) Recommendations; and (viii) Schedule for implementing recommendations, as applicable. (5) Inherently safer technology. For each process in NAICS codes 322, 324, and 325, provide a summary of the inherently safer technologies (IST) or inherently safer designs (ISD) implemented or planned, in accordance with § 68.67(c)(8). Update the summary, as part of the calendar year submission described in subparagraph (c), and following any revisions prepared in accordance with 68.67(f) and indicate when no revisions are incorporated, as applicable. The summary shall include: (i) The RMP process ID and process description, if provided, of the process affected; (ii) A brief description of the IST or ISD and which IST/ISD type of measure best characterizes it: Minimization, substitution, moderation or simplification; (iii) The name of the RMP regulated substance(s) whose hazard, potential exposure or risk was or will be reduced as a result of the implementation and whether the substance is listed as a toxic or flammable. If the chemicals affected are a mixture of flammables, the name ‘‘flammable mixture’’ may be used rather than the individual flammable substance names; and (iv) The date of implementation or planned implementation. (6) Exercises. Information on emergency response exercises required under § 68.96. The information shall include schedules for upcoming VerDate Sep<11>2014 16:39 Mar 11, 2016 Jkt 238001 exercises, reports for completed exercises as described in § 68.96(b)(3), and any other related information. (c) Submission dates and updates. The owner or operator shall update summary information every calendar year, including all applicable information that was revised since the last submission, and provide the information upon request. (d) Classified information. The disclosure of information classified by the Department of Defense or other Federal agencies or contractors of such agencies shall be controlled by applicable laws, regulations, or executive orders concerning the release of classified information. (e) CBI. An owner or operator asserting CBI for information required under this section shall provide a sanitized version to the LEPC or emergency response officials. Assertion of claims of CBI and substantiation of CBI claims shall be in the same manner as required in 40 CFR 68.151 and 68.152 for information contained in the RMP required under subpart G of this part. As provided under 40 CFR 68.151(b)(3), an owner or operator of a stationary source may not claim five-year accident history information as CBI. As provided in 40 CFR 68.151(c)(2), an owner or operator of a stationary source asserting that a chemical name is CBI shall provide a generic category or class name as a substitute. ■ 31. Revise § 68.210 to read as follows: § 68.210 public. Availability of information to the (a) RMP availability. The RMP required under subpart G of this part shall be available to the public under 42 U.S.C. 7414(c) and 40 CFR part 1400. (b) Chemical hazard information. The owner or operator of a stationary source shall distribute chemical hazard information for all regulated processes to the public in an easily accessible manner, such as on a company Web site, including, as applicable: (1) Regulated substances information. Names of regulated substances held in a process. (2) Safety data sheets (SDS). SDSs for all regulated substances located at the facility. (3) Accident history information. Provide the five-year accident history information required to be reported under § 68.42. (4) Emergency response program. Summary information concerning the source’s compliance with § 68.10(b)(3) PO 00000 Frm 00076 Fmt 4701 Sfmt 9990 or the emergency response provisions of subpart E, including: (i) Whether the source is a responding stationary source or a non-responding stationary source; (ii) Name and phone number of local emergency response organizations with which the owner or operator last coordinated emergency response efforts, pursuant to § 68.180; and (iii) For sources subject to § 68.95, procedures for informing the public and local emergency response agencies about accidental releases; (5) Exercises. The summary information required under § 68.205(b)(6). (6) LEPC contact information. Include LEPC name, phone number, and Web address as available. (c) Submission dates and updates. The owner or operator shall update and submit information required under § 68.210(b) every calendar year, including all applicable information that was revised since the last update. (d) Public meetings. The owner or operator of a stationary source shall hold a public meeting to provide information required under § 68.42 as well as other relevant chemical hazard information, such as that described in paragraph (b), within 30 days of any accident subject to reporting under § 68.42. (e) Classified information. The disclosure of information classified by the Department of Defense or other Federal agencies or contractors of such agencies shall be controlled by applicable laws, regulations, or executive orders concerning the release of classified information. (f) CBI. An owner or operator asserting CBI for information required under this section shall provide a sanitized version to the public. Assertion of claims of CBI and substantiation of CBI claims shall be in the same manner as required in 40 CFR 68.151 and 68.152 for information contained in the RMP required under subpart G. As provided under 40 CFR 68.151(b)(3), an owner or operator of a stationary source may not claim fiveyear accident history information as CBI. As provided in 40 CFR 68.151(c)(2), an owner or operator of a stationary source asserting that a chemical name is CBI shall provide a generic category or class name as a substitute. [FR Doc. 2016–05191 Filed 3–11–16; 8:45 am] BILLING CODE 6560–50–P E:\FR\FM\14MRP4.SGM 14MRP4

Agencies

ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Proposed Rules]
[Pages 13637-13712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05191]

[[Page 13637]]

Vol. 81

Monday,

No. 49

March 14, 2016

Part VI

Environmental Protection Agency

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40 CFR Part 68

Accidental Release Prevention Requirements: Risk Management Programs
Under the Clean Air Act; Proposed Rule

Federal Register / Vol. 81 , No. 49 / Monday, March 14, 2016 /
Proposed Rules

[[Page 13638]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 68

[EPA-HQ-OEM-2015-0725; FRL-9940-94-OLEM]
RIN 2050-AG82

Accidental Release Prevention Requirements: Risk Management
Programs Under the Clean Air Act

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA), in response to
Executive Order 13650, is proposing to amend its Risk Management
Program regulations. The proposed revisions include several changes to
the accident prevention program requirements including an additional
analysis of safer technology and alternatives for the process hazard
analysis for some Program 3 processes, third-party audits and incident
investigation root cause analysis for Program 2 and Program 3
processes, enhancements to the emergency preparedness requirements,
increased public availability of chemical hazard information, and
several other changes to certain regulatory definitions and data
elements submitted in risk management plans. These proposed amendments
seek to improve chemical process safety, assist local emergency
authorities in planning for and responding to accidents, and improve
public awareness of chemical hazards at regulated sources.

DATES:
Comments. Comments and additional material must be received on or
before May 13, 2016. Under the Paperwork Reduction Act (PRA), comments
on the information collection provisions are best assured of
consideration if the Office of Management and Budget (OMB) receives a
copy of your comments on or before April 13, 2016.
Public Hearing. The EPA will hold a public hearing on this proposed
rule on March 29, 2016 in Washington, DC.

ADDRESSES: Comments. Submit comments and additional materials,
identified by docket EPA-HQ-OEM-2015-0725 to the Federal eRulemaking
Portal: https://www.regulations.gov. Follow the online instructions for
submitting comments. Once submitted, comments cannot be edited or
removed from Regulations.gov. The EPA may publish any comment received
to its public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. The EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e., on the web, cloud, or other file sharing
system). For additional submission methods, the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit https://www2.epa.gov/dockets/commenting-epa-dockets.
Public Hearing. A public hearing will be held in Washington, DC on
March 29, 2016 at William J. Clinton East Building, Room 1153 (Map
Room), 1201 Constitution Ave. NW., Washington, DC 20460. The hearing
will convene at 9:00 a.m. through 8:00 p.m. The sessions will run from
9:00 a.m. to 12:00 Noon, with a break between 12:00 Noon and 1:00 p.m.,
continuing from 1:00 p.m. to 4:30 p.m., with a break from 4:30 to 5:30
p.m., and continuing from 5:30 p.m. to 8:00 p.m. Persons wishing to
preregister may be assigned a time according to this schedule. The
evening session beginning at 5:30 p.m. will be extended one hour after
all scheduled comments have been heard to accommodate those wishing to
make a comment as a walk-in registrant. Please register at https://rmp-proposed-rule.eventbrite.com to speak at the hearing. The last day to
preregister in advance to speak at the hearing is March 24, 2016.
Additionally, requests to speak will be taken the day of the hearing at
the hearing registration desk, although preferences on speaking times
may not be able to be fulfilled. If you require the service of a
translator or special accommodations such as audio description, we ask
that you pre-register for the hearing, on or before March 21, 2016, to
allow sufficient time to arrange such accommodations.
The hearing will provide interested parties the opportunity to
present data, views or arguments concerning the proposed action. The
EPA will make every effort to accommodate all speakers who arrive and
register. Because this hearing is being held at U.S. government
facilities, individuals planning to attend the hearing should be
prepared to show valid picture identification to the security staff in
order to gain access to the meeting room. Please note that the REAL ID
Act, passed by Congress in 2005, established new requirements for
entering federal facilities. If your driver's license is issued by
Alaska, American Samoa, Arizona, Kentucky, Louisiana, Maine,
Massachusetts, Minnesota, Montana, New York, Oklahoma or the state of
Washington, you must present an additional form of identification to
enter the federal building. Acceptable alternative forms of
identification include: Federal employee badges, passports, enhanced
driver's licenses and military identification cards. In addition, you
will need to obtain a property pass for any personal belongings you
bring with you. Upon leaving the building, you will be required to
return this property pass to the security desk. No large signs will be
allowed in the building, cameras may only be used outside of the
building and demonstrations will not be allowed on federal property for
security reasons.
The EPA may ask clarifying questions during the oral presentations,
but will not respond to the presentations at that time. Written
statements and supporting information submitted during the comment
period will be considered with the same weight as oral comments and
supporting information presented at the public hearing. Verbatim
transcripts of the hearing and written statements will be included in
the docket for the rulemaking. The EPA will make every effort to follow
the schedule as closely as possible on the day of the hearing; however,
please plan for the hearing to run either ahead of schedule or behind
schedule.

FOR FURTHER INFORMATION CONTACT: James Belke, United States
Environmental Protection Agency, Office of Land and Emergency
Management, 1200 Pennsylvania Ave. NW. (Mail Code 5104A), Washington,
DC 20460; telephone number: (202) 564-8023; email address:
belke.jim@epa.gov, or: Kathy Franklin, United States Environmental
Protection Agency, Office of Land and Emergency Management, 1200
Pennsylvania Ave. NW. (Mail Code 5104A), Washington, DC 20460;
telephone number: (202) 564-7987; email address:
franklin.kathy@epa.gov.
Electronic copies of this Notice of Proposed Rulemaking (NPRM) and
related news releases are available on EPA's Web site at https://www.epa.gov/rmp. Copies of this NPRM are also available at https://www.regulations.gov.

SUPPLEMENTARY INFORMATION: Acronyms and Abbreviations. We use multiple
acronyms and terms in this preamble. While this list may not be
exhaustive, to ease the reading of this preamble and for reference
purposes, the EPA defines the following terms and acronyms here:

ACC American Chemistry Council

[[Page 13639]]

ACUS Administrative Conference of the United States
AFPM American Fuel & Petrochemical Manufacturers
AMWA Association of Metropolitan Water Agencies
AN ammonium nitrate
ANSI American National Standards Institute
API American Petroleum Institute
ASTM American Society for Testing and Materials
AUC Allied Universal Corp
AWWA American Water Works Association
AXPC American Exploration & Production Council
BSEE Bureau of Safety and Environmental Enforcement
BTMU Bank of Tokyo Mitsubishi
CAA Clean Air Act
CAAA Clean Air Act Amendments
CARB California Air Resources Board
CAS Chemical Abstracts Service
CBI confidential business information
CCHS Contra Costa County Health Services
CCPS Center for Chemical Process Safety
CEM European Committee for Standardization
CFATS Chemical Facility Anti-Terrorism Standards
CFR Code of Federal Regulations
CGA Compressed Gas Association
CI Chlorine Institute
CO2 Carbon dioxide
COS Center for Offshore Safety
CPCD Coalition to Prevent Chemical Disasters
CPSC Consumer Product Safety Commission
CRA Corn Refiners Association
CSAG Chemical Safety Advocacy Group
CSB Chemical Safety and Hazard Investigation Board
CSD Center for Science and Democracy
CSISSFRRA Chemical Safety Information, Site Security and Fuels
Regulatory Relief Act
DHS Department of Homeland Security
DOI Department of the Interior
EPA Environmental Protection Agency
EPCRA Emergency Planning & Community Right-To-Know Act
FCC Federal Communications Commission
FDA Food and Drug Administration
FEMA Federal Emergency Management Agency
FOIA Freedom of Information Act
FPC Formosa Plastics Corporation
FR Federal Register
FRP facility response plan
GHG greenhouse gas
GHS Globally Harmonized System of Classification and Labelling of
Chemicals
GPA Gas Processors Association
HAZOP hazard and operability study
HF hydrofluoric acid
IPAA Independent Petroleum Association of America
ISD inherently safer design
ISO industrial safety ordinance
ISOM isomerization
ISS inherently safer strategies
IST inherently safer technology
LEPC local emergency planning committee
LPG liquefied petroleum gas
MACT maximum achievable control technology
MIC methyl isocyanate
MKOPSC Mary Kay O'Connor Process Safety Center
MOC management of change
NACD National Association of Chemical Distributors
NAICS North American Industrial Classification System
NAM National Association of Manufacturers
NAS National Academy of Sciences
NASTTPO National Association of SARA Title III Program Officials
NIST National Institute of Standards and Technology
NJDEP New Jersey Department of Environmental Protection
NOPA National Oilseed Processors Association
NPRM Notice of Proposed Rulemaking
NRC Nuclear Regulatory Commission
NSPS New Source Performance Standards
NTTAA National Technology Transfer Advancement Act
NYDFS New York State Department of Financial Services
OCA offsite consequences analysis
OCS outer continental shelf
OHMERC Oklahoma Hazardous Materials Emergency Response Commission
OMB Office of Management and Budget
OSHA Occupational Safety and Health Administration
PCAOB Public Company Accounting Oversight Board
PE professional engineer
PHA process hazard analysis
PRA Paperwork Reduction Act
PREP preparedness for response exercise program
PSI process safety information
PSM process safety management
PSSAP Process Safety Site Assessment Program
PVC polyvinyl chloride
PwC PricewaterhouseCoopers
RAGAGEP recognized and generally accepted good engineering practices
RCRA Resource Conservation and Recovery Act
RFA Regulatory Flexibility Act
RFI request for information
RMP Risk Management Plan
SARA Superfund Amendments and Reauthorization Act
SBAR Small Business Advocacy Review
SBREFA Small Business Regulatory Enforcement Fairness Act
SDS safety data sheet
SDWA Safe Drinking Water Act
SEC Securities and Exchange Commission
SEMS Safety and Environmental Management Systems
SER small entity representative
SERC state emergency response commission
SOCMA Society of Chemical Manufacturers and Affiliates
SOP standard operating procedure
STAA safer technology and alternatives analysis
TCPA Toxic Catastrophe Prevention Act
TEPC tribal emergency planning committees
TERC tribal emergency response commission
TPA Texas Pipeline Association
TQ threshold quantity
TSCA Toxic Substances Control Act
UMRA Unfunded Mandates Reform Act
USCG United States Coast Guard
UST underground storage tank
USW United Steel Workers
VCM vinyl chloride monomer
VCS voluntary census standards

Organization of this Document. The contents of this preamble are:

I. General Information
A. Executive Summary
B. Does this action apply to me?
II. Background
III. Additional Information
A. What actions are not addressed in this rule?
B. What is the agency's authority for taking this action?
IV. Prevention Program Requirements
A. Incident Investigation and Accident History Requirements
B. Third-Party Compliance Audits
C. Safer Technology and Alternatives Analysis (STAA)
D. Stationary Source Location and Emergency Shutdown
V. Emergency Response Preparedness Requirements
A. Emergency Response Program Coordination With Local Responders
B. Facility Exercises
VI. Information Availability Requirements
A. Proposed Public Disclosure Requirements to LEPCs or Emergency
Response Officials
B. Proposed Revisions to Requirements for Information
Availability to the Public
C. Alternative Options
VII. Risk Management Plan Streamlining, Clarifications, and RMP Rule
Technical Corrections
A. Deletions From Subpart G
B. Revisions to Subpart G
C. Additions to Subpart G
D. Proposed Amendments and Technical Corrections
VIII. Compliance Dates
IX. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act (UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
H. Executive Order 13211: Actions That Significantly Affect
Energy Supply, Distribution or Use
I. National Technology Transfer and Advancement Act (NTTAA)
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations

[[Page 13640]]

I. General Information

A. Executive Summary

1. Purpose of the Regulatory Action
The purpose of this action is to improve safety at facilities that
use and distribute hazardous chemicals. In response to catastrophic
chemical facility incidents in the United States, including the
explosion that occurred at the West Fertilizer facility in West, Texas,
on April 17, 2013 that killed 15 people, President Obama issued
Executive Order 13650, ``Improving Chemical Facility Safety and
Security,'' on August 1, 2013.\1\
---------------------------------------------------------------------------

\1\ For more information on the Executive Order see https://www.whitehouse.gov/the-press-office/2013/08/01/executive-order-improving-chemical-facility-safety-and-security.
---------------------------------------------------------------------------

Section 6(a)(i) of Executive Order 13650 requires that various
Federal agencies develop options for improved chemical facility safety
and security that identify ``improvements to existing risk management
practices through agency programs, private sector initiatives,
Government guidance, outreach, standards, and regulations.'' One agency
program presently in existence is the Risk Management Program
implemented by EPA under section 112(r) of the Clean Air Act (42 U.S.C.
7412(r)). Section 6(c) of Executive Order 13650 requires the
Administrator of EPA to review the chemical hazards covered by the Risk
Management Program and expand, implement and enforce the Risk
Management Program to address any additional hazards. As part of this
effort to solicit comments and information from the public regarding
potential changes to EPA's Risk Management Program regulations (40 CFR
part 68), on July 31, 2014, EPA published a ``Request for Information''
notice or ``RFI'' (79 FR 44604).
EPA believes that the Risk Management Program regulations have been
effective in preventing and mitigating chemical accidents in the United
States. However, EPA believes that revisions could further protect
human health and the environment from chemical hazards through
advancement of process safety management based on lessons learned.
These revisions are a result of a review of the existing Risk
Management Program and information gathered from the RFI and Executive
Order listening sessions.
2. Summary of the Major Provisions of the Regulatory Action
This action proposes to amend EPA's Risk Management Program
regulations at 40 CFR part 68. These regulations apply to stationary
sources (also referred to as ``facilities'') that hold specific
``regulated substances'' in excess of threshold quantities. These
facilities are required to assess their potential release impacts,
undertake steps to prevent releases, plan for emergency response to
releases, and summarize this information in a risk management plan
(RMP) submitted to EPA. The release prevention steps vary depending on
the type of process, but progressively gain specificity and rigor over
three program levels (i.e., Program 1, Program 2, and Program 3).
The major provisions of this proposed rule include several changes
to the accident prevention program requirements, as well as
enhancements to the emergency response requirements, and improvements
to the public availability of chemical hazard information. Each of
these proposed revisions is introduced in the following paragraphs of
this section and described in greater detail in sections IV through VI,
later in this document.
Certain proposed provisions would apply to a subset of the
processes based on program levels described in 40 CFR part 68 (or in
one case, to a subset of processes within a program level). A full
description of these program levels is provided in section II of this
document.
a. Accident Prevention Program Revisions
This action proposes three changes to the accident prevention
program requirements. First, the proposed rule would require all
facilities with Program 2 or 3 processes to conduct a root cause
analysis as part of an incident investigation of a catastrophic release
or an incident that could have reasonably resulted in a catastrophic
release (i.e., a near-miss). This provision is intended to reduce the
number of chemical accidents by requiring facilities to identify the
underlying causes of an incident so that they may be addressed.
Identifying the root causes, rather than isolating and correcting
solely the immediate cause of the incident, will help prevent similar
incidents at other locations, and will yield the maximum benefit or
lessons learned from the incident investigation.
Second, the proposed rule would require regulated facilities with
Program 2 or 3 processes to contract with an independent third-party to
perform a compliance audit after the facility has a reportable release.
Compliance audits are required under the existing rule, but are allowed
to be self-audits (i.e., performed by the owner or operator of the
regulated facility). This provision is intended to reduce the risk of
future accidents by requiring an objective auditing process to
determine whether the owner or operator of the facility is effectively
complying with the accident prevention procedures and practices
required under 40 CFR part 68.
The third proposed revision to the prevention program would add an
element to the process hazard analysis (PHA), which is updated every
five years. Specifically, owners or operators of facilities with
Program 3 regulated processes in North American Industrial
Classification System (NAICS) codes 322 (paper manufacturing), 324
(petroleum and coal products manufacturing), and 325 (chemical
manufacturing) would be required to conduct a safer technology and
alternatives analysis (STAA) as part of their PHA, and to evaluate the
feasibility of any inherently safer technology (IST) identified. The
current PHA requirements include consideration of active, passive, and
procedural measures to control hazards. The proposed modernization
effort continues to support the analysis of those measures and adds
consideration of IST alternatives. The proposed provision is intended
to reduce the risk of serious accidental releases by requiring
facilities in these sectors to conduct a careful examination of
potentially safer technology and designs that they could implement in
lieu of, or in addition to, their current technologies. Data compiled
from RMPs suggest processes in these NAICS codes have a
disproportionate share of reportable releases.
At this time, EPA is not proposing any additional requirements
either for location of stationary sources (related to their proximity
to public receptors) or emergency shutdown systems. However, EPA seeks
comment on whether such requirements should be considered for future
rulemakings, including the scope of such requirements, or whether the
Agency should publish guidance.
b. Emergency Response Enhancements
This action also proposes to enhance the rule's emergency response
requirements. Owners or operators of all facilities with Program 2 or 3
processes would be required to coordinate with the local emergency
response agencies at least once a year to ensure that resources and
capabilities are in place to respond to an accidental release of a
regulated substance. As a result of improved coordination between
facility owners and operators and local emergency response officials,
EPA believes that some facilities that are currently designated as non-
responding facilities may become responding

[[Page 13641]]

facilities (i.e., develop an emergency response program in accordance
with Sec. 68.95).
Additionally, all facilities with Program 2 or 3 processes would be
required to conduct notification exercises annually to ensure that
their emergency contact information is accurate and complete. This
provision is intended to reduce the impact of accidents by ensuring
that appropriate mechanisms and processes are in place to notify local
responders when an accident occurs. One of the factors that can
contribute to the severity of chemical accidents is a lack of effective
coordination between a facility and local emergency responders.
Increasing such coordination and establishing appropriate emergency
response procedures can help reduce the effects of accidents.
This action also proposes to require that all facilities subject to
the emergency response program requirements of subpart E of the rule
(or ``responding facilities'') conduct a full field exercise at least
once every five years and one tabletop exercise annually in the other
years. Responding facilities that have an RMP reportable accident would
also have to conduct a full field exercise within a year of the
accident. The purpose of this provision is to reduce the impact of
accidents by ensuring that emergency response personnel understand
their roles in the event of an incident, that local responders are
familiar with the hazards at a facility, and that the emergency
response plan is up-to-date. Improved coordination with emergency
response personnel will better prepare responders to respond
effectively to an incident and take steps to notify the community of
appropriate actions, such as shelter-in-place or evacuation.
c. Enhanced Availability of Information
This action proposes various enhancements to the public
availability of chemical hazard information. The proposed rule would
require all facilities to provide certain basic information to the
public through easily accessible means such as a facility Web site. If
no Web site exists, the owner or operator may provide the information
at public libraries or government offices, or use other means
appropriate for particular locations and facilities. In addition, a
subset of facilities would be required, upon request, to provide the
Local Emergency Planning Committee (LEPC), Tribal Emergency Planning
Committee (TEPC) \2\ or other local emergency response agencies with
summaries related to: Their activities on compliance audits (facilities
with Program 2 and Program 3 processes); emergency response exercises
(facilities with Program 2 and Program 3 processes); accident history
and investigation reports (all facilities that have had RMP reportable
accidents); and any ISTs implemented at the facility (a subset of
Program 3 processes). The proposed rule would also require all
facilities to hold a public meeting for the local community within a
specified timeframe after an RMP reportable accident. This provision
will ensure that first responders and members of the community have
easier access to appropriate facility chemical hazard information,
which can significantly improve emergency preparedness and their
understanding of how the facility is addressing potential risks.
---------------------------------------------------------------------------

\2\ Note for the purposes of this document the term TEPC can be
substituted for LEPC, as appropriate.
---------------------------------------------------------------------------

In addition to the major provisions described previously in this
section, this action proposes revisions to clarify or simplify the RMP
submission. These changes are intended to reduce the compliance burden
on facilities and increase their understanding of the RMP requirements.
We are also proposing technical corrections to various provisions of
the rule.
3. Costs and Benefits
a. Summary of Potential Costs
Approximately 12,500 facilities have filed current RMPs with EPA
and are potentially affected by the proposed rule changes. These
facilities range from petroleum refineries and large chemical
manufacturers to water and wastewater treatment systems; chemical and
petroleum wholesalers and terminals; food manufacturers, packing
plants, and other cold storage facilities with ammonia refrigeration
systems; agricultural chemical distributors; midstream gas plants; and
a limited number of other sources, including Federal installations,
that use RMP-regulated substances.
Table 1 presents the number of facilities according to the latest
RMP reporting as of February 2015 by industrial sector and chemical
use.

Table 1--Number of Affected Facilities by Sector
----------------------------------------------------------------------------------------------------------------
Total
Sector NAICS codes facilities Chemical uses
----------------------------------------------------------------------------------------------------------------
Administration of environmental 924...................... 1,923 Use chlorine and other
quality programs (i.e., governments). chemicals for treatment.
Agricultural chemical distributors/ 111, 112, 115, 42491..... 3,667 Store ammonia for sale; some
wholesalers. in NAICS 111 and 115 use
ammonia as a refrigerant.
Chemical manufacturing................ 325...................... 1,466 Manufacture, process, store.
Chemical wholesalers.................. 4246..................... 333 Store for sale.
Food and beverage manufacturing....... 311, 312................. 1,476 Use--mostly ammonia as a
refrigerant.
Oil and gas extraction................ 211...................... 741 Intermediate processing
(mostly regulated flammable
substances and flammable
mixtures).
Other................................. 44, 45, 48, 54, 56, 61, 248 Use chemicals for wastewater
72. treatment, refrigeration,
store chemicals for sale.
Other manufacturing................... 313, 326, 327, 33........ 384 Use various chemicals in
manufacturing process, waste
treatment.
Other wholesale....................... 423, 424................. 302 Use (mostly ammonia as a
refrigerant).
Paper manufacturing................... 322...................... 70 Use various chemicals in pulp
and paper manufacturing.
Petroleum and coal products 324...................... 156 Manufacture, process, store
manufacturing. (mostly regulated flammable
substances and flammable
mixtures).
Petroleum wholesalers................. 4247..................... 276 Store for sale (mostly
regulated flammable
substances and flammable
mixtures).

[[Page 13642]]

Utilities............................. 221 (except 22131, 22132) 343 Use chlorine (mostly for
water treatment).
Warehousing and storage............... 493...................... 1,056 Use mostly ammonia as a
refrigerant.
Water/wastewater Treatment Systems.... 22131, 22132............. 102 Use chlorine and other
chemicals.
----------------
Total............................. ......................... 12,542
----------------------------------------------------------------------------------------------------------------

Table 2 presents a summary of the annualized costs estimated in the
regulatory impact analysis.\3\ In total, EPA estimates annualized costs
of $158.3 million at a 3% discount rate and $161.0 million at a 7%
discount rate.
---------------------------------------------------------------------------

\3\ A full description of costs and benefits for this proposed
rule can be found in the Regulatory Impact Analysis for Proposed
Revisions to the Accidental Release Prevention Requirements: Risk
Management Programs Under the Clean Air Act, Section 112(r)(7). This
document is available in the docket for this rulemaking (Docket ID
Number EPA-HQ-OEM-2015-0725).

Table 2--Summary of Annualized Costs
[Millions, 2014 dollars]
------------------------------------------------------------------------
Provision 3 (percent) 7 (percent)
------------------------------------------------------------------------
Third-party Audits...................... $5.0 $5.0
Incident Investigation/Root Cause....... 0.8 0.8
STAA.................................... 34.8 34.8
Coordination............................ 6.3 6.3
New Responders *........................ 33.0 35.6
Notification Exercises.................. 1.4 1.4
Facility Exercises...................... 60.7 60.7
Information Sharing (LEPC).............. 11.7 11.7
Information Sharing (Public)............ 4.0 4.0
Public Meeting.......................... 0.4 0.4
Rule Familiarization.................... 0.3 0.3
-------------------------------
Total Cost \+\...................... 158.3 161.0
------------------------------------------------------------------------
* Reflects costs for some facilities to convert from ``non-responding''
to ``responding'' as a result of improved coordination with local
emergency response officials.
+ Totals may not sum due to rounding.

The largest average annual cost of the proposed rule is the
exercise costs for current responders ($60.7 million), followed by new
responders (facilities that will comply with the emergency response
program requirements of Sec. 68.95 as a result of local coordination
activities or receiving a written request from the facility's LEPC)
($35.6 million), STAA ($34.8 million), and information sharing (LEPC)
($11.7 million). The remaining provisions impose average annual costs
under $10 million each, including coordination ($6.3 million), third-
party audits ($5.0 million), information sharing (public) ($4.0
million), notification exercises ($1.4 million), incident
investigation/root cause analysis ($0.8 million), public meetings ($0.4
million), and rule familiarization ($0.3 million).
b. Summary of Potential Benefits
EPA anticipates that promulgation and implementation of this rule
would result in a reduction of the frequency and magnitude of damages
from releases. Accidents and releases from RMP facilities occur every
year, causing fires and explosions; damage to property; acute and
chronic exposures of workers and nearby residents to hazardous
materials, and resulting in serious injuries and death. Although we are
unable to quantify what specific reductions may occur as a result of
these proposed revisions, we are able to present data on the total
damages that currently occur at RMP facilities each year. The data
presented is based on a 10-year baseline period, summarizing RMP
accident impacts and, when possible, monetizing them. EPA expects that
some portion of future damages would be prevented through
implementation of a final rule. Table 3 presents a summary of the
quantified damages identified in the analysis.

Table 3--Summary of Quantified Damages
[2014 dollars]
----------------------------------------------------------------------------------------------------------------
Average/
Unit value 10-Year total Average/ year accident
----------------------------------------------------------------------------------------------------------------
On-site
----------------------------------------------------------------------------------------------------------------
Fatalities...................................... $8,583,113 $497,820,554 $49,782,055 $328,161
Injuries........................................ 50,000 105,150,000 10,515,000 69,314
Property Damage................................. .............. 2,054,895,236 205,489,524 1,354,578
---------------------------------------------------------------

[[Page 13643]]

On-site Total............................... .............. 2,657,865,790 265,786,579 1,752,053
----------------------------------------------------------------------------------------------------------------
Offsite
----------------------------------------------------------------------------------------------------------------
Fatalities...................................... $8,583,113 $8,583,113 $858,311 $5,658
Hospitalizations................................ 36,000 6,804,000 680,400 4,485
Medical Treatment............................... 1,000 14,807,000 1,480,700 9,761
Evacuations..................................... 181 6,992,327 699,233 4,609
Sheltering in Place............................. 91 40,920,849 4,092,085 26,975
Property Damage................................. .............. 11,352,105 1,135,211 7,483
---------------------------------------------------------------
Offsite Total............................... .............. 89,459,394 8,945,939 58,971
---------------------------------------------------------------
Total................................... .............. 2,747,325,184 274,732,518 1,811,024
----------------------------------------------------------------------------------------------------------------

EPA monetized both on-site and offsite damages. EPA estimated total
average annual on-site damages of $265.8 million. The largest monetized
average annual on-site damage was on-site property damage, which
resulted in average annual damage of approximately $205.5 million. The
next largest impact was on-site fatalities ($49.8 million) and injuries
($10.5 million).
EPA estimated total average annual offsite damages of $8.9 million.
The largest monetized average annual offsite damage was from sheltering
in place ($4.1 million), followed by medical treatment ($1.5 million),
property damage ($1.1 million), fatalities ($0.9 million), evacuations
($0.7 million), and hospitalizations ($0.7 million).
In total, EPA estimated monetized damages from RMP facility
accidents of $275 million per year. However, the monetized impacts omit
many important categories of accident impacts including lost
productivity, the costs of emergency response, transaction costs,
property value impacts in the surrounding community (that overlap with
other benefit categories), and environmental impacts. Also not
reflected in the 10-year baseline costs are the impacts of non-RMP
accidents at RMP facilities and any potential impacts of rare high
consequence catastrophes. A final omission is related to the
information provision. Reducing the probability of chemical accidents
and the severity of their impacts, and improving information disclosure
by chemical facilities, as the proposed provisions intend, would
provide benefits to potentially affected members of society.
Table 4 summarizes four broad social benefit categories related to
accident prevention and mitigation including prevention of RMP
accidents, mitigation of RMP accidents, prevention and mitigation of
non-RMP accidents at RMP facilities, and prevention of major
catastrophes. The table explains each and identifies ten associated
specific benefit categories, ranging from avoided fatalities to avoided
emergency response costs. Table 4 also highlights and explains the
information disclosure benefit category and identifies two specific
benefits associated with it: Improved efficiency of property markets
and allocation of emergency resources.

Table 4--Summary of Social Benefits of Proposed Rule Provisions
------------------------------------------------------------------------
Specific benefit
Broad benefit category Explanation categories
------------------------------------------------------------------------
Accident Prevention......... Prevention of future Reduced
Accident Mitigation......... RMP facility Fatalities.
Non-RMP accident prevention accidents. Reduced
and mitigation. Mitigation of future Injuries.
RMP facility Reduced
Avoided Catastrophes........ accidents. Property Damage.
Prevention and Fewer
mitigation of People Sheltered in
future non-RMP. Place.
accidents at RMP Fewer
facilities. Evacuations.
Prevention of rare Avoided
but extremely high Lost Productivity.
consequence events. Avoided
Emergency Response
Costs.
Avoided
Transaction Costs.
Avoided
Property Value
Impacts.*
Avoided
Environmental
Impacts.
Information Disclosure...... Provision of Improved
information to the efficiency of
public and LEPCs. property markets.
Improved
resource
allocation.
------------------------------------------------------------------------
* These impacts partially overlap with several other categories such as
reduced health and environmental impacts.

B. Does this action apply to me?

This rule applies to those facilities (referred to as ``stationary
sources'' under the CAA) that are subject to the chemical accident
prevention requirements at 40 CFR part 68. This includes stationary
sources holding more than a threshold quantity (TQ) of a regulated
substance in a process. Table 5 below provides industrial sectors and
the associated NAICS codes for entities potentially affected by this
action. The Agency's goal is to provide a guide for readers to consider
regarding entities that potentially could be affected by this action.
However, this action may affect other entities not listed in this
table. If you have questions regarding the applicability of this action
to a particular entity, consult the person(s) listed in the
introductory section of this action under the heading entitled FOR
FURTHER INFORMATION CONTACT.

[[Page 13644]]

Table 5--Industrial Sectors and Associated NAICS Codes for Entities Potentially Affected by Proposed Action
----------------------------------------------------------------------------------------------------------------
Sector NAICS Code
----------------------------------------------------------------------------------------------------------------
Administration of Environmental Quality 924.
Programs.
Agricultural Chemical Distributors:
Animal Production and Aquaculture.. 112.
Crop Production.................... 111.
Farm Supplies Merchant Wholesalers. 42491.
Support Activities for Agriculture 115.
and Forestry.
Beverage Manufacturing................. 3121.
Food Manufacturing..................... 311.
Chemical and Allied Products Merchant 4246.
Wholesalers.
Chemical Manufacturing................. 325.
Oil and Gas Extraction................. 211.
Other \4\.............................. 313, 326, 327, 33, 44, 45, 48, 54, 56, 61, 72.
Other Wholesale:
Merchant Wholesalers, Durable Goods 423.
Merchant Wholesalers, Nondurable 424.
Goods.
Paper Manufacturing.................... 322.
Petroleum and Coal Products 324.
Manufacturing.
Petroleum and Petroleum Products 4247.
Merchant Wholesalers.
Utilities.............................. 221 (except 22131 and 22132 described below).
Warehousing and Storage................ 493.
Water/Wastewater Treatment Systems:
Sewage Treatment Facilities........ 22132.
Water Supply and Irrigation Systems 22131.
----------------------------------------------------------------------------------------------------------------

II. Background

Recent catastrophic chemical facility incidents in the United
States prompted President Obama to issue Executive Order 13650,
``Improving Chemical Facility Safety and Security,'' on August 1,
2013.\5\ The purpose of the Executive Order is to enhance the safety
and security of chemical facilities and reduce risks associated with
hazardous chemicals to owners and operators, workers, and communities.
The Executive Order establishes the Chemical Facility Safety and
Security Working Group (``Working Group''), co-chaired by the Secretary
of Homeland Security, the Administrator of EPA, and the Secretary of
Labor or their designated representatives at the Assistant Secretary
level or higher, and composed of senior representatives of other
Federal departments, agencies, and offices. The Executive Order
requires the Working Group to carry out a number of tasks whose overall
aim is to prevent chemical accidents, such as the explosion that
occurred at the West Fertilizer facility in West, Texas, on April 17,
2013.\6\ In addition to the tragedy at the West Fertilizer facility, a
number of other incidents have demonstrated a significant risk to the
safety of American workers and communities. On March 23, 2005,
explosions at the BP Refinery in Texas City, Texas, killed 15 people
and injured more than 170 people.\7\ On April 2, 2010, an explosion and
fire at the Tesoro Refinery in Anacortes, Washington, killed seven
people.\8\ On August 6, 2012, at the Chevron Refinery in Richmond,
California, a fire involving flammable fluids endangered 19 Chevron
employees and created a large plume of highly hazardous chemicals that
traveled across the Richmond, California, area.\9\ Nearly 15,000
residents sought medical treatment due to the release. On June 13,
2013, a fire and explosion at Williams Olefins in Geismar, Louisiana,
killed two people and injured many more.\10\
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\4\ For descriptions of NAICS codes, see https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\5\ For more information on the Executive Order see https://www.whitehouse.gov/the-press-office/2013/08/01/executive-order-improving-chemical-facility-safety-and-security.
\6\ CSB. January 2016. Final Investigation Report, West
Fertilizer Company Fire and Explosion, West, TX, April 17, 2013.
REPORT 2013-02-I-TX. https://www.csb.gov/west-fertilizer-explosion-and-fire-/.
\7\ U.S. Chemical Safety and Hazard Investigation Board (CSB).
March 2007. Investigation Report: Refinery Explosion and Fire, BP,
Texas City, Texas, March 23, 2005. Report No. 2005-04-I-TX. https://www.csb.gov/assets/1/19/CSBFinalReportBP.pdf.
\8\ CSB. May 2014. Investigation Report: Catastrophic Rupture of
Heat Exchanger, Tesoro Anacortes Refinery, Anacortes, Washington,
April 2, 2010. Report No. 2010-08-I-WA. https://www.csb.gov/assets/1/7/Tesoro_Anacortes_2014-May-01.pdf.
\9\ CSB. January 2014. Regulatory Report: Chevron Richmond
Refinery Pipe Rupture and Fire, Chevron Richmond Refinery #4 Crude
Unit, Richmond, California, August 6, 2012. Report No. 2012-03-I-CA.
https://www.csb.gov/assets/1/19/CSB_Chevron_Richmond_Refinery_Regulatory_Report.pdf.
\10\ CSB. June 27, 2013. Testimony of Rafael Moure-Eraso, Ph.D.
Chairperson, CSB Before the U.S. Senate Committee on Environment and
Public Works, pg. 8. https://www.csb.gov/assets/1/19/CSB_Written_Senate_Testimony_6.27.13.pdf.
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Section 6 of the Executive Order is entitled ``Policy, Regulation,
and Standards Modernization.'' This section, among other things,
requires certain Federal agencies to consider possible changes to
existing chemical safety and security regulations. To solicit comments
and information from the public regarding potential changes to EPA's
Risk Management Program regulations (40 CFR part 68), on July 31, 2014,
EPA published an RFI (79 FR 44604). Information collected through the
RFI has informed this proposal. Readers are encouraged to review the
RFI, as this action will not reiterate the full discussion of all of
its topics.
EPA received a total of 579 public comments on the RFI. Several
public comments were the result of various mass mail campaigns and
contained numerous copies of letters or petition signatures.
Approximately 99,710 letters and signatures were contained in these
several comments. Discussion of RFI public comments pertaining to
topics included in this proposal can be found below in section IV.
Prevention Program Requirements, section V. Emergency Response
Preparedness Requirements and section VI. Information Availability
Requirements.
EPA seeks comment on the proposed amendments. Any suggestions for
alternative options should include an appropriate rationale and
supporting data for the Agency to be able to consider it for a final
action.

[[Page 13645]]

A. Overview of EPA's Risk Management Program Regulations

Both EPA's 40 CFR part 68 RMP regulation \11\ and Occupational
Safety and Health Administration's (OSHA) 29 CFR 1910.119 Process
Safety Management (PSM) standard were authorized in the Clean Air Act
Amendments of 1990 (1990 CAAA). This was in response to a number of
catastrophic chemical accidents occurring worldwide that had resulted
in public and worker fatalities and injuries, environmental damage, and
other community impacts. OSHA published the PSM standard in 1992 (57 FR
6356, February 24, 1992), as required by section 304 of the 1990 CAAA,
using its authority under 29 U.S.C. 653.
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\11\ 40 CFR part 68 is titled, ``Chemical Accident Prevention
Provisions,'' but is more commonly known as the ``RMP regulation,''
the ``RMP rule,'' or the ``Risk Management Program.'' This document
uses all three terms to refer to 40 CFR part 68. The term ``RMP''
refers to the document required to be submitted under subpart F of
40 CFR part 68, the Risk Management Plan. See https://www2.epa.gov/rmp for more information on the Risk Management Program.
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The 1990 CAAA added accidental release provisions under section
112(r). The statute required EPA to develop a list of at least 100
regulated substances for accident prevention and related thresholds
(CAA section 112(r)(3) through (5)), and authorized EPA to issue
accident prevention regulations (CAA section 112(r)(7)(A)). The statute
also required EPA to develop ``reasonable regulations'' requiring
facilities with over a TQ of a regulated substance to undertake
accident prevention steps and submit a ``risk management plan'' to
various local, state, and Federal planning entities (CAA section
112(r)(7)(B)).
EPA published the RMP regulation in two stages. The Agency
published the list of regulated substances and TQs in 1994 (59 FR 4478,
January 31, 1994) (the ``list rule'') \12\ and published the RMP final
regulation, containing risk management requirements for covered
sources, in 1996 (61 FR 31668, June 20, 1996) (the ``RMP
rule'').^{13 14} Both the OSHA PSM standard and the EPA RMP
rule aim to prevent or minimize the consequences of accidental chemical
releases through implementation of management program elements that
integrate technologies, procedures, and management practices. In
addition to requiring implementation of management program elements,
the RMP rule requires covered sources to submit (to EPA) a document
summarizing the source's risk management program--called a Risk
Management Plan (or RMP). The RMP rule required covered sources to
comply with its requirements and submit initial RMPs to EPA by June 21,
1999. Each RMP must be revised and updated at least once every five
years from the date the plan was initially submitted.
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\12\ Documents and information related to development of the
list rule can be found in the EPA docket for the rulemaking, docket
number A-91-74.
\13\ Documents and information related to development of the RMP
rule can be found in EPA docket number A-91-73.
\14\ 40 CFR part 68 applies to owners and operators of
stationary sources that have more than a TQ of a regulated substance
within a process. The regulations do not apply to chemical hazards
other than listed substances held above a TQ within a regulated
process.
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EPA later revised the list rule and the RMP rule. EPA modified the
regulated list of substances by exempting solutions with less than 37%
concentrations of hydrochloric acid (62 FR 45130, August 25, 1997). EPA
also deleted the category of Department of Transportation Division 1.1
explosives, and exempted flammable substances in gasoline used as fuel
and in naturally occurring hydrocarbon mixtures prior to initial
processing (63 FR 640, January 6, 1998).
EPA subsequently modified the RMP rule five times. First, in 1999,
EPA revised the facility identification data and contact information
reported in the RMP (64 FR 964, January 6, 1999). Next, EPA revised
assumptions for the worst case scenario analysis for flammable
substances and clarified what the Agency means by chemical storage not
incidental to transportation (64 FR 28696, May 26, 1999). After the
Chemical Safety Information, Site Security and Fuels Regulatory Relief
Act (CSISSFRRA) was enacted on August 5, 1999, EPA excluded regulated
flammable substances when used as a fuel or held for sale as a fuel at
a retail facility (65 FR 13243, March 13, 2000). Later, EPA restricted
access to offsite consequence analysis (OCA) data for the public and
government officials to minimize the security risks associated with
posting the information on the Internet (65 FR 48108, August 4, 2000).
Finally, EPA revised the RMP executive summary to remove a requirement
to describe the OCA; revised reporting deadlines for RMP reportable
accidents and emergency contact changes; and made other minor revisions
to RMP facility contact information (69 FR 18819, April 8, 2004).
The RMP rule establishes three ``program levels'' for regulated
processes:
Program 1 applies to processes that would not affect the public in
the case of a worst-case release and that have had no accidents with
specific offsite consequences within the past five years. Program 1
imposes limited hazard assessment requirements, requires coordination
with local response agencies, and requires submission of an RMP.
Program 2 applies to processes not eligible for Program 1 or
subject to Program 3, and imposes streamlined prevention program
requirements, including safety information, hazard review, operating
procedures, training, maintenance, compliance audits, and incident
investigation elements. Program 2 also imposes additional hazard
assessment, management, and emergency response requirements.
Program 3 applies to processes not eligible for Program 1 and
either subject to OSHA's PSM standard under Federal or state OSHA
programs or classified in one of ten specified industry sectors
identified by their 2002 NAICS codes listed at Sec. 68.10(d)(1). These
industries were selected because they had a higher frequency of the
most serious accidents as compared to other industry sectors. The ten
NAICS codes and the industries they represent are 32211 (pulp mills),
32411 (petroleum refineries), 32511 (petrochemical manufacturing),
325181 (alkalies and chlorine manufacturing), 325188 (all other basic
inorganic chemical manufacturing), 325192 (cyclic crude and
intermediate manufacturing), 325199 (all other basic chemical
manufacturing), 325211 (plastics material and resin manufacturing),
325311 (nitrogenous fertilizer manufacturing), or 32532 (pesticide and
other agricultural chemicals manufacturing).\15\ Program 3 imposes
elements nearly identical to those in OSHA's PSM standard as the
accident prevention program. The Program 3 prevention program includes
requirements relating to process safety information (PSI), PHA,
operating procedures, training, mechanical integrity, management of
change (MOC), pre-startup review, compliance audits, incident
investigations, employee participation, hot work permits, and
contractors. Program 3 also imposes the same hazard assessment,
management, and emergency response requirements that are required for
Program 2.
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\15\ NAICS codes 325181 and 325188 are now combined and
represented as 2012 revised NAICS code 325180 (other basic inorganic
chemical manufacturing). NAICS code 325192 is now 2012 revised NAICS
code 325194 (cyclic crude, intermediate, and gum and wood chemical
manufacturing).
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On July 22, 2015, OSHA issued a revised interpretation to its PSM
retail exemption at 29 CFR 119(a)(2)(i).\16\ This

[[Page 13646]]

interpretation now only allows facilities in NAICS codes 44 and 45, the
retail trade, to be eligible for the retail exemption. As a result of
this change, many agricultural chemical distributors who sell bulk
anhydrous ammonia and some chemical warehouses, are no longer exempt
from the PSM standard. This makes them subject to RMP Program 3
requirements, whereas before most were covered under Program 2.
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\16\ See OSHA PSM Retail Exemption Policy https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=INTERPRETATIONS&p_id=29528.
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EPA believes the RMP rule has been effective in preventing and
mitigating chemical accidents in the United States and protecting human
health and the environment from chemical hazards. However, major
incidents, such as the West, Texas, explosion, highlight the importance
of reviewing and evaluating current practices and regulatory
requirements, and applying lessons learned from other incident
investigations to advance process safety where needed.

III. Additional Information

A. What actions are not addressed in this rule?

Under section 6 of Executive Order 13650, ``Improving Chemical
Facility Safety and Security,'' the Executive Order Working Group
(chaired by EPA, OSHA, and Department of Homeland Security [DHS]) was
tasked with enhancing safety at chemical facilities by identifying key
improvements to existing risk management practices through guidance,
policies, procedures, outreach, and regulations. As part of this task,
the Working Group solicited public comment on potential options for
improving chemical facility safety. Additionally, EPA gathered
information from the public regarding potential changes to EPA's Risk
Management Program regulations (40 CFR part 68) via a RFI (79 FR 44604,
July 31, 2014). Using the results from these efforts as well as
information collected through implementing the Risk Management Program,
EPA is proposing revisions to the RMP rule to advance chemical facility
safety. However, this proposed rule does not address all of the topics
included in the RFI. For example, EPA is not proposing any revisions to
the list of regulated substances and is therefore not addressing
ammonium nitrate (AN) in this proposed rule. EPA may propose listing
additional hazardous substances in a separate action.
Currently AN is not listed as a regulated substance under the RMP
rule or the OSHA PSM standard. Required safe handling and storage
practices for AN are covered under OSHA's Explosives and Blasting
Agents Standard (29 CFR 1910.109) and includes coverage of fertilizer
grade AN in section 1910.109(i). Section 1910.109(k)(2) requires that
manufacturing of explosives must meet requirements under OSHA's PSM
standard (29 CFR 1910.119); this would include any explosive
manufacturing process involving AN. OSHA is considering whether AN
should be added to the Sec. 1910.119 Appendix A list of chemicals
subject to the PSM standard, which could expand the standard's
applicability to include processes at fertilizer mixers, distributors
and wholesalers who store and handle AN. OSHA is also considering
whether to make changes to the AN storage and handling requirements in
their Explosives and Blasting Agents standard, which has requirements
for AN stored with and without, explosives and blasting agents. DHS is
considering potential modifications of its Chemical Facility Anti-
Terrorism Standards (CFATS) regulation, including reviewing the
applicability and/or modification of screening TQs for chemicals of
interest in Appendix A in 6 CFR part 27, which include AN (79 FR 48693,
August 18, 2014).\17\ We plan to coordinate any potential change to the
list of substances 40 CFR part 68 with the actions of these other
agencies. Therefore, EPA is not presently proposing that AN be added to
the list of substances subject to the RMP rule, but the Agency may
elect to propose such a listing at a later date.
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\17\ CFATS. 79 FR 48693, August 18, 2014. https://www.regulations.gov/#!documentDetail;D=DHS-2014-0016-0001.
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B. What is the agency's authority for taking this action?

The statutory authority for this action is provided by section
112(r) of the CAA as amended (42 U.S.C. 7412(r)). Each of the portions
of the Risk Management Program rule we propose to modify in this
document are based on EPA's rulemaking authority under section
112(r)(7) of the CAA (42 U.S.C. 7412(r)(7)). A more detailed discussion
of the underlying statutory authority for the current requirements of
the Risk Management Program rule appears in the action that proposed
the Risk Management Program (58 FR 54190, 54191-93 [Oct. 20, 1993]).
The prevention program provisions discussed below (auditing, incident
investigation, and safer technologies alternatives analysis) address
the ``prevention and detection of accidental releases.'' The emergency
coordination and exercises provisions in this rule modify existing
provisions that provide for ``response to such release by the owners or
operators of the sources of such releases.'' (CAA 112(r)(7)(B)(i)).
This paragraph calls for EPA's regulations to recognize differences in
``size, operations, processes, class and categories of sources.'' In
this document, we propose to maintain distinctions in prevention
program levels and in response actions authorized by this provision.
The information disclosure provisions discussed in this document
generally assist in the development of ``procedures and measures for
emergency response after an accidental release of a regulated substance
in order to protect human health and the environment.'' This
information disclosure ensures the emergency plans for impacts on the
community are based on more relevant and accurate information than
would otherwise be available and ensures that the public can become an
informed participant in such emergency planning.

IV. Prevention Program Requirements

A. Incident Investigation and Accident History Requirements

1. Summary of Existing Investigation Requirements
Currently, owners or operators of facilities with processes subject
to Program 2 and Program 3 are required to investigate each incident
which resulted in, or could reasonably have resulted in a catastrophic
release (Sec. Sec. 68.60 and 68.81). The RMP rule defines a
catastrophic release in Sec. 68.3 as a major uncontrolled emission,
fire, or explosion, involving one or more regulated substances that
presents an imminent and substantial endangerment to public health and
the environment. Imminent and substantial endangerment includes offsite
consequences such as death, injury, or adverse effects to human health
or the environment, or the need for the public to shelter-in-place or
be evacuated to avoid such consequences.
Facility owners or operators are required to determine the factors
that contributed to the incident and develop recommendations resulting
from the investigation. The PHA (Sec. 68.67 (c)(2)) is required to
address previous incidents which had a likely potential for
catastrophic consequences. In the preamble to the existing final rule,
EPA explained that while most catastrophic releases affect workers
first, there are incidents where workers are protected but the public
and the environment may be threatened (e.g., emergency relief devices
are designed to vent hazardous atmospheres away from the workplace

[[Page 13647]]

and into the air where they may be carried downwind). The PHA should
recognize and address the potential offsite impact associated with
safety measures that protect workers (e.g., by installing a control
device on an emergency vent). The RMP rule requires that facility
owners and operators consider such possibilities and integrate the
protection of workers, the public, and the environment into one
program. Thus, RMP facility owners and operators must investigate each
significant incident which resulted in, or could reasonably have
resulted in a catastrophic release with on- or offsite consequences.
2. Catastrophic Release Definition
In the 1996 final rule (61 FR 31687, June 20, 1996), EPA developed
a definition of catastrophic release similar to the definition OSHA
used in the PSM standard, with modifications to cover events that
presented imminent and substantial endangerment to public health and
the environment.\18\ This ensured that owners or operators of sources
covered by both OSHA and EPA requirements investigated not only
accidents that threatened workers, but also those that threatened the
public and the environment. Because EPA modified OSHA's definition of
catastrophic releases so that offsite impacts were covered, there has
been confusion among some owners and operators of facilities subject to
the RMP rule; some believe they should not have to investigate
accidents involving only workers for the purposes of fulfilling
requirements under the RMP rule. EPA recognized that the PHA process
must address potential offsite impacts associated with safety measures
that also protect workers, and that the final rule would ensure that
all sources routinely consider such possibilities and integrate
protection of workers, the public and the environment into one program.
In similar fashion, EPA believes that incident investigation was not
intended to be and should not be limited to only those incidents with
offsite impacts.
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\18\ The OSHA definition of catastrophic release is similar to
the current definition of the term in the RMP rule. However, OSHA's
definition pertains to incidents that present serious danger to
employees in the workplace. (see 29 CFR 1910.119(b) for the full
definition)
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Learning from accident causes identified from incident
investigations involving only workers can also lead to preventing
incidents with further impacts to the surrounding community and
therefore, findings and recommendations from all incidents, regardless
of who is impacted, should be addressed. In the preamble to the 1996
final RMP rule (61 FR 31711, June 20, 1996), EPA emphasized that ``any
incident with the potential for catastrophic consequences in the
workplace will also have had the potential for catastrophic
consequences offsite.'' Thus, facility owners or operators should be
investigating incidents even if they only impacted workers, as these
could have potentially been an accident impacting the public or the
environment.
EPA has not defined or clarified the term ``imminent and
substantial endangerment'' but did make revisions in the 1996 final RMP
rule in order to better define accidents to be reported under the RMP
accident history requirements. To make the requirement less vague and
less subject to a wide variety of interpretations, the final rule
required that accident history shall include all accidental releases
from covered processes ``that resulted in deaths, injuries, or
significant property damage on site, or known offsite deaths, injuries,
evacuations, sheltering in place, property damage, or environmental
damage.'' EPA also provided a definition for ``offsite'' and
``injury.''
EPA is proposing to modify the definition of catastrophic release
to be identical to the description of accidental releases required to
be reported under the accident history reporting requirements in Sec.
68.42. The proposed definition, in Sec. 68.3, replaces ``that presents
imminent and substantial endangerment to public health and the
environment'' with impacts that resulted in deaths, injuries, or
significant property damage on-site, or known offsite deaths, injuries,
evacuations, sheltering in place, property damage, or environmental
damage. This better defines the impacts for incidents requiring
investigations that caused or could have caused these impacts and
clarifies EPA's intent, rather than leaving it open for interpretation.
This is consistent with the accident impacts that must be reported
under the 5-year accident history, which EPA considered relevant to
include in 1996 ``because it may reflect safety practices at the
source'' and because ``accidental releases from covered processes which
resulted in deaths, injuries, or significant property damage on-site,
involve failures of sufficient magnitude that they have the potential
to affect offsite areas.'' \19\
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\19\ EPA. May 24, 1996. Risk Management Plan Rule, Summary and
Response to Comments. Volume 1, pp. 3-11 and 17-4. Docket No. A-91-
73, Document No. IX-C-1.
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As required by section 609(b) of the RFA, the EPA convened a Small
Business Advocacy Review (SBAR) Panel to obtain advice and
recommendations from small entity representatives (SERs) that would
potentially be subject to the rule's requirements. As part of the SBAR
Panel process, some SERs indicated that EPA's proposed modification of
the definition of catastrophic release would in effect expand that
definition, and thereby require investigation of incidents that did not
fall under the previous definition. SERs noted that EPA's current
definition includes releases that present an imminent and substantial
endangerment to public health and the environment, and that such
releases represent only ``major'' accidents, and not smaller releases
that endanger only workers or on-site property. As noted above, EPA's
view is that accidents with only on-site impacts warrant investigation
because they have the potential to affect offsite areas. Additionally,
since such accidents already clearly fall within the accident history
reporting criteria, regulated sources would already need to investigate
them, even without the incident investigation provisions, in order to
determine the accident history information required under Sec. 68.42,
which includes data (e.g., initiating event and contributing factors)
that could only be determined through an investigation. Therefore, EPA
believes that redefining the term catastrophic release to include the
categories of accidents that require reporting under the accident
history provisions clarifies, rather than expands, that definition.
Nevertheless, EPA seeks comment on the proposed revision to the
catastrophic release definition, whether it expands the scope of the
current definition instead of clarifying it, and whether the definition
should be limited to loss of life; serious injury; significant damage;
or loss of offsite property.
3. Root Causes
The cause of an incident is often the result of a series of other
problems that need to be addressed to prevent recurrences. For example,
an operator's mistake may be the result of poor training, inappropriate
procedures, or poor design of control systems; and equipment failure
may result from improper maintenance, misuse of equipment (e.g.,
operating at too high a temperature), or use of incompatible materials.
These types of causes are commonly referred to as causal factors (also
known as contributing causes, contributory causes, contributing

[[Page 13648]]

factors, or critical factors). The Center for Chemical Process Safety
(CCPS) defines a causal factor as a major unplanned, unintended
contributor to the incident (a negative occurrence or undesirable
condition), that if eliminated would have either prevented the
occurrence, or reduced its severity or frequency.\20\ These are factors
that facilitate the occurrence of an incident such as physical
conditions and management practices. Causal or contributing factors
usually have underlying reasons why they occurred, which are known as
root causes.
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\20\ CCPS. March 2003. Guidelines for Investigating Chemical
Process Incidents, 2nd ed., pp.3, 62, 181, 434. CCPS, American
Institute of Chemical Engineers, New York, NY. John Wiley and Sons.
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Most root causes are associated with weaknesses, defects or
breakdowns in management systems.\21\ Identifying root causes provides
the mechanism for understanding the interaction and impact of system
management failures, so that the root causes can be addressed and the
maximum benefit is obtained from an incident investigation. CCPS
defines a root cause as a fundamental, underlying, system-related
reason why an incident occurred that identifies a correctable
failure(s) in management systems. There is typically more than one root
cause for a process safety incident. Correcting only the immediate
cause of an incident (e.g., operator error) may prevent the identical
incident from occurring at the same location, but may not prevent
similar incidents. Instead, identifying and addressing incident
contributing factors and their root causes helps eliminate or
substantially reduce the risk of reoccurrence of the incident and other
similar incidents. The current Risk Management Program incident
investigation requirements under Sec. Sec. 68.60 and 68.81 do not
explicitly require root causes to be determined and reported, rather
they only require ``the factors that contributed to the incident.''
Facility owners and operators that conduct incident investigations that
only identify ``factors that contributed to the incident'' may miss
identifying the underlying, system-related reason why an incident
occurred (which would be revealed in a root cause analysis). Thus EPA
is proposing to require a root cause analysis to ensure that facilities
determine the underlying causes of an incident to reduce or eliminate
the potential for additional accidents resulting from deficiencies of
the same process safety management system.
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\21\ EPA recognizes that some root causes could be events that
management systems could not have prevented or protected against.
The analytic techniques used to identify root causes account for
such events.
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4. Lack of Root Cause Analysis for Prior Incidents
Below are examples of incident investigations that identified
similar prior incidents within the same facility or company where root
causes for the prior incidents were not analyzed and determined. This
resulted in missed opportunities to address the proper causes of the
incidents, share the lessons learned and prevent further similar
incidents.
On January 21, 1997, at a Tosco refinery, effluent piping on a
hydrocracker reactor ruptured, causing an explosion and fire, killing
one operator and injuring 46 other Tosco and contractor personnel. The
accident was caused by an uncontrolled temperature excursion in the
reactor resulting in an excessively high temperature that caused the
pipe to rupture.\22\ Operators did not follow prescribed emergency
depressurizing procedures for extremely high temperature occurrences
and attempted to control the temperature by other means. Investigations
of prior incidents involving unsafe temperature excursions were
inadequate and not all these excursions were documented. Failure to
investigate these ``near-misses'' resulted in a missed opportunity to
determine why operators were not following prescribed emergency
depressurizing procedures and to develop solutions to address the
cause. After the 1997 accident, the company designed the depressurizing
system to activate automatically when the reactor temperature exceeded
safe operating limits.
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\22\ EPA. November 1998. EPA Chemical Accident Investigation
Report, Tosco Avon Refinery, Martinez, CA. EPA 550-R-98-009. https://nepis.epa.gov/Exe/ZyPDF.cgi/10003A2E.PDF?Dockey=10003A2E.PDF.
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On September 10, 1997, an explosion occurred in a resins production
unit at Georgia-Pacific Resins, Inc. in Columbus, Ohio, causing the
death of one worker, four injuries, extensive damage to the plant, and
sheltering in place for nearby residents, a vocational school and
businesses.\23\ Three firefighters received first-degree burns. An
accident investigation determined that raw materials and a catalyst
were charged too quickly to a reactor, causing a runaway reaction
generating too much heat and pressure, which caused the reactor to
explode. Prior to the accident, the facility had recently experienced a
near miss involving similar circumstances.\24\ An operator added
chemicals to a batch resin process at too high a rate. Other alert
operators noted the procedural deviation and were able to prevent an
accident. The company investigated the accident and disciplined the
operator, but took no other actions.
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\23\ EPA, Office of Solid Waste and Emergency Response. August
1999. How to Prevent Runaway Reactions, Case Study: Phenol-
Formaldehyde Reaction Hazards. EPA 550-F99-004. https://archive.epa.gov/emergencies/docs/chem/web/pdf/gpcasstd.pdf.
\24\ Belke, James C (EPA). 1997. Recurring Causes of Recent
Chemical Accidents. https://psc.che.tamu.edu/wp-content/uploads/recurring-causes-of-recent-chemical-accidents.pdf.
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An accident on June 22, 1997, at a Shell olefins plant involved a
release of flammable gases from a structural failure and drive shaft
blowout from a 36 inch diameter failed check (non-return) valve,
resulting in a massive explosion and fire causing extensive damage to
the facility, damage to nearby residential property, several worker
injuries, and sheltering in place for nearby residents. An EPA/OSHA
accident investigation determined that these check valves were not
appropriately designed and manufactured for the heavy-duty service to
which they were subjected in the olefins production unit.\25\ Similar
problems with the check valves had occurred previously at the facility
and at other facilities owned by the company, but the occurrences were
not adequately investigated and did not identify all the factors
involved in the valves' failure. The other valve failure occurrences
did not result in as severe consequences as the 1997 event and were
treated as maintenance failures, not incidents or accidents. Thus, the
lessons that could have been learned from these prior failures were not
adequately identified, shared, and implemented.
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\25\ EPA and OSHA. June 1998. EPA/OSHA Joint Chemical Accident
Investigation Report, Shell Chemical Company, Deer Park, TX. EPA
550-R-98-005. https://nepis.epa.gov/Exe/ZyPDF.cgi/100039YA.PDF?Dockey=100039YA.PDF.
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On April 8, 1998, at a Morton International chemical plant, a
runaway reaction in a process kettle caused an overpressure of the
vessel, blew off the top hatch, and spewed a stream of gas and liquid
through the roof of the building and down onto the surrounding
community. Residents in a 100 city-block area were confined to their
homes. Nine workers were injured, two with severe burns. The U.S.
Chemical Safety Board (CSB) determined that Morton could have corrected
safety problems in the process if they had conducted investigations
into any of the eight prior instances when process temperatures
exceeded

[[Page 13649]]

the normal range.\26\ Process and design changes resulting from such
investigations could have prevented the 1998 explosion.
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\26\ CSB. 2000. Investigation Digest: Morton International
Explosion, Paterson, NJ, April 8, 1998. https://www.csb.gov/assets/1/19/Morton_Digest.pdf.
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On April 23, 2004, an explosion and fire at the Formosa Plastics
Corporation (FPC USA), Illiopolis, Illinois, (Formosa-IL) polyvinyl
chloride (PVC) manufacturing facility killed five and severely injured
three workers. The explosion and fire destroyed most of the reactor
facility and adjacent warehouse and ignited PVC resins stored in the
warehouse. Smoke from the smoldering fire drifted over the local
community, and as a precaution, local authorities ordered an evacuation
of the community for two days. CSB determined that this incident
occurred when an operator drained a full, heated, and pressurized PVC
reactor and bypassed a pressure interlock.\27\ The safeguards to
prevent bypassing the interlock were insufficient for the high risk
associated with this activity. Two similar incidents at FPC USA PVC
manufacturing facilities highlighted problems with safeguards designed
to prevent inadvertent discharge of an operating reactor. The FPC USA
Environmental Health & Safety group had received reports of both
incidents, but did not recognize a key similarity: Operators could
mistakenly go to the wrong reactor and bypass safeguards to open a
reactor bottom valve.
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\27\ CSB. March 2007. Investigation Report: VCM Explosion,
Formosa Plastics Corp., Illiopolis, Illinois, April 23, 2004. Report
No. 2004-10-I-IL. https://www.csb.gov/assets/1/19/Formosa_IL_Report.pdf.
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On March 23, 2005, at the BP Texas City Refinery in Texas City,
Texas, explosions and fires killed 15 people and injured another 180,
required shelter-in-place for 43,000 people, damaged nearby houses, and
resulted in financial losses exceeding $1.5 billion. The incident
occurred during the startup of an isomerization (ISOM) unit when a
raffinate splitter tower was overfilled and pressure relief devices
opened, resulting in a flammable liquid geyser from a blowdown stack
that was not equipped with a flare. The release of flammables led to an
explosion and fire. All of the fatalities occurred in or near office
trailers located close to the blowdown drum. A CSB investigation found
that in the years prior to the incident, eight serious releases of
flammable material from the ISOM blowdown stack had occurred, and most
ISOM startups experienced high liquid levels in the splitter tower.\28\
The investigation identified root causes of the accident involving
senior leadership failures including:
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\28\ CSB. March 2007. Investigation Report: Refinery Explosion
and Fire, BP, Texas City, Texas, March 23, 2005. Report No. 2005-04-
I-TX. https://www.csb.gov/assets/1/19/CSBFinalReportBP.pdf.
---------------------------------------------------------------------------

Ineffective safety culture leadership and oversight;
ineffective evaluation of safety implications or
organization, personnel, and policy changes; and
inadequate resources to prevent major accidents.
Root causes identified involving plant management failures
included:
Lack of an effective reporting and learning culture
(incidents were often ineffectively investigated);
use of outdated plant policies and procedures;
poor design of the ISOM unit;
inadequate supervision of operators;
inadequate training of operators; and
ineffective consideration of human factors regarding
training, staffing, and work schedules for operators.
The ineffective investigation of previous incidents resulted in a
failure to identify, or act upon, lessons from incidents and near-
misses. This includes a failure to incorporate relevant safety lessons
from a British government investigation \29\ of incidents at BP's
Grangemouth, Scotland, refinery, which were relevant to the Texas City
refinery.
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\29\ Health and Safety Executive (United Kingdom) and Scottish
Environment Protection Agency. August 18, 2003. Major Incident
Investigation Report--BP Grangemouth Scotland, 29th June-10th May,
2000. A Public Report Prepared on Behalf of the Competent Authority.
https://www.hse.gov.uk/comah/bpgrange/images/bprgrangemouth.pdf.
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On August 23, 2010, the Millard Refrigerated Service warehouse in
Theodore, Alabama, had a release of approximately 32,000 pounds of
anhydrous ammonia from a cracked pipe, when refrigeration equipment
malfunctioned. The ammonia travelled directly over a shipyard in
Mobile, Alabama, where more than 800 people were working, causing 152
people to be treated at hospitals, four of whom were admitted into
intensive care units. An EPA investigation of the incident revealed
that Millard failed to adequately address a well-known risk for ammonia
production systems called hydraulic shock, which can cause catastrophic
equipment failures.\30\ EPA also discovered that Millard had two prior
smaller ammonia releases in April 2007 and January 2010 caused by
hydraulic shock. Company investigations of those incidents failed to
identify and correct this problem, which could have prevented the
catastrophic release that occurred in August 2010.
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\30\ EPA. May 29, 2015. USA vs. Millard Refrigerated Services,
LLC, U.S. District Court for the Southern District of Alabama, Civil
Action No. 15-186. pp. 9-11, and 19-20. Case 1:15-cv-00186-WS-M
Document 5. https://www2.epa.gov/sites/production/files/2015-06/documents/millard-cp.pdf. See also https://www2.epa.gov/enforcement/millard-refrigerated-services-llc-clean-air-act-caa-settlement.
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5. Current Use of Root Cause Analysis
Root cause analysis of accidents is an accepted safe management
practice used by many industries. The American Chemistry Council (ACC)
noted that root cause analysis is conducted routinely under a number of
voluntary programs, including Responsible Care.\31\ The Texas Pipeline
Association (TPA) stated that a requirement to perform a root cause
analysis was not needed because it is a common industry practice.\32\
However, the Compressed Gas Association (CGA) stated that they
supported modifying current regulations to include a requirement that
root cause analyses be conducted for incidents but not for near misses
or process upsets because defining a ``near miss'' or ``process upset''
is extremely difficult and will likely vary by industry, process,
locations and the like.\33\ EPA addresses the difficulty of defining
the term ``near miss'', in section IV.A.7. Near Misses.
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\31\ ACC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0694 on Risk Management Program RFI, p. 43 of 189.
\32\ TPA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0617 on Risk Management Program RFI, p. 8.
\33\ CGA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0633 on Risk Management Program RFI, p. 6
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ACC also notes that there are a number of recognized industry
resources to aid incident investigations of root causes. For example,
CCPS offers several resources, including the ``Guidelines for
Investigating Chemical Process Incidents,'' 2nd edition, which provides
valuable, practical reference tools, and focuses on process-related
incidents with real or potential catastrophic consequences.\34\ ACC
further notes that there are a number of companies that provide
excellent root cause failure analysis training.
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\34\ CCPS 2003. Center for Chemical Process Safety, Guidelines
for Investigating Chemical Process Incidents, 2nd Edition, NY:
AIChE.
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California's Contra Costa County Health Services (CCHS) and the
city of Richmond, California, each have incident investigation
regulations in their Industrial Safety Ordinances (ISO) similar to
those in Sec. 68.81 and, in

[[Page 13650]]

addition, require a root cause analysis for each major chemical
accident.^{35 36}
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\35\ Contra Costa County Board of Supervisors. 2006.
California's Contra Costa County ISO, pp. 5, 12-13, 17-19. https://cchealth.org/hazmat/pdf/iso/Chapter-450-8-RISK-MANAGEMENT.pdf.
\36\ A major chemical accident is defined in the ISO as one
meeting a level 2 or 3 incident classification as determined by the
county or one resulting in: One or more fatalities; at least three
persons hospitalized for at 24 hours; on- and/or offsite property
damage (including clean-up and restoration activities) initially
estimated at $500,000 or more; or a vapor cloud of flammables and/or
combustibles that is more than 5,000 pounds.
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New Jersey's Toxic Catastrophe Prevention Act (TCPA) requires
investigation of all extraordinarily hazardous substance accidents or
potential catastrophic events. The TCPA requirements have the same
incident investigation requirements found in Sec. 68.81, but the TCPA
investigation report requires additional information beyond the
requirements in Sec. 68.81.\37\ The TCPA investigation report must
include:
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\37\ New Jersey Department of Environmental Protection (NJDEP)
TCPA. March 29, 2012. NJDEP. Title 7, Chapter 31 TCPA Program
Consolidated Rule Document, p. 62. https://www.state.nj.us/dep/rpp/brp/tcpa/downloads/conrulerev9_fonts.pdf.

Time and location of the chemical accident or potential
catastrophic event;
A description of the chemical accident or potential
catastrophic event in chronological order, providing all the
relevant facts;
The identity, amount, and duration of the chemical
release if these facts can be reasonably determined based on the
information obtained through the investigation;
The consequences, if any, of the chemical accident or
potential catastrophic event, including the number of evacuees,
injured, and fatalities, and the impact on the community;
The factors that contributed to the chemical accident
or potential catastrophic event that includes an identification of
basic and contributory causes, either direct or indirect; and
The names and position titles of the investigators.

Once the incident scenario is understood and contributory causes
identified, this information may be used to determine the incident's
root causes which are the underlying systemic reasons related to a
failure in a management system.
EPA believes that providing the following information is vital for
understanding the nature of the incident and should be included in the
incident investigation report:

The chronological order of details of the incidents,
the chemical identity,
amount and duration of the release,
the impacts of the release, and
basic and contributory causes, either direct or
indirect.

Some facility owners or operators may already include this information
in incident investigation reports prepared to comply with the RMP rule;
however, EPA is proposing that Sec. Sec. 68.60 and 68.81 be revised to
require this information to ensure clarity and consistency among
reports.
To better address causes of incidents and further reduce the
occurrence of catastrophic releases, EPA is proposing to require that
for all Program 2 and Program 3 process incidents that resulted in, or
could reasonably have resulted in, a catastrophic release, the owner or
operator determine and identify the factors that contributed to the
incident, including immediate and contributory causes, either direct or
indirect, and root causes. EPA is proposing to define ``root cause''
(see Sec. 68.3 for the proposed definition).
Root causes shall be determined by conducting a root cause analysis
for each incident using a recognized method or approach. CCPS'
``Guidelines for Investigating Chemical Process Incidents'' discusses
incident investigation approaches and techniques and root cause
analysis methods.\38\ OSHA plans to develop a fact sheet on existing
resources that explain how to conduct root cause analyses so the
regulated community can better understand the causes of incidents and
can increase its capability to effectively prevent future
occurrences.\39\
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\38\ CCPS. March 2003. Guidelines for Investigating Chemical
Process Incidents, 2nd ed.
\39\ Chemical Facility Safety and Security Working Group. May
2014. Executive Order 13650 Report to the President--Actions to
Improve Chemical Facility Safety and Security--A Shared Commitment,
p. 47. https://www.osha.gov/chemicalexecutiveorder/final_chemical_eo_status_report.pdf.
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In order that lessons learned from incident investigations be
applied, EPA is proposing to modify the hazard review requirement in
Sec. 68.50(a)(2) and the PHA requirement in Sec. 68.67(c)(2) to
require the owner or operator to address findings from all incident
investigations required under Sec. Sec. 68.60 and 68.81, respectively.
EPA is also proposing to require that for incident investigations
conducted by Program 2 sources, an incident investigation team be
established and consist of at least one person knowledgeable in the
process involved and other persons with appropriate knowledge and
experience to thoroughly investigate and analyze the incident. This
requirement is already part of Program 3 incident investigation
requirements, and is a necessary component for investigations that
would include analysis of root causes.
EPA seeks comment on the proposed amendments of the incident
investigation requirements to require root cause investigations for
each incident which resulted in, or could reasonably have resulted in,
a catastrophic release and on the proposed definition for root cause.
EPA seeks comment on whether a root cause analysis is appropriate for
every RMP reportable accident and near miss. Should EPA eliminate the
root cause analysis, or revise to limit or increase the scope or
applicability of the root cause analysis requirement? If so, how should
EPA revise the scope or applicability of this proposed requirement? EPA
also seeks comment on proposed amendments to require consideration of
incident investigation findings, in the hazard review (Sec. 68.50) and
PHA (Sec. 68.67) requirements. Finally, EPA seeks comment on the
proposed additional requirement in Sec. 68.60 to require personnel
with appropriate knowledge of the facility process and knowledge and
experience in incident investigation techniques to participate on an
incident investigation team.
6. Decommissioned Processes
EPA has encountered some cases where a facility chose not to
conduct an incident investigation because the owner or operator elected
to decommission the process involved, or because the process was
destroyed in the incident. While an investigation would have no impact
on a decommissioned or destroyed process, other similar processes or
operations at the facility, or at similar facilities, could potentially
benefit from its findings.
CCHS and two industry associations commented that there are lessons
that can be learned from requiring investigations to be performed, even
in cases where the owner or operator elects to decommission the process
involved or where the process is destroyed in the
incident.^{40 41} Therefore, EPA is proposing to revise
Sec. Sec. 68.60 and 68.81 to clarify that incident investigations are
required even if the process involving the regulated substance is
destroyed or decommissioned following or as the result of an incident.
EPA is also proposing to revise Sec. 68.190, which addresses updates
to the RMP, to

[[Page 13651]]

require that prior to any de-registration of a process or stationary
source that is no longer subject to the Risk Management Program rule,
the owner or operator must report any accidents subject to the
requirements of Sec. 68.42 and conduct incident investigations as
required under Sec. Sec. 68.60 and/or 68.81. EPA seeks comment on the
proposed revisions to require an owner or operator to meet applicable
reporting and incident investigation requirements prior to de-
registering a process.
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\40\ CCHS. October 28, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0546 on Risk Management Program RFI, p. 12.
\41\ Independent Petroleum Association of America (IPAA) AXPC.
October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-0584 on Risk
Management Program RFI, p. 33.
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7. Near Misses
The current incident investigation provisions require facilities
with Program 2 and/or 3 processes to investigate incidents that could
reasonably have resulted in a catastrophic release. These types of
incidents are sometimes characterized as ``near misses'' but there is
confusion about what this term means. Several commenters on the Risk
Management Program RFI, including the Society of Chemical Manufacturers
and Affiliates (SOCMA),\42\ American Petroleum Institute (API),\43\ Gas
Processors Association (GPA),\44\ National Oilseed Processors
Association (NOPA), & Corn Refiners Association (CRA),\45\ and American
Fuel & Petrochemical Manufacturers (AFPM),\46\ stated that they
interpret the current requirements as including near misses. Other
commenters (ACC,\47\ TPA,\48\ CGA,\49\ DPC Industries, Inc.,\50\ and
Allied Universal Corp [AUC]) \51\ urged EPA to not require
investigations of near misses because the term is vague, inherently
situation-specific and not reducible to a singular definition. CCPS
defines a near miss as an event in which an accident causing injury,
death, property damage, or environmental impact, could have plausibly
resulted if circumstances had been slightly different.\52\
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\42\ SOCMA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0560 on Risk Management Program RFI, p. 9.
\43\ API. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0624 on Risk Management Program RFI, p. 32.
\44\ GPA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0626 on Risk Management Program RFI, p. 12.
\45\ NOPA & CRA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-
0328-0328 on Risk Management Program RFI, pp. 30-31.
\46\ AFPM. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0665 on Risk Management Program RFI, pp. 46-47.
\47\ ACC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0694 on Risk Management Program RFI, PDF pp. 44-45 of 189.
\48\ TPA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0617 on Risk Management Program RFI, pp. 7-8.
\49\ CGA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0633 on Risk Management Program RFI, p. 6.
\50\ DPC Industries, Inc. October 29, 2014. Comment No. EPA-HQ-
OEM-2014-0328-0649 on Risk Management Program RFI, p. 4.
\51\ AUC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0646 on Risk Management Program RFI, p. 3.
\52\ CCPS. March 2003. Guidelines for Investigating Chemical
Process Incidents, 2nd ed., p. 61.
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EPA itself may have contributed to the confusion over the meaning
of the term ``near miss.'' In the 1993 proposed RMP rule (58 FR 54200,
October 20 1993), EPA indicated that investigation of near misses could
provide facilities with important information on problems that should
be addressed before a significant accidental release occurs. EPA
considered a near miss as a mishap that did not result in a release for
some reason, such as employee actions or luck. However, in the primary
interpretive guidance document for the RMP rule, ``General Guidance on
Risk Management Programs for Chemical Accident Prevention (40 CFR part
68)'' (RMP Guidance), originally published in 1999, EPA indicated that
while the owner or operator ``must investigate each incident which
resulted in, or could have resulted in, a catastrophic release of a
regulated substance,'' the owner or operator was not required to
investigate ``minor accidents or near misses:''

You should also consider investigating minor accidents or near
misses because they may help you identify problems that could lead
to more serious accidents; however, you are not required to do so
under part 68.\53\
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\53\ See General Guidance on Risk Management Programs for
Chemical Accident Prevention (40 CFR part 68), EPA-550-B-04-001,
April 2004, page 6-26. https://www2.epa.gov/rmp/guidance-facilities-risk-management-programs-rmp#general.

Here, EPA intended to differentiate between incidents, which ``could
have resulted in a catastrophic release,'' and ``minor accidents and
[minor] near misses,'' which are unlikely to have led to a catastrophic
release.
EPA's experiences with RMP facility inspections and incident
investigations show there have been incidents that were not
investigated, even though under slightly different circumstances, the
incident could have resulted in a catastrophic release. While these
events did not result in deaths, injuries, adverse health or
environmental effects, or sheltering-in-place, if circumstances had
been slightly different, a catastrophic release could have occurred.
For example, a runaway reaction that is brought under control by
operators is a near miss that may need to be investigated to determine
why the problem occurred, even if it does not directly involve a
covered process both because it may have led to a release from a nearby
covered process or because it may indicate a safety management failure
that applies to a covered process at the facility. Similarly, fires and
explosions near or within a covered process, any unanticipated release
of a regulated substance, and some process upsets could potentially
lead to a catastrophic release.
Facilities regulated under New Jersey's TCPA program are required
to investigate each regulated chemical (``extraordinarily hazardous
substance''), involved in an accident or potential catastrophic
event.\54\ The NJDEP notes that ``potential catastrophic event'' means
an incident that could have reasonably resulted in a catastrophic
release of a regulated chemical which includes incidents in which no
regulated chemical was released or no regulated chemical was released
beyond a permitted level, or in other words, a near miss. Facilities
report accidents and potential catastrophic events annually to New
Jersey. NJDEP notes that each year, less than fifty percent of the
facilities reported that they had one or more incidents.\55\ Most of
the incidents reported involved the release of a regulated chemical.
The number of near misses reported averaged less than 1 per facility.
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\54\ NJDEP TCPA. March 29, 2012. NJ Title 7, Chapter 31 TCPA
Program Consolidated Rule Document, p. 2. https://www.state.nj.us/dep/rpp/brp/tcpa/downloads/conrulerev9_fonts.pdf.
\55\ NJDEP. October 21, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0338 on Risk Management Program RFI, p. 16.
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In its comments on the Risk Management Program RFI, GPA reasoned
that requiring a root cause analysis for minor near misses would be
burdensome and costly and would discourage employees and contractors
from reporting near misses because of the burden of conducting a
rigorous investigation.\56\ Similarly, some commenters, such as API
thought that process upsets should not be included in incident
investigation requirements because there is no standard definition;
process upsets vary across a wide range from product quality/efficiency
issues to ones that represent near-miss situations; and learning from
process upset events that do potentially challenge process safety
systems can be accomplished via other means. According to API,
including all process upsets would overburden the root cause analysis/

[[Page 13652]]

investigation resources within a facility.\57\
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\56\ GPA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0626 on Risk Management Program RFI, p. 14.
\57\ API. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0624 on Risk Management Program RFI, p. 32.
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CCPS's ``Process Safety Leading and Lagging Metrics--You Don't
Improve What You Don't Measure'' explains that a near miss has three
essential elements.\58\ These include:
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\58\ CCPS. January 2011. Process Safety Leading and Lagging
Metrics--You Don't Improve What You Don't Measure, p. 36. CCPS,
American Institute of Chemical Engineers, New York, NY. John Wiley
and Sons. https://www.aiche.org/sites/default/files/docs/pages/CCPS_ProcessSafety_Lagging_2011_2-24.pdf.
---------------------------------------------------------------------------

An event occurs, or a potentially unsafe situation is
discovered;
the event or unsafe situation had reasonable potential to
escalate, and
the potential escalation would have led to adverse
impacts.

The CCPS document and the CCPS ``Guidelines for Investigating Chemical
Process Incidents'' contain many examples of near misses, which can be
an actual event or discovery of a potentially unsafe situation.\59\
Examples of incidents that should be investigated include some process
upsets, such as: Excursions of process parameters beyond pre-
established critical control limits; activation of layers of protection
such as relief valves, interlocks, rupture discs, blowdown systems,
halon systems, vapor release alarms, and fixed vapor spray systems; and
activation of emergency shutdowns.
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\59\ CCPS. March 2003. Guidelines for Investigating Chemical
Process Incidents, 2nd ed., p. 68.
---------------------------------------------------------------------------

Near misses should also include any incidents at nearby processes
or equipment outside of a regulated process if the incident had the
potential to cause a catastrophic release from a nearby regulated
process. An example would be a transformer explosion that could have
impacted nearby regulated process equipment causing it to lose
containment of a regulated substance. Near misses could also include
process upsets such as activation of relief valves, interlocks,
blowdown systems or rupture disks.
Because it is difficult to prescribe the various types of incidents
that may occur in RMP-regulated sectors that should be considered near
misses, and therefore be investigated, EPA is not proposing a
regulatory definition. Instead, EPA will rely on facility owners or
operators to decide which incidents to investigate, based on the
seriousness of the incident, the process(es) involved, and the specific
conditions and circumstances involved. In the 1996 Response to Comments
on the final rule, EPA acknowledged that

the range of incidents that reasonably could have resulted in a
catastrophic release is very broad and cannot be specifically
defined.\60\ EPA decided to leave it up to the discretion of the
owner or operator to determine whether an incident could reasonably
have resulted in a catastrophic release and to investigate such
incidents.
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\60\ EPA. May 24, 1996. Risk Management Plan Rule, Summary and
Response to Comments. Volume 1, p. 16-4. Docket No. A-91-73,
Document No. IX-C-1.

The intent is not to include every minor incident or leak, but focus on
serious incidents that could have resulted in a catastrophic release,
although EPA acknowledges this will require subjective judgment.
Finally, EPA expects that lessons learned from near miss incident
investigations be considered when conducting a hazard review or PHA.
Therefore, the proposed amendments to Sec. Sec. 68.50(a)(2) and
68.67(c)(2) would require the hazard review and the PHA to include
findings from all incident investigations required under Sec. Sec.
68.60 and 68.81. This includes incidents that could reasonably have
resulted in a catastrophic release (i.e., a near miss).
EPA seeks comment on the guidance and examples provided of a near
miss. Is further clarification needed in this instance? Should EPA
consider limiting root cause analyses only for incidents that resulted
in a catastrophic release?
8. Investigation Timeframe
EPA believes incident investigations will result in improved
process safety through the dissemination of lessons learned and the
implementation of recommended corrective actions. Conducting these
investigations as soon as possible after an incident may yield better
quality data and information, although it may take time to collect,
validate, and integrate data from a range of sources. EPA has
discovered situations where owners or operators of regulated facilities
indefinitely delayed completing incident investigations. Therefore, in
the Risk Management Program RFI, EPA considered whether incident
investigations should be required to be completed within a certain
amount of time. In their comments on the RFI, Mary Kay O'Connor Process
Safety Center (MKOPSC) \61\ stated that the timeframe requirement for
an incident investigation to be completed should be based on the
following factors: The consequence, the complexity of the incident, the
process, the substance, and the investigation team's experience,
knowledge and members. ACC \62\ and API \63\ noted that the time to
complete an investigation is highly dependent on the complexity of the
accident and the process and can require assistance from outside
process experts that may not immediately be available. CCHS commented
that a specific timeframe for incident investigations to be completed
would benefit overall safety and noted that most incidents can be
investigated within six months.\64\ However, CCHS stated that it may be
appropriate that a specific time be required that could be changed by
documented justification. As to timeframes, some of the refineries in
Contra Costa County, California, have corporate requirements to
complete all investigations within 30 to 60 days. Exceptions can be
granted for large events. CCHS noted that there are challenges and
limitations to completing an incident investigation within a specified
timeframe. Other RFI commenters, such as TPA,\65\ GPA,\66\ and JR
Simplot,\67\ noted that having a specific timeline to complete an
investigation could cause facilities to focus more on complying with a
deadline at the expense of using the appropriate level of rigor and
getting the right answer. EPA's own experience with accident
investigation has shown that a major accident investigation can take up
to a year or more. Taking into consideration the need for completion of
an investigation while allowing the proper time to determine the
correct root causes, EPA is proposing to require that facility owners
or operators complete an incident investigation report within 12 months
of an incident that resulted in, or could reasonably have resulted in,
a catastrophic release. For very complex incident investigations that
cannot be completed within 12 months, EPA is allowing an extension of
time if the implementing agency approves, in writing. EPA believes that
12 months is long enough to complete most complex accident
investigations but will allow facilities more time if they consult with
their

[[Page 13653]]

implementing agency and receive approval for an extension of time.
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\61\ MKOPSC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0543 on Risk Management Program RFI, p. 144.
\62\ ACC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0694 on Risk Management Program RFI, p. 44.
\63\ API. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0624 on Risk Management Program RFI, p. 32.
\64\ CCHS. October 28, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0546 on Risk Management Program RFI, p. 12.
\65\ TPA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0617 on Risk Management Program RFI, p. 9.
\66\ GPA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0626 on Risk Management Program RFI, p. 13.
\67\ JR Simplot. October 29, 2014. Comment No. EPA-HQ-OEM-2014-
0328-0667 on Risk Management Program RFI, p. 31.
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EPA notes that the Agency's own requirements under the Petroleum
Refinery maximum achievable control technology (MACT) and New Source
Performance Standards (NSPS) regulations already require root cause and
corrective action analyses for certain release events (see 40 CFR parts
63.648(j)(6) and (j)(7)), and 60.103a(d)) with a more stringent
timeframe (i.e., 45 days) for completing these analyses than the 12
months specified in this proposed rule. RMP-regulated facilities that
are also required to meet the MACT and NSPS root cause analysis
requirements must continue to meet the timeframes specified under those
rules as applicable. However, root cause analyses conducted to meet
those requirements may also be used to comply with the root cause
analysis requirements proposed herein, provided the analysis meets the
requirements of Sec. 68.60 or Sec. 68.81, as applicable.
EPA seeks comment on the appropriateness of establishing a specific
timeframe for incident investigations to be completed and what that
timeframe should be. As an alternative, EPA considered whether the
incident investigation should be completed prior to restart of the
affected process, if the incident resulted in a process shutdown, to
ensure that the causes of an incident have been addressed. EPA seeks
comment on whether to add this condition to the incident investigation
requirements or whether there are other options to ensure that unsafe
conditions that led to the incident are addressed before a process is
re-started. EPA also seeks comment on whether the different root cause
analysis timeframes specified under the MACT and NSPS and proposed
herein will cause any difficulties for sources covered under both
rules, and if so, what approach EPA should take to resolve this issue.
9. Accident History Reporting
Thorough investigations and reporting may help facilities identify
and address root causes. Accident history reporting provides an avenue
to disseminate lessons learned. Local communities are interested in
whether facilities are investigating incidents and taking steps to
prevent future accidents. EPA believes it is important to determine and
report results of root cause analysis for accidents with reportable
impacts in the RMP accident history. Therefore, EPA has proposed that
information on root causes analyzed as part of an incident
investigation be included in the RMP accident history in Sec. 68.42.
Because there can be numerous potential incident root causes identified
for a single incident, and in order to simplify reporting for the RMP
accident history, EPA believes that the root cause information should
be reported as root cause categories.
Various methods for identifying root causes have been published.
Some methods involve the use of root cause trees which show root cause
categories for different PSM systems, where each category can be
associated with many specific root cause deficiencies.^{68 69}
One root cause system uses the following list of root cause categories:
Procedures; Training; Communications; Administrative/Management System;
Personal Performance; Human Factors Engineering; Immediate Supervision;
Equipment Design; Equipment/Records; Equipment Reliability/Maintenance;
and Equipment Installation/Fabrication. Another uses a slightly
different list: Procedures, Training, Quality Control, Communications,
Management System, Human Engineering and Immediate Supervision. EPA
will modify its on-line reporting system for RMPs (RMP*eSubmit) to
incorporate an appropriate list of root cause categories for RMP
facility incident investigations of RMP reportable accidents based on
these categories.
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\68\ Paradies, Mark, Unger, Linda and Busch, David. 1996.
TapRooT[supreg] Root Cause Tree^TM & User's Manual, Rev.
4. Systems Improvements, Inc., Knoxville, TN.
\69\ ABS Group Inc. 1999. Root Cause Map^TM and Root
Cause Analysis Handbook, A Guide to Effective Incident
Investigation. ABS Group, Inc., Risk & Reliability Division,
Knoxville, TN.
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Because EPA is proposing that the incident investigation be
required to be completed within 12 months, root causes may not be known
until 12 months after an accidental release. Section 68.195(a)
currently requires that the accident history information in Sec. 68.42
be submitted within six months of the release. Because EPA is proposing
to add accident root cause categories to Sec. 68.42, EPA is also
proposing in Sec. 68.195(a)(2) that the root cause categories be
submitted in the RMP within 12 months of the release.
EPA seeks comment on the appropriateness of requiring root cause
reporting as part of the accident history requirements of Sec. 68.42,
as well as the categories that should be considered and the timeframe
within which the root cause information must be submitted.
10. Proposed Revisions to Regulatory Text
a. Definitions (Sec. 68.3)
EPA is proposing to add a definition of ``root cause'' and modify
the definition of ``catastrophic release'' in Sec. 68.3.
b. Five-Year Accident History (Sec. 68.42)
EPA is proposing to amend paragraph (b) by adding a new
subparagraph (b)(10) to require of incident investigation root cause
categories to be reported. Current subparagraphs (b)(10) and (b)(11)
will become subparagraphs (b)(11) and (b)(12), respectively.
c. Hazard Review (Sec. 68.50)
EPA is proposing to amend subparagraph (a)(2) by adding a phrase at
the end to require the owner or operator to consider findings from
incident investigations. This is similar to the revision proposed for
Program 3 facilities in Sec. 68.67(c)(2).
d. Incident Investigation (Sec. Sec. 68.60 and 68.81)
EPA is proposing to revise Sec. 68.60, which is applicable to
Program 2 processes, and Sec. 68.81, which is applicable to Program 3
processes, by revising paragraph (a) to add subparagraphs (a)(1) and
(a)(2) to better clarify the scope of incidents that must be
investigated. Subparagraph (a)(1) applies to an incident that resulted
in a catastrophic release and clarifies that the owner or operator must
investigate the incident even if the process involving the regulated
substance is destroyed or decommissioned. Subparagraph (a)(2) applies
to a near-miss, which is an incident that could reasonably have
resulted in a catastrophic release. EPA is also removing the phrase
``of a regulated substance'' from paragraph (a) because it is
duplicative. The definition of catastrophic release refers to releases
of regulated substances.
EPA is also proposing to add a new paragraph (c) to Sec. 68.60
requiring that an incident investigation team be established and
consist of at least one person knowledgeable in the process involved
and other persons with appropriate knowledge and experience to
thoroughly investigate and analyze the incident. This is similar to the
requirement in Sec. 68.81(c) for Program 3 processes. Current
paragraphs (c) through (f) would become paragraph (d) through (g).
EPA is also proposing to make changes to the new paragraph (d) in
Sec. 68.60 and current paragraph (d) in Sec. 68.81 to revise the
incident

[[Page 13654]]

investigation report requirements. EPA is proposing to change the word
``summary'' to ``report'' and require facility owners or operators to
complete incident investigation reports within 12 months unless the
implementing agency approves, in writing, an extension of time.
Furthermore, EPA is proposing to amend and add new subparagraphs in
the new paragraph (d) in Sec. 68.60 and current paragraph (d) in Sec.
68.81 requiring additional elements in an incident investigation
report. EPA is proposing to:

Revise paragraph (d)(1) to require the time and
location of the incident in the investigation report;
Revise paragraph (d)(3) to specify that the description
of the incident be in chronological order and provide all relevant
facts;
Add new paragraph (d)(4) to require that the
investigation report include the name and amount of the regulated
substance involved in the release or near miss and the duration of
the event;
Add paragraph (d)(5) to require a description of the
consequences, if any, of the incident;
Add paragraph (d)(6) to require a description of
emergency response actions taken;
Renumber current paragraph (d)(4) to (d)(7) and require
additional criteria related to the factors contributing to the
incident, including the initiating event, direct and indirect
contributing factors, and root causes. Add language to new paragraph
(d)(7) to require that root causes must be determined through the
use of a recognized method.
Renumber the current paragraph (d)(5) to (d)(8) and add
language to require a schedule for addressing recommendations
resulting from the investigation to be included in the investigation
report.

Finally, EPA is proposing to amend the current paragraph (f) which
would be the new paragraph (g) to add the word incident before
investigation and change ``summaries'' to ``reports'' for consistency.
e. Process Hazard Analysis (PHA) (Sec. 68.67)
EPA is proposing to add subparagraph (c)(2) to require the owner or
operator to address findings from incident investigations, as well as
any other potential failure scenarios (e.g., incidents that occurred at
other similar facilities and or processes, failure mechanisms
discovered in literature or from other sources of information). This is
similar to the revision for Program 2 facilities in Sec. 68.50(a)(2).
f. Updates (Sec. 68.190)
EPA is proposing to amend paragraph (c) to require that the owner
or operator report any accidents covered by Sec. 68.42 and conduct
incident investigations required under Sec. Sec. 68.60 and/or 68.81
prior to de-registering a process or stationary source that is no
longer subject to the RMP rule.
11. Alternative Options
EPA considered limiting these requirements to the original universe
of Program 3 processes that existed before OSHA changed its PSM retail
exemption. Accidents occur at a higher frequency in these processes as
compared to processes covered in Program 2. However, with the shift of
many Program 2 processes into Program 3 due to OSHA's revised policy on
the PSM retail facility exemption, most of the accidents at remaining
Program 2 processes occur at publicly owned water and wastewater
treatment facilities that are not in Program 3 because they are not
subject to OSHA PSM. State and local government employees at facilities
in states under Federal OSHA authority are not covered by the OSHA PSM
standard unlike state and local government employees at facilities in
states with OSHA approved State Plans. These processes pose the same
risk as the publicly owned water/wastewater treatment processes that
are in Program 3. EPA decided that there was little justification for
limiting the proposed requirements to the changed universe of Program 3
processes after the OSHA retail exemption change; there are fewer than
six RMP reportable accidents a year at remaining Program 2 processes.
Although the alternative would be slightly less burdensome on the
regulated community, it would also likely prevent fewer accidents than
the proposed approach. EPA seeks comment on the alternative approach
and whether there are any other alternative options that EPA should
consider prior to issuing a final action.

B. Third-Party Compliance Audits

In addition to strengthening the incident investigation
requirements, EPA is proposing to strengthen the RMP rule's compliance
audit provisions to require independent third-party compliance audits
after an accident or findings of significant non-compliance by an
implementing agency for stationary sources with Program 2 and/or
Program 3 processes. Incident investigations often reveal that these
facilities have deficiencies in some prevention program requirements
related to that process. Compliance audits entail a systematic
evaluation of the full prevention program for all covered processes. As
described below, in some cases, self-auditing may be insufficient to
prevent accidents, determine compliance with the RMP rule's prevention
program requirements, and ensure safe operation. Stationary sources
that have had accidents and/or substantial non-compliance with Risk
Management Program requirements pose a greater risk to the surrounding
communities. EPA therefore believes it is appropriate to require such
stationary sources to undergo objective auditing by competent and
independent third-party auditors. Such independent third-party auditing
can assist the owners and operators, EPA (or the implementing agency),
and the public to better determine whether the procedures and practices
developed by the owner and/or operator under subparts C and/or D of the
RMP rule (i.e., the prevention program requirements) are adequate and
being followed.
EPA and the CSB have cited poor compliance audits as a contributing
factor to the severity of past chemical accidents. The CSB identified a
lack of rigorous compliance audits as a contributing factor behind the
March 23, 2005 explosion and fire at the BP Texas City Refinery in
Texas City, Texas.\70\ This explosion and fire killed 15 people,
injured another 180, led to a shelter-in-place order that required
43,000 people to remain indoors, and damaged houses as far away as
three-quarters of a mile from the refinery.
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\70\ CSB. March 2007. Investigation Report: Refinery Explosion
and Fire, BP, Texas City, Texas, March 23, 2005. Report No. 2005-04-
I-TX. https://www.csb.gov/assets/1/19/CSBFinalReportBP.pdf.
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A CSB investigation of the July 2009 fire and explosion at the
Citgo Corpus Christi Refinery found that Citgo had never conducted a
safety audit of hydrofluoric acid (HF) alkylation operations at either
of its U.S. refineries equipped with HF alkylation units pursuant to
recommendations in API Recommended Practice 751, Safe Operation of HF
Alkylation Units.\71\ The CSB recommended that within 60 days, Citgo
complete a third-party audit of all Citgo HF alkylation unit operations
in the United States (Corpus Christi, Texas and Lemont, Illinois) in
accordance with API Recommended Practice 751. The CSB also specified
qualifications for the selected lead auditor including extensive
knowledge of HF hazards, HF alkylation units, and API 751.
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\71\ CSB. December 9, 2009. Urgent Recommendations to Citgo.
https://www.csb.gov/csb-issues-urgent-recommendations-to-citgo-finds-inadequate-hydrogen-fluoride-water-mitigation-system-during-corpus-christi-refinery-fire-last-july/.
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The CSB found that facility PSM audits failed to detect PSI and
operating procedure deficiencies that contributed to the November 2003
chlorine release at DPC Enterprises, L.P. in Glendale,

[[Page 13655]]

Arizona.\72\ The CSB recommended that DPC use a qualified, independent
auditor to evaluate DPC's PSM and Risk Management Programs against best
practices and implement audit recommendations in a timely manner at all
DPC chlorine repackaging sites.
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\72\ CSB. February 2007. Investigation Report: Chlorine Release,
DPC Enterprises, L.P., Glendale, Arizona, November 17, 2003. Report
No. 2004-02-I-AZ. https://www.csb.gov/assets/1/19/DPC_Report.pdf.
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The CSB also found numerous auditing deficiencies following the
January 2008 explosion at Bayer CropScience, LP, in Institute, West
Virginia.\73\ The CSB recommended that Bayer commission an independent
human factors and ergonomics study of all Institute site PSM and Risk
Management Program covered process control rooms to evaluate the human-
control system interface, operator fatigue, and control system
familiarity and training.
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\73\ CSB. January 2011. Investigation Report: Pesticide Chemical
Runaway Reaction Pressure Vessel Explosion, Bayer CropScience LP,
Institute, West Virginia, August 28, 2008. Report No. 2008-08-I-WV.
https://www.csb.gov/assets/1/19/Bayer_Report_Final.pdf.
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EPA has required third-party audits in enforcement settlement
agreements. For example, EPA found multiple occasions of noncompliance
with the Risk Management Program requirements at Tyson Foods, Inc.
facilities through a series of inspections and information requests.
Dating back to October 2006, violations included failures to follow the
general industry standards to test or replace safety relief valves,
improperly co-located gas-fired boilers and ammonia machinery, as well
as failures to abide by the RMP rule's prevention program and reporting
requirements. As part of a 2014 consent decree, Tyson Foods, Inc.
agreed, in addition to paying a penalty of $3.95 million, to conduct
pipe-testing and third-party audits of its ammonia refrigeration
systems to improve compliance with Risk Management Program requirements
at all 23 of the company's facilities in four Midwestern states.\74\
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\74\ Consent Decree, United States v. Tyson Foods, Inc., et al.,
E.D. Miss., April 4, 2013. https://www2.epa.gov/enforcement/tyson-foods-inc.
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In March 2015, EPA Region 1 issued an administrative order on
consent to Mann Distribution LLC and 3134 Post Road LLC (Respondents)
regarding Resource Conservation and Recovery Act (RCRA) and CAA
112(r)(1) (the ``general duty clause'') violations found during an
April 4, 2013 inspection at a chemical distribution facility in
Warwick, Rhode Island.\75\ Like the Risk Management Program
requirements, section 112(r)(1) of the CAA addresses safe operation and
prevention of accidental releases. Unsafe conditions found during the
inspection included, among other things, failure to have a fire
suppression system, failure to inspect a fire alarm, co-location of
incompatible chemicals, and many RCRA generator violations. The
facility also had a prior history of non-compliance. The order requires
Respondents to implement an independent third-party inspection program,
in addition to imposing other compliance requirements.
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\75\ Finding of Violation and Administrative Order on Consent,
In the Matter of Mann Distribution LLC and 3134 Post LLC, Docket
Nos. RCRA-01-2015-0028 and CAA-01-2015-0029, March 17, 2015.
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The proposed independent third-party compliance audit requirements
include a definition of ``third-party audit'' in Sec. 68.3;
modifications to existing Sec. Sec. 68.58 and 68.79 to specify when a
third-party audit must be performed; and the requirements for third-
party auditors and third-party audits in new Sec. Sec. 68.59 and
68.80. EPA is proposing to require third-party compliance audits to be
conducted at stationary sources following an accident meeting the five-
year accident history criteria in Sec. 68.42(a). EPA is also proposing
a provision to allow an implementing agency to require a third-party
audit be performed at a facility under certain circumstances that
suggest a heightened risk for an accident. These circumstances are:
Non-compliance with the Prevention Program requirements of subpart C
(Program 2) or subpart D (Program 3), including non-compliance with the
competency, independence, or impartiality criteria of Sec. 68.59(b) or
Sec. 68.80(b) regarding a previous third-party audit. All other
stationary sources with Program 2 and Program 3 processes will continue
to follow the current compliance audit requirements of Sec. Sec. 68.58
and 68.79.
Sections 68.58 and 68.79 of the RMP regulation (Program 2 and
Program 3 Compliance Audits) require owners or operators of stationary
sources with processes subject to Program 2 or Program 3 requirements
to audit compliance with the provisions of subpart C (Program 2
Prevention Program requirements) or subpart D (Program 3 Prevention
Program requirements) at least every three years. The purpose of the
compliance audits is to verify that the procedures and practices
developed under subparts C and D of the RMP rule are adequate and being
followed. These compliance audit provisions are similar to language to
that is found in 29 CFR 1910.119(o) of the OSHA PSM standard. Sections
68.58 and 68.79 of the RMP regulation and 1910.119(o) of the OSHA PSM
standard require that the compliance audit be conducted by at least one
person knowledgeable in the process, that audit findings be addressed
promptly, and that a report be generated documenting the findings of
the audit.
Currently, neither EPA nor OSHA requires employers to use
independent third-parties in conducting compliance audits. However,
third-party compliance auditors exist, both the RMP rule and the PSM
standard permit their use, and they are utilized by some of the Risk
Management Program and PSM regulated community, both voluntarily, and
pursuant to enforcement settlement agreements.
EPA discussed the potential to use independent third-party auditors
for Risk Management Program compliance audits, in the preamble of the
1996 final RMP rule, as an issue for further consideration.\76\ The
preamble endorsed the concept of using third parties, citing the
following reasons: To assist in rule compliance and oversight, provided
that any third-party proposal not weaken the compliance
responsibilities of facility owners or operators; offer cost savings
and benefits to the industry, community, and implementing agencies that
significantly exceed the cost of implementing the approach; lead to a
net increase in process safety, particularly for smaller, less
technically sophisticated facilities; and promote cost-effective Agency
prioritization of oversight resources. At the time, EPA did not require
the use of third-party auditors because the Agency believed that
several key issues, including qualification criteria, certification
procedures, liability, and others, needed to be investigated. Based on
EPA's research of other third-party audit programs as well as the
Agency's own experience with third-party auditors in the context of
enforcement settlements, the Agency is proposing third-party audit
requirements for the rule's accident prevention program.
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\76\ Accidental Release Prevention Requirements: Risk Management
Programs Under CAA Section 112(r)(7), 61 FR 31705, June 20, 1996.
https://www.gpo.gov/fdsys/pkg/FR-1996-06-20/pdf/96-14597.pdf.
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Third-party audits are required by other Federal programs in
appropriate existing rules, and rules currently in development, to
ensure safe operations. The Administrative Conference of the United
States (ACUS) ``Third-Party Programs Final Report'' (October 22, 2012)
describes a variety of third-party programs in Food and Drug
Administration (FDA), Consumer Product Safety Commission, and Federal
Communications Commission

[[Page 13656]]

regulations.\77\ Further examples follow. The Bureau of Safety and
Environmental Enforcement (BSEE) promulgated revisions to their Safety
and Environmental Management Systems (SEMS II) requirements (78 FR
20423, April 5, 2013) to help ensure the safe operations of offshore
oil and natural gas drilling and production facilities. BSEE's SEMS
standard, 30 CFR part 250, subpart S, requires audits conducted by an
independent third-party, subject to approval by BSEE, or by designated
and qualified personnel if the employer implements procedures to avoid
conflicts of interest. BSEE's SEMS II revisions to the standard require
that, by June 4, 2015, the team lead for compliance audits must be
independent and represent an accredited audit service provider. In the
preamble to its SEMS II final rule, BSEE discussed its third-party-
auditing requirements as follows:
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\77\ McCallister, Lesley. October 22, 2012. Third-Party Programs
Final Report (2012). https://www.acus.gov/report/third-party-programs-final-report.

Consistent audits performed by well trained and experienced
auditors are critical to ensuring that SEMS programs are
successfully implemented and maintained on the [Outer Continental
Shelf] OCS. As a result, we are adopting industry best practices
related to SEMS audits and auditor qualifications. Industry is
already voluntarily adopting these practices in many deepwater
operations. We believe that the application of these requirements to
all OCS operations will result in more robust and consistent SEMS
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audits. (78 FR 20430, April 5, 2013.)

Independent third-party audits or other forms of compliance
verification are also required by a variety of EPA rules to promote
compliance with regulatory standards. One example of an EPA regulatory
program with built-in third-party verification is the EPA CAA wood
stoves rule.\78\ Additionally, EPA is developing a rule for a third-
party certification framework for the formaldehyde standards for
composite wood products in accordance with the Formaldehyde Standards
for Composite Wood Products Act in which Congress mandated that EPA
promulgate rules that include a third-party testing and certification
program.\79\
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\78\ Standards of Performance for New Residential Wood Heaters,
New Residential Hydronic Heaters and Forced-Air Furnaces, 80 FR
13671, March 16, 2015. https://www.gpo.gov/fdsys/pkg/FR-2015-03-16/pdf/2015-03733.pdf.
\79\ Formaldehyde; Third-Party Certification Framework for the
Formaldehyde Standards for Composite Wood Products, 78 FR 34796,
June 10, 2013. https://www.gpo.gov/fdsys/pkg/FR-2013-06-10/pdf/2013-13254.pdf. See also the Formaldehyde Standards for Composite Wood
Products Act https://www.gpo.gov/fdsys/pkg/BILLS-111s1660enr/pdf/BILLS-111s1660enr.pdf.
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Third-party verification and certification approaches are also
employed in a variety of state regulatory settings. Examples include
the CAA Title II vehicle inspection, maintenance, and emissions
programs in authorized states,\80\ California's mandatory greenhouse
gas (GHG) reporting program,\81\ and Massachusetts Underground Storage
Tank (UST) third-party inspection program.\82\
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\80\ See, e.g., Missouri Dept. of Nat. Resources and Missouri
State Highway Patrol, First Annual Oversight Report of the
Decentralized Gateway Vehicle Inspection Program (2008). https://www.dnr.mo.gov/gatewayvip/docs/enforcementrpt.pdf.
\81\ Cal. Code of Regs. Accreditation Requirements for
Verification Bodies, Lead Verifiers, and Verifiers of Emissions Data
Reports and Offset Project Data Reports. tit. 17 Sec. 95132(b)(4)
(2010); see also Cal. Code of Regs. tit. 17 Sec. 95132(b)(1)
(describing the firm requirement of having a lead verifier); Cal.
Code of Regs. tit. 17 Sec. 95132(b)(2) (2010) (describing the lead
verifier requirements) and Cal. Code of Regs. tit. 17 Sec.
95132(b)(1). https://govt.westlaw.com/calregs/Document/I047B3A909A3011E4A28EDDF568E2F8A2?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=%28sc.Default%29.
\82\ MassDEP. 2015. UST Inspection Program. https://www.mass.gov/eea/agencies/massdep/toxics/ust/third-party-ust-inspection-program.html.
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There are advantages to third-party auditing, particularly with
strong auditor competence and independence criteria. According to the
CCPS, ``Third-party auditors (typically, consulting companies who can
provide experienced auditors) potentially provide the highest degree of
objectivity.'' \83\ ACUS, in its ``Recommendation on Agency Use of
Third-Party Programs to Assess Regulatory Compliance'' (December 6,
2012) (Recommendation), found that, when well-designed and implemented
per the Recommendation, ``[s]everal broad reasons support the growing
use of third-party programs in Federal regulation.'' Specifically, ACUS
found that
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\83\ CCPS. March 2007. Guidelines for Risk Based Process Safety.
https://www.aiche.org/ccps/resources/publications/books/guidelines-risk-based-process-safety.

. . . Federal regulatory agencies are faced with assuring the
compliance of an increasing number of entities and products without
a corresponding growth in agency resources. Third-party programs may
leverage private resources and expertise in ways that make
regulation more effective and less costly. In comparison with other
regulatory approaches, third-party programs may also enable more
frequent compliance assessment and more complete and reliable
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compliance data.

A leading scholar on regulatory third-party programs likewise found
that, when well-designed and implemented, ``third-party verification
could furnish more and better data about regulatory compliance'' while
providing additional compliance and resource savings benefits.\84\
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\84\ Lesley K. McAllister. Jan. 2012. Regulation by Third-Party
Verification. 53 B.C. L. Rev. 1, 21-26. https://lawdigitalcommons.bc.edu/bclr/vol53/iss1/1/ iss1/1/.
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An ``independent third-party'' is a private auditor, inspector, or
other type of verifier external to the facility. ``Independent third-
party'' excludes the regulated entity, which is the first party (e.g.,
the stationary source and its parent company and subsidiaries), second
parties within the firm's industry or business community with whom the
regulated entity has a supply-chain relationship, and third parties
that are not independent of the first party, which may include
contractors, consultants, or purchasers of the facility's goods or
services.\85\ An independent third-party program should not be confused
with a second party program in which a regulated source employs a
contractor or consultant, even when the contractor is a separate legal
entity from the regulated facility and highly qualified. If a regulated
source provides direct or indirect control over the contractor or
consultant preparing the audit report, including controlling the
report's scope or findings, or has other non-audit relationships with
the auditor, then the auditor is not a true independent third-party.
This is important because when developing a third-party audit program,
auditor independence can be critical to the success of the program.
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\85\ Lesley K. McAllister. Jan. 2012. Regulation by Third-Party
Verification. 53 B.C. L. Rev. 1, 22-23 at p. 37.
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Third-party compliance audit programs should also establish
criteria and standards for auditor independence. As documented in the
ACUS Recommendation on Agency Use of Third-Party Programs to Assess
Regulatory Compliance (December 6, 2012),\86\ the ACUS Third-Party
Programs Final Report (October 22, 2012), and the McAllister law review
article, auditor independence is critical to ensuring accurate and
reliable independent third-party auditing.\87\
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\86\ ACUS; Administrative Conference Recommendation 2012-7;
Agency Use of Third-Party Programs to Assess Regulatory Compliance
(Adopted December 6, 2012) at 3-4. https://www.acus.gov/recommendation/agency-use-third-party-programs-assess-regulatory-compliance.
\87\ See, e.g., Lesley K. McAllister. Jan. 2012. Regulation by
Third-Party Verification. 53 B.C. L. Rev. 1, pp. 3, 39-40.
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The literature on designing independent third-party programs
includes peer-reviewed empirical studies emphasizing the importance of

[[Page 13657]]

establishing criteria and features for auditor independence to promote
accurate audit reports, including those summarized briefly below. While
it is not necessary that all audits be conducted only by independent
third parties, when independent third-party auditing is necessary and
appropriate, the literature indicates that, without sufficient
safeguards to ensure auditor independence, auditors are more likely to
provide lenient or biased audit reports that can fail to accurately
identify problems and violations by the regulated entity.
One such study is a randomized control design field experiment in
the State of Gujarat in India.\88\ This study revealed weaknesses in
the existing third-party regulatory audit system and the potential for
a series of market-based alterations to dramatically improve auditor
accuracy. In India, Gujarat Pollution Control Board regulates more than
20,000 industrial plants. From the universe of audit-eligible plants
located in two populous and heavily polluted industrial regions, the
researchers identified a study sample of 473 randomly-selected plants,
stratified by region. Half of the plants were randomly assigned into a
control group. The other half of the plants, also randomly assigned,
were informed by the State of changes to their audit regulation that
included the following: Plants would be randomly assigned auditors they
were required to use (i.e., they could no longer choose their own
auditors); auditors would be paid from a central pool rather than by
the plant for which they worked; auditor fees were set in advance at a
flat rate (high enough to cover pollution measurement and give the
auditor a modest profit); a random sample of each auditor's pollution
readings would be verified with follow-up visits to the audited plants
by an independent technical agency; in year two of the experiment, the
third-party auditors were informed that their pay would be linked to
their reporting accuracy as measured by the technical agency's follow-
up visits. The researchers found that, under the status quo system, the
third-party auditors systematically reported false pollution levels
just below the applicable regulatory standard (also known as strategic
misreporting) but the experimental changes significantly improved the
truthfulness of the third-party auditors' reports, even for auditors
operating in both markets who audited firms in both the control and
treatment groups. Also, and importantly, once the plants understood
that their auditors would henceforth be reporting more accurately to
the State, they reduced their actual pollution emissions.
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\88\ Esther Duflo et al., Truth-Telling By Third-Party Auditors
And The Response of Polluting Firms: Experimental Evidence From
India, 128 Q. J. of Econ. 4 at 1499-1545 (2013).
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A pair of 2013 studies of independent third-party vehicle emission
testing in New York also considered factors impacting third-party
independence. This research was based on millions of emission test
results from thousands of test facilities.\89\ The authors' findings
include that there is a relationship between testing facilities'
opportunities to ``cross sell'' other products and services to car
owners and the test results. The researchers found that, in pursuit of
customer loyalty, facilities with more cross-selling opportunities were
incentivized to ``pass'' cars that facilities with fewer cross-selling
opportunities would not.\90\
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\89\ Victor Manuel Bennett, et al. August 2013. Customer-Driven
Misconduct How Competition Corrupts Business Practices. Management
Science Vol. 59, No. 8, pp. 1725-1742. https://www.hbs.edu/faculty/Pages/item.aspx?num=43347 and Lamar Pierce and Michael W. Toffel.
Sept.-Oct. 2013. The Role of Organizational Scope and Governance in
Strengthening Private Monitoring. Organization Science Vol. 24, No.
5, pp. 1558-1584.
\90\ Lamar Pierce and Michael W. Toffel. Sept.-Oct. 2013. The
Role of Organizational Scope and Governance in Strengthening Private
Monitoring. Organization Science Vol. 24, No. 5, at 1575. https://www.hbs.edu/faculty/Publication%20Files/11-004.pdf.
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Further evidence suggests that many, if not most, of some types of
financial audits are flawed due to insufficient auditor competence,
independence, and/or lack of public transparency. Third-party auditing
is a linchpin of financial reporting. But when the Public Company
Accounting Oversight Board (PCAOB) released its third annual report on
audits of broker-dealers registered with the Securities and Exchange
Commission (SEC), the PCAOB found audit deficiencies in portions of 70
of the 90 audits. Independence problems were found in 21 on the 90
audits where, contrary to SEC rules, firms helped with the bookkeeping
or preparation of the financial statements they audited.\91\
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\91\ PCAOB. Aug. 18, 2014. Third Progress Report on PCAOB
Inspections of Broker and Dealer Auditors Shows Continued High
Number of Findings. https://pcaobus.org/Inspections/Documents/BD_Interim_Inspection_Program_2014.pdf.
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In 2014, the New York State Department of Financial Services
(NYDFS) fined PricewaterhouseCoopers (``PwC'') Regulatory Advisory
Services $25 million, suspended it for 24 months from accepting
consulting engagements at regulated financial institutions, and
required it to implement a series of reforms after PwC improperly
altered a report submitted to regulators on sanctions and anti-money
laundering compliance at Bank of Tokyo Mitsubishi (BTMU). Under
pressure from BTMU executives who received an advance draft of its
report to review, PwC edited the report, and in the final version of
the report which was sent to regulators, a number of key provisions
were deleted or otherwise significantly edited.\92\
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\92\ Press Release: NYDFS Announces PwC Regulatory Advisory
Services Will Face 24-Month Consulting Suspension; Pay $25 Million;
Implement Reforms After Misconduct During Work At BTMU. Aug. 18,
2014. https://www.dfs.ny.gov/about/press/pr1408181.htm.
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These recommendations, studies, and reports emphasize the
importance of designing independent third-party programs to embody
auditor independence by building in appropriate criteria and processes
for third-party independence. They identify a range of available design
elements to promote such independence. EPA consulted this literature in
developing today's proposed independent third-party compliance auditing
program.
Industry recognizes the benefits of third-party auditing programs
and have established programs and standards for third-party audits for
some types of operations, many of which are also subject to the RMP
rule.\93\ These programs also demonstrate industry's understanding
that, in appropriate circumstances, third-party auditing can provide
benefits and results above those available through self-auditing alone.
In addition, these programs and standards illustrate the range and
variety of structural design elements that can be, and are, employed in
third-party programs to address auditor competence and independence,
auditor certification, the audit process, auditor reporting,
recordkeeping, and the public disclosure of audit results and
associated information.
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\93\ EPA has not formally evaluated these programs and standards
or their outcomes. This discussion is not a formal Agency review or
endorsement of them.
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Some industry groups, such as SOCMA and the Center for Offshore
Safety (COS), require certain types of third-party audits for their
members. SOCMA members are U.S. companies engaging in the manufacturing
or handling of synthetic and organic chemicals. Active members have a
mandatory requirement to participate in ChemStewards[supreg], a program
intended to promote continuous performance improvement in batch
chemical manufacturing. The program offers a three-tiered approach to
participation. Each tier includes a third-party verified

[[Page 13658]]

management system.\94\ The COS strategy for promoting safety and
protection of the environment includes third-party auditing and
certification of the COS member company's SEMS and accreditation of the
organizations (Audit Service Providers) providing the audit services.
The third-party audits are intended to ensure that COS member companies
are implementing and maintaining SEMS throughout their deepwater
operations.\95\
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\94\ SOCMA. 2015. See https://www.socma.com/ChemStewards/.
\95\ COS. 2013. See https://www.centerforoffshoresafety.org/auditInfo.html.
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ACC members are required to participate in a Responsible Care
management system described by ACC as including, identifying, and
acting to address potential hazards and risks associated with their
products, processes, distribution and other operations. One of
Responsible Care's program elements is a product safety code consisting
of eleven management practices through which chemical manufacturers are
encouraged to evaluate, demonstrate and continuously improve their
product safety performance while making information about chemical
products available to the public.\96\ Responsible Care also has a
process safety code consisting of seven management practices through
which chemical manufacturers commit to safe operation of their chemical
processes. According to ACC,
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\96\ ACC. 2013. Responsible Care Product Safety Code. https://responsiblecare.americanchemistry.com/Responsible-Care-Program-Elements/Product-Safety-Code.

the Responsible Care Process Safety Code differs from regulatory
standards that, by necessity, focus on process safety at an
individual facility. ACC contends that the Process Safety Code is
more universal--it addresses issues across a division or
corporation, and includes a company commitment to set process safety
expectations, define accountability for process safety performance
and allocate adequate resources to achieve performance
expectations.\97\
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\97\ ACC. 2013. Responsible Care Process Safety Code. https://responsiblecare.americanchemistry.com/Responsible-Care-Program-Elements/Process-Safety-Code.

The Responsible Care management system process includes mandatory
certification, by auditors described by ACC as accredited and
independent, to ensure the program participants have a structure and
system in place to measure, manage and verify performance.\98\
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\98\ Certification must be renewed every three years, and
companies can choose one of two certification options. RCMS[supreg]
certification in intended to verify that a company has implemented
the Responsible Care Management System. RC14001[supreg]
certification combines Responsible Care and ISO 14001 certification.
See https://responsiblecare.americanchemistry.com/Responsible-Care-Program-Elements/Management-System-and-Certification and https://responsiblecare.americanchemistry.com/Responsible-Care-Program-Elements/Process-Safety-Code/Responsible-Care-Process-Safety-Code-PDF.pdf.
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The API, in collaboration with industry partners, has developed a
Process Safety Site Assessment Program (PSSAP). According to API, the
program is intended to provide for the assessment of API member sites'
process safety systems by third-party teams of independent, industry-
qualified process safety expert assessors. Using industry-developed
protocols, API describes the process safety site assessments as
evaluating the quality of written programs and effectiveness of field
implementation for the following process safety areas that will be
evaluated: Process Safety Leadership; MOC; Mechanical Integrity
(focused on fixed equipment); Safe Work Practices; Operating Practices;
Facility Siting; Process Safety Hazards; and HF Alkylation/RP 751. The
assessment teams produce reports that identify observations that site
personnel should consider further but do not provide written
recommendations.\99\
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\99\ API. 2015. PSSAP. https://www.api.org/certification-programs/process-safety-site-assessment-programs.
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1. Applicability of Third-Party Audit Requirements
Currently, there are approximately 12,000 stationary sources with
Program 2 and/or Program 3 processes. The proposed rule would not
require all of these RMP facilities to use third-party auditors when
conducting compliance audits under subpart C or D. Instead, EPA is
proposing that owners or operators be required to perform third-party
compliance audits at their facilities only under the following two
conditions.
Under the first condition, a third-party compliance audit would be
required in lieu of an internal compliance audit if there has been an
accidental release from an RMP facility meeting the five-year accident
history criteria as described in Sec. 68.42(a). The existing five-year
accident history criteria include accidental releases from covered
processes that resulted in deaths, injuries, or significant property
damage on-site; or deaths, injuries, property damage, evacuations,
sheltering in place, or environmental damage offsite. EPA and other
implementing agencies would learn about accidents meeting the five-year
accident history criteria because such accidents must be included
within a facility's RMP within six months of the accident, in
accordance with Sec. 68.195(a). Following such an accident, the RMP
facility's owner or operator would be required to engage a third-party
auditor to conduct a compliance audit for the source. Pursuant to
Sec. Sec. 68.58(h) and 68.79(h), the third-party audit and associated
report shall be completed, and submitted to the implementing agency
pursuant to Sec. 68.59(c)(3) or Sec. 68.80(c)(3) as follows, unless a
different timeframe is specified by the implementing agency: within 12
months of when the third-party audit is required pursuant to Sec.
68.58(f) and/or (g) or Sec. 68.79(f) and/or (g); or within three years
of completion of the previous compliance audit, whichever is sooner.
The second condition is if an implementing agency has made a
determination that a third-party audit at an RMP facility is necessary,
based on information about the facility or a prior third-party audit at
the facility. Information about an RMP facility that would lead to such
a determination could be obtained from sources including an inspection
of a facility by the implementing agency's representatives. Relevant
information to support the determination may include evidence of
significant non-compliance with the prevention program requirements of
subpart C or D of part 68. Significant non-compliance includes
deficiencies relating to a previous third-party audit (i.e., failure to
meet the competency, independence, or impartiality criteria of Sec.
68.59(b) or Sec. 68.80(b)).
If such a determination is made, the implementing agency must
provide a written notice to the owner or operator of the facility
stating the reasons for the determination that a third-party audit must
be performed. The proposed rule provides for an opportunity for the
owner or operator to provide information and data to the implementing
agency and to consult with the implementing agency about the need to
perform a third-party audit at the facility source before the
implementing agency representatives make a final determination. EPA
seeks comment on these proposed third-party audit applicability
requirements.
2. Alternative Options for Third-Party Audit Applicability Criteria
EPA considered requiring third-party compliance audits for a larger
universe of regulated facilities. We considered whether to require
third-party

[[Page 13659]]

compliance audits for all facilities with processes subject to Program
3 requirements at least every three years. We also considered whether
to require third-party compliance audits for all facilities with
processes subject to Program 2 or Program 3 requirements every three
years. However, because EPA views facilities that have had accidents or
significant non-compliance as presenting higher risks to surrounding
communities, the Agency is proposing to limit the applicability of this
provision to these facilities.
EPA seeks comments and suggestions on the proposed third-party
audit applicability requirements and whether to eliminate or further
limit applicability of this provision. For example, EPA could consider
limiting the provision to only Program 3 facilities that have had
accidents or to only facilities that have had major accidents with
offsite impacts. EPA seeks comments on this alternative approach and to
define and characterize ``major accidents with offsite impacts.''
Alternatively, EPA could revise this provision to reduce its impact on
small businesses. When providing suggested alternatives, please include
suggestions for how to improve compliance with auditing provisions.
EPA also seeks comment on whether there are other criteria that
could require RMP facilities to perform third-party compliance audits.
For example, a third-party audit could be required if an owner or
operator of a facility were to learn or know of a condition or
conditions at its facility suggesting a concern for, or potential risk
of, future accidents. Such conditions would need to be objective and
reasonably ascertainable by the facility owners or operators, the
implementing agency, and the public.
EPA also seeks comment on the benefits and costs of proposing
additional requirements for third-party compliance audits and
recommendations for appropriate conditions suggesting a concern for, or
potential risk of, future accidents.
3. Proposed Third-Party Audit Requirements
a. Compliance Audit (Sec. Sec. 68.58 and 68.79)
In order to prevent accidents and ensure compliance with part 68
requirements, EPA is proposing to require certain RMP facilities to
perform third-party audits. The proposed changes to Sec. Sec. 68.58
and 68.79 would add this requirement for both Program 2 and Program 3
processes, under certain conditions.
EPA proposes new paragraphs Sec. Sec. 68.58(f) and 68.79(f) which
describe when a third-party audit is required. Pursuant to these
paragraphs, the next required compliance audit for an RMP facility
shall be a third-party audit when one of the following conditions
apply: (1) An accidental release, meeting the criteria in Sec.
68.42(a), from a covered process has occurred; or (2) an implementing
agency requires a third-party audit based on non-compliance with the
requirements of this subpart, including when a previous third-party
audit failed to meet the competency, independence, or impartiality
criteria of Sec. 68.59(b) or Sec. 68.80(b). The purpose is to help
reduce the risk of future accidents by requiring an objective auditing
process to determine whether the owner or operator of the facility is
effectively complying with the prevention program requirements of part
68.
EPA proposes new paragraphs Sec. Sec. 68.58(g) and 68.79(g),
Implementing agency notification and appeals, which describe the
procedure for when a third-party audit is required by an implementing
agency. Pursuant to these paragraphs, if an implementing agency makes a
preliminary determination that a third-party audit is necessary, the
implementing agency will provide written notice to the facility owner
or operator stating the reasons for the implementing agency's
determination. The owner or operator has an opportunity to provide
information to, and to consult with, the implementing agency. The
implementing agency then provides a final determination to the owner or
operator. If the final determination requires a third-party audit, the
owner or operator shall comply with the requirements of Sec. 68.59
and/or Sec. 68.80, but also may choose to appeal the final
determination. After the appeal is considered, the implementing agency
will provide a written, final decision on the appeal to the owner or
operator.
EPA proposes new paragraphs Sec. Sec. 68.58(h) and 68.79(h), which
describe the schedule for conducting third-party audits. The audit and
associated report shall be completed, and submitted to the implementing
agency as follows, unless a different timeframe is specified by the
implementing agency: (1) Within 12 months of when any third-party audit
is required; or (2) within three years of completion of the previous
compliance audit, whichever is sooner.
b. Third-Party Audits (Sec. Sec. 68.59 and 68.80)
EPA is proposing new Sec. Sec. 68.59 and 68.80, which include the
requirements for both third-party audits, and third-party auditors.
Sections 68.59(a) and 68.80(a) state that owners or operators shall
engage a third-party auditor to evaluate compliance with the provisions
of this subpart in accordance with the requirements of this section
when the criteria of Sec. 68.58(f) or Sec. 68.79(f) are met.
EPA is proposing, in Sec. Sec. 68.59(b) and 68.80(b), that owners
and operators of RMP facilities subject to these requirements determine
and document the competency, independence, and impartiality of their
auditors. These sections require that the facility owners or operators
be responsible for self-determining and documenting that their third-
party auditors are competent and independent pursuant to the criteria
listed in Sec. 68.59(b)(1) through (3) or Sec. 68.80(b)(1) through
(3), by requiring specific provisions and safeguards in their contracts
and relationships with their third-party auditors.
EPA seeks comment as to whether the requirement that owners and
operators of RMP facilities be responsible for determining and
documenting the competency, independence, and impartiality of their
auditors is appropriate.
Alternative Option for Third-Party Auditor Selection and Accreditation
EPA also considered an alternative approach, such as requiring
auditors to have accreditation from a recognized auditing body or EPA.
Most independent third-party regulatory compliance verification
programs require the qualifying third-parties to apply for and receive
accreditation from a qualified external party to ensure competency and
independence. Such an external accreditation approach can add rigor to
the process of confirming the competence and independence of the
auditors but it also adds procedures and costs. Therefore, while EPA is
not proposing that the Agency itself will accredit third-party
auditors, EPA seeks comment on whether to require additional
accreditation criteria and how to best establish and structure an
accreditation program within the context of the RMP rule.
Auditor Competence
Third-party compliance verification programs should establish
criteria and standards for auditor competence. Typically, such criteria
and standards combine specified minimum levels of education, knowledge,
experience, and training. EPA is proposing to require in proposed
Sec. Sec. 68.59(b)(1)(i) through (iv) and 68.80(b)(1) (i) through (iv)
that third-party auditors be:

[[Page 13660]]

Knowledgeable with the requirements of part 68;
experienced with the facility type and processes being
audited and the applicable recognized and generally accepted good
engineering practices (RAGAGEP);
trained or certified in proper auditing techniques; and
be a licensed Professional Engineer (PE), or include a
licensed PE on the audit team.

EPA is proposing to require a PE as part of the audit team in an
attempt to identify competent auditors that also have an ethical
obligation to perform unbiased work. EPA seeks comment on whether these
criteria are appropriate and sufficient to ensure third-party auditors
are competent to perform high-quality compliance audits. EPA also seeks
comment on whether the proposal to require that a third-party auditor,
or a member of the audit team, be a licensed PE is appropriate and
whether there are enough licensed PEs to conduct third-party audits for
the universe of facilities that may become subject to these
requirements. Are there other qualifications who might be appropriate
for RMP auditors in lieu of a PE?
As part of the SBAR Panel process, SERs suggested to the SBAR Panel
that EPA consider substituting other qualified personnel such as:
degreed chemists, degreed chemical engineers, Certified Safety
Professionals (CSP), Certified Industrial Hygienists (CIH), Certified
Fire Protection Specialists (CFPS), Certified Hazardous Materials
Managers (CHMM), Certified Professional Environmental Auditors (CPEA)
or Certified Process Safety Auditors (CPSA). SERs indicated that these
credentials also include ethical obligations to provide sound
independent advice. EPA also seeks comment regarding potentially
relevant and applicable consensus standards and protocols that might
apply to the audits and be built and/or incorporated by reference into
the rules. These may include relevant and applicable American National
Standards Institute, American Society for Testing and Materials
International, European Committee for Standardization, International
Organization for Standardization (ISO), and National Institute of
Standards and Technology (NIST) standards.
Auditor Independence and Impartiality
Proposed Sec. Sec. 68.59(b)(2)(i) through (vi) and 68.80(b) (2)(i)
through (vi) set forth the independence and impartiality requirements
for third-party auditors and audit teams. These include that third-
party auditors:

Act impartially when performing all third-party audit
activities;
receive no financial benefit from the outcome of the
audit, apart from payment for the auditing services;
not have conducted past research, development, design,
construction services, or consulting for the owner or operator
within the last 3 years; \100\
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\100\ For purposes of this requirement, consulting does not
include performing or participating in third-party audits pursuant
to Sec. 68.59 or Sec. 68.80.
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not provide other business or consulting services to
the owner or operator, including advice or assistance to implement
the findings or recommendations in an audit report, for a period of
at least 3 years following submission of the final audit report;
Ensure all personnel involved in the audit sign and
date a conflict of interest statement; and
ensure all personnel involved in the audit do not
accept future employment with the owner or operator of the facility
for a period of at least 3 years following submission of the final
audit report. For purposes of this requirement, employment does not
include performing or participating in third-party audits pursuant
to Sec. 68.59 or Sec. 68.80.

As part of the SBAR Panel process, SERs raised concerns about the
extent of the independence criteria and suggested this might limit the
availability of qualified auditors. Specifically, SERs asked how to
apply the independence criteria to a company that employs personnel who
previously worked for or otherwise engaged in consulting services with
the facility. Audit firms with personnel who, before working for the
firm, performed services for the owner or operator as an employee,
contractor or consultant, meet the rule's independence criteria when
such personnel do not participate on, manage, or advise the audit
teams. Additionally, employees of an auditing firm are not prohibited
from accepting future employment with the owner/operator as long as
they were not directly involved in performing or managing the audit.
Another concern raised by SERs is ensuring that third-party
auditors do not pose a terrorism concern or release information that
could compromise facility security or CBI. EPA agrees that chemical
facility security is a priority and seeks comments on the impacts a
third-party auditor may have on a facility's security and whether there
is a need to specify security protections or whether existing non-
disclosure and contractual agreements should handle this independently.
EPA seeks comment on whether the proposed auditor independence
criteria are appropriate and sufficient. If not, we seek comment on how
best to adjust the criteria for maximum auditing effectiveness and
efficiency, including comments or suggestions on how to provide more
flexibility in the auditor independence criteria, or whether to
eliminate the requirement for independence. EPA also seeks comments on
whether the proposed 3-year timeframe to separate the audit from other
business arrangements with the owner or operator is appropriate.
Furthermore, EPA is requesting comment on whether the proposed
auditor independence criteria should be modified so as to not exclude a
retired employee from auditing a former employer's facility if the
employee's sole continuing financial attachment to the owner or
operator is an employer-financed or employer-managed retirement plan.
While EPA is concerned such attachments could provide the auditor with
incentives to ensure the facilities they audit are not financially
negatively impacted by their audits, it could also, as a practical
matter, limit the available pool of otherwise qualified and competent
auditors. EPA seeks comment on the potential magnitude of such
incentives and how to address this concern in the rule.
Finally, EPA requests comment on whether to propose streamlined
independence criteria for small facilities (i.e., based on the size of
the facility) including comments or suggestions on how to streamline
the requirements.
Auditor Policies and Procedures
Proposed Sec. Sec. 68.59(b)(3) and 68.80(b)(3), if finalized,
would require that owner or operators of RMP regulated facilities
ensure that third-party auditors have written policies and procedures
to ensure that all personnel comply with the competency, independence,
and impartiality requirements of these sections. EPA seeks comment on
these proposed provisions.
Alternative Options for Auditor Qualifications
EPA considered including alternative options in the proposed rule
for owners and operators of stationary sources who cannot, despite best
efforts, find a third-party auditor meeting all of the independence
criteria. Two specific options were considered.
Under the first option, owners and operators of RMP facilities, in
addition to self-selecting their third-party auditors pursuant to the
specified independence criteria, would also self-determine when it is
impossible or impractical to hire such auditors and self-select their
alternative auditors.

[[Page 13661]]

Under this option, the owner or operator would be required to inform
the implementing agency and the public of the alternative auditors,
which could be accomplished by providing and/or publicly posting
information on the alternative auditors and how they were selected. The
information could describe the steps taken to identify auditors meeting
all of the rule's independence criteria, the identities and
competencies of the alternative auditors, the regulatory independence
criteria that the alternative auditors were unable to meet and why, and
any steps taken to address or limit the impacts of the auditors' lack
of independence on the outcomes and reliability of their audits.
Under the second option, owners and operators who, despite best
efforts, could not find auditors meeting all the rule's independence
criteria would be authorized to identify specific alternative auditors
to the implementing agency and petition it for approval to engage those
auditors. This approach would include a requirement for auditors not
fully satisfying the rule's independence criteria to prepare and
implement Conflict of Interest Mitigation Plans similar to those
required by the California Air Resources Board (CARB) under its
Regulation for the Mandatory Reporting of GHG Emissions,\101\ with
associated reporting, recordkeeping, and due process procedures. Under
this option, if, despite best efforts, an owner or operator cannot find
a third-party auditor meeting all of the criteria in Sec. 68.59(b) or
Sec. 68.80(b), the owner or operator would be required to request
approval, in writing, to the implementing agency to use an alternative
third-party auditor. The implementing agency would then be required,
within a specified timeframe, to approve or disapprove the proposed
request and provide notice of its decision to the owner or operator.
The owner or operator's request to use an alternative third-party
auditor would include a description of the owner or operator's efforts
to find an independent third-party auditor, identification of the
proposed alternative third-party auditor (including the same
information required pursuant to this rule for a fully qualified
auditor), identification of the specific independence requirements the
proposed alternative third-party auditor meets and does not meet, and
an organizational chart of the proposed alternative third-party auditor
and related entities with brief descriptions of the primary nature of
the work each performs.
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\101\ CARB. July 23, 2015. Verification of GHG Emissions Data
Reports. https://www.arb.ca.gov/cc/reporting/ghg-ver/ghg-ver.htm.
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The owner or operator's request to use an identified alternative
third-party auditor would also include a Conflict of Interest
Mitigation Plan demonstrating the steps the auditor would take to
mitigate its inability to fully meet the independence requirements in
Sec. 68.59(b) or Sec. 68.80(b). These steps could include ensuring
that any individual or organizational component of the auditor with
conflicts of interest or impartiality concerns is removed from the
audit and/or isolated from the individuals or organizational component
conducting the audit, an explanation of how and why the amount and
nature of work previously performed should not be deemed to undermine
the auditing team's credibility and lack of bias, and descriptions of
any other adjustments or circumstances taken to address actual or
potential sources for conflicts of interest, with an appropriate
certification signed and dated by a senior owner or operator official.
If, pursuant to this option, the implementing agency approves the
alternative third-party auditor, it would provide written notice to the
owner or operator and, upon receipt of the approval, the owner or
operator may engage the alternative auditor to conduct the audit under
this section. If the implementing agency does not approve the
identified alternative auditor, the implementing agency would provide a
written notice to the owner or operator stating the reasons for the
decision. Within a specified timeframe after receipt of such written
notice, the owner or operator would be required to submit the name of
another proposed auditor for the implementing agency's consideration.
In the alternative, the owner or operator would be able to appeal the
implementing agency's decision pursuant to the applicable agency's
processes.
EPA considered but did not propose other third-party auditor
independence safeguards than those included in proposed Sec.
68.59(b)(2) or Sec. 68.80(b)(2). Examples include mandating the random
assignment of auditors, paying them from a central pool of auditing
funds, or requiring mandatory periodic auditor rotation after a
specified period of time. Nor has EPA proposed provisions requiring
owners and operators to provide advance notice to the implementing
agency of third-party auditor site visits to enable the implementing
agency to accompany and observe the third-party auditors on such
visits.\102\ EPA seeks comment on these alternative approaches.
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\102\ Compare proposed 40 CFR 770.7(a)(3)(iv) of EPA's proposed
Toxic Substances Control Act (TSCA) formaldehyde in wood products
third-party program proposed rule: ``(3) Responsibilities. EPA
recognized Laboratory ABs must fulfill the requirements in
paragraphs (b)(3)(i) through (xiii) of this section: . . . (iv) Upon
request, allow EPA representatives to accompany its assessors during
an on-site assessment to observe the audit of a TPC.'' Formaldehyde;
Third-Party Certification Framework for the Formaldehyde Standards
for Composite Wood Products, 78 FR 34796, June 10, 2013. https://www.gpo.gov/fdsys/pkg/FR-2013-06-10/pdf/2013-13254.pdf.
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EPA further seeks comment on whether there are any other
alternative approaches to third-party auditor qualifications EPA should
consider prior to issuing a final action. For example, EPA could, in
the final rule, allow for audits to be performed by auditors with some
potential conflicts of interest (e.g., employees of parent company,
affiliates, vendors/contractors that participated in developing the
facility's RMP, etc.) and/or allow a person employed at the facility
who is a registered PE to conduct the audit. If such approaches are
adopted in the final rule, the Agency could seek to place appropriate
restrictions on auditors and auditing using third parties with less
than full independence from their client facilities in an effort to
increase confidence that the auditors will act appropriately when
performing their activities under the RMP rule. The purposes of such
provisions could include ensuring that auditor personnel who assess a
facility's compliance with the RMP rule do not receive any financial
benefit from the outcome of their auditing decisions, apart from their
basic salaries or remuneration for having conducted the audits. EPA
also specifically requests commenters to identify any supportive
literature or data as EPA is presently not aware of literature or data
showing that such provisions are effective in counteracting biases due
to lack of impartiality or independence.
There may be other options, in addition to the approaches taken in
the proposed third-party compliance auditing program or identified
above, that can also increase owner or operator flexibility without
compromising audit accuracy. EPA seeks comment on such alternative
auditor/auditing approaches.
If non-independent or limited independence third-party auditing,
second-party auditing, or enhanced self-auditing is authorized, EPA
seeks comment on how best to structure such auditing to maximize
auditor independence and accurate auditing outcomes given the lack of
complete

[[Page 13662]]

independence. EPA also seeks suggestions for what steps a facility
should be required to take if third-party auditors who meet the
proposed independence and competence criteria are not available. If RMP
facilities are allowed, in the final rule, to use enhanced self-
auditing in lieu of independent third-party auditing, examples of the
types of restrictions that could be placed on such self-auditing to
potentially improve auditor impartiality and auditing outcomes appear
in the U.S. and CARB v. Hyundai Motor Company, et al. Consent
Decree.\103\
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\103\ U.S District Court of DC November 11, 2014. Decree of
Consent U.S California Air Resources Board v. Hyundai et al. https://www2.epa.gov/sites/production/files/2014-11/documents/hyundai-kia-cd.pdf.
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Third-Party Audit Report
Proposed Sec. Sec. 68.59(c) and 68.80(c), if finalized, would
require owners or operators of stationary sources to ensure that their
third-party auditors prepare and submit audit reports. Proposed
Sec. Sec. 68.59(c)(1) and 68.80(c)(1), if finalized, would include
requirements for the scope and content of these reports, including a
statement to be signed by the third-party auditor certifying that the
third-party audit was performed in accordance with the requirements of
subpart C or D. Proposed Sec. Sec. 68.59(c)(1) and 68.80(c)(1), if
finalized, would also require that the final third-party audit reports
must identify any adjustments made by the third-party auditor to any
draft third-party audit reports provided to the owners or operators for
their review or comment. EPA believes that these provisions are
important to minimize third-party compliance audit bias. EPA's intent
in allowing for owners and operators to receive and comment on draft
third-party compliance audit reports with these additional requirements
is to promote factual and informative final third-party compliance
audit reports without compromising their accuracy and independence. EPA
seeks comment, however, on whether we should also require draft third-
party compliance audit reports to be submitted to the implementing
agency at the same time, or before, such reports are provided to the
owners and operators and whether such a requirement would be further
effective in minimizing potential third-party compliance audit bias.
Proposed Sec. Sec. 68.59(c)(2) and 68.80(c)(2), if finalized,
would include requirements for the retention of reports and records by
the third-party auditors. Proposed Sec. Sec. 68.59(c)(3) and
68.80(c)(3), if finalized, would require the audit report to be
submitted to the implementing agency at the same time, or before, it is
provided it to the owner or operator. Finally, EPA is proposing in
Sec. Sec. 68.59(c)(4) and 68.80(c)(4) that the audit report and
related records cannot be claimed as attorney-client communications or
as attorney work products even if the auditors are themselves, or are
managed by or report to, attorneys. With respect to the attorney work
product privilege, the audit report and related records are produced to
document compliance rather than in anticipation of litigation, just
like a monitoring report required by an air emission rule would not be
produced in anticipation of litigation. With respect to the attorney-
client communication privilege, the third-party auditor is arms-length
and independent of the stationary source being audited. The auditor
lacks an attorney-client relationship with counsel for the audited
entity. Therefore, neither the audit report nor the records related to
the audit report provided to the third-party auditor are attorney-
client privileged (including documents originally prepared with
assistance or under the direction of the audited source's attorney).
EPA seeks comment on these proposed requirements including any legal
concerns that may result from the provision that limits attorney-
related privileges.
Other Owner or Operator Obligations
Proposed Sec. Sec. 68.59(d)(1) and 68.80(d)(1), if finalized,
would require owners or operators, as soon as possible, but no later
than 90 days after receiving the final audit report, to determine an
appropriate response to each of the findings in the audit report, and
develop and provide to the implementing agency a findings response
report. This findings response report would include: A copy of the
final audit report; an appropriate response to each of the audit report
findings; a schedule for promptly addressing deficiencies; and a
statement, signed and dated by a senior corporate officer, certifying
that appropriate responses to the findings in the audit report have
been identified and deficiencies were corrected, or are being
corrected, consistent with the requirements of subpart C or D of 40 CFR
part 68. The requirement to determine appropriate responses to findings
is similar to existing compliance audit requirements that require the
owner or operator to ``promptly determine and document an appropriate
response to each of the findings of the compliance audit.'' EPA seeks
comment on these proposed requirements and whether we should provide
flexibility on the timeframe for developing the findings response
report.
EPA also considered prescribing a timeframe within which
deficiencies must be corrected, rather than rely on ``promptly''
address deficiencies. However, EPA was unable to identify an
appropriate timeframe given the variety of possible site-specific
actions that an owner or operator may take to address audit findings.
EPA seeks comment on whether to keep this approach or substitute a
specific number of days and, if the latter, what is a reasonable time
period to specify and why.
Proposed Sec. Sec. 68.59(d)(2) and 68.80(d)(2), if finalized,
would require the owner or operator to implement the schedule and
address deficiencies identified in the audit findings response report,
and document the action taken to address each deficiency, along with
the date completed. Proposed Sec. Sec. 68.59(d)(3) and 68.80(d)(3), if
finalized, would require the owner or operator to provide a copy of
documents required under paragraphs (d)(1) and (d)(2) to the owner or
operator's audit committee of the Board of Directors, or other
comparable committee, if one exists. EPA seeks comment on these
proposed requirements.
Proposed Sec. Sec. 68.59(e) and 68.80(e), if finalized, would
require the owner or operator to retain records at the stationary
source, including: the two most recent third-party audit reports,
related findings response reports, documentation of actions taken to
address deficiencies, and related records; and copies of all draft
third-party audit reports. The owner or operator shall provide draft
third-party audit reports, or other documents, to the implementing
agency upon request. For proposed Sec. 68.59(e) (Program 2 third-party
audit recordkeeping provision), these requirements, if finalized, would
not apply to any documents that are more than five years old (for
Program 3 third-party audit records, as for the existing Program 3
compliance audits, the owner or operator would be required to retain
records to support the two most recent audits). EPA seeks comment on
these proposed requirements.

C. Safer Technology and Alternatives Analysis (STAA)

1. Meaning of STAA
Safer technology and alternatives refer to risk reduction
strategies developed through analysis using a hierarchy of process risk
management strategies (or hierarchy of controls), which consists of
those which are inherent, passive,

[[Page 13663]]

active, and procedural.\104\ This philosophy can be applied initially
to all design phases and then continuously throughout a process's life
cycle by identifying and assessing hazards and developing a control
strategy. STAA includes concepts known as IST or inherently safer
design (ISD), which are those strategies that permanently reduce or
eliminate the hazards associated with materials and operations used in
a process. IST, ISD, and inherent safety are interchangeable terms that
are used in the literature and in the field. The four major inherently
safer strategies are:
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\104\ CCPS. 2009. Inherently Safer Chemical Processes: A Life
Cycle Approach, 2nd ed., American Institute of Chemical Engineers,
CCPS New York, Wiley.

Minimization-using smaller quantities of hazardous
substances;
Substitution-replacing a material with a less hazardous
substance;
Moderation-using less hazardous conditions or a less
hazardous form, or designing facilities that minimize the impact of
a release of hazardous material or energy; and
Simplification-design facilities to eliminate
unnecessary complexity and make operating errors less likely.

The hierarchy establishes that inherently safer options (e.g.,
minimization, substitution, moderation, and simplification) are
preferable and occupy the top of the hierarchy. Passive strategies
(process and equipment design) are preferable to active ones such as
engineering controls (automatic digital or mechanical system controls),
which are preferable to procedures or administrative options (controls
requiring human action). However, risk reduction of a process hazard
may also be achieved by using a combination of strategies, known as
layers of protection. EPA is proposing to require analysis of safer
technology and alternatives as part of the PHA for a subset of Program
3 processes.
2. Inherently Safer Technology (IST)
A July 2010 DHS report prepared by the CCPS described IST as a
philosophy and an iterative process, including eliminating a hazard,
reducing a hazard, substituting a less hazardous material, using less
hazardous process conditions, and designing a process to reduce the
potential for, or consequences of, human error, equipment failure, or
intentional harm.\105\ It stated that there is no clear boundary
between IST and passive, active, and procedural risk management
strategies. CCPS further stated that ISTs are relative and can only be
described as inherently safer when compared to a different technology,
including a description of the hazard or set of hazards being
considered, their location, and the potentially affected population.
Because an option may be inherently safer with regard to some hazards
and inherently less safe with regard to others, the decision process
must consider the entire life cycle, the full spectrum of hazards and
risks, and the potential for transfer of risk from one impacted
population to another. This report also noted that there is currently
no consensus on either a quantification method for IST or a scientific
assessment method for evaluation of IST options. The report states that
risk can be reduced by many methods, including ISD, but those methods
must include the full spectrum of risk reduction approaches (passive,
active, and procedural risk management systems). Few technologies will
be inherently safer with respect to all hazards, and other approaches
will usually be required to manage the full range of hazards and risks.
As an example, the report points out that an IST with respect to a
catastrophic release hazard may conflict with methods to minimize other
hazards, such as theft or diversion of materials, contamination of
product, or degradation of infrastructure. It may not address other
hazards at all, or it may create new hazards.
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\105\ CCPS. July 2010. Final Report: Definition for IST in
Production, Transportation, Storage, and Use. Prepared by: CCPS,
American Institute of Chemical Engineers, New York, New York for
Chemical Security Analysis Center, Science & Technology Directorate,
U.S. DHS Aberdeen Proving Ground, MD. https://www.aiche.org/ccps/documents/definition-inherently-safer-technology.
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3. EPA's Past Approach to STAA
The RMP rule already embodies most aspects of the hierarchy of
controls. For example, Sec. 68.67 (PHA) requires owners and operators
of Program 3 processes to address process hazards using engineering and
administrative controls. In most cases, the rule's requirements for
compliance with RAGAGEP should ensure that equipment and processes are
properly designed, using appropriate passive, active, and procedural
controls. The RMP rule also encourages passive and active mitigation
for releases by allowing a source to account for such mitigation
techniques in its OCA (see Sec. Sec. 68.25 and 68.28). However, the
rule does not contain any explicit requirement for owners and operators
to address the first tier of the hierarchy of controls--i.e. inherent
safety.
Although the current rule does not include IST requirements, EPA
has recognized the importance of considering IST for improving process
safety. The preamble of the 1995 supplemental NPRM for the Risk
Management Program recognized ``that there are many opportunities to
make processes inherently safer without large scale adoption of new
technologies (60 FR 13533, March 13, 1995). EPA also noted in the
preamble to the 1996 final RMP rule, ``Application of good PHA
techniques often reveals opportunities for continuous improvement of
existing processes and operations without a separate analysis of
alternatives'' (61 FR 31674, June 20, 1996). The structure of the
applicability provisions of the RMP rule, with TQs, encourages
minimizing the presence of regulated substances in processes and
encourages sources to continue to examine and adopt viable alternative
processing technologies, system safeguards, or process modifications to
make new and existing processes and operations inherently safer. EPA's
existing guidance on the ``general duty clause'' in CAA section
112(r)(1) states that, ``The owners and operators should try to
substitute less hazardous substances for extremely hazardous substances
or minimize inventories when possible. This is usually the most
effective way to prevent accidents and should be the priority of a
prevention program.'' \106\
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\106\ EPA, Office of Solid Waste and Emergency Response and
Office of Enforcement and Compliance Assurance. May 2000. Guidance
for Implementation of the General Duty Clause, CAA Section
112(r)(1). EPA 550-B00-002. https://www2.epa.gov/rmp/guidance-implementation-general-duty-clause-clean-air-act-section-112r.
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In the 1996 final RMP rule, EPA decided not to mandate IST
analysis, stating that ``EPA does not believe that a requirement that
owners or operators conduct searches or analyses of alternative process
technologies for new or existing processes will produce significant
additional benefits.'' (61 FR 31688, June 20, 1996). However, since
1996 EPA has seen that advances in ISTs and safer alternatives are
becoming more widely available and are being adopted by some companies.
Voluntary implementation of some ISTs has been identified through
surveys and studies and potential opportunities have been identified
through EPA inspections and CSB incident investigations. EPA now
believes that there is a benefit in requiring that some facilities
evaluate whether they can improve risk management of current hazards
through potential implementation of ISTs or risk management measures
that are more robust and reliable than ones currently in use at the
facility. While EPA believes that facilities should look for additional
opportunities to increase safety, we believe that the facility owners
or operators are in the best position to identify which changes are

[[Page 13664]]

feasible to implement for their particular process. As a result, EPA is
not proposing to require that a facility implement a particular
technology or design.
In addition, in CAA section 112(r) enforcement cases, facility
owners or operators have occasionally entered into consent agreements
involving implementation of safer alternatives. For example, a food
processor in San Francisco had a release of anhydrous ammonia from its
refrigeration system in 2009, resulting in evacuation of the facility
and several neighboring businesses and hospitalization of 17 people. As
part of a consent decree, the facility owner or operator converted the
anhydrous ammonia refrigeration system to a safer technology that uses
glycol and less ammonia, along with implementing other safety measures
and system upgrades.\107\ Following community complaints and a 2011 EPA
inspection, the owner or operator of a fertilizer facility chose to
remove a total of 99,000 pounds of anhydrous ammonia from the facility,
thus reducing the risk to the surrounding population.\108\ In another
case, the owner or operator of a dairy company agreed to reduce the
anhydrous ammonia inventory and improve release detection equipment at
two facilities after two anhydrous ammonia releases in 2005 and 2007
(the latter causing nine people to spend a night in the hospital) and
after EPA identified CAA violations.\109\ The owner or operator of a
Connecticut metal finishing facility that used chlorine gas for
treatment of cyanide waste agreed to implement a project to eliminate
the use of chlorine by substituting liquid sodium hypochlorite after
EPA found violations of accident prevention regulations.\110\ A release
from one of the chlorine cylinders at the facility could potentially
have impacted offsite public receptors in a densely populated
area.\111\ Thus, EPA's historic approach to STAA under CAA section
112(r) has resulted in chemical plant operators introducing safer
technology and alternatives through implementation of existing rule
provisions that address most of the hierarchy of controls, but the
Agency has not mandated the use or analysis of IST alternatives.
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\107\ EPA News Release. January 31, 2012. South San Francisco
Food Processing Factory Will Pay Nearly $700,000 in Penalties, Spend
$6 Million to Update Refrigeration System Safety. https://yosemite.epa.gov/opa/admpress.nsf/0/1c6b8ee238fd17d185257996005b892f.
\108\ EPA News Release. August 14, 2013. Abilene Products Co.,
Inc., Agrees to $90,660 Settlement for Violations of CAA at Abilene,
Kan., Fertilizer Facility. https://yosemite.epa.gov/opa/admpress.nsf/0/8BB676093B7826FF85257BC7006B3E4C.
\109\ EPA News Release. October 1, 2012. Settlement with Suiza
Dairy Corporation for Violations at facilities in Puerto Rico will
make facilities safer, benefit nearby communities. https://yosemite.epa.gov/opa/admpress.nsf/0/319D803456BF7B0885257A8A005A4238.
\110\ EPA Region 1. January 20, 2014. Consent Agreement and
Final Order--In the Matter of: Metal Finishing Technologies, LLC
Docket Number: CAA-01-2013-0073. https://yosemite.epa.gov/OA/RHC/
EPAAdmin.nsf/Filings/3A95FA64BDE7026C85257C8600214551/$File/
CAFO%20CAA-01-2013-0073.pdf.
\111\ EPA Region 1. September 30, 2013. Administrative
Complaint--In the Matter of: Metal Finishing Technologies, LLC
Docket Number: CAA-01-2013-0073. https://yosemite.epa.gov/OA/RHC/
EPAAdmin.nsf/Filings/1BE4A3485C3E1E6B85257C1C0021490D/$File/CAA-01-
2013-0073%20Complaint.pdf.
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4. Public Input on STAA
Public feedback and input to the Working Group established to
oversee Executive Order 13650, showed there was broad agreement among
facility owners and operators, plant workers, community members, and
environmental and union organizations of the benefits of implementing
safer alternatives where feasible. There was, however, no consensus
about the role of government in the implementation of safer
technologies and alternatives. Industry representatives are wary about
process design and operational decisions, including choices of IST,
being imposed through regulations. Process design and operational
decisions are technically complex and often difficult to regulate.
Conversely, many labor and environmental justice representatives
believe the Federal government should have a larger role in encouraging
IST, with particular emphasis on the opportunity to reduce the
vulnerability of residents and workers from incidents.\112\
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\112\ Chemical Facility Safety and Security Working Group. May
2014. Executive Order 13650 Report to the President--Actions to
Improve Chemical Facility Safety and Security--A Shared Commitment.
EPA, the Department of Labor (DOL), DHS, the Department of Justice
(DOJ), the Department of Agriculture (DOA), and the Department of
Transportation. Washington, DC. https://www.osha.gov/chemicalexecutiveorder/final_chemical_eo_status_report.pdf.
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a. Pending Petition on IST
In July of 2012, a coalition representing 54 organizations and
individuals petitioned EPA to use its rulemaking authority under CAA
section 112(r)(7)(A), ``to require the use of IST, where feasible, by
facilities that use or store hazardous chemicals.'' The petitioners
also requested that pending completion of such rulemaking, that EPA
should:

revise its guidance concerning the enforcement of the CAA
general duty clause, section 112(r)(1), 42 U.S.C. 7412(r)(1), to
make clear that the duty to prevent releases of extremely hazardous
substances includes the use, where feasible, of safer technologies
to minimize the presence and possible release of hazardous
chemicals.\113\
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\113\ Greenpeace et al. July 25, 2012. Petition to Prevent
Chemical Disasters from Rick Hind of Greenpeace, Richard Moore of
Los Jardines Institute and Scott Nelson of Public Citizen sent to
EPA Administrator Lisa Jackson, EPA, Washington, DC,
www.documentcloud.org/documents/404584-petition-to-epa-to-prevent-chem-disasters-filed.html.
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The petitioners stated that many Americans remain at risk of injury
or death from the unforeseen release of harmful chemicals from nearby
industrial parks, water treatment plants, etc., and that the DHS CFATS,
which impose security measures on facilities presenting a high risk of
vulnerability to releases of hazardous substances, do not cover water
treatment facilities, many of which use and store significant
quantities of chlorine gas.
The petitioners cited specific threats or accidents as examples of
risks that, in their view, should have been addressed by taking steps
to eliminate or minimize extremely hazardous substances \114\ where
feasible. Examples they cited include a 2009 explosion at a refinery in
Corpus Christi, Texas, that resulted in the release of more than a ton
of hydrogen fluoride, with a much larger release being narrowly
avoided.\115\ A 2008 explosion and fire at a Bayer CropScience facility
in West Virginia narrowly missed causing a breach in piping on the top
of an aboveground tank of methyl isocyanate (MIC), which the
petitioners claimed, if breached, would have resulted in a deadly
release of the same chemical responsible for the Bhopal, India
disaster.\116\ They also

[[Page 13665]]

identified a 2007 propane explosion and fire at a refinery in Texas
that resulted in the release of nearly three tons of chlorine gas, with
deaths and injuries avoided only by prompt evacuation of workers. The
CSB, which reported the chlorine release as 5,332 pounds, recommended
the refinery replace chlorine used as a biocide in cooling water
treatment with inherently safer materials, such as sodium hypochlorite,
at all its refineries.\117\ The petitioners also cited several examples
where readily available IST approaches have already been used, such as
substitution of liquid bleach or ultraviolet light for chlorine in
water disinfection ^{118 119} and the use of alternatives to
replace HF in gasoline refining.\120\
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\114\ This not intended to specifically reference the extremely
hazardous substances listed under Sec. 302 of EPCRA. Section
112(r)(1) of the CAA provides a purpose and general duty to prevent
the accidental release and to minimize the consequence of any
release of any regulated substances promulgated by EPA under Sec.
112(r)(3) (40 CFR part 130) and for ``any other extremely hazardous
substance.'' Although the term ``any other extremely hazardous
substance'' is not defined, the legislative history of the 1990 CAAA
indicate that the term would include any agent ``which may or may
not be listed or otherwise identified by any Government agency which
may as the result of short-term exposures associated with releases
to the air cause death, injury or property damage due to its
toxicity, reactivity, flammability, volatility, or corrosivity.''
See: https://www2.epa.gov/sites/production/files/2013-10/documents/gdcregionalguidance.pdf.
\115\ Petitioners are referring to an accident at the CITGO
Refinery in Corpus Christi, Texas. For more information on this
accident, see CSB. December 9, 2009. CITGO Refinery HF Release and
Fire, Corpus Christi, Texas. Final Report, Urgent Recommendation.
https://www.csb.gov/citgo-refinery-hydrofluoric-acid-release-and-fire/.
\116\ CSB. January 2011. Investigation Report: Pesticide
Chemical Runaway Reaction Pressure Vessel Explosion, Bayer
CropScience, LP, Institute, West Virginia, August 28, 2008. Report
No. 2008-08-I-WV, pp. 88-89, https://www.csb.gov/assets/1/19/Bayer_Report_Final.pdf.
\117\ CSB. July 9, 2008. Investigation Report: LPG Fire at
Valero-McKee Refinery, Sunray, Texas, February 16, 2007. Report No.
2007-05-I-TX. https://www.csb.gov/assets/1/19/CSBFinalReportValeroSunray.pdf.
\118\ Orum, Paul and Rushing, Reece. March 2, 2010. Leading
Water Utilities Secure Their Chemicals. Center for American
Progress, Washington, DC. https://www.americanprogress.org/issues/security/news/2010/03/02/7538/leading-water-utilities-secure-their-chemicals/.
\119\ M. McCoy. November 9, 2009. Clorox to Stop Using Chlorine.
Chemical & Engineering News.https://cen.acs.org/articles/87/i45/Clorox-Stop-Using-Chlorine.html.
\120\ Morris, J. and Hamby, C. May 19, 2014. Use of toxic acid
puts millions at risk. Center for Public Integrity. Washington,
DC.https://www.publicintegrity.org/2011/02/24/2118/use-toxic-acid-puts-millions-risk.
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b. National Academy of Sciences (NAS) and CSB Investigation Findings
A 2012 report from the NAS that examined the 2008 Bayer CropScience
accident in West Virginia and community concerns surrounding MIC (and
other highly toxic materials), found that inherently safer process
assessments can be valuable components of PSM that can help facility
personnel consider the full range of options in process design.\121\
The NAS report found that while Bayer and previous owners of the site
incorporated some considerations of IST, these companies ``did not
perform systematic and complete inherently safer process assessments on
the processes for manufacturing MIC or the carbamate pesticides at the
Institute site.'' Thus, large amounts of MIC, phosgene, and other toxic
materials were produced or stored at the site for decades.
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\121\ NAS. 2012. Summary--The Use and Storage of MIC at Bayer
CropScience. pp. 3, 7. https://dels.nas.edu/resources/static-assets/materials-based-on-reports/reports-in-brief/MIC-Summary-Final.pdf.
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The NAS also found that industry as a whole lacks a common
understanding of what is needed to identify inherently safer processes
and accurately quantify their benefits, including the potential for
reduced emergency preparedness costs. The NAS panel noted that the goal
of ISD is not only to prevent an accident, but also to reduce the
consequences of an accident should one occur, thus allowing emergency
preparedness planners to focus on more readily manageable scenarios.
NAS found that inherently safer process assessments will not always
result in a clear, well-defined, and feasible path forward. Although
one process alternative may be inherently safer with respect to one
hazard--toxicity of byproducts, for example--the process may present
other hazards, such as an increased risk of fire or more severe
environmental impacts. Choosing between options for process design
involves considering a series of tradeoffs and developing appropriate
combinations of inherent, passive, active, and procedural safety
systems to manage all hazards.
A 2011 analysis of 63 CSB accident investigation reports, studies
and bulletins by Canadian university researchers identified over 200
examples of recommendations for risk reduction measures from the
hierarchy of controls that apply to the prevention of accidents or
consequence mitigation. Thirty-six percent of the examples involved
inherent safety, 8% involved passive engineered safety, 14% involved
active engineered safety and 42% involved procedural safety. ISD items
were observed to be equally split among the four primary ISD principles
of minimization, substitution, moderation and simplification.\122\
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\122\ Paul R. Amyotte, Dustin K. MacDonald, Faisal I. Khan.
September 2011. An analysis of CSB investigation reports concerning
the hierarchy of controls. Process Safety Progress. Volume 30, Issue
3, pp. 261-265. https://onlinelibrary.wiley.com/doi/10.1002/prs.10461/abstract.
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The CSB has released reports for two recent accidents that the
Board indicated could have been avoided if safer technologies had been
employed. CSB found that the use of a safer material, such as high-
chromium steel, would have prevented the accelerated corrosion and
failure of carbon steel involved in the equipment rupture at the Tesoro
Refinery in Anacortes, Washington, in 2010, which resulted in an
explosion and fire that killed seven employees.\123\ One recommendation
from this CSB accident investigation was that EPA should revise the RMP
rule to require the documented use of inherently safer systems analysis
and the hierarchy of controls to the greatest extent feasible when
facilities are establishing safeguards for identified process hazards.
CSB also cited the failure to use more corrosion resistant high-
chromium steel as a factor in the 2012 Chevron Refinery accident in
Richmond, California, which released hydrocarbons that ignited,
endangering 19 employees.\124\
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\123\ CSB. May 2014. Investigation Report: Catastrophic Rupture
of Heat Exchanger, Tesoro Anacortes Refinery, Anacortes, Washington,
April 2, 2010. Report 2010-08-I-WA. https://www.csb.gov/assets/1/7/Tesoro_Anacortes_2014-May-01.pdf.
\124\ CSB. January 2014. Regulatory Report: Chevron Richmond
Refinery Pipe Rupture and Fire, Chevron Richmond Refinery #4 Crude
Unit, Richmond, California, August 6, 2012. Report No. 2012-03-I-CA.
https://www.csb.gov/assets/1/19/CSB_Chevron_Richmond_Refinery_Regulatory_Report.pdf.
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c. State and Local IST Programs
Some state and local governments have included inherent safety
requirements in their regulations. An IST Review Rule was adopted under
the New Jersey TCPA program in May 2008.\125\ It requires IST reviews
of all facilities covered by the TCPA by evaluating, at a minimum, the
four IST principles: minimization, substitution, moderation, and
simplification. NJDEP defined ``IST'' to mean ``the principles or
techniques that can be incorporated in a covered process to minimize or
eliminate the potential for an Extraordinarily Hazardous Substance
release.'' \126\
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\125\ NJDEP. March 29, 2012. NJDEP Title 7, Chapter 31 TCPA
Program Consolidated Rule Document. Pages 17, 66 -68. https://www.state.nj.us/dep/rpp/brp/tcpa/downloads/conrulerev9_fonts.pdf.
\126\ NJDEP uses the term ``Extraordinarily Hazardous
Substance'' to describe the substances that are subject to the NJ
TCPA.
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The rule includes a checklist developed under the direction of the
New Jersey Domestic Security Preparedness Task Force. The NJDEP allows
any available IST analysis method to be used to perform the IST review,
but discusses two methods which are commonly used: (1) Integrating IST
into the facility's PHA study and (2) reviewing and completing a
checklist containing a number of practical inherent safety
considerations.\127\ The NJDEP also requires an IST review report that
includes:
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\127\ NJDEP, Bureau of Release Prevention. January 15, 2015.
Guidance for TCPA, IST Review, Rev. 1. https://www.nj.gov/dep/rpp/brp/tcpa/downloads/IST_guidance.pdf.

Information on the review team (name, position,
qualifications, etc.);
IST analysis method used;
IST already present in the process;
Additional IST identified;
IST to be implemented, and a schedule for their
implementation; and

[[Page 13666]]

A list of IST determined to be infeasible.

A facility owner or operator must determine an identified alternative's
feasibility, and must provide written justification based on both
qualitative and quantitative evaluations of environmental, human health
and safety, legal, technological, and economic factors if it decides
not to implement it. The ACC noted that NJDEP's definition of inherent
safety allowed ``add-on'' safety equipment and included routine safety
improvements that are not part of the inherent safety concept as
defined by CCPS and others.\128\ NJDEP visited every regulated facility
and reviewed the IST report with the facility staff. A January 2010
report prepared by the NJDEP to summarize the Department's review of 85
IST reports indicated that approximately 48% of facilities reported
that they had implemented or scheduled to implement IST measures as a
result of conducting the IST review.\129\
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\128\ ACC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0694 on Risk Management Program RFI, pg. 25.
\129\ NJDEP. January 15, 2010. IST Implementation Summary.
https://www.nj.gov/dep/rpp/brp/tcpa/downloads/IST_SUMWEB.pdf.
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California's Contra Costa County's ISO \130\ and the City of
Richmond, California's ISO \131\ require owners and operators of
stationary sources to consider ISS in the development and analysis of
mitigation systems resulting from a PHA for each covered process, and
in the design and review of new processes and facilities. Contra Costa
County's CC ISO defined ISS as
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\130\ Contra Costa County CA. 2006. ISO Code, Title 4--Health
and Safety, Division 450--Hazardous Materials and Wastes, Chapter
450-8--Risk Management. Contra Costa County, California pp. 5, 21-
22. https://cchealth.org/hazmat/pdf/iso/Chapter-450-8-RISK-MANAGEMENT.pdf.
\131\ The Richmond ISO is identical to the Contra Costa County
ISO except it does not include the 2006 amendments made to the
Contra Costa ISO which require a safety culture assessment, a human
factors program, management of change for maintenance, health and
safety positions, and a security vulnerability analysis. CCHS. July
26, 2011.ISO. City of Richmond Annual Performance Review and
Evaluation Report. CCHS, Contra Costa County, CA. https://cchealth.org/hazmat/pdf/iso/iso_report_richmond.pdf.

``ISD strategies'' as discussed in the latest edition of the
CCPS publication, ``Inherently Safer Chemical Processes,'' \132\ and
to mean feasible alternative equipment, processes, materials, lay-
outs, and procedures meant to eliminate, minimize, or reduce the
risk of a major chemical accident or release by modifying a process
rather than adding external layers of protection. Examples include,
but are not limited to, substitution of materials with lower vapor
pressure, lower flammability, or lower toxicity; isolation of
hazardous processes; and use of processes which operate at lower
temperatures and/or pressures.
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\132\ CCPS. 2009. Inherently Safer Chemical Processes: A Life
Cycle Approach, 2nd ed., American Institute of Chemical Engineers,
CCPS New York, Wiley.

The Contra Costa County ISO requires that the stationary source
must select and implement ISS to the greatest extent feasible and as
soon as administratively practicable. If a stationary source concludes
that implementation of an ISS is not feasible, the stationary source
must document the basis for this conclusion in meaningful detail.
Contra Costa County requires the documentation to include sufficient
evidence to demonstrate to CCHS's satisfaction that implementing the
ISS is not feasible and the reasons for this conclusion. A claim that
implementation of an ISS is not feasible cannot be based solely on
evidence of reduced profits or increased costs. A February 2013 report
prepared by CCHS on their ISO program indicated that 4 of 7 facilities
covered under the ordinance's ISS provision implemented at least one
inherently safer measure within the previous year.\133\ The February
2014 CCHS ISO report \134\ indicated that 3 of the 7 facilities
reported three or more ISS implemented during the last reporting year.
In the city of Richmond, California, as of July 2011, the two
facilities covered by the Richmond ISO had implemented 62 safer
alternative measures involving ISSs.\135\ In June 2014, the Contra
Costa County ISO requirements were expanded to require evaluation and
documentation of ISS analysis for new projects and processes and for
existing processes, whenever major changes resulting from incident
investigation recommendations, root cause analysis, or MOC review
indicate that change could reasonably result in a major chemical
accident or release.
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\133\ CCHS. February 26, 2013. Annual Performance Review and
Evaluation-ISO.
\134\ CCHS. December 9, 2014. Annual Performance Review and
Evaluation-ISO. https://cchealth.org/hazmat/pdf/iso/iso-report.pdf.
\135\ CCHS. July 26, 2011. ISO. City of Richmond Annual
Performance Review and Evaluation Report. https://cchealth.org/hazmat/pdf/iso/iso_report_richmond.pdf.
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d. Industry and Trade Association Input
Numerous trade associations (ACC,\136\ SOCMA,\137\ Independent
Petroleum Association of America [IPAA] and American Exploration &
Production Council [AXPC],\138\ API,\139\ Association of Metropolitan
Water Agencies [AMWA],\140\ National Association of Chemical
Distributors [NACD],\141\ National Association of Manufacturers
[NAM],\142\ CGA,\143\ Chlorine Institute [CI],\144\ AFPM,\145\ Chemical
Safety Advocacy Group [CSAG] \146\), one company, Axiall
Corporation,\147\ and the Mary Kay O'Connor Process Safety Center
[MKOPSC],\148\) noted in their comments on EPA's RFI, that IST is only
one of many approaches that may be employed to achieve risk reduction.
They also noted that identification and evaluation of a safer
alternative is not an off-the-shelf concept, but requires a holistic
and often complex evaluation involving various factors. The commenters
also indicated that IST decisions must be process-, site-, and hazard-
specific, technically and economically feasible, and avoid shifting
risk. These commenters stated that a regulatory program focused
exclusively on eliminating a safety hazard would overlook other
important considerations and risks that must be factored into an
evaluation of a process change. They further contended that improper
implementation of a seemingly safer alternative may lead to undesired
consequences. The commenters argued that because an option may be
inherently safer with regard to some hazards and inherently less safe
with regard to others, decisions about the optimum strategy for

[[Page 13667]]

managing risks from all hazards are required.
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\136\ ACC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0694 on Risk Management Program RFI, PDF pp. 16-28 of 189.
\137\ SOCMA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0560 on Risk Management Program RFI, pp. 3-6.
\138\ IPAA and AXPC. October 29, 2014. Comment No. EPA-HQ-OEM-
2014-0328-0584 on Risk Management Program RFI, pp. 21-24.
\139\ API. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0624 on Risk Management Program RFI, pp. 24-26.
\140\ AMWA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0639 on Risk Management Program RFI, pp. 1-7.
\141\ NACD. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0614 on Risk Management Program RFI, pgs. 6-7.
\142\ NAM. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0625 on Risk Management Program RFI, pg. 2.
\143\ CGA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0633 on Risk Management Program RFI, pg. 4.
\144\ CI. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0642 on Risk Management Program RFI, pgs. 7-8.
\145\ AFPM. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0665 on Risk Management Program RFI, pgs. 35-38.
\146\ CSAG. October 29, 2013. Comment No. EPA-HQ-OEM-2014-0328-
0691 on Risk Management Program RFI, pgs. 38-21.
\147\ Axiall Corp. October 29, 2013. Comment No. EPA-HQ-OEM-
2014-0328-0549 on Risk Management Program RFI, pg. 5.
\148\ MKOPSC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-
0328-0543 on Risk Management Program RFI, pgs. 101-108.
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In their comments on the RFI, AMWA \140\ also stated that decisions
to select the most appropriate water treatment methods are best made by
water utility managers based on a variety of factors. Most importantly,
they stated, these managers should also determine which chemical will
most effectively make water safe for public consumption and achieve
compliance with the requirements of the Safe Drinking Water Act.\149\
According to AMWA, allowing Federal officials to ``second-guess'' these
local decisions--with a focus on minimizing potential terror attack
consequences offsite, rather than ensuring the appropriate treatment
and safety of drinking water--could lead to inadequately treated water
and even detriments to public health. AMWA also stated that if
utilities were simply instructed to consider whether an alternative
might be appropriate for them, the costs could be relatively small.
But, in AMWA's view, if this analysis were required to include numerous
prescribed steps, calculations and justifications for subsequent
decisions, then costs could quickly escalate beyond what is reasonable
and affordable.
---------------------------------------------------------------------------

\149\ AMWA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0639 on Risk Management Program RFI, pgs. 4-5.
---------------------------------------------------------------------------

MunicpalH2O, a Risk Management Program/PSM compliance consultant
for the water/wastewater treatment industry, commented that
implementing these changes is very expensive and cost prohibitive. The
commenter suggested that if a new requirement is placed on regulated
water and wastewater facilities to perform an analysis of safer
technology and alternatives, those facilities that have previously
completed an analysis of safer technology and alternatives for their
operation should be allowed to utilize their already completed analysis
and be exempt from any future requirement in this area.\150\
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\150\ MunicipalH2O. October 28, 2103. Comment No. EPA-HQ-OEM-
2014-0328-0588 on Risk Management Program RFI, pgs. 6-7.
---------------------------------------------------------------------------

The American Water Works Association (AWWA) stated that it has
found that options often classified as inherently safer may in fact
have impacts that counter other Federal initiatives associated with the
nation's transportation systems, energy consumption, and carbon dioxide
emissions.\151\ Because of these risk tradeoffs, critical factors and
variables, AWWA maintained that the choice of disinfectant should lie
with qualified local officials, who are best acquainted with the
specifics of their local situation.
---------------------------------------------------------------------------

\151\ AWWA. October 29, 2013. Comment No. EPA-HQ-OEM-2014-0328-
0648 on Risk Management Program RFI, pgs. 3-5.
---------------------------------------------------------------------------

NACD stated that requiring manufacturers to hold smaller quantities
of hazardous materials on site would exhaust their limited inventories
faster.\141\ The commenter also indicated that distributors would need
to deliver hazardous chemicals to these facilities more frequently,
thereby significantly increasing the number of miles driven to deliver
the same amount of product and ultimately increasing and shifting risk
to the public roadways. In addition, NACD suggested there is a higher
risk of incident during product loading and unloading, and that more
shipments would increase the number of times chemicals must be loaded
and unloaded, thereby increasing risk. NACD also stated that fixed-site
risks are more manageable than those with a transportation component.
5. Proposed Revisions to Regulatory Text
Based on the considerations discussed above, EPA is proposing to
modify the PHA provisions in Sec. 68.67 to require analysis of
potential safer technology and alternatives that would include, in the
following order of preference: IST or ISD, passive measures, active
measures, and procedural measures. EPA is limiting the proposed
provisions to Program 3 processes in the petroleum and coal products
manufacturing (NAICS 324), chemical manufacturing (NAICS 325), and
paper manufacturing (NAICS 322) sectors for reasons discussed in
section IV.C.6. STAA Applicability.
EPA is also proposing to require owners or operators to evaluate
the feasibility of implementing any IST or ISD considered. EPA believes
a feasibility analysis of any considered IST or ISD is necessary to
ensure the facility owner or operator seriously considers whether IST
or ISD modifications could further reduce risks and prevent accidents
at the facility.
EPA is proposing to use the term ``feasibility'' to describe this
analysis because it is already widely used in the context of IST.
However, this term has a distinct meaning under the Occupational Safety
and Health Act, where the courts look to whether a safety measure is
capable of being done.\152\ In the enforcement context, feasibility
means that technical know-how about materials and methods is available
or adaptable to specific circumstances, which when applied creates a
reasonable possibility that employee exposure to occupational hazards
will be reduced, and that the firm is financially able to implement the
measure without severe adverse economic effect.\153\ Because of the
potential for confusion, OSHA has indicated that it would be unable to
adopt the term feasible, as defined in this notice, under its PSM
standard if OSHA considers similar revisions involving IST. EPA seeks
comment on whether it would be better if EPA used another term, such as
``practicability'' for this analysis.
---------------------------------------------------------------------------

\152\ See American Textile Mfrs. Inst. v. Donovan, 452 U.S. 490,
509 (1981); Seaworld of Florida, LLC v. Perez, 748 F.3d 1202, 1215
(D.C. Cir. 2013).
\153\ OSHA CPL 02-00-159, Field Operations Manual 3-22 (2015);
Avcon, Inc., 23 O.S.H. Cas. (BNA) 1440, 1454 n.24 (O.S.H.R.C. Apr.
5, 2011).
---------------------------------------------------------------------------

EPA is not proposing to require sources affected by this provision
to implement an evaluated IST or ISD. The decision to implement such
measures must consider the numerous factors related to processes,
facilities, and society at large. Improper implementation of a
seemingly safer alternative may lead to undesired consequences. While
EPA believes that sources should look for additional opportunities to
increase safety, we believe that the facility owners or operators are
in the best position to identify which changes are feasible to
implement for their particular process. This decision should be based
on a careful analysis and take into account: The chemicals present and
their associated hazards; the operations and process conditions
involved; consequences to workers, nearby populations and the
environment; and the types of equipment used that are specific to the
facility's process. The analysis may consider the potential to shift
risk between populations, locations, environmental media (air, water
land), etc.
a. Definitions (Sec. 68.3)
EPA is proposing to add several definitions that relate to a STAA
in Sec. 68.3. EPA is adding these definitions to describe risk
reduction strategies that the owner or operator may use when
considering safer technology and alternatives.
First, EPA is proposing a definition for inherently safer
technology or design (see Sec. 68.3 for the proposed definition). The
proposed definition includes risk management measures that would
replace or reduce the use of regulated substances or make operating
conditions less hazardous or less complex. Adopting the use of IST or
ISD

[[Page 13668]]

eliminates or reduces hazards by using different materials and/or
process conditions which would make accidental releases less likely, or
the impacts of such releases less severe.
Second, EPA is proposing a definition for ``passive measures'' (see
Sec. 68.3) that relies on measures that reduce a hazard without human,
mechanical, or other energy input. Examples of passive measures include
pressure vessel designs, dikes, berms, and blast walls.
The third risk reduction measure that EPA is proposing to define is
``active measures.'' These involve engineering controls that rely on
mechanical, or other energy input to detect and respond to process
deviations. Examples of active measures include alarms, safety
instrumented systems, and detection hardware (such as hydrocarbon
sensors).
Lastly, ``procedural measures'' would include policies, operating
procedures, training, administrative controls, and emergency response
actions to prevent or minimize incidents (see Sec. 68.3). Examples of
procedural measures may include administrative limits on process vessel
fill levels, procedural steps taken to avoid releases, etc.
In order to evaluate the ISTs and ISDs considered, EPA is proposing
to define ``feasible'' to include consideration of economic,
environmental, legal, social, and technological factors when
determining if the IST or ISD can be accomplished in a successful
manner within a reasonable period of time (see Sec. 68.3).
Environmental factors could include consideration of risks transferred
elsewhere if a new risk reduction measure is adopted. EPA requests
comment on these proposed definitions. Furthermore, EPA requests
comment on whether the term ``feasible'' is appropriate to characterize
the viability of IST alternatives being considered. Is there another
term, such as ``practicable,'' that may be more appropriate?
b. Process Hazard Analysis (PHA) (Sec. 68.67)
EPA is proposing to modify the PHA provisions by adding paragraph
(c)(8) to Sec. 68.67, to require that the owner or operator of a
facility with Program 3 processes in NAICS codes 322, 324, and 325
address safer technology and alternative risk management measures
applicable to eliminating or reducing risk from process hazards. EPA is
proposing to add paragraph (c)(8)(i) to specify that the analysis
include, in the following order of preference: IST or design, passive
measures, active measures, and procedural measures. The owner or
operator may evaluate a combination of risk management measures to
reduce risk.
EPA is also proposing to add paragraph (c)(8)(ii) to require that
the owner or operator determine the feasibility of the IST or ISD
considered. The results of the feasibility analysis must be documented
as part of the current PHA requirements in Sec. 68.67(e), which
requires the owner or operator to document actions to be taken and
resolution of recommendations. EPA seeks comment on whether the
proposed requirements to document feasibility are adequate or if these
requirements should be modified to require a more extensive
documentation of feasibility. For example, EPA could require that the
source document the basis for this conclusion in meaningful detail
(similar to California's Contra Costa County's ISO \154\ requirements).
---------------------------------------------------------------------------

\154\ Contra Costa County CA. 2006. ISO Code, Title 4--Health
and Safety, Division 450--Hazardous Materials and Wastes, Chapter
450-8--Risk Management. Contra Costa County, California pp. 5, 21-
22. https://cchealth.org/hazmat/pdf/iso/Chapter-450-8-RISK-MANAGEMENT.pdf.
---------------------------------------------------------------------------

The PHA must be updated and revalidated every five years in
accordance with paragraph Sec. 68.67(f) and as such, this provides the
owner or operator opportunities to evaluate the feasibility of IST or
ISD considered since the last PHA review. EPA believes that five-year
revalidation will give the owner or operator the opportunity to
identify new risk reduction strategies, as well as revisit strategies
that were previously evaluated to determine whether they are now
feasible. EPA seeks comment on these proposed revisions. Additionally,
EPA requests comment on whether to require STAA documentation be
submitted to EPA and/or the implementing agency.
6. STAA Applicability
EPA is proposing to limit the applicability of the STAA provisions
to sources in the petroleum and coal products manufacturing (NAICS
324), chemical manufacturing (NAICS 325), and paper manufacturing
(NAICS 322) sectors for two reasons. First, EPA believes that while
most sectors regulated under 40 CFR part 68 could identify safer
technology and alternatives, sources involved in complex manufacturing
operations have the greatest range of opportunities to identify and
implement safer technology, particularly in the area of inherent
safety. These sources generally produce, transform, and consume large
quantities of regulated substances under sometimes extreme process
conditions and using a wide range of complex technologies. Therefore,
such sources can often consider the full range of inherent safety
options, including minimization, substitution, moderation, and
simplification, as well as passive, active, and procedural measures.
This contrasts with regulated sources that simply sell or distribute a
particular regulated substance, such as bulk anhydrous ammonia.
Although such sources may also have opportunities to identify and
implement IST, the existence of such sources is predicated on handling
and distributing a specific regulated substance. Therefore, their
opportunities to implement certain IST strategies such as substitution
or minimization may be limited. Similarly, sources involving relatively
simpler chemical processes may have opportunities to implement chemical
substitution strategies but may be limited in their ability to apply
moderation and simplification strategies.
Second, EPA notes that RMP facilities in the three selected sectors
have been responsible for a relatively large number of accidents,
deaths, injuries, and property damage.\155\ EPA compared the number of
RMP accidents that occurred between January 1, 2004, and December 31,
2013, reported by twelve industry sectors to the number of facilities
in each sector. Each sector was comprised of industries based on
similar operations involving the RMP substances and complexity. The
twelve sectors were: Petroleum and coal products manufacturing (NAICS
325), paper manufacturing (NAICS 322), chemical manufacturing (NAICS
324), food and beverage manufacturing (NAICS 311, 312), other
manufacturing (all other NAICS 31-33), agricultural chemical
distributors (NAICS 11, 42491), chemical/petroleum wholesalers (NAICS
4246, 4247), other wholesalers (all other NAICS 423, 424), warehouses
(NAICS 493), water supply/wastewater treatment (NAICS 22131, 22132,
924), oil/gas extraction (NAICS 211) and all other (NAICS 211 (except
22131 and 22132), 44, 45, 48, 54, 56, 61, 72). The sector accident
rates (number of accidents divided by the number of facilities in each
sector) ranged from 1.08 to 0.04. Three sectors have significantly
higher accidents rates as compared to other sectors: 1.08 (petroleum
and coal products manufacturing), 0.66 (paper manufacturing) and 0.36
(chemical manufacturing). The petroleum and coal products manufacturing
accident rate

[[Page 13669]]

was 6-27 times higher, the paper manufacturing accident rate was about
4-6 times higher, and the chemical manufacturing accident rate was 2-9
times higher than other sectors. Therefore, implementation of safer
technology and alternatives by these facilities in the pulp/paper
manufacturing, chemical manufacturing, and petroleum refining sectors
may prevent serious accidental releases in the future.
---------------------------------------------------------------------------

\155\ EPA. January 27, 2016. Technical Background Document for
Notice of Proposed Rulemaking: Risk Management Programs under the
Clean Air Act, Section 112(r)(7).
---------------------------------------------------------------------------

EPA seeks comment on whether the proposal to limit the STAA
provisions to Program 3 regulated processes in NAICS 322, 324, and 325
is appropriate. EPA also seeks comment on whether the Agency should
further limit applicability of the STAA provisions (e.g., to apply only
during the design stage of new processes or facilities, or only to
certain processes). As part of the SBAR Panel process, SERs cited
limitations with flexibility to evaluate alternatives for custom
formula blends and compliance with FDA approval requirements and,
therefore, requested that EPA consider eliminating this provision and/
or exempting batch toll manufacturers from this requirement. EPA seeks
comment on these alternatives.
Finally EPA seeks comment on whether there are other sectors that
should be subject to the proposed STAA provision. For example, should
EPA require RMP regulated water supply/wastewater treatment facilities
to analyze safer technology and alternatives and document feasibility
of the alternatives?
7. Guidance on Evaluating Safer Technologies and Alternatives
Some owners or operators have already made process changes
considered to be inherently safer, but others may not have sufficient
information available to effectively assess whether their existing
processes can incorporate inherently safer measures. To assist owners
or operators with evaluating options for safer alternatives, EPA and
OSHA developed a chemical safety alert in June 2015 illustrating the
concepts, principles and examples of safer technology and alternatives
to make industry more aware of this information, while providing
sources of information for further investigation and review.\156\
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\156\ EPA and OSHA. June 2015. Chemical Safety Alert: Safer
Technology and Alternatives. EPA 550-F-15-503. s https://www.epa.gov/rmp/chemical-safety-alert-safer-technology-and-alternatives.
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EPA and OSHA have said owners or operators may use any available
methodology or guidance to conduct their STAA, such as approaches
discussed by CCPS (e.g., Hazard and Operability Study (HAZOP), What-
If?, Checklist, Consequence-based methods),\157\ the NJ TCPA IST
guidance materials,\158\ the Inherently Safer Systems Checklist
provided by Contra Costa Hazardous Materials Program,\159\ or the
information on OSHA's Web page, ``Transitioning to Safer Chemicals: A
Toolkit for Employers and Workers.'' \160\ CCPS provides guidelines for
what should be provided in an inherent safety analysis and provides
example rationales for why inherent safety review recommendations were
rejected.\161\ Examples for why inherent safety review recommendations
may not be feasible, include when the recommendation:
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\157\ CCPS. 2009. Inherently Safer Chemical Processes: A Life
Cycle Approach, 2nd ed., American Institute of Chemical Engineers,
CCPS New York, Wiley.
\158\ NJDEP, Bureau of Release Prevention. January 15, 2015.
Guidance for TCPA, IST Review. https://www.nj.gov/dep/rpp/brp/tcpa/downloads/IST_guidance.pdf. See also NJWEC. May 5, 2008. New Rule
for IST Review by NJDEP. https://www.njwec.org/PDF/Factsheets/CS_IST_FactSheet.pdf.
\159\ Contra Costa Hazardous Materials Program. June 15, 2011.
ISS Checklist (extracted from IST Checklist found in the CCPS
Inherently Safer Chemical Processes, 2nd ed., with incorporation of
additional considerations). https://cchealth.org/hazmat/pdf/iso/attachment_c.pdf.
\160\ OSHA. Transitioning to Safer Chemicals, a Toolkit for
Employers and Workers. https://www.osha.gov/dsg/safer_chemicals/.
\161\ CCPS. 2009. Inherently Safer Chemical Processes: A Life
Cycle Approach, 2nd ed. American Institute of Chemical Engineers,
CCPS. New York, Wiley, 2009. Pgs. 200-202.

Is in conflict with existing Federal, state and local
laws.
Is in conflict with RAGAGEP.
Is economically impractical, such that the process unit
would stop being fiscally feasible. This can include consideration
of:
Capital investment;
Product quality;
Total direct manufacturing costs;
Operability of the plant; and/or
Demolition and future clean-up and disposal cost.
Would have a negative social impact. Some examples
could include an unacceptable visual or noise impact on the
community, or increased traffic congestion.
May violate a license agreement that cannot be
modified, and so must remain in effect.
May decrease the hazard, but would increase the overall
risk.
Provides less risk reduction than an alternative
recommendation.
8. Alternative Options
As an alternative option, EPA seeks comment on whether to require
facility owners or operators to implement any of the feasible options
identified in the facility's analysis. This option would rely on the
owner or operator to select the specific technology or design to
implement. EPA seeks comment on the factors EPA should consider when
determining whether to require implementation of feasible options.
EPA evaluated the NJDEP \125\ and CCHS \134\ IST analysis programs
as possible models to use in the Risk Management Program requirements.
EPA seeks comment on whether we should include the following in our
proposed STAA provisions:

Aspects of the NJDEP's program, such as more prescribed
documentation of STAA; or
Other aspects of CCHS's program, such as requiring ISS
analysis during the design of new processes, for PHA
recommendations, or for major changes from an incident investigation
recommendations, root cause analysis or MOC review that could
reasonably result in a major chemical accident or release.

Finally, EPA seeks comment on whether either EPA or a third-party
should create a ``clearinghouse'' of safer technology and alternatives
that allow source owners or operators to share useful information and/
or consult to identify technologies to evaluate for their process. We
note that the concept of a clearinghouse has drawn support in comments
on the RFI from state and local officials, labor and environmental
stakeholders, academics, and industry representatives.\162\ One
mechanism of collecting relevant information could be the National
Working Group on Chemical Safety and Security's best practices Web
site,\163\ which collects and shares chemical safety and security best
practices, including safer alternatives. Alternatively, EPA could
require submission of STAA analyses,

[[Page 13670]]

or information from those analyses, directly to EPA, and develop its
own Web site. The information shared on such a Web site may include
practicable risk reduction measures that could be applied at various
facilities to mitigate threats to the public, worker, health,
environment, and facility during the production, transport, and use of
chemicals.
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\162\ AMWA. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0639 on Risk Management Program RFI, p. 3; BlueGreen Alliance.
October 27, 2014. Comment No. EPA-HQ-OEM-2014-0328-0579 on Risk
Management Program RFI. p. 6. www.bluegreenalliance.org; BWD.
October 24, 2014. Comment No. EPA-HQ-OEM-2014-0328-0654 on Risk
Management Program RFI. p. 3. Beaver Water District (BWD), Lowell,
Arkansas; CCHS. October 28, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0546 on Risk Management Program RFI, p. 8; CPCD. October 29, 2014.
Comment No. EPA-HQ-OEM-2014-0328-0644 on Risk Management Program
RFI, pgs. 16, 18-19; MKOPSC. October 29, 2014. Comment No. EPA-HQ-
OEM-2014-0328-0543 on Risk Management Program RFI, p. 105; Tickner,
J. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-0688 on Risk
Management Program RFI. p. 6. University of Massachusetts, Lowell,
Massachusetts; TURI. October 29, 2014. Comment No. EPA-HQ-OEM-2014-
0328-0539 on Risk Management Program RFI. Toxics Use Reduction
Institute (TURI), University of Massachusetts, Lowell,
Massachusetts. p. 5; United Steelworkers. October 29, 2014. Comment
No. EPA-HQ-OEM-2014-0328-0547 on Risk Management Program RFI, p. 5.
\163\ OSHA. 2014. Executive Order 13650 Best Practices. https://www.osha.gov/chemicalexecutiveorder/LLIS/.
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D. Stationary Source Location and Emergency Shutdown

Serious accidents often highlight numerous safety concerns and
emphasize the need to consider existing regulations, industry
standards, recommended practices and guidance to reduce risks of future
incidents. Two issues of particular importance include the location of
stationary sources and their emergency shutdown capabilities.
1. Stationary Source Location
The location of stationary sources, and the location and
configuration of regulated processes and equipment within a source, can
significantly affect the severity of an accidental release. The
location of the stationary source in relation to public and
environmental receptors may exacerbate the impacts of an accidental
release, such as blast overpressures or concentrations of toxic gases,
or conversely may allow such effects to dissipate prior to reaching
receptors. The lack of sufficient distance between the source boundary
and neighboring residential areas was a significant factor in the
severity of several major chemical accidents, including, among others,
the Bhopal disaster \164\ and the recent West Fertilizer accident. In
the Bhopal disaster, most of the deaths and injuries occurred in a
residential area that had grown up next to the plant. In the West
Fertilizer accident, an apartment complex and a nursing home located
approximately 450 feet and 600 feet, respectively, from the source of
the explosion were heavily damaged, resulting in three public
fatalities (a total of 15 people were killed in the explosion). The
explosion also caused over 260 injuries, as well as damage to over 350
homes and three schools located near the plant.\165\
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\164\ Lees, Frank P. 1996. Loss Prevention in the Process
Industries, Volume 3, 2nd ed. Appendix 5 Bhopal. Butterworth-
Heinemann, Oxford, Great Britain.
\165\ CSB. January 2016. Final Investigation Report, West
Fertilizer Company Fire and Explosion, West, TX, April 17, 2013.
Report 2013-02-I-TX, pp. 13, 30, 49, 53, 54. https://www.csb.gov/west-fertilizer-explosion-and-fire-/.
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Facility designers have long recognized the potential benefits of
adding buffer or safety zones (i.e., controlled areas separating the
public and other facilities from the consequences of process incidents)
when selecting the location for new chemical facilities. For existing
facilities, owners have sometimes compensated nearby residents to
relocate away from the facility boundary in order to create a buffer
zone where one did not previously exist, or where adjacent residential
areas had been developed after the facility itself was constructed.
The selection of locations of processes and process equipment
within a stationary source can impact the surrounding community not
only by the proximity of the accidental release to offsite receptors
near the facility boundary (e.g., people, infrastructure, environmental
resources) but also by increasing the likelihood of subsequent releases
from other nearby processes compromised by the initial release. The
1984 disaster at the PEMEX liquefied petroleum gas (LPG) tank farm in
San Juan Ixhuatepec, Mexico, illustrates the potential for such
effects. In this accident, an LPG pipeline rupture resulted in a large
ground fire that spread to nearby LPG storage vessels, initiating a
series of massive explosions. The cascading explosions and fires
ultimately destroyed the entire facility and many nearby residences,
resulting in over 500 fatalities and thousands of severe injuries.\166\
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\166\ Lees, Frank P. 1996. Loss Prevention in the Process
Industries, Volume 3, 2nd ed. Appendix 4 Mexico City. Butterworth-
Heinemann, Oxford, Great Britain.
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In the United States in 2007, a large fire at the Valero McKee
refinery in Sunray, Texas, resulted in the release of chlorine gas and
sulfuric acid from an adjacent process, which prevented responders from
entering the area and extinguishing the fire for more than two
days.\167\
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\167\ CSB. July 9, 2008. Investigation Report: LPG Fire at
Valero-McKee Refinery, Sunray, Texas, February 16, 2007. Report No.
2007-05-I-TX. https://www.csb.gov/valero-refinery-propane-fire/.
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At West Fertilizer, the Risk Management Program-regulated anhydrous
ammonia process was located near the AN storage area. Although the AN
explosion did not cause any catastrophic failure of the ammonia storage
vessels, the potential for a release existed. A 1994 explosion
involving AN solution at Terra Industries in Port Neal, Iowa, which
killed four workers, also damaged on-site ammonia tanks, creating an
ammonia cloud that resulted in the evacuation of 2,500 people.\168\
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\168\ EPA, Region 7, Emergency Response and Removal Branch
(Kansas City, KS). January 1996. Chemical Accident Investigation
Report: Terra Industries, Inc., Nitrogen Fertilizer Facility, Port
Neal, Iowa (January 1996). https://archive.epa.gov/emergencies/docs/chem/web/pdf/cterra.pdf.
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The PSM standard and RMP rule both require that facility siting be
addressed as one element of a PHA (see 29 CFR 1910.11 9(e)(2) and
(3)(v)), and 40 CFR 68.67(c)). While EPA has not provided any guidance
on how to adequately address stationary source siting in the PHA, RMP
facility owners or operators can refer to industry guidance on siting
considerations. The following publications provide guidance on facility
siting:

API Recommended Practice 752, Management of Hazards
Associated With Location of Process Plant Buildings, 3rd Edition,
December 2009;
API Recommended Practice 753, Management of Hazards
Associated with Location of Process Plant Portable Buildings, First
Edition, June 2007;
CCPS Guidelines for Evaluating Process Plant Buildings
for External Explosions, Fires, and Toxic Releases, Second Edition,
2012; and
CCPS Guidelines for Facility Siting and Layout (2003).

The first three references listed above focus on providing guidance
and best practices on establishing the location of occupied buildings
within a facility, but generally do not address the potential risks to
offsite receptors associated with the location of the facility or
processes within the facility, nor do they consider the potential for
releases caused by natural hazards that may occur in particular
locations. The CCPS Guidelines for Facility Siting and Layout address
both external factors influencing site selection, as well as factors
internal to the source that could influence site layout and equipment
spacing.
At this time, EPA is not proposing any additional requirements for
location of stationary sources. EPA seeks comment on whether such
requirements should be considered for future rulemakings, including the
scope of such requirements, or whether the Agency should publish
guidance.
2. Emergency Shutdown
In addition to properly locating stationary sources in relation to
surrounding receptors, and locating processes within sources so as to
minimize the possibility of cascading release events, accidents such as
these highlight the importance of being able to quickly and safely shut
down processes

[[Page 13671]]

where accidental releases are occurring or may imminently occur. The
RMP regulation requires owners and operators of stationary sources to
develop and implement written operating procedures for the safe and
timely emergency shutdown of Program 2 and Program 3 processes, to
ensure operator training for these procedures, and for maintaining the
mechanical integrity of emergency shutdown systems. However, the
regulation does not explicitly require that all covered processes must
include emergency shutdown systems.
EPA encourages owner and operators of stationary sources to
consider location of stationary sources and process equipment and the
adequacy of emergency shutdown systems at their facilities to determine
if changes are necessary to both reduce risks of an accidental release
and ensure that procedures are in-place to mitigate those effects.
Emergency shutdown or putting a process into a safe operation mode in
the event of an emergency is a preventive safeguard to address
hazard(s) identified as part of hazard review or PHA. Thus, the hazard
review required under Sec. 68.50 or the PHA required under Sec. 68.67
should identify the use of this safeguard, when appropriate.
At this time, EPA is not proposing any additional requirements for
emergency shutdown systems. However, EPA seeks comment on whether such
requirements should be considered for future rulemakings, including the
scope of such requirements, or whether the Agency should publish
guidance.

V. Emergency Response Preparedness Requirements

A. Emergency Response Program Coordination With Local Responders

Subpart E of the RMP rule, the emergency response provisions,
applies to facilities with Program 2 or 3 processes. These provisions
require owners or operators of regulated facilities with Program 2 or 3
processes to coordinate with local response authorities and in some
cases develop an emergency response program in accordance with Sec.
68.95 to address how the owner or operator of the facility will respond
to accidental releases.\169\ The rule requires the owner or operator to
prepare and implement an emergency response program to protect public
health and the environment, unless the stationary source is included in
the community emergency response plan developed under section 303 of
Emergency Planning & Community Right-to-Know Act (EPCRA) (for sources
with regulated toxic substances) and has coordinated response actions
with the local fire department (for sources with only regulated
flammable substances). An owner or operator that needs to develop an
emergency response program (i.e., be a ``responding'' facility), will
need to include the following elements in that program:
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\169\ Owners or operators of stationary sources with Program 1
processes are required to coordinate emergency response procedures
with local emergency planning and response organizations under Sec.
68.10(b)(3)). This proposal would not affect that requirement.

An emergency response plan;
Procedures for the use of emergency response equipment
and for its inspection, testing, and maintenance;
Training for employees; and
Procedures to review and update the emergency response
plan to reflect changes at the stationary source and ensure that
employees are informed of changes.

The emergency response plan must also be coordinated with local
response authorities.
An owner or operator of a facility who is relying on local
responders to respond to an accidental release (i.e., a ``non-
responding'' facility) when the stationary source has been included in
the community emergency response plan developed under section 303 of
EPCRA (for sources with regulated toxic substances) or has coordinated
response actions with the local fire department (for sources with only
regulated flammable substances, and without regulated toxic substances)
is not required to develop an emergency response program. However, the
owner or operator must also ensure that appropriate notification
mechanisms are in place to notify emergency responders when there is a
need for a response.
Risk Management Program regulated facilities must indicate within
their RMP whether or not they are a responding facility (i.e., by
indicating compliance with mandatory elements of emergency response
plans required in Sec. 68.95(a)(1)). Our review of the RMP*Info
database has indicated that the majority of RMP facilities claim to be
non-responding facilities.\170\ However, during facility inspections,
EPA has often found that facilities either are not included in the
community emergency plan or have not properly coordinated response
actions with local authorities.^{171 172 173} State and local
response officials echoed this concern during listening sessions
conducted under Executive Order 13650, and in feedback provided to EPA
in conjunction with the RFI.^{174 175} This problem occurs with
both responding and non-responding facilities, but it is particularly
troublesome for non-responding facilities, because if the facility
itself does not maintain the capability to respond to emergencies, and
local authorities are not able to respond, then a proper response to an
accidental release at the facility may not occur or may be
significantly delayed. Also, when local responders are unfamiliar with
the hazards of the facility, they may not be prepared to safely
respond.
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\170\ EPA. January 27, 2016. Technical Background Document for
Notice of Proposed Rulemaking: Risk Management Programs under the
Clean Air Act, Section 112(r)(7).
\171\ EPA Press Release. July 20, 2011. National Chemical
Company will Upgrade Facilities and Pay Fine to Settle Clean Air
Violations. https://yosemite.epa.gov/opa/admpress.nsf/1e5ab1124055f3b28525781f0042ed40/9884f5d5e5e6368c852578d300642a3e!OpenDocument.
\172\ EPA Press Release. February 13, 2013. Koch Nitrogen
Company to Pay $380,000 Civil Penalty for CAA Violations at
Facilities in Iowa and Kansas. https://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/a9537cb213c0371985257b1100738628!OpenDocument.
\173\ EPA Press Release. May 27, 2014. EPA Moves to Improve
Emergency Planning at Facilities in NJ and NY; Inspections Focus on
Information on Chemical Hazards Needed by First Responders during
Emergency Responses. https://yosemite.epa.gov/opa/admpress.nsf/0/C6DB6A8A0918857F85257CE5005FEE24.
\174\ Gablehouse, T. October 28, 2014. Comment No. EPA-HQ-OEM-
2014-0328-0679 on Risk Management Program RFI, PDF pp. 5-6, NASTTPO,
Denver, CO.
\175\ Elder, M., October 29, 2014. Comment No. EPA-HQ-OEM-2014-
0328-0641 on Risk Management Program RFI, Oklahoma Hazardous
Materials Emergency Response Commission (OHMERC).
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Poor coordination between chemical facilities and local emergency
responders has been identified as a factor contributing to the severity
of chemical accidents. For example, following the August 2008 explosion
and fire at the Bayer CropScience facility in Institute, West Virginia,
the CSB found that lack of effective coordination between facility and
local responders prevented responding agencies from receiving timely
information updates about the continually changing conditions at the
scene, prevented a public shelter-in-place order from reaching the
local community, and may have resulted in toxic exposure to on-scene
public emergency responders. Additionally, facility authorities
initially prevented local responders from gaining access to the site of
the incident.\176\
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\176\ CSB. January 2011. Investigation Report: Pesticide
Chemical Runaway Reaction Pressure Vessel Explosion, Bayer
CropScience, LP, Institute, West Virginia, August 28, 2008. Report
No. 2008-08-I-WV, https://www.csb.gov/assets/1/19/Bayer_Report_Final.pdf.
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The April 17, 2013 accident at West Fertilizer resulted in the
deaths of 12

[[Page 13672]]

first responders. During its investigation of the accident, the CSB
found that the LEPC did not include the facility in the community
emergency response plan.\177\
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\177\ CSB. January 2016. Final Investigation Report, West
Fertilizer Company Fire and Explosion, West, TX, April 17, 2013.
Report 2013-02-I-TX, pgs. 201-203. https://www.csb.gov/west-fertilizer-explosion-and-fire-/.
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Another example is the August 2002 accidental chlorine release at
the DPC Enterprises facility in Festus, Missouri, that resulted in
sixty-three people from the surrounding community seeking medical
evaluation at the local hospital for symptoms of respiratory distress.
The CSB investigation found that the DPC emergency response plan did
not provide clear guidance on when facility emergency response
personnel should respond to a release or when response by an offsite
community hazardous materials response team is required. The CSB also
found that coordination between local emergency planning and response
entities and DPC was insufficient to ensure that the emergency plan
would provide for timely community notification and mitigation of the
release.\178\
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\178\ CSB. May 2003. Investigation Report: Chlorine Release, DPC
Enterprises, L.P., Festus, Missouri, August 14, 2002. Report No.
2002-04-I-MO. https://www.csb.gov/assets/1/19/DPC_Report.pdf.
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CAA section 112(r) clearly anticipated that the Risk Management
Program regulation would require regulated stationary sources to
develop an emergency response program and provide for a response to
releases of regulated substances. Section 112(r)(7)(B)(ii) states that
the regulations shall require the owner or operator to ``provide a
prompt emergency response to any such releases in order to protect
human health and the environment,'' and that the RMP shall include:

a response program providing for specific actions to be taken in
response to an accidental release of a regulated substance so as to
protect human health and the environment, including procedures for
informing the public and local agencies responsible for responding
to accidental releases, emergency health care, and employee training
measures.

Accordingly, in the preamble discussion of the 1996 final RMP rule,
EPA explained that the option to be a non-responding facility was
contingent on local community responders' ability to appropriately
respond to the stationary source's hazards.

The final rule also provides relief for sources that are too
small to respond to releases with their own employees; these sources
will not be required to develop emergency response plans provided
that procedures for notifying non-employee emergency responders have
been adopted and that appropriate responses to their hazards have
been addressed in the community emergency response plan developed
under EPCRA (42 U.S.C. 11003) for toxics or coordinated with the
local fire department for flammables. (61 FR 31673, 31698, June 20,
1996.)
EPA recognizes that some sources will only evacuate their
employees in the event of a release. For these sources, EPA will not
require the development of emergency response plans, provided that
appropriate responses to their hazards have been discussed in the
community emergency response plan developed under 42 U.S.C. 11003
for toxics or coordinated with the local fire department for
flammables. (61 FR 31681, June 20, 1996.)
Because many sources covered by this rule may be too small to
handle emergency response themselves, EPA has provided, in this new
section, the actions they must take if they will not respond to
releases. Specifically, for sources with regulated toxic substances,
the source must be addressed in the community emergency response
plan developed under EPCRA section 303. Sources with regulated
flammable substances must coordinate response actions with the local
fire department. These sources must also establish a mechanism to
contact local emergency responders. Sources that do not meet these
requirements must comply with EPA's emergency response program
requirements. (61 FR 31712, June 20, 1996.)

EPA also explained this point in the RMP Guidance: \179\
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\179\ General Guidance on Risk Management Programs for Chemical
Accident Prevention (40 CFR part 68), EPA-550-B-04-001, April 2004,
p. 8-1. https://www2.epa.gov/rmp/guidance-facilities-risk-management-programs-rmp#general.

If your employees will not respond to accidental releases of
regulated substances, you need not comply with the emergency
response plan and program requirements provided you coordinate with
local response agencies to ensure that they will be prepared to
---------------------------------------------------------------------------
respond to an emergency at your facility.

These excerpts from the 1996 final rule and RMP Guidance indicate that
from its inception, the RMP rule has required that owners and operators
of regulated sources must either meet the full emergency response
program requirements of Sec. 68.95 or ensure that local responders are
capable of responding to releases at the source. In spite of this fact,
the history of poor emergency response coordination during accidental
releases, EPA's findings during compliance inspections, and recent
feedback provided to EPA's RFI and during Executive Order 13650
listening sessions indicate that many regulated sources have not
provided for an adequate emergency response.
1. Proposed Revisions to Emergency Response Coordination Requirements
EPA proposes to amend the rule requirements to clarify the
obligations of the owner or operator of the stationary source to
coordinate emergency response with local authorities. In order to
provide clarity, EPA is proposing to reorganize subpart E to address
the applicability provisions for responding and non-responding sources
in Sec. 68.90, describe required coordination activities in new Sec.
68.93, and include a new requirement in Sec. 68.95 for owners or
operators of responding stationary sources to review and update their
emergency response program at least annually.
EPA is proposing to reorganize Sec. 68.90 to specifically describe
the applicability of the emergency response program requirements for
non-responding and responding facilities in paragraphs (a) and (b),
respectively.
The proposed revisions to Sec. 68.90 paragraph (a) describe the
applicability provisions for non-responding facilities. The owner or
operator of a stationary source need not comply with the emergency
response program requirements in Sec. 68.95 provided that after
conducting coordination activities required under the proposed Sec.
68.93, the local response authorities and the owner or operator of the
stationary source determine that local public emergency response
capabilities are adequate to respond to accidental releases at the
stationary source; appropriate mechanisms are in place to notify
emergency responders when an accident occurs; and the LEPC or
equivalent local response authorities have not requested in writing
that the owner or operator develop an emergency response program for
the stationary source in accordance with Sec. 68.95.
Section 68.90 paragraph (b) describes applicability provisions for
responding facilities. The owner or operator of the stationary source
would be required to comply with the emergency response program
requirements of Sec. 68.95 when the outcome of the annual coordination
activities with local response authorities required under Sec. 68.93
indicates that local public emergency response capabilities are not
adequate to respond to accidental releases of regulated substances at
the stationary source. If, as a result of the annual coordination, the
facility owner or operator must develop an emergency response program
in accordance with Sec. 68.95, the owner or operator should develop
the program as soon as reasonably practicable. The owner or operator
would also be required to comply with Sec. 68.95 upon

[[Page 13673]]

receiving a written request to do so from the LEPC, local fire
department, or other local emergency response officials having
jurisdiction.
EPA believes that it is appropriate to provide a mechanism for the
local emergency response officials to request that the owner or
operator of the stationary source comply with the emergency response
program requirements of Sec. 68.95 because it is the presence of the
source and its attendant hazards that create a risk to the surrounding
community of accidental releases. Therefore, in the event that the
outcome of the coordination activities with local response authorities
indicates that local public emergency response capabilities are not
adequate, the ultimate burden of providing for an appropriate response
to releases of regulated substances from the source should rest with
the owner or operator. This philosophy is consistent with the general
duty clause of CAA section 112(r)(1), which among other things requires
the owner or operator to minimize the consequences of accidental
releases that do occur.
EPA is proposing to add Sec. 68.93 to clarify emergency response
coordination activities and require that these activities be documented
and occur annually. Section 68.93 would require the owner or operator
of a stationary source with a Program 2 or 3 process to coordinate with
local response authorities to ensure that appropriate resources and
capabilities are in place to respond to an accidental release of a
regulated substance. As part of the coordination, the owner or operator
and the local response authorities would work together to determine who
will respond if an incident occurs, and what would be an appropriate
response. Paragraph (a) would require coordination to occur at least
annually, and more frequently if necessary, to address changes at the
source; in the source's emergency action plan; in local authorities'
response resources and capabilities; or in the local community
emergency response plan. Paragraph (b) would require the owner or
operator to document coordination with local authorities, including the
names of individuals involved and their contact information (phone
number, email address, and organizational affiliations), dates of
coordination activities, and the nature of coordination activities. The
proposed paragraph (c) specifies who should be involved in the
coordination for both stationary sources with regulated toxic and
flammable substances. If a stationary source involves a regulated toxic
substance, then the source must be included in the community emergency
response plan developed under EPCRA.
EPA also proposes to revise Sec. 68.95 to ensure that notification
procedures include notifications to Federal, Tribal, and state agencies
and to require that emergency response plans be updated at least
annually. Specifically, EPA is revising Sec. 68.95(a)(1)(i) to add a
reference to Federal and state agencies. EPA is also proposing to
revise Sec. 68.95(a)(4) to specify that the owner or operator review
and update the program annually or more frequently if necessary (e.g.,
to incorporate lessons learned from incident investigations, or if
changes occur in emergency notification systems, local responder
organizations, stationary source hazards, or other critical emergency
response planning information). EPA is also proposing to revise Sec.
68.95(c) to replace local emergency planning committee with the acronym
LEPC.
Additionally, EPA is proposing to revise Sec. 68.3 to add LEPC for
local emergency planning committee. The term is used throughout the
rule and means the LEPC as established under 42 U.S.C. 11001(c).
Finally, EPA is proposing to revise Sec. 68.12 (General
requirements) to be consistent with these proposed coordination
requirements. EPA is proposing revisions to Program 2 requirements
under Sec. 68.12(c) in which EPA would renumber paragraph Sec.
68.12(c)(4) and (c)(5) as Sec. 68.12(c)(5) and (c)(6). New paragraph
Sec. 68.12(c)(4) would specify the owner or operator's requirements to
coordinate response actions with local emergency planning and response
agencies as provided in Sec. 68.93. EPA is proposing similar revisions
to Program 3 requirements under Sec. 68.12(d). EPA would renumber
paragraph Sec. 68.12(d)(4) and (d)(5) as Sec. 68.12(d)(5) and (d)(6).
New paragraph Sec. 68.12(d)(4) would specify the owner or operator's
requirements to coordinate response actions with local emergency
planning and response agencies as provided in Sec. 68.93.
EPA believes that these proposed amendments clarify existing
obligations and prevent situations where neither regulated stationary
sources nor local authorities are prepared to appropriately respond to
accidental releases at the source. EPA recognizes that an appropriate
response--even for responding facilities--may sometimes involve
evacuation of facility employees, evacuation or sheltering of nearby
residents, and implementation of other defensive measures to prevent
harm to workers, responders, and the public. However, planning for such
situations should occur in advance, so that either the source or local
responders are prepared to implement response measures that are
appropriate to the hazards of the stationary source.
If local public responders are not capable of responding to
accidental releases at a stationary source, the owner or operator can
continue to satisfy the applicable requirements of subpart E (Emergency
Response) in a number of different ways beyond training and equipping
the source's own employees to respond to releases. For example, EPA has
observed situations where stationary source owners or operators
supplement their on-site response capability using response
contractors, or via mutual aid agreements with other nearby sources. In
the RMP Guidance, EPA explained that this may be the most appropriate
course of action to comply with the emergency response requirements of
subpart E, particularly for small sources with few employees: \180\
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\180\ See General Guidance on Risk Management Programs for
Chemical Accident Prevention (40 CFR part 68), EPA-550-B-04-001,
April 2004, page 8-1. https://www2.epa.gov/rmp/guidance-facilities-risk-management-programs-rmp#general.

EPA recognizes that, in some cases (particularly for retailers
and other small operations with few employees), it may not be
appropriate for employees to conduct response operations for
releases of regulated substances. For example, it would be
inappropriate, and probably unsafe, for an ammonia retailer with
only one full-time employee to expect that a tank fire could be
handled without the help of the local fire department or other
emergency responder. EPA does not intend to force such facilities to
develop emergency response capabilities. At the same time, you are
responsible for ensuring effective emergency response to any
releases at your facility. If your local public responders are not
capable of providing such response, you must take steps to ensure
that effective response is available (e.g., by hiring response
---------------------------------------------------------------------------
contractors).

Such arrangements would continue to be acceptable to the Agency as
a means to meet a facility's emergency response program obligations.
Alternatively, stationary source owners or operators can work with
local emergency response officials to identify gaps in local responder
capabilities, and assist local authorities in supplementing those
capabilities, as appropriate, by providing the equipment or training
needed to allow local public responders to prepare for and carry out an
appropriate response to accidental releases at the source. Close and
ongoing coordination between stationary source owners or operators and
local responders will allow such capability gaps to be quickly
identified and corrected and appropriate response

[[Page 13674]]

plans to be developed. Coordination will also assist local responders
in complying with other Federal, state, and local emergency
preparedness, planning, and response requirements, such as planning
requirements under EPCRA, training requirements under the OSHA
Hazardous Waste Operations and Emergency Response standard (29 CFR
1910.120), and other applicable requirements.
As part of the SBAR Panel process, SERs expressed frustration with
the requirement to coordinate with local emergency response officials
because some LEPCs are not active or do not have sufficient resources
to fully implement EPCRA requirements. SERs requested clarification on
how to comply with coordination requirements when facility owners or
operators make good faith efforts to coordinate with local emergency
response officials who do not respond to coordination attempts. EPA
recommends that these coordination attempts be documented and
maintained at the facility. However, if the LEPC is inactive and has
not developed a community emergency response plan or has not included
the facility in the plan (for toxic substances), or the owner or
operator is unable to coordinate response actions with the local fire
department (for flammable substances), then the owner or operator must
develop an emergency response program in accordance with Sec. 68.95.
EPA seeks comment on this approach. Will the proposed amendments
contribute to improvements in emergency response planning and
coordination? Are there additional practices that EPA should consider
that significantly improve planning and coordination? Should EPA
further clarify what is necessary for RMP facility owners or operators
to adequately coordinate their emergency response program with local
authorities? Should coordination activities and emergency plan updates
be required annually, or is some other frequency appropriate? How
should disagreements between local authorities and the source owner or
operator concerning which party should provide for an emergency
response to releases of regulated substances at the source be resolved?
When an LEPC makes a written request for the owner or operator to
comply with the emergency response program requirements of Sec. 68.95,
should the LEPC be required to provide a rationale for the request that
meets certain criteria, to ensure that the request is reasonable? If
so, what criteria should be established?
2. Alternative Options
EPA considered an alternative that would require owners and
operators of all stationary sources with Program 2 or Program 3
processes to comply with the full emergency response program
requirements of Sec. 68.95. Under this option, RMP facilities would
still be required to perform the annual local coordination and to
document activities described previously. However, it would eliminate
the flexibility of the current rule and require all Program 2 and
Program 3 facilities to be ``responding'' facilities. EPA did not
propose this approach because it does not consider the existing
capabilities of local responders and shifts to the regulated stationary
sources the burden associated with developing and maintaining an
appropriate and effective emergency response capability from local
responders in communities that may have adequate capabilities.
Additionally, EPA believes that this approach would place an
unnecessary burden on small facilities.
EPA seeks comment on this alternative approach and whether there
are any other alternative options that EPA should consider prior to
issuing a final action.

B. Facility Exercises

Exercising an emergency response plan is critical to ensure that
response personnel understand their roles, that local emergency
responders are familiar with the hazards at the facility, and that the
emergency response plan is appropriate and up-to-date. It ensures that
personnel are properly trained and lessons learned from exercises can
be used to identify future training needs.
Poor emergency response procedures during some recent accidents
have highlighted the need for facilities to conduct periodic emergency
response exercises. For example, the CSB's investigation of the April
2004 vinyl chloride monomer (VCM) explosion at the FPC USA in
Illiopolis, Illinois, found that the facility's failure to rehearse a
response to a large VCM release made the consequences of the accident
significantly worse, and likely contributed to the deaths of operators
at the facility.\181\ The CSB found that after the VCM release began,
and despite knowingly working directly over a toxic and highly
flammable VCM cloud, two operators did not put on protective breathing
apparatus, activate emergency alarms, or evacuate the facility,
contrary to emergency response actions outlined in facility emergency
procedures. These operators consequently died as a result of injuries
received during the ensuing explosion.
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\181\ CSB. March 2007. Investigation Report: VCM Explosion,
FPC., Illiopolis, Illinois, April 23, 2004; Report No. 2004-10-I-IL.
https://www.csb.gov/assets/1/19/Formosa_IL_Report.pdf.
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Failure to conduct emergency exercises involving local authorities
may also have resulted in injuries and fatalities to local responders.
As previously indicated, 12 local responders died as a result of
injuries received during the West Fertilizer explosion, and the CSB
investigation report findings show that inadequate emergency planning
contributed to the severity of the accident and that responders were
not sufficiently aware of the risks at the facility.\182\ According to
accident history information obtained from EPA's RMP national database,
accidents occurring between 2004 and 2014 resulted in at least 44
responder injuries and 2 additional fatalities.\183\ The 2002 accident
involving a chlorine release at DPC Enterprises in Festus, Missouri,
resulted in 66 people seeking medical attention at the local hospital,
including 63 members of the community surrounding the facility. The
CSB's investigation found that DPC's emergency response plan had
inadequate procedures for training and drills, and that these
deficiencies resulted in DPC's inadequate preparation for a large
uncontrolled chlorine release.\184\ In 2003, another DPC Enterprises
facility in Glendale, Arizona, had an accident involving a large
chlorine release. In that accident, 11 Glendale police officers
responding to the accident were exposed to chlorine and required
medical treatment. The CSB's investigation found that police officers
responding to the accident to assist in evacuation of nearby residents
entered the hazardous area without any respiratory protection. The CSB
recommended that the Glendale fire and police departments schedule
periodic hazardous materials incident drills to ensure safe and
effective responses to future hazardous materials incidents.\185\
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\182\ CSB. January 2016. Final Investigation Report: West
Fertilizer Company Fire and Explosion, West, TX, April 17, 2013.
Report No. 2013-02-I-TX, pp. 14, 116-117, 200-204, 241-242. https://www.csb.gov/west-fertilizer-explosion-and-fire-/.
\183\ EPA. January 27, 2016. Technical Background Document for
Notice of Proposed Rulemaking: Risk Management Programs under the
Clean Air Act, Section 112(r)(7).
\184\ CSB. May 2003. Investigation Report: Chlorine Release, DPC
Enterprises, L.P., Festus, Missouri, August 14, 2002. Report No.
2002-04-I-MO. https://www.csb.gov/assets/1/19/DPC_Report.pdf.
\185\ CSB. February 2007. Investigation Report: Chlorine
Release, DPC Enterprises, L.P., Glendale, Arizona, November 17,
2003. Report No. 2004-02-I-AZ. https://www.csb.gov/assets/1/19/DPC2-_Final.pdf.

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[[Page 13675]]

On April 12, 2004, a runaway chemical reaction at MFG Chemical,
Inc., in Dalton, Georgia, resulted in the release of toxic vapor clouds
of allyl alcohol and allyl chloride into the surrounding community. The
accident resulted in the evacuation of more than 200 families and
medical treatment for 154 people, including 15 responders. The CSB
found that MFG did not train or equip employees to conduct emergency
mitigation actions, and that local emergency response agencies did not
adequately prepare for responding to emergencies involving hazardous
chemicals. The CSB recommended that the facility obtain equipment and
provide emergency response training to employees, and that local
agencies conduct drills for emergencies at fixed facilities.\186\
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\186\ CSB. April 2006. Investigation Report: Toxic Chemical
Vapor Cloud Release, MFG Chemical, Inc., Dalton, Georgia, April 12,
2004. Report No. 2004-09-I-GA. https://www.csb.gov/assets/1/19/MFG_Report.pdf.
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Other EPA and Federal agency programs require exercises as an
element of their emergency response programs. For example, under the
Oil Pollution Prevention regulation (40 CFR part 112), facilities
subject to the Facility Response Plan (FRP) provisions are required to
conduct exercises, including evaluation procedures (Sec. 112.21). FRP
facility owners and operators are encouraged to follow the National
Preparedness for Response Exercise Program (PREP) Guidelines,\187\
which were developed to provide a mechanism for compliance with EPA,
U.S. Coast Guard (USCG), and U.S. Department of the Interior (DOI)
exercise requirements for oil pollution response. The PREP guidelines
include both internal and external exercise components. Internal
exercises include notification exercises, emergency procedure
exercises, spill management team tabletop exercises, and equipment
deployment exercises. External exercises include area exercises that
include members of the response community, and government-initiated
unannounced exercises.
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\187\ USCG, EPA, and DOI. August 2002. National PREP Guidelines.
https://www.au.af.mil/au/awc/awcgate/uscg/prep_gid.pdf.
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Other examples include exercises that the U.S. Nuclear Regulatory
Commission (NRC), in conjunction with the Federal Emergency Management
Agency, requires commercial nuclear power plant operators to perform
with state and local governments. These exercises evaluate both on-site
and offsite emergency response capabilities. The NRC requires all
nuclear reactor emergency plans to address the necessary provisions for
coping with radiological emergencies at each facility in accordance
with 10 CFR 50.54(q), Appendix E to 10 CFR 50, and for commercial
nuclear power reactors only, 10 CFR 50.47(b). Reactor operators are
required to train personnel and perform emergency preparedness
exercises in order to test the adequacy of the plans, ensure personnel
are familiar with their duties, and maintain response capabilities.
Some state and local regulations also require emergency response
exercises. For example, the New Jersey TCPA, which incorporates the
requirements of 40 CFR part 68, contains certain additional provisions
imposed under state law, including a requirement for regulated
facilities to perform at least one emergency response exercise per
calendar year. Non-responding facilities are required to invite at
least one outside responding agency designated in the emergency
response plan to participate in the exercise, and employees of the
facility are required to perform their assigned responsibilities for
all emergency response exercises. Owners or operators of all other
facilities are required to perform at least one full scale emergency
response exercise in which the emergency response team as well as
containment, mitigation, and monitoring equipment are deployed at a
strength appropriate to demonstrate the adequacy and implementation of
the plan.\188\
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\188\ NJDEP, Title 7, Chapter 31 Toxic Catastrophe Prevention
Act Program, Consolidated Rule Document, Section 7:31-5.2; https://www.state.nj.us/dep/rpp/brp/tcpa/downloads/conrulerev9_no%20fonts.pdf.
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In comments received from the Agency's recent RFI, the National
Association of Superfund Amendments and Reauthorization Act (SARA)
Title Three Program Officials (NASTTPO), which represents members of
State Emergency Response Commissions (SERCs), Tribal Emergency Response
Commissions (TERCs), and LEPCs, has encouraged EPA to require RMP
facilities to conduct exercises that include local first responders and
realistic accident scenarios.\189\
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\189\ Gablehouse, T. October 28, 2014. Comment No. EPA-HQ-OEM-
2014-0328-0679 on Risk Management Program RFI, PDF pg 5-6, NASTTPO,
Denver, CO.
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In addition to specific Federal and state requirements for
conducting exercises and the NASTTPO comments, industry guidelines
recommend conducting exercises. The CCPS Guidelines for Risk Based
Process Safety recommend periodically testing the adequacy of emergency
response plans and level of preparedness of responders, including
contractors and local response agencies.\190\
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\190\ CCPS. 2007. Guidelines for Risk Based Process Safety.
American Institute of Chemical Engineers, CCPS, NY, Wiley. pp. 513,
524-526, 538-540.
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In the original proposed RMP rule (58 FR 54190, October 20, 1993),
EPA had included within the emergency response program provisions a
proposed requirement for regulated sources to conduct emergency
exercises. In the final RMP rule (61 FR 31668, June 20, 1996), EPA
decided not to finalize this requirement (and several other additional
emergency response program provisions), for two reasons. First, the
Agency decided to limit the emergency response program requirements to
the minimum requirements contained in CAA section 112(r)(7) in order to
avoid inconsistency with other emergency response planning regulations.
Second, the Agency indicated that the additional requirements were
already addressed in other Federal regulations and therefore, sources
were already doing them. However, EPA's experience with implementing
the RMP rule over nearly two decades, along with incidents such as
those described above, indicate that many regulated sources do not
regularly conduct emergency exercises that involve local response
authorities. The Agency now believes that adding this provision to the
regulation will likely reduce the severity of some accidents that do
occur.
1. Proposed Exercise Program Requirements
In order to further improve coordination with community responders
and ensure that both facility personnel and local responders have
practice responding to accidental releases at RMP facilities, EPA is
proposing to require most regulated facilities to perform exercises as
an element of the emergency response program identified under subpart
E. Proposed Sec. 68.96 would require both responding and non-
responding RMP facilities with any Program 2 or 3 process to perform
emergency exercises.
a. Notification Exercises
EPA proposes a new paragraph Sec. 68.96(a) to require facilities
with any Program 2 or Program 3 process to annually perform an exercise
of the source's emergency notification system. This exercise would
include contacting the Federal, Tribal, state, and local public
emergency response authorities, and other external responders that
would respond to accidental releases at the source. The purpose of
these notifications is to ensure facility

[[Page 13676]]

personnel understand how to initiate the notification system and to
test the emergency contact information to ensure it is up-to-date. As
part of the notification exercise, the individual making the
notifications should clearly indicate that the call is part of an
exercise to test the notification system. The owner or operator would
be required to document these notification exercises and maintain a
written record of each exercise conducted for a period of five years.
The owner or operator would also be required to provide copies of the
report to local response officials, and to make the report available to
the public in accordance with Sec. Sec. 68.205 and 68.210.
As non-responding facilities will rely on local authorities to
respond to accidental releases at the source, EPA believes that the
proposed facility notification exercises will be an important
supplement to the existing requirement for local emergency plan
exercises under EPCRA section 303(c)(9), which requires local emergency
plans to include methods and schedules for exercising the plan.
Responding facilities will be required to meet additional field and
tabletop exercise requirements below, which in many cases will also
involve the participation of local authorities. Notifications to
Federal, state, and local officials conducted as part of the field or
tabletop exercise may also serve to meet the annual notification
exercise requirements provided that the owner or operator documents
these notification exercises.
EPA is also proposing to modify Sec. 68.95(a)(1)(i) to clarify
that the emergency response program should include procedures for
performing appropriate notifications to Federal and state emergency
response agencies, as well as the public and local emergency response
agencies, about accidental releases. This could include, for example,
any required notifications to the National Response Center, as required
by section 103(a) of CERCLA, and/or notifications to the SERC as
required by section 304 of EPCRA.
b. Responding Facility Field and Tabletop Exercises
EPA is proposing a new paragraph Sec. 68.96(b) to require
responding facilities to develop and implement an emergency response
exercise program that uses the emergency response plan required under
Sec. 68.95(a)(1). EPA is proposing to require two types of exercises--
field exercises and tabletop exercises. The owner or operator would be
required to coordinate with local public emergency response officials
in planning and conducting exercises, and invite local officials to
participate in exercises. However, participation in an exercise by
local responders is not required for a facility to comply with the
exercise provisions.
i. Field Exercises
Field exercises involve the actual performance of emergency
response functions during a simulated accidental release event. Field
exercises involve mobilization of firefighters and/or hazardous
materials response teams, activation of an incident command structure,
deployment of response equipment, evacuation or sheltering of facility
personnel as appropriate, and notification and mobilization of law
enforcement, emergency medical, and other response personnel as
determined by the scenario and the source's emergency response
plan.\191\
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\191\ EPA. May 1988. Guide to Exercises in Chemical Emergency
Preparedness Programs, OSWER 88006.
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Section 68.96(b)(1) would require the owner or operator to conduct
an emergency response field exercise involving the simulated accidental
release of a regulated substance at least once every five years and
within one year of any accidental release meeting the criteria in Sec.
68.42(a). If the facility is required to conduct a field exercise as a
result of an RMP reportable accident, then this would effectively reset
the timeframe for when the next five-year field exercise is due.
EPA is proposing that the scope of the field exercises would
include tests of:

Procedures for informing the public and the appropriate
Federal, state, and local emergency response agencies about an
accidental release;
procedures and measures for emergency response after an
accidental release of a regulated substance including evacuations
and medical treatment;
communications systems;
mobilization of facility emergency response personnel;
coordination with local emergency responders;
equipment deployment, and
other actions identified in the source's emergency
response plan, as appropriate.
ii. Tabletop Exercises
Tabletop exercises are discussion-based exercises without the
actual deployment of response equipment. During tabletop exercises,
responders typically assemble in a meeting location and simulate
procedural and communications steps for response to a simulated
accidental release, as determined by the scenario and the source's
emergency response plan.
In Sec. 68.96(b)(2) EPA is proposing to require the owner or
operator to annually conduct an emergency tabletop exercise involving
the simulated accidental release of a regulated substance, except
during years when field exercises are conducted. The scope of a
tabletop exercise would include tests of:

A description of the exercise scenario;
names and associations of each exercise participant;
an evaluation of the results of the exercise including
lessons learned;
recommendations for improvement or revisions to the
emergency exercise program and emergency response program; and
a schedule to promptly address and resolve
recommendations.

The report would also include an evaluation of the adequacy of
coordination with local emergency response authorities, and other
external responders, as appropriate. Section 68.96(b)(3) would also
require the owner or operator to update the emergency exercise program
and emergency response program at least annually, and more frequently
if necessary to incorporate recommendations and lessons learned from
emergency response exercises, incident investigations, or other
available information. The owner or operator would also be required to
provide schedules of exercises and copies of exercise reports to local
response officials, and to make exercise reports available to the
public in accordance with Sec. Sec. 68.205 and 68.210. Exercise
reports would be maintained for five years.
d. Updates to Sec. 68.12 (General Requirements)
EPA is proposing to revise Sec. 68.12 (General Requirements) to be
consistent

[[Page 13677]]

with these proposed exercise requirements. EPA is proposing to revise
the Program 2 and Program 3 requirements under Sec. 68.12 by
renumbering paragraph Sec. 68.12(c)(4) as Sec. 68.12(c)(5) (for
Program 2) and Sec. 68.12(d)(4) as Sec. 68.12(d)(5) (for Program 3),
adding a reference to exercise requirements, and correcting citations
to subpart E.
EPA is aware that while not all facilities regulated under the RMP
rule conduct emergency exercises, many do, and the Agency believes that
exercises conducted in accordance with other Federal, state, or local
requirements, or exercises conducted in conjunction with a facility's
trade association membership or code of practice, etc., may be used to
satisfy the new requirements to the extent those exercises address the
specific regulatory provisions contained herein.
EPA seeks comment on this approach. Are there additional exercise
provisions that EPA should consider to improve the ability of RMP
facility personnel and local authorities to respond to accidental
releases? Are annual exercises sufficient or should EPA consider
alternative frequencies? What information regarding exercises would be
most helpful to the public while maintaining a balance for security?''
Some SERS expressed concern that local emergencies could force a
facility to postpone an exercise. EPA seeks comments on how best to
address emergency postponement and rescheduling of exercises. EPA also
seeks comment on whether to eliminate the requirement for tabletop and
field exercises.

2. Alternative Options

EPA considered two alternative approaches to requiring emergency
exercises. The first alternative option would also require responding
and non-responding facilities to conduct an annual emergency
notification system exercise. However, under this option responding
facilities would additionally be required to conduct only annual
tabletop exercises; emergency field exercises would not be required.
This alternative option would be a lower cost option for responding
facilities, as field deployment of the source's equipment and personnel
would not be required. However, it may also result in less realistic
and less effective emergency exercises.
The second alternative approach considered by EPA would contain the
same provisions for notification exercises as in the proposed option,
but would require responding facilities to conduct field exercises
annually, instead of tabletop exercises. This approach would be similar
to the New Jersey TCPA emergency exercise provisions, and provide for a
comprehensive test of all systems under the emergency exercise program
for responding facilities. However, the costs of this approach would be
significantly higher than the proposed approach.
EPA seeks comment on these alternative approaches and whether there
are any other alternative options that EPA should consider prior to
issuing a final action.

VI. Information Availability Requirements

Ensuring that communities, local planners, local first responders,
and the public have appropriate chemical facility hazard-related
information is critical to the health and safety of the responders and
the local community. Throughout the many public meetings and outreach
efforts related to Executive Order 13650, LEPCs, first responders, and
members of the public stated that chemical facility information and
data-sharing efforts need significant improvement.\192\ Specifically,
LEPCs and first responders want to have access to the most relevant
chemical hazard and risk information for their needs, in a user-
friendly format, to better support planning and preparedness efforts.
Community residents, operators of community facilities (such as
daycares and nursing homes) and organizations consistently noted that
they need basic information regarding chemical risks at facilities,
presented in a clear and consistent manner, so that they can
effectively participate in preparedness and planning to address such
issues as effective emergency notification procedures, evacuation, and
sheltering in place. In response to these issues, EPA is proposing ways
to enhance information sharing and collaboration between chemical
facility owners and operators, tribal and local emergency planning
committees, first responders, and the public, in a manner that balances
security and proprietary considerations. Some public commenters
responding to EPA's RMP RFI elaborated the need for more public access
to information about the RMP facilities. The Center for Science and
Democracy (CSD) stated that public access to information is key to
enabling communities to hold facility owners and operators accountable
for reducing risks as much as possible, and for being prepared should
an accident occur. According to CSD, facility owners and operators
should be responsible for ensuring that appropriate measures are in-
place to handle an emergency and should be fully communicating with
local authorities on the development of community emergency response
plans that include chemical facilities.\193\
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\192\ Chemical Facility Safety and Security Working Group. May
2014. Executive Order 13650 Report to the President--Actions to
Improve Chemical Facility Safety and Security--A Shared Commitment,
pgs. 93-94. https://www.osha.gov/chemicalexecutiveorder/final_chemical_eo_status_report.pdf.
\193\ CSD. October 20, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0424 on Risk Management Program RFI, pgs. 2-3.
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NASTTPO requested EPA consider providing information on emergency
planning and exercises, audit reports, and RMP Executive summaries that
include information such as accident histories, and names of RMP-
regulated substances.\194\
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\194\ Gablehouse, T. October 28, 2014. Comment No. EPA-HQ-OEM-
2014-0328-0679 on Risk Management Program RFI, PDF p. 2, 4, & 6,
NASTTPO, Denver, CO.
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Oklahoma Hazardous Materials Emergency Response Commission (OHMERC)
also commented and requested posting of chemical information including
an RMP summary along with Tier2 information on a company Web site at a
minimum. They also requested making the following information available
to LEPCs: The facility emergency response plan, accident history, along
with OCA.\195\
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\195\ Elder, M., October 29, 2014. Comment No. EPA-HQ-OEM-2014-
0328-0641 on Risk Management Program RFI, p. 3, OHMERC.
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The MKOPSC stated that most of the information is already available
online and from LEPCs and need not be provided on a Web site. But
MKOPSC noted that LEPCs can utilize the information to understand the
risk in the communities and involve local facilities, local officials,
SERCs, local citizens and EPA to have dialogues to improve regulatory
compliance and promote safety. MKOSPSC also believes it is also
important to let the public understand how the facilities address the
hazard present in their community and keep the risk at or below the
``acceptable level.'' When local citizens have adequate information and
knowledge, facility owners and operators may be motivated to
continuously improve their safety in response to community pressure and
oversight.\196\
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\196\ MKOPSC. October 29, 2014. Comment No. EPA-HQ-OEM-2014-
0328-0543 on Risk Management Program RFI, pgs. 162, 165.
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CCHS noted that requiring facility owners or operators to make this
information available on the company Web site would promote improved
regulatory compliance, because the more willing a facility is to be
open and

[[Page 13678]]

transparent the greater that company is willing to address issues that
relate to safety.\197\ The United Steel Workers (USW) stated that
making unrestricted RMP information publicly available would increase
compliance, as it enables communities to hold facilities accountable
and gives facilities greater incentive to strengthen safety measures
and to comply with regulations.\198\ The Coalition to Prevent Chemical
Disasters (CPCD) believes that schools located within vulnerability
zones of RMP facilities need to have chemical disaster drills in place,
but that many schools are unaware of any risks. In CPCD's view, not
informing communities about chemical risks reduces their ability to
prepare for potential disasters involving specific chemical releases.
CPCD argues that first responders need to know what chemicals they are
facing and what emergency equipment to use. CPCD believes that
information, such as compliance audits and incident investigation
reports, should be disclosed to LEPCs and that with this information,
active LEPCs can better include local communities in emergency planning
and training.\199\ CPCD made reference to testimony made six years
prior to the West disaster by a former CSB chairperson about her
concern for:
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\197\ CCHS. October 28, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0546 on Risk Management Program RFI pg. 13.
\198\ USW. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0547 on Risk Management Program RFI, pg. 6.
\199\ CPCD. October 29, 2014. Comment No. EPA-HQ-OEM-2014-0328-
0644 on Risk Management Program RFI, pgs. 36-37.

a lack of chemical emergency preparedness that our investigations
have found among many communities where accidents strike. Preventing
accidents and mitigating their impact requires an active partnership
between communities and industrial facilities. If that partnership
is missing, the stage is set for a potentially severe impact on the
community.\200\
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\200\ CSB. July 10, 2007. CSB News Release: CSB Chairman Merritt
Describes the Lessons from Five Years of Board Investigations to
Senate Committee, Urges Additional Resources and Clearer Authorities
for Federal Safety Efforts. https://www.csb.gov/csb-chairman-merritt-describes-the-lessons-from-five-years-of-board-investigations-to-senate-committee-urges-additional-resources-and-clearer-authorities-for-federal-safety-efforts/.

Poor communication between facility personnel and first responders,
as well as poor communication between facility personnel and
communities, has been shown to contribute to the severity of chemical
accidents. One example is the Bayer CropScience explosion that occurred
---------------------------------------------------------------------------
in Institute, West Virginia, in 2008. According to the CSB,

The Bayer fire brigade was at the scene in minutes, but Bayer
management withheld information from the county emergency response
agencies that were desperate for information about what happened,
what chemicals were possibly involved . . . The Bayer incident
commander, inside the plant, recommended a shelter in place; but
this was never communicated to 911 operators. After a few hours of
being refused critical information, local authorities ordered a
shelter in place, as a precaution.\201\
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\201\ CSB. January 20, 2011. CSB issues report on 2008 Bayer
Cropscience explosion: Finds multiple deficiencies led to runaway
chemical reaction; recommends states create chemical plant oversight
regulation. https://www.csb.gov/csb-issues-report-on-2008-bayer-cropscience-explosion-finds-multiple-deficiencies-led-to-runaway-chemical-reaction-recommends-state-create-chemical-plant-oversight-regulation/.

Improper communication between the facility and the first responders
during the accident led to a delay in implementing a public shelter-in-
place order for the local community, and may have resulted in toxic
exposure to on-scene public emergency responders.
After a release of HF from the Citgo Refinery in Corpus Christi,
Texas, in July 2009, nearby residents complained of headaches, nausea,
and respiratory issues, though Citgo claimed that the toxic cloud
stopped at the plant fence line. According to reports, neighbors could
see the flames and smoke coming from the refinery, but they were unable
to get information on the accident and potential risks to their
community.\202\
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\202\ Morris, Jim and Chris Hamby, Center for Public Integrity.
February 24, 2011; Updated May 19, 2014. Fueling Fears--Use of toxic
acid puts millions at risk. https://www.publicintegrity.org/2011/02/24/2118/use-toxic-acid-puts-millions-risk.
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The previous examples and public comments demonstrate the need for
better communication of the potential risks associated with accidental
releases at stationary sources. However, in making information more
readily available EPA must also recognize and balance the associated
security concerns because the public sharing of certain specific
facility information and any associated vulnerabilities has the
potential to aid terrorists in planning an attack. The RMP rule was
published in 1996, before many computer-based and other information-
sharing methods were widely used. At the time of initial publication of
the rule, EPA expected information to be disclosed to the public
through disclosure of the entire RMP. After the CSISSFRRA was enacted
on August 5, 1999, EPA restricted access to OCA data for the public and
government officials to minimize the security risks associated with
posting the information on the internet (65 FR 48108, August 4, 2000).
Governmental officials continue to have electronic access to OCA
information, subject to certain restrictions, while the public may view
OCA information only at Federal Reading Rooms around the country and
only for a limited number of RMPs at any one time. The non-OCA portions
of the RMPs are available from EPA to the public either through Freedom
of Information Act (FOIA) request, by inspection at Federal Reading
Rooms, or from a person's SERC, LEPC, or related state or local
government agencies.\203\
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\203\ See 40 CFR part 1400: Accidental Release Prevention
Requirements; Risk Management Programs Under the CAA Section
112(r)(7); Distribution of OCA Information (65 FR 48108, August 4,
2000). https://www.gpo.gov/fdsys/pkg/FR-2000-08-04/pdf/00-19785.pdf.
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EPA is proposing to require certain information to be made
available, upon request, to LEPCs and emergency response officials to
help them to understand the potential risks at RMP regulated
facilities, as well as to aid them in emergency planning and response
activities. EPA is also proposing to amend the information sharing
provisions for the public to make existing information more easily
accessible to neighboring communities to encourage them to prepare for
an emergency. EPA also believes that the revisions will likely
contribute to the prevention of future chemical accidents. Cognizant of
the spirit and intent of the CSISSFRRA, the proposed revisions do not
disclose the substance or form of information subject to restriction
under CAA 112(r)(7)(H) or 40 CFR part 1400.
EPA has two objectives for improving public information sharing
provisions of the RMP rule. The first is to ensure that local emergency
response and planning officials have the information they need to
prepare for an emergency response to an accidental release at a
stationary source. This includes determining what information is
appropriate to improve community emergency response plans and ensure
the safety of the local responders and the community. EPA must also
determine the appropriate frequency for updating this information to
avoid overwhelming local planners while ensuring information is
current. While developing emergency response plans, LEPCs and facility
owners or operators should also involve local citizens to help them
understand the appropriate actions they should take in the event of an
accidental release. This may reduce public panic and enable residents
to act quickly and appropriately to protect themselves.
The second objective is to help improve public awareness of risks
in their communities and provide information on where they can learn
more about preparedness and

[[Page 13679]]

community emergency response plans. Any publicly available information
should be in a format that is easily accessible. The goal is to
encourage residents to learn about community emergency response plans
and understand what actions they need to take during an emergency to
protect themselves.
EPA is proposing to add provisions for sharing information, upon
request, with LEPCs and/or emergency response officials and revise the
existing provisions for sharing information with the public. EPA is
also proposing that facility owners and operators conduct public
meetings within 30 days of an RMP reportable accident to discuss
chemical hazards present at facilities and provide information on
accidental releases. These meetings can provide opportunities for
facilities to engage the public to address concerns following an
accidental release and explain how facilities will prevent future
accidents.

A. Proposed Public Disclosure Requirements to LEPCs or Emergency
Response Officials

EPA is proposing to add requirements to subpart H--Other
Requirements that apply to all facilities regulated under the RMP rule,
including facilities with Program 1 processes. EPA proposes to add
Sec. 68.205 to require owners and operators to provide information to
local emergency responders and LEPCs upon request. If information
required under this proposal is already available to the public on a
company Web site, the owner or operator may comply by providing the Web
site link to the first responders and LEPC. Paragraph Sec. 68.205(a)
would require that the RMP be accessible to local emergency responders
and LEPCs in the exact same manner as the current requirement under
Sec. 68.210(a). A reference to 42 U.S.C. 7414(c), which covers
information and reports (such as the RMP) required under section 42
U.S.C. 7412, is included to show the authority under which the non-OCA
portion of an RMP shall be available to the public, except for any
information that would divulge methods or processes entitled to
protection of CBI or trade secrets. This reference is already part of
the current Sec. 68.210(a). A reference to 40 CFR part 1400 has been
added to address the disclosure restrictions under CSISSFRRA (i.e.,
restrictions on the disclosure of OCA information). EPA is not changing
its policy regarding OCA information. The reference to 40 CFR part 1400
only clarifies the statutory obligations that relate to securing this
information.
Under paragraph Sec. 68.205(b), EPA would require the owner or
operator to develop summaries of specific chemical hazard information
for all of their regulated processes and provide this information, upon
request, to the LEPC or local emergency response officials as part of
their emergency response coordination efforts. The facility should make
information available in a manner that is understandable and avoids
technical jargon. The information should be conveyed without revealing
CBI or trade secret information. The information must adequately
explain the findings, results, or analysis being provided.
The specific information that must be provided to LEPCs or
emergency response officials upon request is outlined below:
Information on Regulated Substances. Information related to the
names and quantities of regulated substances at the source (paragraph
Sec. 68.205(b)(1)). This only applies to regulated substances held in
a process above the TQ.
Accident History Information. The facility's accident history
information required under Sec. 68.42 (paragraph Sec. 68.205(b)(2)).
Compliance Audit Reports. Summaries of compliance audit reports
required under Sec. Sec. 68.58 and 68.59 (for Program 2 processes), or
Sec. Sec. 68.79 and 68.80 (for Program 3 processes), as applicable
(paragraph Sec. 68.205(b)(3)). The audit report summary shall include:

The date of the report;
The name and contact information of the auditor and the
facility contact person;
A brief description of the audit findings;
An appropriate response to each of the findings; and
A schedule for addressing each of the findings.

Incident Investigation Reports. Summaries of incident investigation
reports required under Sec. 68.60(d) (for Program 2 processes) or
Sec. 68.81(d) (for Program 3 processes), as applicable (paragraph
Sec. 68.205(b)(4)). The incident investigation report summary shall
include:

A description of the incident and events leading up to
it, including a timeline;
A brief description of the process involved;
The names and contact information of personnel on the
investigation team;
The direct cause, contributing cause, and root cause of
the incident;
The on-site and offsite impacts;
The emergency response actions taken;
Any recommendations; and
A schedule for implementing recommendations, as
applicable.

Inherently Safer Technologies (IST). For each process in NAICS
codes 322, 324, and 325, a summary of the IST or ISD identified in
accordance with Sec. 68.67(c)(8) that the owner or operator has
implemented or plans to implement (paragraph Sec. 68.205(b)(5)). The
owner or operator shall update this summary as part of the calendar
year submission if any of the summary information has been revised as a
result of the safer technology analysis that is conducted as part of
the update to the PHA prepared in accordance with Sec. 68.67(f). The
calendar year submission should also identify whether any revisions
were incorporated. The IST/ISD summary shall include, at a minimum:

The RMP process ID and process description, if
provided, of the process affected;
A brief description of the IST or ISD and which type of
measure best characterizes it: Minimization, substitution,
modernization, or simplification;
The names of the regulated substance(s) whose hazard,
potential exposure, or risk was or will be reduced as a result of
the implementation and whether the substance is listed as toxic or
flammable. If the chemicals affected are a mixture of flammable
substances, the name ``flammable mixture'' may be used, instead of
the individual flammable substance names; and
The dates of implementation or planned implementation.

Exercises. Information on emergency response exercises conducted
under Sec. 68.96, including, at a minimum, schedules for upcoming
exercises, reports for completed exercises, and other related
information (paragraph Sec. 68.205(b)(6)).
EPA believes that summary information on findings from incident
investigations, compliance audits, exercises, and IST employed can
demonstrate to local emergency response officials how a facility is
improving its management of chemical risks and assist local emergency
planners to understand and better prepare for these risks when
developing community emergency response plans. Furthermore, EPA
believes that disclosing information related to IST can help responders
and planners to prioritize and allocate response resources. For
example, IST implementation information may be relevant for emergency
response personnel who are maintaining response capabilities to address
a specific hazard that would no longer apply once an IST is implemented
(such as by substituting a less hazardous chemical for an RMP-regulated
substance).
Table 6 below summarizes the information to be developed under
Sec. 68.205(b) and identifies the applicable program level for each
provision. The owner or operator need only provide

[[Page 13680]]

upon the LEPC's request information developed for this provision that
is applicable to the program-level for each regulated process at the
facility. For example, owners or operators of Program 2 processes must
provide information on regulated substances in accordance with Sec.
68.205(b)(1), accident history information in accordance with Sec.
68.205(b)(2), compliance audit report summaries to LEPC or emergency
response officials in accordance with Sec. 68.205(b)(3), incident
investigation report summaries in accordance with Sec. 68.205(b)(4),
and exercise schedules and report summaries in accordance with Sec.
68.205(b)(6). Owners and operators of Program 3 processes must provide
all of the above information, as well as the IST information required
under Sec. 68.205(b)(5). Owners and operators of Program 1 processes
would be required to provide only information on regulated substances
in accordance with Sec. 68.205(b)(1) and accident history information
in accordance with Sec. 68.205(b)(2).

Table 6--LEPC Disclosure Information
------------------------------------------------------------------------
Program level(s)
Information to be provided, upon request, to LEPCs or applicability--
emergency response officials in Sec. 68.205. program 1, 2, or
3
------------------------------------------------------------------------
(b)(1) Information on regulated substances........... 1, 2, 3
(b)(2) Accident history information.................. 1, 2, 3
(b)(3) Compliance audit report summaries............. 2, 3
(b)(4) Incident investigation report summaries....... 2, 3
(b)(5) IST summary................................... * 3
(b)(6) Exercise schedules and report summaries....... 2, 3
------------------------------------------------------------------------
* Applies only to Program 3 facilities in NAICS codes 322, 324, and 325.

Submission Dates and Updates. According to Sec. 68.205(c), EPA is
proposing that the owner or operator update summary information every
calendar year, including all applicable information that was revised
since the last submission, and provide this information upon request.
Classified Information. EPA is proposing to add Sec. 68.205(d) to
address protection of classified information from disclosure. This
provision is identical to the current Sec. 68.210(b).
Confidential Business Information. EPA is proposing to add the
acronym CBI to Sec. 68.3 and to add Sec. 68.205(e) to describe the
process for claiming and handling CBI. EPA is proposing that an owner
or operator asserting a CBI claim for information requested by an LEPC
or local emergency response official under this section should submit a
sanitized version to the LEPC or emergency response officials, and
submit to EPA both the sanitized version and a version containing the
CBI along with a substantiation of the CBI claim at the time it is
asserted. This process for assertion and substantiation of CBI claims
is the same as that required in Sec. Sec. 68.151 and 68.152 for
information contained in the RMP. As provided under Sec. 68.151(b)(3),
an owner or operator of a stationary source may not claim five-year
accident history information as CBI. As provided in Sec. 68.151(c)(2),
an owner or operator of a stationary source asserting that a chemical
name is CBI shall provide a generic category or class name as a
substitute in its submission.
An owner or operator should be aware that anything they send to
their LEPC in accordance with Sec. 68.205(e) becomes public
information. For any information claimed as CBI when submitted to EPA
and later submitted to the LEPC, the CBI claim regarding such
information is waived. Therefore, if an owner or operator wants to
maintain the confidentiality of information, when submitting such
information to the LEPC, they should submit a sanitized version.
With these proposed requirements, EPA intends to ensure that LEPCs
and emergency response officials have information on chemical hazards
at regulated facilities and are better prepared to understand and
prepare for risks to the communities and emergency responders. EPA
encourages local emergency response officials to coordinate with owners
or operators of regulated facilities and participate in emergency
response exercises as time and resources allow. LEPC and local
emergency response officials should use the information identified in
Sec. 68.205(b) to assist in revising the community emergency response
plan developed under 42 U.S.C 11003 and related purposes.
EPA seeks comment on this approach. Will the proposed requirements
improve the community emergency planning and preparedness? Is there
additional information that should be shared with LEPCs or emergency
response officials? For example, should EPA require the full safer
technologies and alternatives analysis to be submitted to the LEPC? EPA
also seeks comment on whether to require less information to be shared
(e.g., limit incident investigation information to incidents with
offsite impacts). Some SERs suggested that information be limited to a
one page summary of each significant chemical hazard and suggested
including only the following elements: The name of the substance, its
properties, its location, and recommended firefighting and emergency
response measures. EPA seeks comment on this narrowed approach. Should
EPA require owners or operators to periodically submit information to
the LEPC or local responders, and if so, what timeframe should EPA
consider? Is the proposed timeframe for updating information sufficient
to ensure information is up-to-date? Should EPA require information to
be updated only after the source receives a request from an LEPC or
local emergency response official? If so, how much time is sufficient
to allow development and submission of summaries following requests for
information under this proposed provision? Should EPA specify a
standard format for summary information in order to make it easier for
local officials to interpret the information (e.g., specify a summary
template for information on regulated substances, compliance audits
reports, incident investigation reports, IST)?

B. Proposed Revisions to Requirements for Information Availability to
the Public

Under paragraph Sec. 68.210(a), EPA is proposing to add a
reference to 40 CFR part 1400 to address CSISSFRRA disclosure
restrictions (i.e., for OCA information). EPA is not changing its
policy regarding OCA information. The reference to 40 CFR part 1400
only clarifies the statutory obligations that relate to securing this
information.
EPA is proposing to redesignate the current paragraph Sec.
68.210(b) that addresses the non-disclosure of

[[Page 13681]]

classified information by the Department of Defense or other Federal
agencies or their contractors as Sec. 68.210(e).
EPA is proposing a new paragraph (b) to require the owner or
operator of a stationary source to distribute certain chemical hazard
information for all regulated processes to the public in an easily
accessible manner. EPA is proposing to require the owner or operator to
distribute the following information, as applicable:

Names of regulated substances held in a process above
TQs;
Safety Data Sheets (SDSs) for all regulated substances
held above TQs at the facility;
The facility's accident history required under Sec.
68.42;
Information concerning the source's compliance with
Sec. 68.10(b)(3) or the emergency response provisions of subpart E,
including:
[cir] Whether the source is a responding stationary source or a
non-responding stationary source;
[cir] Name and phone number of local emergency response
organizations with which the source last coordinated emergency
response efforts, pursuant to Sec. 68.180; and
[cir] For sources subject to Sec. 68.95, procedures for
informing the public and local emergency response agencies about
accidental releases.
Information on emergency response exercises required
under Sec. 68.96, including schedules for upcoming exercises,
reports for completed exercises as described in Sec. 68.96(b)(3),
and any other related information; and
LEPC contact information, including LEPC name, phone
number, and Web site address as available.

EPA believes that providing this information to the general public
will allow people that live or work near a regulated facility to
improve their awareness of risks to the community and to be prepared to
protect themselves in the event of an accidental release. EPA also
thinks that requiring facilities to provide summary information on the
facility's emergency response plans and emergency exercises to the
public, will provide assurance to the community that the facility is
adequately prepared to properly handle a chemical emergency, should it
arise. An additional benefit of sharing exercise schedules is to avoid
unnecessary public alarm when exercises are conducted.
The facility owner or operator can make all the required
information available to the public in a variety of ways. For example,
the owner or operator could comply by making the information available
on the facility or company Web site, if one is available. If the
facility doesn't have a Web site, the owner or operator could establish
one. Alternatively, there are free or low cost internet platforms, file
sharing services, and social media tools that are designed to share
information with the public. As another option, the facility could make
the information available in hard copy at publicly accessible locations
such as a public library or a local government office. If the facility
has the means to handle public visitors, it could choose to make the
information available at the facility location. The facility could
alternatively provide the information by email, upon request. EPA
encourages the facility owner or operator to coordinate information
distribution with the LEPC or local emergency response officials to
determine the best way to reach public stakeholders.
EPA seeks comment on this approach. Is there additional information
that should be shared with the public? For example, should EPA require
the STAA proposed under Sec. 68.67(c)(8), or a summary of that
analysis, be shared with the public? Alternatively, should EPA further
limit the information elements proposed? For example, how should EPA
limit the disclosure of information in exercise reports that might
reveal security vulnerabilities about the facility or emergency
responders? Should EPA not require disclosure of names of individuals
involved in exercises or facility security vulnerabilities revealed by
the exercise? Is there an alternative way to improve community
preparedness for safety purposes while balancing the security concerns
to limit a terrorist's ability to use the information for an attack? Is
there other information that community residents and operators of
community facilities (such as schools, nursing homes, daycares) need in
order to participate in emergency preparedness planning, particularly
as it relates to effective incident notification, sheltering in place,
and evacuation? EPA also seeks comment on the feasibility of these
various options for providing information to the public and requests
suggestions for other ways that the data could be made available.
Lastly, EPA seeks comment on any challenges facility owners or
operators would have in providing the information or challenges public
stakeholders would have in obtaining the information. In order to
inform the public of the location of the information, EPA is proposing
to require under Sec. 68.160(b) that the facility report in their RMP
the location or means of public access to the information proposed to
be disclosed under this subsection.
Submission Dates and Updates. EPA is proposing that the owner or
operator shall update and submit information required under Sec.
68.210(b) every calendar year, including all applicable information
that was revised since the last update.
Confidential Business Information. In Sec. 68.210(f), an owner or
operator asserting CBI shall submit a sanitized version of the
information required under this section to the public. Assertion of
claims of CBI and substantiation of CBI claims shall be in the same
manner as required in Sec. Sec. 68.151 and 68.152 for information
contained in the RMP required under subpart G. As provided in Sec.
68.151(c)(2), an owner or operator of a stationary source asserting
that a chemical name is CBI shall provide a generic category or class
name as a substitute. If an owner or operator has already claimed CBI
for a portion of the RMP, then that claim still applies for the
disclosure elements here. The owner or operator should provide a
sanitized version as described in the RMP*eSubmit User's Manual.\204\
---------------------------------------------------------------------------

\204\ See EPA. March 2014. RMP*eSubmit User's Manual. https://www2.epa.gov/rmp/rmpesubmit-users-manual.
---------------------------------------------------------------------------

EPA seeks comment on this approach. Will the proposed requirements
improve the knowledge sharing between regulated facilities and the
public? Is there additional information that should be shared with the
public stakeholders? Should EPA only require information to be shared
upon request by the public? Alternatively, should EPA further limit the
information we are proposing to be required, such as requiring only a
one page summary that addresses chemical hazard information and
emergency response measures? EPA could alternatively eliminate some of
the required information elements or further limit information, such as
by limiting accident history information to only those with offsite
impact. Some SERs asked whether the existing RMP data or the RMP
executive summary available to the public through existing sources
(FOIA, Federal Reading rooms or other public sources who have compiled
the data) are adequate to meet the information needs of the public.
Public Meetings. When the CSISSFRRA was enacted in 1999, it
included a section that required owners or operators of all facilities
regulated under the RMP rule to hold a public meeting within 180 days
of enactment.\205\ The purpose of the public meeting was to describe
and discuss the local implications of the RMP on the community. Two or
more stationary

[[Page 13682]]

sources were allowed to conduct a joint meeting, while small businesses
were allowed to instead post a summary of their OCA information no
later than 180 days after enactment.
---------------------------------------------------------------------------

\205\ Chemical Safety Information, Site Security and Fuels
Regulatory Relief Act, Public Law 106-40, August 5, 1999. See https://www.gpo.gov/fdsys/pkg/STATUTE-113/pdf/STATUTE-113-Pg207.pdf.
---------------------------------------------------------------------------

In paragraph Sec. 68.210(d) EPA is proposing to require regulated
facilities that have any accident meeting the five-year accident
history criteria of Sec. 68.42 to hold a public meeting within 30 days
after the accident. This provides an opportunity for the owner or
operator of the RMP facility to inform the community about the accident
including, at a minimum, the information reportable under Sec. 68.42.
This includes information on:

When the accident occurred;
The nature of the accident including initiating event
and contributing factors if known;
Chemicals involved and quantities released;
Weather conditions, if known;
On-site and offsite impacts;
Emergency response notifications; and
Operational or process changes that resulted, thus far,
from investigation of the release.

EPA expects that, in some cases, sources will have completed the
incident investigation required under Sec. 68.60 or Sec. 68.81 prior
to holding the public meeting. This would allow the owner or operator
to share appropriate information about the accident with the local
community. However, in some cases, such as for complex, protracted
investigations, the source may need to hold a public meeting prior to
completing the incident investigation. In such cases, the owner or
operator should consider holding a second public meeting after
completing the incident investigation. Additionally, a public meeting
must be held after accidents that destroy a process or stationary
source or cause the process or source to be subsequently
decommissioned. Stationary sources may combine public meetings with
LEPC meetings or other events as long as those events/meetings are
available for public participation.
Public meetings must also address other relevant chemical hazard
information such as that described in Sec. 68.210(b) and any other
appropriate information that may improve safety and emergency
preparedness activities in the community. The facility representative
should describe the risks that are associated with the facility, and
what the facility is doing to protect the public from those risks. In
addition, the facility personnel should relay information that would
assist the public to prepare for accidental releases. For example, at
the meeting, the facility representative should discuss the process for
public emergency notification, procedures for sheltering in place or
evacuating, and where to obtain further updates on the status of an
emergency incident. The discussion should also address how the public
can access community emergency response plans and identify what the
community may expect to see during a field exercise.
As part of the SBAR Panel process, several SERs questioned the
value of having any public meetings and noted that, when held in the
past, public meetings were not well attended. Some SERs suggested
altering the requirement to allow for the request of a public meeting
if an LEPC or community felt it was necessary. Additionally, SERs
expressed concern about the requirement to hold public meetings 30 days
after an accident; the SER suggestions included expanding the timeframe
from 60 days to 9 months. SERs also indicated that many small business
may still be handling the aftermath of accidents, conducting incident
investigations, and arranging audits in this time period, with limited
attention to devote to educating the public.
EPA seeks comment on the proposed approach and whether there are
other options that EPA should consider for public meetings. For
example, should EPA require regular public meetings rather than only
after an accident subject to reporting requirements under Sec. 68.42?
Should EPA require public meetings upon request by LEPCs, emergency
responders or the public? Alternatively, should the public meeting
requirement be restricted to an RMP reportable accidents with offsite
impacts? Instead of requiring a public meeting after RMP reportable
accidents, should EPA require owners and operators to meet only with
LEPCs and emergency responders? If EPA finalizes the requirement to
hold post-accident public meetings, should EPA extend the required
timeframe to hold the meeting beyond 30 days (e.g. to 90 days), in
order to give the owner or operator more time to learn about accident
causal factors and prepare for a public meeting? If so, what extended
timeframe should EPA choose and should EPA require the implementing
agency to approve any extensions?

C. Alternative Options

EPA considered an option to require all facilities to hold public
meetings at least once every five years (and within 30 days after an
accident) to share chemical hazard information described under Sec.
68.210(b) and any other appropriate information that may improve safety
and emergency preparedness activities in the community. However, EPA
did not propose this requirement as our preferred option because of
concerns raised by the SBAR Panel process that periodic public meetings
are often sparsely attended.
EPA also considered limiting the requirement for periodic and post-
accident public meetings to only Program 2 and Program 3 facilities;
however, EPA did not propose this option as our preferred option
because even though accidents at Program 1 facilities should not have
significant public impacts, some communities near these facilities may
still be interested in understanding the risks at the facility and the
procedures and controls that are in place to limit offsite impacts.
Additionally, if a Program 1 facility does have an RMP reportable
accident with offsite impacts, EPA believes they should be held to the
same standard as other facilities and be required to hold a public
meeting within 30 days of the incident to provide additional
information on the accidental release. Nevertheless, EPA is interested
in receiving public feedback on whether EPA should consider requiring
periodic public meetings and whether the requirement should be limited
to Program 2 and Program 3 facilities.
EPA is also considering an option for supporting the public
disclosure provisions with a ``score card'' or a ``grade'' system that
could be provided by an independent third-party. The score or grade
would be made available to the LEPCs and public to demonstrate the
facility's compliance with the RMP rule. This method could be used
either instead of or in addition to what EPA is proposing. EPA requests
information and recommendations on how to develop such a program,
including the types of scoring criteria that should be used and any
other issues that the Agency should consider when developing such a
system.
EPA seeks comment on these alternative approaches and whether there
are any other alternative options that EPA should consider for future
actions.

VII. Risk Management Plan Streamlining, Clarifications, and RMP Rule
Technical Corrections

A stationary source subject to the RMP rule is required to submit a
RMP in a method and format specified by the EPA, pursuant to Sec.
68.150(a). The CAA and 40 CFR subpart G require that the RMP indicate
compliance with the regulations at 40 CFR part 68 and also

[[Page 13683]]

include information regarding the hazard assessment, prevention
program, and emergency response program. The RMP also includes
stationary source registration information, such as name, location and
contact information. The EPA may review RMPs for information gathering,
inspection preparation, errors in submissions, and changes requiring a
correction or re-submission of the RMP. The CAA requires that RMPs be
made available to states, local entities responsible for planning or
responding to accidental releases at the source, the CSB, and the
public. As a result, the information provided in an RMP is intended to
be easily understood, thus encouraging the public, local entities, and
governmental agencies to interact with stationary sources on issues
related to accident prevention and preparedness.
The RMP format consists of a combination of check-off boxes, yes/no
answers, numerical entries, and write-in information pertaining to the
data best describing the various elements of the risk management
program at a source. The nine sections of an RMP are: Registration
Information; Toxics Worst Case; Toxics Alternative Release; Flammables
Worst Case; Flammables Alternative Release; Accident History;
Prevention Program: Program Level 3; Prevention Program: Program Level
2; and Emergency Response. Data elements in these sections address
compliance with each of the rule elements. Some sections may not be
applicable to all stationary sources, as some sections apply only to
processes with certain program levels, and some apply only to certain
types of regulated substances (toxics or flammables). The RMP also
includes an Executive Summary, which allows stationary sources to
provide a brief description of the source's prevention and preparedness
activities as they relate to covered processes, in a format that is
easy to understand.
Based on feedback received from the regulated community and EPA's
own experience, EPA is proposing to revise several data elements in
subpart G and to make technical corrections to the RMP rule. The
following sections provide an overview of the proposed revisions.

A. Deletions From Subpart G

EPA is proposing to delete data elements that do not effectively
assist the Agency in evaluating compliance with the RMP rule. EPA is
also proposing to delete some data elements because the information can
be obtained through improved coordination with Federal, state, and
local agencies resulting from Executive Order 13650, such as
information currently required by Sec. Sec. 68.160(b)(13) (the date of
the last safety inspection of the stationary source by a Federal,
state, or local government agency) and 68.160(b)(19) (OSHA Voluntary
Protection Program status). EPA is proposing to delete other data
elements because we believe an on-site inspection or formal information
request are better ways to evaluate compliance with these Risk
Management Program requirements (for example, some data elements
pertaining to training, contractor safety, and maintenance/mechanical
integrity). By removing several RMP data elements, EPA expects that the
regulated community will find it easier to comply with subpart G
requirements. In addition to burden relief for the regulated community,
EPA expects that removing several RMP data elements will reduce the
number of errors in RMPs submitted to the Agency.

B. Revisions to Subpart G

EPA is proposing to revise existing provisions in subpart G as
follows:

Modernize requirements to include electronic contact
information if it exists, such as email addresses and Web site
homepages;
Revise provisions to remove a portion of select data
elements that would be better evaluated during an on-site inspection
or information request;
Provide consistency with RMP*eSubmit;
Provide more consistency in the data collected for
similar data elements in the Program 2 and Program 3 prevention
programs; and
Replace data elements that were not effective in
demonstrating a stationary source's compliance with the rule, with
one that will demonstrate compliance.

Data elements that require a date to demonstrate compliance can
become irrelevant during the typical five-year RMP resubmission cycle.
An example is a stationary source that submitted an RMP to the EPA on
January 8, 2015, that included an annual operating procedures review
date of January 1, 2015, in its RMP in accordance with Sec. 68.175(f).
Assuming the stationary source will not have any changes that would
require a resubmission of the RMP and the stationary source will not
voluntarily correct the RMP with newer annual standard operating
procedure (SOP) review dates, the January 1, 2015, annual SOP review
date does not provide compliance information for years 2016-2019. As a
result, the annual SOP review date in this example only provides
compliance information for 2015. Because the dates of most recent
review or update of a process safety element in an RMP do not always
reflect compliance with regulatory requirements, EPA is proposing to
replace most of these dates with the RMP Certifying Official's
attestation that the stationary source complies with each Risk
Management Program requirement.
Data elements for which the last review or revision dates are being
replaced include:

For Program 2 and Program 3: Safety information,
operating procedures, training programs, maintenance procedures,
changes triggering review of any of the previous data elements or
the hazard review/PHA;
For Program 3 only: MOC, pre-startup review, employee
participation plans, hot work permit procedures, contractor safety
procedures and performance; and,
For sources with Emergency Response Programs: Emergency
response plans and emergency response training of employees.

EPA will still require the date of the most recent hazard review or
PHA or their update (required every 5 years), date of most recent
compliance audit (required every 3 years), and date of most recent
incident investigation (required only when an incident occurs). These
data elements are not updated as frequently as the other program
elements, and are therefore more likely to indicate current compliance
with regulatory requirements.

C. Additions to Subpart G

In addition to removing and revising several RMP data elements, EPA
is proposing to add several RMP data elements in subpart G based on the
proposed rule requirements discussed in this document. This includes
new data elements to address compliance with:

Third-party audit requirements,
Root cause analysis requirements as part of incident
investigations;
IST analysis requirements in the PHA;
Emergency response preparedness requirements including
information on local coordination and emergency response exercises;
and
Information sharing provisions.

By adding these data elements to the RMP requirements in subpart G
EPA will be able to evaluate a stationary source's compliance with
these proposed rule requirements once they are finalized.

D. Proposed Amendments and Technical Corrections

1. Proposed Revisions to Sec. 68.160 (Registration)
EPA is proposing to delete and reserve:

Sec. 68.160(b)(13)--The date of the last safety
inspection of the stationary source by

[[Page 13684]]

a Federal, state, or local government agency and the identity of the
inspecting agency; and
Sec. 68.160(b)(19)--OSHA Voluntary Protection Program
status (Optional).

EPA is proposing to revise:

Sec. 68.160(b)(1) by removing the method for obtaining
latitude and longitude (but keep the rest of Sec. 68.160(b)(1));
Sec. 68.160(b)(4) by requiring an email address for
the owner or operator, if that person has an email address, rather
than making it optional;
Sec. 68.160(b)(5) by removing ``position'' and
requiring an email address for the person with overall
responsibility for RMP elements and implementation, if that person
has an email address (rather than making it optional);
Sec. 68.160(b)(9) by adding ``equivalent'' to clarify
that the number of full-time employees means full-time equivalent
employees to be consistent with RMP*eSubmit;
Sec. 68.160(b)(12) by adding the phrase ``and if so''
to clarify that if the stationary source has a CAA Title V operating
permit, then the RMP plan must include the permit number;
Sec. 68.160(b)(14) by requiring an email address for
the contractor who prepared the RMP (if any), if the contractor has
an email address;
Sec. 68.160(b)(15) by requiring an email address for
the source or parent company, if the source or parent company has an
email address;
Sec. 68.160(b)(16) by requiring a source internet
address, if the source has an internet address;
Sec. 68.160(b)(17) by requiring a phone number at the
source for public inquiries, if the source has a public inquiries
phone number;
Sec. 68.160(b)(18) by requiring the name, phone
number, email address, and internet address for the LEPC, if the
LEPC has such information available; and
Sec. 68.160(b)(20) by changing facility to stationary
source in subparagraphs (b)(20)(ii) and (b)(20)(iv).

EPA is proposing to add the following RMP data elements that relate
to the information sharing provisions being proposed in this document:

Sec. 68.160(b)(21) would require an attestation that
chemical hazard-related information is available to the LEPC or
emergency response officials, as set forth in Sec. 68.205;
Sec. 68.160(b)(22) would require an attestation that
chemical hazard-related information is available to the public, as
set forth in Sec. 68.210; and
Sec. 68.160(b)(23) would require the date of most
recent public meeting, as set forth in Sec. 68.210(d).
2. Proposed Revisions to Sec. 68.170 (Prevention Program/Program 2)
EPA is proposing to delete the requirement in Sec. 68.170(k) which
identify the date of the most recent change that triggered a review or
revision of safety information, the hazard review, operating or
maintenance procedures, or training.
EPA is proposing to revise:

Sec. 68.170(a) by changing the reference to paragraph
(k) to paragraph (j) because we are proposing to delete paragraph
(k).
Sec. 68.170(d) by reorganizing into subparagraphs
(d)(1) and (d)(2). EPA is proposing to replace the date of the most
recent review or revision of the safety information with an
attestation that the safety information requirements, in Sec.
68.48, are implemented. EPA is also proposing to move the
requirement to list all Federal and state regulations, industry
specific and established company or stationary source design codes
and standards that are applicable, and the requirement to identify
those followed, into subparagraph (d)(2).
Sec. 68.170(e) by reorganizing the date of completion
of the most recent hazard review or hazard review update to Sec.
68.170(e)(1) and removing from Sec. 68.170(e)(1), the requirement
to identify an expected date of completion of any changes resulting
from the hazard review;
Sec. 68.170(f) by replacing the date of the most
recent review or revision of operating procedures with an
attestation that the operating procedures requirements, in Sec.
68.52, are implemented;
Sec. 68.170(g) by replacing the date of the most
recent review or revision of training programs with an attestation
that training requirements, in Sec. 68.54, are implemented. EPA is
also proposing to delete the requirements to identify the types of
training provided and competency testing used in subparagraphs
(g)(1) and (g)(2);
Sec. 68.170(h) by replacing the date of the most
recent review or revision of maintenance procedures and the date of
the most recent equipment inspection or test and the equipment
inspected or tested with an attestation that the maintenance
requirements, in Sec. 68.56, are implemented;
Sec. 68.170(i) by reorganizing into subparagraphs. EPA
would add an attestation that the compliance audit requirements of
Sec. 68.58 are implemented in subparagraph (i)(1) and move the
requirement to identify the date of the most recent compliance audit
to subparagraph (i)(2). EPA would remove the requirement to identify
the date of completion of any changes resulting from the compliance
audit; and, in subparagraph (i)(3), add a requirement that the owner
or operator identify whether the most recent compliance audit was a
third-party audit, pursuant to Sec. Sec. 68.58 and 68.59; and
Sec. 68.170(j) by reorganizing into subparagraphs. EPA
would add an attestation that the incident investigation
requirements, in Sec. 68.60, are implemented in subparagraph (j)(1)
and move the date of the most recent incident investigation into
subparagraph (j)(2). EPA would delete the requirement to identify
the expected date of completion of any changes resulting from the
investigation, and, in subparagraph (j)(3), would add a requirement
that the plan indicate whether root cause analyses have been
completed for all accidents and incidents that are subject to the
requirements of Sec. 68.60.
3. Proposed Revisions to Sec. 68.175 (Prevention Program/Program 3)
EPA is proposing to delete paragraph Sec. 68.175(p) because we are
addressing the data elements for contractor safety procedures in
paragraph (o).
EPA is proposing to revise the following provisions:

Sec. 68.175(a) by changing the reference to paragraph
(p) to paragraph (o) because we are proposing to combine the data
elements in paragraphs (p) and (o) that show compliance with the
requirements for contractor safety procedures.
Sec. 68.175(d) by reorganizing into subparagraphs
(d)(1) and (d)(2). EPA is proposing to replace the date of the most
recent review or revision of the safety information with an
attestation that the PSI requirements, in Sec. 68.65, are
implemented. EPA is also proposing to move the requirement to list
all Federal and state regulations, industry-specific and established
company or stationary source design codes and standards that are
applicable, and the requirement to identify those followed, into
subparagraph (d)(2);
Sec. 68.175(e) by reorganizing existing requirements
into subparagraphs (e)(1) and (e)(2) and adding new requirements
addressing safer technology and alternatives in new subparagraph
(e)(2). Subparagraph (e)(1) would apply to information on the PHA or
PHA update and revalidation information. EPA would move the date of
completion of the most recent PHA or update and require the plan
identify the technique used to Sec. 68.170(e)(1)(i). EPA would
delete the requirement to identify the expected date of completion
of any changes resulting from the PHA. Additional PHA information
would move to subparagraph (e)(1)(ii) through (vi). EPA would add
subparagraph (e)(2) to address requirements for safer alternatives
including: An attestation that the PHA address safer technology and
risk management measures, as required in Sec. 68.67(c)(8); whether
any IST or ISD were implemented and if so, the technology category
that describes the IST or ISD (i.e., substitution, minimization,
simplification, and/or moderation);
Sec. 68.175(f) by replacing the date of the most
recent review or revision of operating procedures with an
attestation that the operating procedures requirements, in Sec.
68.69, are implemented;
Sec. 68.175(g) by replacing the date of the most
recent review or revision of training programs with an attestation
that training requirements, in Sec. 68.71, are implemented. EPA is
also proposing to delete the requirements to identify the types of
training provided and competency testing used in subparagraphs
(g)(1) and (g)(2);
Sec. 68.175(h) by replacing the date of the most
recent review or revision of maintenance procedures and the date of
the most recent equipment inspection or test and the equipment
inspected or tested with an attestation that the mechanical
integrity requirements, in Sec. 68.73, are implemented;
Sec. 68.175(i) by replacing the date of the most
recent change that triggered MOC

[[Page 13685]]

procedures and the date of the most recent review or revision of MOC
procedures with an attestation that the MOC requirements, in Sec.
68.75, are implemented;
Sec. 68.175(j) by replacing the date of the most
recent pre-startup review with an attestation that the pre-startup
review requirement, in Sec. 68.77, are implemented;
Sec. 68.175(k) by reorganizing into subparagraphs. EPA
would add an attestation that the compliance audit requirements of
Sec. 68.79 are implemented in subparagraph (k)(1) and move the
requirement to identify the date of the most recent compliance audit
to subparagraph (k)(2). EPA would remove the requirement to identify
the expected date of completion of any changes resulting from the
compliance audit; and, in subparagraph (k)(3), add a requirement
that the owner or operator identify whether the most recent
compliance audit was a third-party audit, pursuant to Sec. Sec.
68.79 and 68.80;
Sec. 68.175(l) by reorganizing into subparagraphs. EPA
would add an attestation that the incident investigation
requirements, in Sec. 68.81, are implemented in subparagraph (l)(1)
and move the date of the most recent incident investigation into
subparagraph (l)(2). EPA would delete the requirement to identify
the expected date of completion of any changes resulting from the
investigation; and, in subparagraph (l)(3), would add a requirement
that the plan indicate whether root cause analyses have been
completed for all accidents and incidents that are subject to the
requirements of Sec. 68.81;
Sec. 68.175(m) by replacing the date of the most
recent review or revision of employee participation plans with an
attestation that employee participation requirements, Sec. 68.83,
are implemented;
Sec. 68.175(n) by replacing the date of the most
recent review or revision of hot work permit procedures with an
attestation that the hot work permit requirements, in Sec. 68.85,
are implemented; and
Sec. Sec. 68.175(o) and 68.175(p) by replacing the
date of the most recent review or revision of contractor safety
procedures and the date of the most recent evaluation of contractor
safety performance with an attestation in Sec. 68.175(o) that the
contractor safety requirements, in Sec. 68.67, are implemented.
4. Proposed Revisions to Sec. 68.180 (Emergency Response Program)
Subpart G Sec. 68.180 contains the emergency response program data
elements that must be included in the RMP. Although the data elements
in Sec. 68.180 are intended to help identify whether stationary source
personnel will respond to an accidental release of a regulated
substance, the existing data elements do not clearly distinguish
between responding stationary sources and non-responding stationary
sources. As a result, many non-responding stationary sources are
submitting RMPs to the EPA with errors, because they appear to be
answering questions that were only meant to be answered by responding
sources. Consequently, the RMP data do not indicate with certainty,
whether a stationary source is a responding or non-responding
stationary source.
The proposed revisions to add emergency response exercises and
revise local coordination provisions of the rule are intended to
improve coordination with local response authorities and to bolster
emergency response capabilities and preparedness for accidental
releases. Because of the proposed regulatory changes to subpart E-
emergency response, and due to the difficulty in distinguishing between
responding and non-responding facilities in subpart G Sec. 68.180, the
EPA is proposing to completely revise and reorganize subpart G Sec.
68.180 into the following three parts: Requirements for (1) all non-
responding and responding stationary sources, (2) non-responding
stationary sources, and (3) responding stationary sources. The EPA
believes that splitting subpart G Sec. 68.180 into three parts will
aid facilities' understanding of the reporting requirements, reduce
errors in submitted RMPs, and improve compliance with the RMP
requirements. The proposed revisions to subpart G Sec. 68.180 will
also improve EPA's ability to evaluate a facility's compliance with the
proposed Emergency Response Program requirements.
EPA is proposing to revise:

Sec. 68.180(a) by deleting the phrase ``the following
information.'' The text in subparagraphs (a)(1) through (a)(3) would
be reorganized and/or replaced. Subparagraph (a)(1) would require
the RMP to identify the name, organizational affiliation, phone
number, and email address of local emergency planning and response
organizations with which the stationary source last coordinated
emergency response efforts, pursuant to Sec. 68.10(b)(3) or Sec.
68.93. Subparagraph (a)(2) would require the RMP to identify whether
coordination with the local emergency response organizations is
occurring at least annually, pursuant to Sec. 68.93(a).
Subparagraph (a)(3) would require the RMP to identify a list of
Federal or state emergency plan requirements to which the stationary
source is subject. EPA would delete subparagraphs (a)(4) through
(a)(6);
Sec. 68.180(b) by replacing the current text with a
requirement to identify whether the facility is a responding or non-
responding stationary source, pursuant to Sec. 68.90. EPA would
reorganize the paragraph into subparagraphs as follows:
[cir] Subparagraph (b)(1) would apply to non-responding
stationary sources. In subparagraphs (b)(1)(i) through (b)(1)(iii)
the owner or operator would be required to identify whether the
owner or operator has confirmed that local responders are capable of
responding to accidental releases at the source, whether appropriate
notification mechanisms are in place, and whether a notification
exercise occurs at least annually.
[cir] Subparagraph (b)(2) would apply to responding stationary
sources. In subparagraphs (b)(2)(i) through (b)(2)(v) the owner or
operator would be required to identify whether the LEPC or local
response entity requested that the stationary source be a responding
facility; whether the stationary source complies with requirements
in Sec. 68.95; whether a notification exercises occurs at least
annually, as required in Sec. 68.96(a); whether a field exercise is
conducted every five years and after any RMP reportable accident,
pursuant to Sec. 68.96(b)(1)(i); and whether a tabletop exercise
occurs at least annually, except during the calendar year when a
field exercise is conducted, as required in Sec. 68.96(b)(2)(i).

EPA is proposing to delete Sec. 68.180(c), which requires the
owner or operator to list other Federal or state emergency plan
requirements to which the stationary source is subject.
5. Technical Corrections
a. Proposed Revisions to Sec. 68.10 (Applicability)
EPA is proposing to correct a typographical error in Sec.
68.10(b)(2). Section 68.10(b)(2) uses the term public receptor and
indicates that public receptor is defined in Sec. 68.30; however the
term public receptor is defined in Sec. 68.3, not Sec. 68.30. The
proposed rule language corrects this typographical error.
b. Proposed Revisions to Sec. 68.48 (Safety information)
EPA is proposing to remove the word ``material'' from the term
Material Safety Data Sheet in Sec. 68.48(a)(1) to conform with OSHA's
revised terminology for SDS. In 2012, OSHA made changes to its Hazard
Communication Standard at 29 CFR 1910.1200 in order to align with the
UN Globally Harmonized System of Classification and Labelling of
Chemicals (GHS), Revision 3 (77 FR 17574, March 26, 2012). One change
was the change in nomenclature from ``Material Safety Data Sheets'' to
``Safety Data Sheets.'' Consequently, OSHA made this change to the PSM
standard at 1910.119(d)(1)(vii) (78 FR 9311, February 8, 2013).
Chemical producers and users must comply with new SDS requirements by
June 1, 2015.\206\ In order to be consistent with OSHA and the UN GHS,
EPA is proposing to replace ``Material Safety Data Sheet'' with
``Safety Data Sheet'' in Sec. 68.48(a)(1).
---------------------------------------------------------------------------

\206\ OSHA Fact Sheet- Hazard Communication Standard Final Rule.
https://www.osha.gov/dsg/hazcom/HCSFactsheet.html.

---------------------------------------------------------------------------

[[Page 13686]]

c. Proposed Revisions to Sec. Sec. 68.54 and 68.71 (Training)
The RMP rule requires initial and refresher training for employees
operating a Program 2 or Program 3 covered process. Since the inception
of the rule, however, there has been confusion on the types of
employees that are considered workers operating a covered process.
Although ``employee'' is not defined in Sec. 68.3, EPA has
traditionally interpreted an employee to be any worker that is involved
in operating a process, including supervisors. This is consistent with
the OSHA definition of employee set forth at 29 CFR 1910.2(d).
EPA has noted during facility inspections that some owners and
operators are confused about how the existing training requirements
apply to supervisors involved in process operations. If a supervisor is
involved in decision-making for process operations, such as making
changes to operating parameters, developing or approving operating
procedures, or conducting emergency operations, then EPA expects that
the supervisor receives initial and refresher training appropriate to
the supervisor's responsibilities. In such cases, the training of a
supervisor might not need to be as extensive as that of an operator,
but EPA expects that the supervisor training would include process
operations for which the supervisor might have decision-making
authority. For this reason, EPA is proposing to clarify that the
training requirements in Sec. Sec. 68.54 and 68.71 (for Program 2 and
Program 3 facilities, respectively) apply to supervisors who are
involved in operating a covered process by adding paragraph (e) to
indicate that the term employee includes supervisors.
Similarly, the EPA realizes that there may be other employee types
involved in operating a covered process besides operators. For example,
process engineers and maintenance technicians may occasionally be
involved in process operations. The degree of involvement for these
other employee types may vary greatly. Therefore, EPA is proposing to
revise Sec. 68.54(d) to clarify that the requirement applies to
employees involved in operating a process. For employees other than
operators and supervisors, EPA expects that initial and refresher
training will be appropriate to the employee's responsibilities in
operating the process.
Finally, EPA believes that Program 3 requirements in Sec. Sec.
68.71(a) and 68.71(b) provides clearer regulatory language regarding
the applicability of employees subject to initial and refresher
training requirements than the similar Program 2 requirements
Sec. Sec. 68.54(a) and 68.54(b). Specifically, Sec. Sec. 68.71(a) and
68.71(b) indicates that initial and refresher training is required for
employees ``involved in'' operating a covered process. Because EPA
believes that this language can better facilitate compliance for
Program 2, the EPA is proposing to add similar language for Program 2
facilities at Sec. Sec. 68.54(a) and 68.54(b).
d. Proposed Revisions to Sec. 68.65 (PSI)
EPA is proposing to revise Sec. 68.65(a) in order to remove
irrelevant text regarding the timeframe for initial development of PSI
and to more clearly demonstrate that PSI must be kept up-to-date. The
EPA believes that these proposed changes will help Program 3 facilities
to better comply with PSI requirements.
EPA is proposing to revise Sec. 68.65(a) to remove the phrase ``In
accordance with the schedule set forth in Sec. 68.67.'' This language
appears to have been adopted from OSHA's PSM PHA completion schedule of
May 1994 to May 1997 and is not relevant to the RMP rule because the
compliance date of June 21, 1999 is after OSHA's PSM PHA completion
schedule. Additionally, the only schedule currently referenced in Sec.
68.67 is in Sec. 68.67(e), which pertains to a written schedule of PHA
corrective actions. Because Sec. 68.67(e) does not pertain to when a
PHA must be completed, EPA is proposing to remove the phrase ``In
accordance with the schedule set forth in Sec. 68.67'' from Sec.
68.65(a).
Furthermore, EPA is proposing to add the phrase: ``and shall keep
PSI up-to-date.'' EPA has always intended that PSI be kept up-to-date
for Program 3 facilities. Updated PSI is necessary to properly update
or revalidate the PHA every 5 years as required by Sec. 68.67(f). PSI
items that that need to be kept up-to-date include, but are not limited
to, piping and instrumentation diagrams, SDSs, hazard information, and
changes to the design of the process. Although PSI must be updated for
Program 3 facilities through MOC requirements in Sec. 68.75(d), EPA
believes that the proposed change makes it clearer that PSI must be
kept up-to-date. This proposed change also ensures consistency with the
safety information requirement for Program 2 facilities, where Sec.
68.48(a) indicates ``The owner or operator shall compile and maintain
the following up-to-date safety information. . .'' EPA expects that
revising Sec. 68.65(a) in this manner will further clarify the
requirement that PSI must be completed prior to conducting a PHA.
Finally, in order to be consistent with OSHA and the GHS, EPA is
proposing to replace ``Material Safety Data Sheet'' with ``Safety Data
Sheet'' in the note to Sec. 68.65(b).
e. Proposed Revisions to Sec. 68.130 List of Substances
EPA is proposing revisions to Tables 1, 2, and 4 in Sec. 68.130 as
follows:
Table 1 to Sec. 68.130--List of Regulated Toxic Substances and TQs
for Accidental Release Prevention. EPA is proposing to correct a
typographical error in the Chemical Abstracts Service (CAS) number
(no.) for allyl alcohol in Table 1 in Sec. 68.130. The incorrect CAS
no. of 107-18-61 for allyl alcohol would be corrected to 107-18-6.
Table 4 to Sec. 68.130--List of Regulated Flammable Substances and
TQs for Accidental Release Prevention. EPA is proposing to correct a
typographical error to the CAS no. for 1, 3-Butadiene, to read 106-99-
0, instead of 196-99-0, right justify the first CAS nos. column and
delete the second CAS nos. column because it is redundant.
f. Proposed Revisions to Sec. 68.200 (Recordkeeping)
EPA is proposing to revise Sec. 68.200 to clarify that records
must be maintained at the stationary source.

VIII. Compliance Dates

The initial Risk Management Program rule applied 3 years after
promulgation of the rule on June 20, 1996, which is consistent with the
last sentence of CAA section 112(r)(7)(B)(i). The provisions of this
proposal modify terms of the existing rule, and, in some cases, clarify
existing requirements. The statute does not directly address when
amendments should become applicable. Therefore, in modifications to
Sec. 68.10, EPA is proposing to:

Require compliance with emergency response coordination
activities within one year of an effective date of a final rule;
Provide up to three years for the owner or operator of
a non-responding stationary source to develop an emergency response
program in accordance with Sec. 68.95 following an LEPC or
equivalent's written request to do so;
Comply with new provisions, unless otherwise stated,
four years after the effective date of the final rule; and
Provide regulated sources one additional year (i.e.,
five years after the effective date of the final rule) to correct or
resubmit RMPs to reflect new and revised data elements.

EPA is proposing that within one year of the effective date of a
final rule, the owner or operator of a stationary source comply with
emergency response

[[Page 13687]]

coordination activities in Sec. Sec. 68.93(a) and 68.93(b). This
includes coordinating response needs annually with local emergency
planning and response organizations to ensure resources and
capabilities are in place to respond to an accidental release of a
regulated substance, and documenting coordination activities. EPA
believes one year is sufficient to arrange for and document
coordination activities. The coordination activities in this proposed
rule mostly are clarifications of current requirements rather than new
provisions.
EPA is also proposing to require three years for the owner or
operator of a stationary source to comply with emergency response
program requirements of Sec. 68.95 after receiving a written request
by an LEPC or equivalent to develop an emergency response program. This
timeframe is consistent with the time established in the original rule
to comply with risk management program requirements and submit initial
RMPs.
Additionally, EPA is proposing to provide additional time for
compliance with other proposed provisions (i.e., third-party compliance
audits, root cause analyses as part of incident investigations, STAA,
emergency response exercises, and information availability provisions).
For these provisions, the proposed rule requires affected facilities to
comply by four years after the effective date of the rule. Our reasons
for the four year phase for these modified requirements are set out
below. For the third-party audit, incident investigation root cause
analysis, and public meeting provisions, this means that for any RMP
reportable accident occurring later than four years after the effective
date of the rule, the owner or operator of a source must conduct a
third-party audit; investigate an incident, including a root cause
analysis; and hold a public meeting within 30 days of the accident. For
any incident that could reasonably have resulted in a catastrophic
release (near miss), the owner or operator has four years after the
effective date of the rule to comply with the proposed incident
investigation root cause analysis requirements. For the STAA, emergency
exercise, and information availability provisions, this means that the
owner or operator must have completed or updated their PHA to include
the STAA; conducted a notification exercise and at least one tabletop
or field exercise; and prepared the required information to be provided
to the public or, upon request, to the LEPCs.
EPA is proposing to provide this additional time for several
reasons. First, EPA believes that for most sources, the incident
investigation root cause analysis and emergency response exercise
requirements will involve training and program development activities
that may reasonably require significant time to complete. Second, the
extended compliance timeframe will allow potential auditors enough time
to meet the competency and independence criteria necessary to serve as
a third-party auditor. Third, for sources subject to the STAA
provisions, EPA believes that in many cases these sources will prefer
to perform a full PHA update when implementing the STAA requirements.
Sources subject to this provision are among the largest and most
complex sources regulated under 40 CFR part 68, and therefore PHAs and
PHA updates at these sources typically require a significant level of
effort. Since PHA updates are normally done at five year intervals, EPA
believes it would be appropriate to allow most sources to adopt these
provisions in their normal PHA update cycle if they so choose. Sources
that performed their most recent PHA update immediately prior to the
rule publication date would have up to four years to perform their next
PHA update and adopt the STAA provisions. Most sources could schedule
their PHA updates to incorporate the new STAA provisions on their
normal PHA update schedule.
Lastly, EPA intends to publish guidance for certain provisions,
such as STAA, root cause analysis, and emergency response exercises.
Once these materials are complete, owners and operators will need time
to familiarize themselves with the new materials and incorporate them
into their risk management programs.
EPA is also proposing to provide one additional year for owners or
operators to update RMPs to reflect proposed new or revised data
elements in subpart G of the rule. The additional year will allow
owners and operators an opportunity to begin to comply with revised
rule provisions prior to certifying compliance in the RMP.
Additionally, the Agency will need to make significant revisions to its
online RMP submission system, RMP*eSubmit, to accommodate the newly
required and revised data elements, and sources will not be able to
update RMPs with new or revised data elements until the submission
system is ready. Also, once it is ready, allowing an additional year
for sources to update RMPs will prevent potential problems with
thousands of sources submitting updated RMPs on the same day.

Examples for Compliance and Submission Dates

The following examples assume a hypothetical effective date of June
5, 2017 for a final rule that includes the proposed provisions in Table
7: Proposed Rule Provisions and Corresponding Compliance Dates with
corresponding proposed compliance dates.

Table 7--Proposed Rule Provisions and Corresponding Compliance Dates
----------------------------------------------------------------------------------------------------------------
Initiated after an
Rule provision Proposed compliance Hypothetical compliance RMP reportable
date date accident?
----------------------------------------------------------------------------------------------------------------
Third-party audit.................. Four years after June 5, 2021................ Yes.
effective date.
Root cause analysis................ Four years after June 5, 2021................ Yes (also required
effective date. after near misses).
STAA............................... Four years after June 5, 2021................ No.
effective date.
Emergency response coordination Within one year of June 5, 2018................ No.
activities. effective date.
LEPC requires compliance with Sec. Within three years of N/A......................... No.
68.95 (emergency response receipt of written
program). request.
Emergency response exercises....... Four years after June 5, 2021................ Partially--field
effective date. exercise within one
year.
Information sharing................ Four years after June 5, 2021................ Partially--public
effective date. meeting within 30
days.
Update RMP......................... Five years after June 5, 2022................ No (but previously
effective date. existing correction
requirements of Sec.
68.195 still
apply).
----------------------------------------------------------------------------------------------------------------

[[Page 13688]]

Example 1: Proposed Provisions That Would Apply to a Non-Responding
Stationary Source

Source A (see Table 8) is a non-responding stationary source with a
regulated process subject to Program 2 requirements. Source A's owner
submitted the latest RMP update to EPA on January 20, 2015 and
completed its latest compliance audit on August 11, 2017. The source is
not in NAICS 322, 324, or 325, and therefore is not subject to the
proposed STAA provisions. The source has not had any RMP reportable
accidents since the effective date of a final rule.

Table 8--Example 1, Source A
------------------------------------------------------------------------
Source A--Program 2, non-responding stationary source
-------------------------------------------------------------------------
Last compliance
Date of last RMP update audit Last accident
------------------------------------------------------------------------
January 20, 2015................. August 11, 2017..... N/A.
------------------------------------------------------------------------

In this example, the following proposed provisions would apply:

Annual emergency response coordination activities in
accordance with proposed Sec. 68.93;
Notification exercises (proposed Sec. 68.96(a)); and
Information availability provisions (proposed
Sec. Sec. 68.205 and 68.210).

The owner or operator must coordinate response needs with local
emergency planning and response organizations to ensure resources and
capabilities are in place to respond to an accidental release of a
regulated substance. Coordination activities must occur annually and be
documented.
Source A is a non-responding facility, and the owner or operator
would be required to conduct annual notification exercises. The owner
or operator would also be required to annually update information for
the LEPC and provide the information upon request, and make certain
information easily accessible to the public.
Finally, beginning 5 years after the rule effective date, the owner
or operator must update the RMP to include all revised data elements
specified in subpart G and Sec. 68.42. In this case, the owner or
operator would update their RMP no later than January 20, 2020 (the
source's next scheduled five-year update), and again by June 5, 2022
(the required resubmission date for the proposed rule).
Table 9: Summary of proposed provisions that would apply to a non-
responding stationary source summarizes the proposed provisions that
would apply to Source A.

Table 9--Summary of Proposed Provisions That Would Apply to a Non-Responding Stationary Source
----------------------------------------------------------------------------------------------------------------
Applicable provisions Timeframe Additional information When to complete *
----------------------------------------------------------------------------------------------------------------
Emergency response coordination Within one year of Occurs annually........... Complete coordination
activities. effective date of a activities before June
final rule. 5, 2018 and document
coordination.
Notification exercise............. By four-years after Occurs annually........... Complete first
effective date. notification exercise by
June 5, 2021.
----------------------------------------------------------------------------------------------------------------
Information availability provisions
----------------------------------------------------------------------------------------------------------------
Information to LEPC............... By four-years after Update information Develop by June 5, 2021
effective date. annually. Includes and provide upon
information on regulated request.
substances; accident
histories; compliance
audits; incident
investigations (as
applicable) and
exercises. Provide to
LEPC upon request.
Information to the public......... By four-years after Occurs annually. Includes Complete first calendar
effective date. information on: Regulated year submission by June
substances including 5, 2021.
Safety Data Sheets;
accident history;
emergency response
program; exercises; and
LEPC contact information.
Update RMP........................ By five years after Owner's next 5-year Update RMP on regular
effective date. resubmission date occurs schedule (by January 20,
prior to effective date 2020) and again to
for provision, so owner include new information
must update RMP twice. by June 5, 2022.
----------------------------------------------------------------------------------------------------------------
* Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017.

If the LEPC submits a request to Source A's owner requesting the
source comply with the emergency response program requirements of Sec.
68.95, then Source A's owner would have three years from the date of
the letter to develop and implement an emergency response plan, obtain
equipment, and train personnel in relevant procedures.
Once the owner has developed an emergency response program, the
source is a responding facility and must also comply with tabletop and
field exercise requirements for responding facilities.

Example 2A: Proposed Provisions That Would Apply to a Responding
Stationary Source

Source B (see Table 10) is a responding stationary source with a
process subject to Program 3 requirements. Its latest RMP update was
submitted June 30, 2020 (i.e., three years after the rule effective
date). Its latest compliance audit was performed on April 6, 2020. The
source is not in NAICS 322, 324, or 325, and therefore is not subject
to the proposed STAA provisions, and the source has not had any RMP
reportable accidents since the effective date of a final rule.

Table 10--Example 2A, Source B
------------------------------------------------------------------------
Source B--Program 3, responding stationary source
-------------------------------------------------------------------------
Last compliance
Date of last RMP update audit Last accident
------------------------------------------------------------------------
June 30, 2020.................... April 6, 2020....... N/A.
------------------------------------------------------------------------

In this example, the following proposed provisions would apply:

Annual emergency response coordination activities in
accordance with proposed Sec. 68.93;
Emergency response exercises (proposed Sec. 68.96);
and
Information availability provisions (proposed
Sec. Sec. 68.205 and 68.210).

[[Page 13689]]

The owner or operator must coordinate response needs with local
emergency planning and response organizations to ensure resources and
capabilities are in place to respond to an accidental release of a
regulated substance. Coordination activities must occur annually and be
documented.
Additionally, since Source B is a responding facility, the owner or
operator would be required to conduct annual notification exercises,
annual tabletop exercises (with a field exercise substituting for a
tabletop exercise once every five years).
The owner or operator would be required to update information
annually and provide the information upon request, to the LEPC and make
information easily accessible to the public.
Finally, by five years after the rule effective date, the owner or
operator must update the RMP to include all revised data elements
specified in subpart G and Sec. 68.42. Table 11: Summary of proposed
provisions that would apply to Source B summarizes the proposed
provisions that would apply to Source B.

Table 11--Summary of Proposed Provisions That Would Apply to Source B
----------------------------------------------------------------------------------------------------------------
Applicable provisions Timeframe Additional information When to complete *
----------------------------------------------------------------------------------------------------------------
Emergency response coordination Within one year of Occurs annually............ Complete coordination
activities. effective date of a activities before
final rule. June 5, 2018.
----------------------------------------------------------------------------------------------------------------
Emergency response exercises (proposed Sec. 68.96)
----------------------------------------------------------------------------------------------------------------
Notification exercise.............. Four-years after Occurs annually............ Complete first
effective date. notification exercise
by June 5, 2021.
Field and tabletop exercises....... Four-years after Tabletop exercise annually, Complete first
effective date. field exercise once every tabletop or field
five years. No tabletop exercise by June 5,
exercises in the year of a 2021.
field exercise.
----------------------------------------------------------------------------------------------------------------
Information availability provisions
----------------------------------------------------------------------------------------------------------------
Information to LEPC................ Four-years after Update information Develop by June 5,
effective date. annually. Includes 2021 and provide upon
information on regulated request.
substances; accident
histories; compliance
audits; incident
investigations (as
applicable) and exercises.
Provide to LEPC upon
request.
Information to the public.......... Four-years after Occurs annually. Includes Complete first
effective date. information on: Regulated calendar year
substances including submission by June 5,
Safety Data Sheets; 2021.
accident history;
emergency response
program; exercises; and
LEPC contact information.
Update RMP......................... By five years after ........................... Update RMP to include
effective date. new information by
June 5, 2022.
----------------------------------------------------------------------------------------------------------------
* Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017.

Example 2B: Additional Proposed Provisions That Would Apply to a
Responding Stationary Following an RMP Reportable Accident

See Table 12 below.

Table 12--Example 2B, Source B
------------------------------------------------------------------------
Source B--Program 3, responding stationary source
-------------------------------------------------------------------------
Date of last RMP update Last compliance audit Last accident
------------------------------------------------------------------------
June 30, 2020................. April 6, 2020......... July 5, 2021.
------------------------------------------------------------------------

In this example, Source B has an accidental release on July 5, 2021
that meets the reporting requirements of Sec. 68.42. As a result of
the accident, Source B's owner would be required to comply with the
following additional proposed provisions:

Accident history provisions of Sec. 68.42 (to report
root causes identified during the incident investigation);
Third-party audit provisions of Sec. 68.80;
Incident investigation and root cause analysis
requirements of Sec. 68.81;
Field exercise provisions of Sec. 68.96(b)(1)(i)
(i.e., requiring a field exercise within one year of any accidental
release required to be reported under Sec. 68.42); and
Public meeting within 30 days of an RMP reportable
accident, pursuant to Sec. 68.210(d).

Chronologically, the first provision that would apply is the
requirement to host a public meeting. Section 68.210(d) requires the
owner or operator to hold a public meeting within 30 days after the
accident to inform the public about

[[Page 13690]]

the accident, including information required under Sec. 68.42, and
other relevant information.
An incident investigation must be initiated promptly, but no later
than 48 hours following an incident. The proposed incident
investigation provisions would require the owner or operator to
complete an incident investigation that includes a root cause analysis
and other elements specified in Sec. 68.81(d), and an incident
investigation report, within 12 months of the incident, unless the
implementing agency approves an extension of time. A summary of the
incident investigation report must be provided to the LEPC, upon
request.
The proposed third-party audit provisions would require the owner
or operator to hire a third-party auditor to perform a third-party
compliance audit and submit an audit report to the implementing agency
and owner or operator within 12 months of the accident (if the source's
next scheduled compliance audit was required sooner than one year
following the incident, the third-party audit would be required to be
completed by the scheduled compliance audit date unless the
implementing agency approved an extension). The owner or operator must
also complete an audit findings response report and submit it to the
implementing agency within 90 days of receiving the audit report from
the third-party auditor. The owner or operator must also provide the
audit findings response report, as well as a schedule to address
deficiencies identified in the audit findings response report and
documentation of actions taken to address deficiencies, to the owner or
operator's audit committee of the Board of Directors, or other
comparable committee, if one exists.
The owner or operator would also be required to conduct a field
exercise meeting the requirements of Sec. 68.96 within one year of the
accidental release, and prepare an evaluation report within 90 days of
completing the exercise. By five years after the rule effective date,
the owner or operator must update the RMP to include all revised data
elements specified in subpart G and Sec. 68.42. Table 13 summarizes
the additional provisions that would apply to Source B following an RMP
reportable accident (in addition to complying with new requirements
triggered by an RMP reportable accident, the owner or operator must
annually coordinate response needs with local emergency planning and
response organizations, document coordination activities, and comply
with the other information disclosure provisions as previously
described).

Table 13--Summary of Additional Proposed Provisions That Would Apply to Source B Following an RMP Reportable
Accident
----------------------------------------------------------------------------------------------------------------
Applicable provisions following an
RMP reportable accident Timeframe Additional information When to complete *
----------------------------------------------------------------------------------------------------------------
Public meeting.................... Four-years after Within 30 days after an Hold public meeting by
effective date. accident. August 4, 2021.
Incident investigations........... Four-years after Initiate within 48 hours, Complete report by July
effective date. complete investigation 5, 2022.
and root cause analysis
within 12 months.
Third-party audit................. Four-years after Within 12 months of the Complete third-party
effective date. accident or three years audit by July 5, 2022;
of previous audit, complete findings
whichever is sooner. response report within
90 days of completing
audit.
Field exercise.................... Four-years after At least once every five Complete field exercise
effective date. years, and within one by July 5, 2022;
year of an RMP reportable complete an evaluation
accident. report within 90 days of
the exercise.
Include new accident history Five-years after Correct RMP within 6 Correct RMP by January 5,
information in RMP. effective date. months of accident 2022; report complete
(existing requirement); accident information by
report complete accident June 5, 2025.
information in next five-
year RMP update.
----------------------------------------------------------------------------------------------------------------
* Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017.

Example 3: Compliance Date Example For Sources Subject to STAA
Requirements

Source C (see Table 14) is a petroleum refinery in NAICS 32411. Its
latest RMP update was submitted on March 31, 2018 (i.e., the year after
the rule effective date). Its latest PHA revalidation was completed on
March 7, 2017 (i.e., approximately three months before the rule
effective date).

Table 14--Example 3, Source C
------------------------------------------------------------------------
Source C--Program 3, NAICS 32411
-------------------------------------------------------------------------
Date of last RMP update Last PHA revalidation
------------------------------------------------------------------------
March 31, 2018............................ March 7, 2017.
------------------------------------------------------------------------

Because the source is in NAICS 32411, it is subject to the proposed
STAA provisions of Sec. 68.67(c)(8). Therefore, by four years after
the rule effective date, the owner or operator must complete a PHA
revalidation that addresses safer technology and alternative risk
management measures, and determine the feasibility of the ISTs and ISDs
considered. Under the proposed information availability requirements of
Sec. 68.205, the owner or operator must also submit to their LEPC a
summary of the ISTs or ISDs implemented or planned, and annually update
the summary as part of the calendar year submission described in Sec.
68.205(c).
By June 5, 2018 the owner or operator of Source C must comply with
the new emergency response coordination provisions, and by June 5,
2021, the owner or operator must also comply with other applicable
proposed rule provisions including: Third-party audits; incident
investigations; emergency response exercises; and information
availability (including public meetings).
By five years after the rule effective date, the owner or operator
of Source C must update the RMP to include all revised data elements
specified in subpart G and Sec. 68.42. Table 15: Compliance date
example for sources subject to STAA requirements, summarizes the
proposed STAA provisions that would apply to Source C.

[[Page 13691]]

Table 15--Compliance Date Example for Sources Subject to STAA Requirements
----------------------------------------------------------------------------------------------------------------
Applicable provisions Timeframe Additional information When to complete *
----------------------------------------------------------------------------------------------------------------
STAA.............................. Four-years after Occurs every five years as By June 5, 2021.
effective date. part of PHA revalidation.
Information availability to LEPC, Four-years after In addition to other Develop in first calendar
upon request. effective date. information availability year after completion of
provisions, include STAA or June 5, 2021,
information on IST or ISD whichever is later and
to be implemented. Update provide to LEPC upon
every five years as part request.
of information to provide
to LEPC upon request.
Update RMP........................ Five years after rule .......................... By June 5, 2022.
effective date.
----------------------------------------------------------------------------------------------------------------
* Dates are based on a hypothetical scenario including a rule effective date of June 5, 2017.

IX. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

This action is an economically significant regulatory action that
was submitted to the OMB for review. Any changes made in response to
OMB recommendations have been documented in the docket. The EPA
prepared a Regulatory Impact Analysis (RIA) of the potential costs and
benefits associated with this action. This RIA is available in the
docket and is summarized here (Docket ID Number EPA-HQ-OEM-2015-0725).
1. Why EPA Is Considering This Action
In response to catastrophic chemical facility incidents in the
United States, President Obama issued Executive Order 13650,
``Improving Chemical Facility Safety and Security,'' on August 1, 2013.
The Executive Order establishes the Chemical Facility Safety and
Security Working Group (Working Group), co-chaired by the Secretary of
Homeland Security, the Administrator of EPA, and the Secretary of Labor
or their designated representatives at the Assistant Secretary level or
higher, and comprised of senior representatives of other Federal
departments, agencies, and offices. The Executive Order requires the
Working Group to carry out a number of tasks whose overall goal is to
prevent chemical accidents, such as the explosion that occurred at the
West Fertilizer facility in West, Texas, on April 17, 2013, which
killed 15 people, most of whom were first responders, caused multiple
injuries, and resulted in extensive building damage to the town.
Section 6(a)(i) of Executive Order 13650 requires the Working Group
to develop options for improved chemical facility safety and security
that identify ``improvements to existing risk management practices
through agency programs, private sector initiatives, Government
guidance, outreach, standards, and regulations.'' Section 6(c) of
Executive Order 13650 requires the Administrator of EPA to review the
Risk Management Program. As part of this effort to solicit comments and
information from the public regarding potential changes to EPA's RMP
regulations (40 CFR part 68), on July 31, 2014, EPA published an RFI
(79 FR 44604).
EPA believes that the RMP regulations have been effective in
preventing and mitigating chemical accidents in the United States;
however, EPA believes that revisions could further protect human health
and the environment from chemical hazards through advancement of PSM
based on lessons learned. These revisions are a result of a review of
the existing Risk Management Program and information gathered from the
RFI and Executive Order listening sessions, and are proposed under the
statutory authority provided by CAA section 112(r) as amended (42
U.S.C. 7412(r)).
2. Description of Alternatives to the Proposed Rule
The RIA analyzed the proposed new requirements and revisions to
existing requirements as well as several alternatives for each.
Third-Party Audits--(Proposed Revisions Apply to Existing Sec. Sec.
68.58 and 68.79 and New Sec. Sec. 68.59 and 68.80)
The existing rule requires Program 2 and Program 3 processes to
conduct a compliance audit at least once every 3 years. The proposed
rule would require facilities to contract with an independent third-
party to conduct the next scheduled compliance audit following an RMP
reportable accident or after an implementing agency determines that
certain circumstances exist that suggest a heightened risk for an
accident. The third-party would have to be someone with whom the
facility does not have an existing or recent relationship and who meets
specific qualification criteria. The low cost alternative would apply
only for Program 2 and Program 3 processes after an RMP reportable
accident or at the request of the implementing agency. The medium cost
alternative would apply every three years for all compliance audits
conducted for all Program 3 processes. The high cost alternative would
apply every three years for all compliance audits conducted for Program
2 and Program 3 processes.
Root Cause Analysis--(Proposed Revisions Apply to Sec. Sec. 68.60 and
68.81)
The proposed rule would require facilities to conduct a root cause
analysis as part of an incident investigation following an RMP
reportable accident or an incident that could reasonably have resulted
in an RMP reportable accident (i.e., ``near miss''). A root cause
analysis is a formal process to identify underlying reasons for
failures that lead to accidental releases. These analyses usually
require someone trained in the technique. The low cost alternative
would apply the provision only to RMP reportable accidents or near
misses in Program 3 processes. The medium/high cost alternative would
apply to RMP reportable accidents or near misses involving Program 2
and Program 3 processes.
Safer Technology and Alternatives Analysis (STAA)--(Proposed Revisions
Apply to Sec. 68.67)
Under the proposed rule, facilities in NAICS codes 322 (paper
manufacturing), 324 (petroleum and coal products manufacturing), and
325 (chemical manufacturing) with Program 3 processes would be required
to conduct a STAA for each process as part of their PHA, which occurs
every 5 years. The STAA includes two parts: The initial analysis to
identify alternatives, and a feasibility study to determine the costs
and assess the reasonableness of implementing

[[Page 13692]]

technology alternatives. The proposed rule is the low cost alternative,
which would apply to all facilities with Program 3 processes in NAICS
codes 322, 324, and 325. The medium cost alternative would apply the
requirement to all Program 3 processes. The high cost alternative would
apply the requirement to all Program 3 processes and require facilities
to implement feasible IST/ISD.
Coordination Activities--(Proposed Revisions Apply to Sec. Sec. 68.90,
New 68.93, and 68.95)
Under the proposed rule, all facilities with Program 2 or Program 3
processes would be required to coordinate with local response agencies
annually to determine response needs and ensure that response resources
and capabilities are in place to respond to an accidental release of a
regulated substance. The owner or operator would also be required to
document coordination activities. The proposed rule also includes a
provision enabling the LEPC or local emergency response official to
request, in writing, that the RMP-facility owner or operator comply
with the emergency response program requirements of Sec. 68.95.
Section 68.95 requires the owner or operator to develop an emergency
response program that includes an emergency response plan, procedures
for use, inspection and maintenance of response equipment, training for
responding employees, and procedures to review and update the program.
Alternatives to this provision are similar to the proposed
requirements. One alternative that imposes the same costs as the
proposed option would eliminate the option for local officials to
request that a facility owner or operator comply with the requirements
of Sec. 68.95. A second alternative is a high cost alternative and
would require all facilities with Program 2 or Program 3 processes to
comply with Sec. 68.95, regardless of local response capability. This
would be analogous to the requirements under the Oil Pollution
Prevention regulation (40 CFR part 112) where all facilities subject to
the FRP provisions at Sec. 112.20 are required to prepare and
implement an emergency response plan for oil discharges into navigable
waters or adjoining shorelines.
Exercises--(Proposed Revisions Apply to New Sec. 68.96)
Notification Exercises. All facilities with Program 2 or Program 3
processes would be required to conduct a notification exercise annually
to ensure that the contact list to be used in an emergency is complete,
accurate, and up-to-date.
Tabletop and Field Exercises. The proposed rule would require
responding facilities to conduct annual exercises of their emergency
response plans and invite local emergency response officials to
participate. Under the low cost alternative, facilities would conduct
tabletop exercises annually. Under the proposed rule, which is the
medium cost alternative, facilities would conduct a full field exercise
at least once every five years and tabletop exercises annually in the
interim years. Facilities with an RMP reportable accident would also
have to conduct a full field exercise within a year of an RMP
reportable accident, but this may not impose any additional burden
under the medium alternative as it would count as the required field
exercise for the next 5-year period. Under the high cost alternative,
facilities would conduct full field exercises annually.
Information Availability--(Proposed Revisions Apply to New Sec. 68.205
and Existing Sec. 68.210)
The proposed rule would require all facilities to disclose certain
chemical hazard information to the public. The facility or its parent
company, if applicable, would have to make the information available in
an easily accessible manner, which might be presenting information on a
company Web site, posting the information at public libraries,
publishing it in local papers, or other means appropriate for
particular communities and facilities. The information to be disclosed
includes names of regulated substances at the facility; SDS; accident
history information; emergency response program information; and LEPC
or local response agency contact information.
In addition, facility owners or operators would be required to
provide information upon request to the LEPC or other local response
agencies on all of the following that apply to the facility: Names and
quantities of regulated substances; five-year RMP reportable accident
history; summaries of compliance audit reports; summaries of incident
investigation reports; summaries of implementation of IST; and
information on emergency response exercises, including schedules for
upcoming exercises. Facilities owners or operators would be required to
update this information annually. Although EPA did not analyze
alternatives for this provision, the different applicability for the
STAA provision alternatives increases the cost of the medium/high
alternative for disclosure to the LEPC because more facilities would
have to report on that analysis.
Public Meeting--(Proposed Revisions Apply to Sec. 68.210)
The proposed rule would require facilities to hold a public meeting
for the local community within 30 days of an RMP reportable accident.
The medium cost alternative would require Program 2 and Program 3
facilities to hold a public meeting at least once every 5 years and
within 30 days of an RMP reportable accident. The high cost alternative
would require all facilities (i.e., including Program 1 facilities) to
hold a public meeting at least once every 5 years and within 30 days of
an RMP reportable accident.
3. Summary of Costs
Approximately 12,500 facilities have filed current RMPs with EPA
and are potentially affected by the proposed rule changes. These
facilities range from petroleum refineries and large chemical
manufacturers to water and wastewater treatment systems; chemical and
petroleum wholesalers and terminals; food manufacturers, packing
plants, and other cold storage facilities with ammonia refrigeration
systems; agricultural chemical distributors; midstream gas plants; and
a limited number of other sources that use RMP-regulated substances.
Table 16 presents the number of facilities according to the latest
RMP reporting as of February 2015 by industrial sector and chemical
use.

Table 16--Number of Affected Facilities by Sector
----------------------------------------------------------------------------------------------------------------
Total
Sector NAICS Codes facilities Chemical uses
----------------------------------------------------------------------------------------------------------------
Administration of environmental 924 1,923 Use chlorine and other
quality programs (i.e., governments). chemicals for treatment.
Agricultural chemical distributors/ 111, 112, 115, 42491 3,667 Store ammonia for sale; some
wholesalers. in NAICS 111 and 115 use
ammonia as a refrigerant.
Chemical manufacturing................ 325 1,466 Manufacture, process, store.

[[Page 13693]]

Chemical wholesalers.................. 4246 333 Store for sale.
Food and beverage manufacturing....... 311, 312 1,476 Use (mostly ammonia as a
refrigerant).
Oil and gas extraction................ 211 741 Intermediate processing
(mostly regulated flammable
substances and flammable
mixtures).
Other................................. 44, 45, 48, 54, 56, 61, 248 Use chemicals for wastewater
72 treatment, refrigeration,
store chemicals for sale.
Other manufacturing................... 313, 326, 327, 33 384 Use various chemicals in
manufacturing process, waste
treatment.
Other wholesale....................... 423, 424 302 Use (mostly ammonia as a
refrigerant).
Paper manufacturing................... 322 70 Use various chemicals in pulp
and paper manufacturing.
Petroleum and coal products 324 156 Manufacture, process, store
manufacturing. (mostly regulated flammable
substances and flammable
mixtures).
Petroleum wholesalers................. 4247 276 Store for sale (mostly
regulated flammable
substances and flammable
mixtures).
Utilities............................. 221 (except 22131, 22132) 343 Use chlorine (mostly for
water treatment).
Warehousing and storage............... 493 1,056 Use mostly ammonia as a
refrigerant.
Water/wastewater Treatment Systems.... 22131, 22132 102 Use chlorine and other
chemicals.
-------------------------------------------------------------------------
Total............................. ......................... 12,542 .............................
----------------------------------------------------------------------------------------------------------------

Table 17 presents a summary of the annualized costs estimated in
the regulatory impact analysis. In total, EPA estimates annualized
costs of $158.3 million at a 3% discount rate and $161.0 million at a
7% discount rate.

Table 17--Summary of Annualized Costs
[Millions, 2014 dollars]
------------------------------------------------------------------------
Provision 3 (percent) 7 (percent)
------------------------------------------------------------------------
Third-party Audits...................... $5.0 $5.0
Incident Investigation/Root Cause....... 0.8 0.8
STAA.................................... 34.8 34.8
Coordination............................ 6.3 6.3
New Responders *........................ 33.0 35.6
Notification Exercises.................. 1.4 1.4
Facility Exercises...................... 60.7 60.7
Information Sharing (LEPC).............. 11.7 11.7
Information Sharing (Public)............ 4.0 4.0
Public Meeting.......................... 0.4 0.4
Rule Familiarization.................... 0.3 0.3
-------------------------------
Total Cost \+\...................... 158.3 161.0
------------------------------------------------------------------------
* Reflects costs for some facilities to convert from ``non-responding''
to ``responding'' as a result of improved coordination with local
emergency response officials.
\+\ Totals may not sum due to rounding.

The largest average annual cost of the proposed rule is the
exercise cost for current responders ($60.7 million), followed by new
responders ($35.6 million), STAA ($34.8 million), and information
sharing (LEPC) ($11.7 million). The remaining provisions impose average
annual costs under $10 million, including coordination ($6.3 million),
third-party audits ($5.0 million), information sharing (public) ($4.0
million), notification exercises ($1.4 million), incident
investigation/root cause analysis ($0.8 million), public meetings ($0.4
million), and rule familiarization ($0.3 million).
The proposed rule includes three prevention program provisions--
third party audits, root cause analysis, and STAA--involving
information collection and analysis activities that can lead to a wide
range of outcomes, and therefore costs, if and when the owner acts upon
the findings and/or recommendations generated by the audit,
investigation, or analysis. Although resolving audit and investigation
findings is required under the existing rule provisions, and the
proposed rule does not require implementation of feasible IST
alternatives, EPA believes it is possible that there may be costs
associated with resolving findings from the proposed third-party audit
and root cause analysis provisions that go beyond the costs of the
existing provisions, and that some owners or operators may have
additional costs due to voluntary implementation of IST. Due to the
wide range of outcomes from these proposed provisions and the
significant uncertainties associated with their costs, EPA seeks
further information on their potential costs, and whether these costs
should accrue to this proposal. What types of costs result from
independent audits (other than the cost of the audit) that are
different from self-audit costs? What types of costs result from root
cause investigations as compared to non-root-cause investigations? For
the STAA provisions, what information exists to project what changes
facilities

[[Page 13694]]

are likely to voluntarily undertake? EPA particularly requests cost
data or studies for implementation of IST changes from any commenters
who may prefer the high option for this provision, which would require
implementation of feasible IST alternatives.
Summary of Potential Benefits
EPA anticipates that promulgation and implementation of this rule
would result in a reduction of the frequency and magnitude of damages
from releases. Accidents and releases from RMP facilities occur every
year, resulting in fires and explosions, property damage, acute and
chronic exposures of workers and nearby residents to hazardous
materials, and resultant damages to health. Although we are unable to
quantify what specific damage reductions may occur as a result of these
proposed revisions, we are able to present data on the total damages
that currently occur at RMP facilities each year. The data presented
are based on a 10-year baseline period, summarizing RMP accident
impacts and, when possible, monetizing them. EPA expects that some
portion of future damages would be prevented through implementation of
a final rule. Table 18 presents a summary of the quantified damages
identified in the analysis.

Table 18--Summary of Quantified Damages
----------------------------------------------------------------------------------------------------------------
Average/
Unit value 10-Year total Average/year accident
----------------------------------------------------------------------------------------------------------------
On-site
----------------------------------------------------------------------------------------------------------------
Fatalities.................................. $8,583,113 $497,820,554 $49,782,055 $328,161
Injuries.................................... 50,000 105,150,000 10,515,000 69,314
-------------------------------------------------------------------
Property Damage............................. .............. 2,054,895,236 205,489,524 1,354,578
-------------------------------------------------------------------
On-site Total........................... .............. 2,657,865,790 265,786,579 1,752,053
----------------------------------------------------------------------------------------------------------------
Offsite
----------------------------------------------------------------------------------------------------------------
Fatalities.................................. $8,583,113 $8,583,113 $858,311 $5,658
Hospitalizations............................ 36,000 6,804,000 680,400 4,485
Medical Treatment........................... 1,000 14,807,000 1,480,700 9,761
Evacuations................................. 181 6,992,327 699,233 4,609
Sheltering in Place......................... 91 40,920,849 4,092,085 26,975
-------------------------------------------------------------------
Property Damage............................. .............. 11,352,105 1,135,211 7,483
-------------------------------------------------------------------
Offsite Total........................... .............. 89,459,394 8,945,939 58,971
Total............................... .............. 2,747,325,184 274,732,518 1,811,024
----------------------------------------------------------------------------------------------------------------

EPA monetized both on-site and offsite damages. EPA estimated total
average annual on-site damages of $265.8 million. The largest monetized
average annual on-site damage was avoided on-site property damage,
which resulted in an average annual damage of approximately $205.5
million. The next largest impact was avoided on-site fatalities ($49.8
million) and injuries ($10.5 million).
EPA estimated total average annual offsite damages of $8.9 million.
The largest monetized average annual offsite damage was from sheltering
in place ($4.1 million), followed by medical treatment ($1.5 million),
property damage ($1.1 million), fatalities ($0.9 million), evacuations
($0.7 million), and hospitalizations ($0.7 million).
In total, EPA estimated monetized potential damages of $275 million
per year. However, the monetized impacts omit many important categories
of accident impacts including lost productivity, the costs of emergency
response, transaction costs, property value impacts in the surrounding
community (that overlap with other benefit categories), and
environmental impacts. Also not reflected in the 10-year baseline costs
are the impacts of non-RMP accidents at RMP facilities and any
potential impacts of rare high consequence catastrophes. A final
omission is related to the information provision. Reducing the
probability of chemical accidents and the severity of their impacts,
and improving information disclosure by chemical facilities, as the
proposed provisions intend, would provide benefits to potentially
affected members of society.
Table 19 summarizes four broad social benefit categories related to
accident prevention and mitigation including prevention of RMP
accidents, mitigation of RMP accidents, prevention and mitigation of
non-RMP accidents at RMP facilities, and prevention of major
catastrophes. The table explains each and identifies ten associated
specific benefit categories, ranging from avoided fatalities to avoided
emergency response costs. Table 19 also highlights and explains the
information disclosure benefit category and identifies two specific
benefits associated with it: Improved efficiency of property markets
and allocation of emergency resources.

[[Page 13695]]

Table 19--Summary of Social Benefits of Proposed Rule Provisions
------------------------------------------------------------------------
Specific benefit
Broad benefit category Explanation categories
------------------------------------------------------------------------
Accident Prevention......... Prevention of future Reduced
Accident Mitigation......... RMP facility Fatalities.
Non-RMP accident prevention accidents. Reduced
and mitigation. Mitigation of future Injuries.
RMP facility Reduced
Avoided Catastrophes........ accidents. Property Damage.
Prevention and Fewer
mitigation of People Sheltered in
future non-RMP. Place.
accidents at RMP Fewer
facilities.. Evacuations.
Prevention of rare Avoided
but extremely high Lost Productivity.
con-. Avoided
sequence events.... Emergency Response
Costs.
Avoided
Transaction Costs.
Avoided
Property Value
Impacts.*
Avoided
Environmental
Impacts.
Information Disclosure...... Provision of Improved
information to the efficiency of
public and LEPCs. property markets.
Improved
resource
allocation.
------------------------------------------------------------------------
* These impacts partially overlap with several other categories such as
reduced health and environmental impacts.

B. Paperwork Reduction Act (PRA)

The information collection activities in this proposed rule have
been submitted for approval to the OMB under the PRA. The Information
Collection Request (ICR) document that the EPA prepared has been
assigned EPA ICR number 2537.01. You can find a copy of the ICR in the
docket for this rule, and it is briefly summarized here.
This ICR would amend a previously approved ICR (1656.15), OMB
Control No. 2050-0144. That ICR covers the risk management program
rule, originally promulgated on June 20, 1996; the current rule,
including previous amendments, is codified as 40 CFR part 68. This ICR
addresses the following proposed information requirements that are part
of a proposed revision to the rule:
(1) Make certain information related to the risk management program
available to the local community.
(2) Provide information, upon request, to the LEPC and local
emergency response officials with summaries of certain activities under
the risk management program.
(3) Hold a public meeting within 30-days of an accident subject to
reporting under Sec. 68.42.
(4) Hire a third-party to conduct the compliance audit after a
reportable release.
(5) Conduct and document a root cause analysis after a reportable
release.
(6) Conduct and document an incident investigation, including root
cause analysis, after a near miss.
(7) Conduct and document a safer technology and alternatives
analysis.
(8) Meet and coordinate with local responders to ensure adequate
response capability exists.
(9) Conduct a notification drill to verify information.
(10) Conduct and document emergency response exercises.
(11) Come into compliance with requirements for developing an
emergency response program, including developing an emergency response
plan, conducting emergency response exercises, documenting training,
and providing information to the LEPC.
EPA believes that the RMP regulations have been effective in
preventing and mitigating chemical accidents in the United States.
However, EPA is proposing revisions to further protect human health and
the environment from chemical hazards through advancement of PSM based
on lessons learned--resulting in better coordination between
facilities, LEPC's, and the public. State and local authorities will
use the information in RMPs to modify and enhance their community
response plans. The agencies implementing the RMP rule will use RMPs to
evaluate compliance with part 68 and to identify sources for inspection
because they may pose significant risks to the community. Citizens may
use the information to assess and address chemical hazards in their
communities and to respond appropriately in the event of a release of a
regulated substance. These revisions are a result of a review of the
existing Risk Management Program and are proposed under the statutory
authority provided by section 112(r) of the CAA as amended (42 U.S.C.
7412(r)).
Some of the elements mandated in the regulation for the RMP may
require the submittal of data viewed as proprietary, trade secret, or
confidential. As described above, EPA has adopted procedures for
sources to claim certain information as confidential business
information. EPA encourages facilities that have CBI claims to submit
substantiation with the RMP.
Respondents/affected entities: Manufacturers, utilities,
warehouses, wholesalers, food processors, ammonia retailers, and gas
processors.
Respondent's obligation to respond: Mandatory (CAA sections
112(r)(7)(B)(i) and (ii), CAA section 112(r)(7)(B)(iii), 114(c), CAA
114(a)(1)).
Estimated number of respondents: 12,542.
Frequency of response: On occasion.
Total estimated burden: 623,970 hours (per year). Burden is defined
at 5 CFR 1320.3(b).
Total estimated cost: $55,278,216 (per year), includes $4,303,435
annualized capital or operation & maintenance costs.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for the
EPA's regulations in 40 CFR are listed in 40 CFR part 9.
Submit your comments on the Agency's need for this information, the
accuracy of the provided burden estimates and any suggested methods for
minimizing respondent burden to the EPA using the docket identified at
the beginning of this rule. You may also send your ICR-related comments
to OMB's Office of Information and Regulatory Affairs via email to
oria_submissions@omb.eop.gov, Attention: Desk Officer for the EPA.
Since OMB is required to make a decision concerning the ICR between 30
and 60 days after receipt, OMB must receive comments no later than
April 13, 2016. The EPA will respond to any ICR-related comments in the
final rule.

C. Regulatory Flexibility Act (RFA)

Pursuant to section 603 of the RFA, the EPA prepared an initial
regulatory flexibility analysis (IRFA) that examines the impact of the
proposed rule on small entities along with regulatory alternatives that
could minimize that impact. The complete IRFA is available for review
in the docket and is summarized here.

[[Page 13696]]

1. Why EPA Is Considering This Action
The purpose of this action is to improve safety at facilities that
use and distribute hazardous chemicals. In response to catastrophic
chemical facility incidents in the United States, including the
explosion that occurred at the West Fertilizer facility in West, Texas,
on April 17, 2013 that killed 15 people, President Obama issued
Executive Order 13650, ``Improving Chemical Facility Safety and
Security,'' on August 1, 2013. Section 6(a)(i) of Executive Order 13650
requires that various Federal agencies develop options for improved
chemical facility safety and security, including modernizing
regulations. As a result, EPA is proposing revisions to the Risk
Management Program (40 CFR part 68). For more information on Executive
Order 13650, see section II. Background of this document.
2. Objectives of, and Legal Basis for, the Proposed Rule
EPA believes that the RMP regulations have been effective in
preventing and mitigating chemical accidents in the United States;
however, EPA believes that revisions could further protect human health
and the environment from chemical hazards through the advancement of
process safety based on lessons learned. These revisions are a result
of a review of the existing Risk Management Program and information
gathered from the RFI and Executive Order listening sessions, and are
proposed under the statutory authority provided by CAA section 112(r)
as amended (42 U.S.C. 7412(r)).
3. Estimate of the Number of Small Entities to Which the Proposed Rule
Will Apply
The RMP rule affects a broad range of sectors (296 separate NAICS
codes are listed in RMP filings; 240 of these are associated with small
entities). The RMP data include facility and parent company name as
well as the number of full time equivalents (FTE) for the facility and
the NAICS codes. To develop an estimate of the number of small
entities, the analysis required a series of reviews of the data to
identify the large entities and the small entities that were part of
small firms owning multiple facilities. The data were reviewed to
identify parent companies that were clear from the facility name, but
not included in the parent company field. That made it possible to
determine the total FTE for facilities belonging to the same parent
company and compare that number to the Small Business Administration
(SBA) standard (when in FTEs). If the total FTE exceeded the standard,
all the facilities were classified as large. Where the facilities
listed different NAICS codes, the analysis applied either the code used
for a majority of the facilities or, if no single code dominated, the
code with the highest threshold. For example, if a firm had facilities
in sectors where the standards were 500 and 1,000 FTE, the 1,000 FTE
standards was used to determine if the firm was large.
For remaining facilities, if there were multiple facilities
belonging to a single firm and the total FTE approached the threshold
or if the name included ``USA'' or ``US holdings,'' which implied an
international company, Internet searches were conducted to identify
whether the facilities belonged to a firm with other facilities or
employees.
The RFA defines small governments as governments of cities,
counties, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.\207\ Most
governmental RMP facilities are water and wastewater treatment systems
and listed a city or county as the owning entity. A check of budgets
that were available for some of the smallest cities indicated that (1)
the systems are sub-agencies of the city/county and (2) obtain some
revenues from the general fund although most of their revenues are
derived from user fees. To determine which facilities belong to small
governments, the populations for each of cities or counties were
determined by checking the 2014 estimates from the Census. For special
water and irrigation districts, their Internet sites were checked for
information on the population served. Table 20 below presents the
number of small and large facilities by program level.
---------------------------------------------------------------------------

\207\ 5 U.S.C. 602.

Table 20--Number of Facilities Owned by Small and Large Entities by Program Level
----------------------------------------------------------------------------------------------------------------
Small Large
RMP program Small private Large private government government Total
----------------------------------------------------------------------------------------------------------------
Program 3....................... 3,545 6,097 451 522 10,615
Program 2....................... 174 176 521 414 1,285
Program 1....................... 213 414 6 9 642
-------------------------------------------------------------------------------
Total....................... 3,932 6,687 978 945 12,542
----------------------------------------------------------------------------------------------------------------

4. Projected Reporting, Recordkeeping and Other Compliance Requirements
of the Proposed Rule
Under the proposed rule, all facilities would be required to make
certain information available to the public and, upon request, to the
LEPC or local emergency response officials. Program 1 facilities would
not likely have to spend more than an hour a year on this disclosure
because the information disclosed to the public is information every
facility should have readily available and because the additional
information that would be provided, upon request, to the LEPC relates
to provisions that do not apply to Program 1 facilities. Therefore, the
IRFA has not considered Program 1 small facilities in the analysis of
impacts.
Program 2 and Program 3 facilities would incur the same costs for
the other proposed provisions except the STAA. Each facility would be
required to update information to be disclosed annually, coordinate
with the local responders, and conduct a notification drill annually.
If the facility is a responder, it would have to hold an annual
exercise, including at least one full field exercise every 5 years.
Program 3 facilities in NAICS codes 322, 324, and 325 would have to
conduct an STAA as part their PHA every 5 years.
If a facility has an accident, it would incur costs to hold a
public meeting within 30 days of an RMP reportable accident. It would
also incur additional costs for obtaining a third-party to conduct
their next scheduled compliance audit and to conduct a root cause
analysis as part of the incident investigation. Facilities would also
be required to conduct root cause investigations of near misses.
Finally, if

[[Page 13697]]

a facility has to become a responder, it would incur costs to develop
an emergency response plan, train personnel to respond, purchase and
maintain equipment, and conduct exercises.
Table 21 presents three sets of costs: low year, annualized, and
high year (excludes costs incurred after an accident or a near miss).
Low-year costs represent costs for years in which routine annual costs
apply. These include costs for coordinating with local responders,
conducting notification exercises (applies to all Program 2 and Program
3 facilities), conducting tabletop exercises (applies only to
responders), and updating disclosure information to LEPC and the
public. High-year costs represent a year in which every applicable
provision would occur, except costs incurred after an accident or
``near miss.'' This includes the routine annual costs and periodic
costs that apply either every 3 or 5 years (i.e., field exercise in
lieu of a tabletop exercise, public meeting, all public disclosure
requirements, and STAA). Because the STAA provisions would only apply
to a subset of facilities (i.e., those in NAICS 322, 324, and 325),
these facilities are broken out separately in the last two rows of the
table. Complex facilities are those categorized as NAICS 324 or 325 and
simple facilities are all others. Annualized costs average the low
costs incurred for four years with the high costs incurred every fifth
year.

Table 21--Low, Annualized, and High Year Combined Costs for Small Entities by Group
--------------------------------------------------------------------------------------------------------------------------------------------------------
Low year cost Annualized High year cost
-----------------------------------------------------------------------------------------------
Simple Complex Simple Complex Simple Complex
--------------------------------------------------------------------------------------------------------------------------------------------------------
Program 2 and Program 3 facilities (excludes Program 3 facilities subject to STAA)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non Responder........................................... $808 $1,223 $808 $1,223 $808 $1,223
Responder 0-19 FTE...................................... 6,743 9,289 8,158 10,898 9,572 12,507
Responder 20+ FTE....................................... 7,870 10,761 11,885 15,261 15,900 19,761
--------------------------------------------------------------------------------------------------------------------------------------------------------
Program 3 facilities subject to STAA
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non Responder........................................... n/a 1,223 n/a 17,295 n/a 33,366
Responder <20 FTE....................................... n/a 9,289 n/a 26,970 n/a 44,650
--------------------------------------------------------------------------------------------------------------------------------------------------------

5. Related Federal Rules
The Risk Management Program is one of several programs regarding
chemical facility safety and security. Executive Order 13650 directed
Federal agencies to identify ways to modernize policies, regulations,
and standards to enhance safety and security in chemical facilities.
The Executive Order established a Chemical Facility Safety and Security
Working Group to oversee this effort, which is tri-chaired by the EPA,
DOL, and DHS. Members of the Working Group (at the management and staff
level) regularly share information in order to coordinate activities on
any work involving revisions in regulations, such as revisions to
OSHA's PSM standard and DHS' CFATS regulations. These efforts also
serve to avoid unnecessary duplication, overlap and conflicts with the
Risk Management Program requirements.
OSHA's 29 CFR 1910.119 PSM standard. Mandated by the CAAA of 1990
and issued in 1992, the PSM standard sets requirements for the
management of highly hazardous substances to prevent and mitigate
hazards associated with catastrophic releases of flammable, explosive,
reactive, and toxic chemicals that may endanger workers. The PSM
standard covers the manufacturing of explosives and processes involving
threshold quantities of flammable liquids and flammable gasses, as well
as 137 other highly hazardous chemicals.
The OSHA PSM standard, similar to the EPA RMP rule, aims to prevent
or minimize the consequences of accidental chemical releases through
implementation of management program elements that integrate
technologies, procedures, and management practices. The EPA RMP
regulation closely tracks the accident prevention measures contained in
the OSHA PSM standard because Section 112(r)(7)(D) of the CAA requires
EPA to coordinate the RMP regulation with ``any requirements
established for comparable purposes'' by OSHA. Consequently, the OSHA
PSM standard and EPA RMP regulation are closely aligned in content,
policy interpretations, Agency guidance, and enforcement.
Since the inception of these regulations, EPA and OSHA have
coordinated closely on their implementation in order to minimize
regulatory burden and avoid conflicting requirements for regulated
facilities. For example, owners and operators of RMP covered processes
also subject to the OSHA PSM standard will generally have met their RMP
accident prevention program obligations if they have properly
implemented their PSM program.
Occupational Safety and Health Act General Duty Clause. Section
5(a)(1) of the Occupational Safety and Health (OSH) Act requires
employers to provide its employees with a workplace free from
recognized hazards that are causing, or are likely to, cause death or
serious physical harm.
EPA's EPCRA regulations (40 CFR 350-372). Following the 1984
release of approximately 40 tons of MIC into the air in Bhopal, India,
that killed over 3,700 people and the 1985 leak of 500 gallons of
aldicarb oxime from a Union Carbide facility in Institute, West
Virginia, Congress passed EPCRA in October 1986. The purpose of EPCRA
is twofold: (1) To encourage and support emergency planning efforts at
the state and local levels, and (2) to provide the public and local
governments with information concerning potential chemical hazards
present in their communities.
EPCRA created state and local infrastructure designed to (1)
prepare for and mitigate the effects of a chemical incident and (2)
ensure that information on chemical risks in the community is provided
to the first responders and the public. These state and local entities
are the SERCs, TERCs, LEPCs, and TEPCs. Representatives on the LEPCs
include local officials and planners, facility owners and operators,
first responders, health and hospital personnel, environmental groups,
and citizen/members of the public.
A central requirement of LEPCs and TEPCs is to develop a local
emergency response plan. These plans are required to:

[[Page 13698]]

Identify facilities and transportation routes of
extremely hazardous substances and assess the risk based on chemical
information from facilities;
Describe on-site and offsite emergency response
procedures;
Designate a community coordinator and facility
emergency coordinator(s) to implement the plan;
Describe emergency notification procedures;
Describe how to determine the probable affected area
and population by releases (including identification of critical
community receptors and assets);
Describe local emergency equipment and facilities and
the persons responsible for them;
Describe evacuation plans;
Identify the training program for emergency responders
(including schedules); and
Identify the methods and schedules for exercising
emergency response plans.

Under the community right-to-know section of EPCRA, certain
facilities that manufacture, process, or store any hazardous chemicals
are required to submit an SDS or list of hazardous chemicals, grouped
into hazard categories, to SERCs, TERCs, LEPCs, TEPCs, and local fire
departments. Under the Hazard Communication Standard, OSHA requires
SDSs that describe the properties, hazards, and health effects of these
chemicals as well as emergency response procedures and appropriate
personal protection equipment. Facilities must also annually report
their inventories of all on-site chemicals for which SDSs are required
that are stored above reporting threshold quantities to SERCs, LEPCs,
and local fire departments. LEPCs must use information about chemical
inventories at facilities and SDSs in developing their local emergency
plans; this information must also be available to the public.
Standards for Owners and Operators of Hazardous Waste Treatment,
Storage, and Disposal Facilities (40 CFR 264 and 265). These
regulations establish minimum national standards which define the
acceptable management of hazardous waste including requirements for
arrangements that owners and operators of hazardous waste facilities
make with local authorities. In sections 264.37 and 265.37, hazardous
waste generators are required to attempt to make arrangements for
emergency response activities with local authorities, and document the
refusal of local or State authorities to complete such arrangements in
the operating record.
CAA section 112(r)(1) general duty clause. The statute requires
facility owners and operators to identify hazards; design, maintain and
safely operate a facility; and prevent and minimize releases of any
regulated substances under Sec. 112(r)(3) (40 CFR part 130) and ``any
other extremely hazardous substance.'' \208\
---------------------------------------------------------------------------

\208\ Although the term ``any other extremely hazardous
substance'' is not defined, the legislative history of the 1990 CAA
amendments indicates that the term would include any agent ``which
may or may not be listed or otherwise identified by any Government
agency which may as the result of short-term exposures associated
with releases to the air cause death, injury or property damage due
to its toxicity, reactivity, flammability, volatility, or
corrosivity.'' See: https://www2.epa.gov/sites/production/files/2013-10/documents/gdcregionalguidance.pdf.
---------------------------------------------------------------------------

DHS's 6 CFR part 27 CFATS rule. The CFATS program, established in
2007, regulates chemical facilities that present a high level of
security risk to ensure they have security measures in place to reduce
the risks associated with their possession of chemicals of interest
(COI). There are 325 COI and 137 of the 140 RMP regulated substances
are included on the list of COI.
The CFATS program requires the development, submission, and
implementation of Site Security Plans (SSPs) (or Alternative Security
Programs in lieu of SSPs), which document the security measures high-
risk chemical facilities use to satisfy the applicable risk-based
performance standards (RBPS) under CFATS. These plans are not ``one-
size-fits-all,'' but in-depth, highly customized, and dependent on each
facility's unique circumstances.
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
requirements for explosives. ATF is responsible for enforcing Federal
explosives laws that govern commerce in explosives in the United
States, including licensing, storage, recordkeeping, and conduct of
business. ATF conducts inspections of Federal explosives licensees who
manufacture, import, sell, or store explosives in the United States to
ensure that explosives are managed in accordance with Federal law.
6. Description of Alternatives to the Proposed Rule
The RIA analyzed the proposed new requirements and revisions to
existing requirements as well as several alternatives for each. In most
cases, EPA chose regulatory alternatives that had reduced impacts on
small businesses relative to other alternatives that EPA considered. In
this section, we discuss each regulatory provision, explain whether and
how the proposed provision minimizes impacts on small businesses, and
discuss additional recommendations resulting from the SBAR Panel that
could further mitigate small business impacts. EPA has requested
comment on these recommendations.
Third-Party Audits--(Proposed Revisions Apply to Existing Sec. Sec.
68.58 and 68.79 and New Sec. Sec. 68.59 and 68.80)
EPA evaluated three options for this provision and selected the
lowest cost alternative, which would apply the requirement only to
sources with Program 2 and/or Program 3 processes that have had an RMP
reportable accident. The other alternatives would have required that
all compliance audits be conducted by third parties for sources with
either Program 3 processes or Program 2 and Program 3 processes.
Limiting the applicability of this proposed provision to sources that
have had RMP reportable accidents minimizes its impact to the overall
universe of RMP facilities, and particularly to small businesses. As
indicated in Exhibit 5-25 in the RIA, the estimated cost of the high
option ($96.2 million annualized) is nearly 20 times higher than the
estimated costs of the proposed option ($5.0 million annualized).
Furthermore, a majority of the costs for the proposed option would
likely be borne by large businesses, as historically, most RMP
accidents have occurred at facilities that do not meet SBA small
business criteria. Table 22 shows the percentage of accidents from
2004-2013 that occurred at small and large facilities.

Table 22--Percentage of Accidents at Small and Large RMP Facilities, 2004-2013
----------------------------------------------------------------------------------------------------------------
Program 1 Program 2 Program 3
Sector ------------------------------------------------------------------ Total
Small Large Small Large Small Large
----------------------------------------------------------------------------------------------------------------
NAICS 325--Chemical Manufacturing.. 0 6 1 5 53 465 530
NAICS 311, 312--Food/Beverage 0 0 2 0 58 210 270
Manufacturers.....................
NAICS 322--Paper Manufacturing..... 0 0 0 0 9 37 46

[[Page 13699]]

NAICS 331, 332, 333, 334, 336, 339-- 0 0 4 0 12 27 43
Other Manufacturing...............
NAICS 11, 12, 15, 42491-- 0 0 0 0 91 65 156
Agricultural Chemical Distributors
NAICS 4246, 4247--Chemical/ 0 2 0 0 7 29 38
petroleum wholesale...............
NAICS 4244, 4245--Other wholesale.. 0 0 0 0 7 13 20
NAICS 493--Warehouse............... 0 1 0 0 18 53 72
NAICS 324--Petroleum and Coal 2 6 0 0 15 146 169
Products Manufacturing............
NAICS 22131, 22132--Water/POTW..... 0 0 14 20 17 24 75
NAICS 211--Oil/Gas exploration..... 4 4 1 0 10 34 53
Other.............................. 3 7 7 4 7 17 45
----------------------------------------------------------------------------
Total.......................... 9 26 29 29 304 1,120 1,517
----------------------------------------------------------------------------------------------------------------

While the proposed third-party audit provision should have fairly
low impact on small businesses, the SBAR Panel made additional
recommendations to further minimize the impacts of this provision on
small businesses. The Panel recommended that EPA consider proposing
streamlined independence requirements for small businesses (i.e. based
on size of the facility). The Panel also recommended that EPA limit the
independence criteria to individuals participating in the audit rather
than the entire company. The Panel further recommended that EPA seek
comments on:

Eliminating the independence requirement, in its
entirety, and retaining existing requirement for compliance audits;
Limiting applicability of the third-party audit
provision by only requiring third-party audits, for Program 3
facilities, triggered by major accidents that have offsite impacts
and how to define or characterize ``major accidents with offsite
impacts'';
Deleting the current PE requirement and considering
other independent accreditation for third-party auditors which also
carry ethical requirements, such as CSP, CIH, CFPS, CHMM, CPEA, or
CPSA; and
The impacts a third-party auditor may have on a
facility's security and the measures that should be included in the
rule provision to protect facilities from terrorism or release of
CBI from a third-party auditor.

EPA incorporated preamble language to address these Panel
recommendations in section IV.B of this document.
Incident Investigation/Root Cause Analysis--(Proposed Revisions Apply
to Sec. Sec. 68.60 and 68.81)
In this case, EPA considered two potential regulatory options, and
proposed the higher cost option, which would apply the requirement for
an incident root cause analysis to all RMP-reportable accidents and
near misses involving Program 2 and Program 3 processes. The lower cost
option would apply the requirement to accidents and near misses at only
Program 3 processes. Although the Agency chose the higher cost option,
this provision is estimated to be one of the least costly provisions of
the proposed rule. In fact, the costs for both options considered were
nearly indistinguishable--as indicated in Exhibit 5-25 in the RIA, both
the low and proposed options are estimated to cost approximately $0.8
million annually. Therefore, EPA believes that the additional safety
benefit of requiring owners and operators of Program 2 processes to
also conduct root cause analyses after incidents and near misses was
warranted.
The SBAR Panel also made recommendations to further minimize the
impacts of this provision on small businesses. The Panel recommended
that EPA clarify our intent that incident investigations are not
intended to cover minor accidents or minor near misses that could not
reasonably have resulted in a catastrophic release. The Panel further
recommended that EPA consider proposing to require root cause analysis
only for reportable releases, not including near misses. The Panel
recommended that EPA clarify in the preamble the comparative advantages
of a root cause analysis to the current incident investigation
requirements in Sec. Sec. 68.60 and 68.81 of the rule. Finally, the
Panel recommended that EPA seek comments on:

Whether the root cause analysis requirement should be
eliminated;
The revised definition of catastrophic release and
whether it should be limited to loss of life, serious injury or
significant damage or loss of offsite property; and
Examples of near misses.

EPA incorporated preamble language to address these Panel
recommendations in section IV.A of this document.
STAA--(Proposed Revisions Apply to Sec. 68.67)
For STAA, EPA examined three potential alternative regulatory
options, and chose the least costly option. The proposed option, which
would apply the STAA requirement to Program 3 processes in NAICS 322
(paper manufacturing), 324 (petroleum and coal products manufacturing),
and 325 (chemical manufacturing), costs $34.8 million annually and is
approximately half as costly as the medium option ($71.7 million
annually), which would apply the requirement to all Program 3
processes, and likely far less costly than the high option, which would
require implementation of feasible safer alternatives for all Program 3
processes.
The low-cost STAA option not only minimizes the overall number of
sources that are subject to it, but is also biased toward larger
sources. This is because the three sectors selected for regulation
under this proposed provision all have a lower percentage of small
entities than the overall percentage of small entities within the RMP
facility universe. As indicated in Table 23, approximately 39% of
facilities regulated under the RMP regulation are owned by small
entities. In comparison, NAICS 322 (paper manufacturing) has about 20%
RMP-regulated small businesses within the sector, while NAICS 324
(petroleum and coal products manufacturing) and 325 (chemical
manufacturing) each have approximately 10% small businesses.

[[Page 13700]]

Table 23--Percentage of Small Businesses in NAICS 322, 324, 325 and Overall
----------------------------------------------------------------------------------------------------------------
Percentage
Sector Small Total small
----------------------------------------------------------------------------------------------------------------
NAICS 322--Paper Manufacturing.................................. 9 46 19.6
NAICS 324--Petroleum and Coal Products Manufacturing............ 17 169 10.1
NAICS 325--Chemical Manufacturing............................... 54 530 10.2
All Sectors..................................................... 4,910 12,542 39.1
----------------------------------------------------------------------------------------------------------------

The SBAR Panel also made recommendations to further minimize the
impacts of this provision on small businesses. The Panel recommended
that EPA explain what evidence we have that caused us to reconsider the
1996 assessment that IST analysis was unlikely to yield additional
benefits. The Panel further recommended that EPA seek comments on:

Whether to eliminate this requirement;
Limiting this provision to require analyses only to be
conducted at the design stage of new processes; and
Exempting batch toll manufacturers from this
requirement.

EPA incorporated preamble language to address these Panel
recommendations in section IV.C of this document.
Emergency Response Program Coordination With Local Responders--
(Proposed Revisions Apply to Sec. Sec. 68.90, New 68.93, and 68.95)
The proposed option (medium option) would require all facilities
with Program 2 or Program 3 processes to coordinate with local response
agencies annually and document coordination activities. This option
would also allow the LEPC or local emergency response officials to
require that the RMP-facility owner or operator comply with the
emergency response program requirements of Sec. 68.95. EPA considered,
but did not propose, the more stringent option of requiring all
facilities with Program 2 or Program 3 processes to implement an
emergency response program and respond to accidental releases at the
facility. The proposed option is estimated to cost $6.3 million
annually and is far less costly than the high option, which would
likely have exceeded $100 million annually. Therefore, by selecting the
medium option, EPA substantially reduced the cost impact for the many
small entities that may rely on local response organizations to respond
to accidental releases at the source (see Exhibit 3-8 and Appendix B in
the RIA for more information on the number, size, and industrial
categories of non-responding facilities).
While EPA does not believe it is necessary to require that all
facilities develop an in-house response capability, the Agency believes
that non-responding facilities, even if they are small businesses, must
still coordinate with local public responders so that they are prepared
to handle emergencies at the facility. EPA expects that these
coordination activities will result in some sources, including some
small entities, becoming responding facilities, which may involve
additional costs for those facilities (see section 5.6 of the RIA). EPA
believes this is necessary to meet the objectives of Clean Air Act
section 112(r), which requires the Agency to promulgate regulations to
(among other things) provide for a prompt emergency response to any
accidental releases in order to protect human health and the
environment. We also note that the 2013 accident at West Fertilizer,
which was one of several accidents that triggered the Executive Order
that ultimately led to this rule proposal, occurred at a facility that
would likely have been considered a small entity under the established
SBA criteria. The Agency believes it is appropriate to require that
such facilities conduct adequate emergency coordination, and if
necessary, develop adequate emergency response capabilities, even if
they are small.
The SBAR Panel also made recommendations to further minimize the
impacts of this provision on small businesses. The Panel recommended
that EPA explain how coordination should occur between local emergency
response officials and small facilities and clarify requirements for
facilities that make a ``good faith'' effort to coordinate with local
emergency response officials. The Panel also recommended that EPA seek
comment on the proposed frequency for annual coordination. EPA
incorporated preamble language to address these Panel recommendations
in section V.A of this document.
Exercises--(Proposed Revisions Apply to New Sec. 68.96)
Notification Exercises. The proposed rule would require all
facilities with Program 2 or Program 3 processes to annually conduct an
emergency notification exercise to ensure that their emergency contact
list is complete, accurate, and up-to-date. This proposed provision is
expected to be one of the least costly rule provisions at $1.4 million
annually (only the incident investigation root cause analysis and
public meetings provisions are estimated to cost less). Therefore EPA
did not consider any alternatives to reduce the impact of this
provision on small businesses, nor did the SBAR Panel make any such
recommendations.
Tabletop and Field Exercises
The proposed option was the medium option, and would require
responding facilities to conduct a full field exercise at least once
every five years and tabletop exercises annually in the interim years.
This option was substantially less costly than the high option ($61
million vs $104 million annually), which would require annual field
exercises. As this provision only affects responding facilities, which
tend to more often be large facilities (see Exhibit 3-8 in the RIA),
EPA has proposed an option that mitigates the impact on small entities.
EPA also considered a low option that would only require annual
tabletop exercises. This option would have saved approximately $11
million annually. We did not propose the low option because the Agency
believes that periodic field exercises are an important component of a
comprehensive emergency response program. Nevertheless, this was also a
recommendation from the SBAR panel and we have requested comment on the
low option provision in the preamble to the proposed rule.
The SBAR Panel also made other recommendations to further minimize
the impacts of this provision on small businesses. The Panel
recommended that EPA clarify that participation by local responders is
not required for a facility to comply with exercise requirements and
that field exercises and drills required by other state and Federal
regulations could meet this requirement if the facility's emergency
response plan is tested as part of those exercises. The Panel also
recommended that EPA seek comments on:
Whether the exercise provision should be eliminated;

[[Page 13701]]

How to address postponement and rescheduling issues (which
SERs have indicated may take up to a year);
Limiting the requirement to only tabletop exercises; and
The frequency of required field and tabletop exercises.
EPA incorporated preamble language to address these Panel
recommendations in section V.B of this document.
Information Availability--(Proposed Revisions Apply to New Sec. 68.205
and Existing Sec. 68.210)
There are three proposed information disclosure requirements. Under
the proposed requirements, all facilities would be required to make
certain information available to the public. Upon receiving a request
from their LEPC or local emergency response official, regulated
facilities would also be required to provide certain information to the
LEPC or emergency response officials. Lastly, facilities would be
required to hold public meetings within 30 days of any RMP reportable
accident. In the preamble to the proposed rule, EPA has requested
public comments on whether all regulated facilities should be required
to hold a public meeting every five years and after an RMP reportable
accident, or whether a requirement for periodic and post-accident
public meetings should be limited to only Program 2 and Program 3
facilities. Although EPA has not proposed specific alternatives to
minimize the impact of the information disclosure provisions on small
businesses, the Agency believes that in general, smaller facilities
will bear lower costs to comply with these provisions. By requiring
certain information disclosure elements (i.e., incident investigation
and public meeting provisions) only following an RMP reportable
accident, EPA is minimizing the impact to the overall universe of RMP
facilities, and particularly to small businesses. Most RMP reportable
accidents have generally occurred at facilities that do not meet SBA
small business criteria (see Exhibit 7-11 in the RIA). Also, small
facilities will generally have fewer processes, fewer chemicals, fewer
accidental releases, etc., on which to provide information to LEPCs and
the public.
The SBAR Panel also made recommendations to further minimize the
impacts of this provision on small businesses. The Panel recommended
that EPA:

Consider only requiring facilities to develop chemical
hazard information summaries and allowing LEPCs to make reasonable
requests for additional information;
Make chemical hazard information available upon request
by the LEPC rather than requiring it to be automatically submitted
by the facility;
Require that a public meeting be held only after an RMP
reportable accident; and
Allow public meetings to be combined with any meeting
open to the general public (e.g. city council, municipal board, or
LEPC meeting).

The Panel also recommended that EPA seeks comments on:

Narrowing the approach to require a one page summary of
each significant chemical hazard during a fire identifying the
product, its properties, its location and firefighting measures for
responders--a one-page summary of information that addresses
chemical hazard information and emergency response measures;
Limiting the amount of information to be shared with
LEPCs;
Whether EPA should specify a format for summary
information to make it easier for local officials to find and
interpret the information that they need:
Ways to limit the scope of the information elements
shared with the public as well as the format in which information
should be provided (e.g. a one-page summary of information that
addresses chemical hazard information and emergency response
measures);
Whether the existing RMP data, including the executive
summary, are adequate for the public in the absence of a specific
request, and
Whether additional information should only be provided
to the public upon request.
Whether it is appropriate to require public meetings;
Whether to eliminate the public meeting requirement and
instead require the facility to schedule a meeting with the LEPC
and/or emergency responders 60 to 90 days after an accident or
incident;
Whether public meetings should be held upon request
(e.g., LEPC or its community equivalent) rather than automatically
within an established timeframe; and
Extending the timeframe from 30 to 90 days or whether
there is a more appropriate timeframe for scheduling a meeting
following an RMP reportable accident and who should be included in
the invitation (e.g. limit to local emergency response officials and
LEPCs).

EPA incorporated preamble language to address these Panel
recommendations in section VI of this document. EPA also revised the
proposed rule to incorporate the following two Panel recommendations as
the proposed options:

Make chemical hazard information available upon request
by the LEPC rather than requiring it to be automatically submitted
by the facility; and
Require that a public meeting be held only after an RMP
reportable accident.
7. Small Business Advocacy Review
As required by section 609(b) of the RFA, the EPA also convened a
SBAR Panel to obtain advice and recommendations from SERs that
potentially would be subject to the rule's requirements. The SBAR Panel
evaluated the assembled materials and small-entity comments on issues
related to elements of an IRFA. The SBAR report contains the
recommendations to the EPA Administrator from the three Federal Panel
members (EPA, the Small Business Administration Office of Advocacy and
the OMB Office of Information and Regulatory Affairs). This proposal
was informed by the small entity comments and the Panel report
recommendations were used in the development of this proposal, as
provided in section 609(b) of the RFA. A copy of the full SBAR Panel
Report is available in the rulemaking docket.

D. Unfunded Mandates Reform Act (UMRA)

This action contains a Federal mandate under UMRA, 2 U.S.C. 1531-
1538, that may result in expenditures of $100 million or more for
state, local, and tribal governments, in the aggregate, or the private
sector in any one year. Accordingly, the EPA has prepared a written
statement required under section 202 of UMRA. The statement is included
in the docket for this action and briefly summarized here.
Over the 16 years of implementing the RMP program and, most
recently through Executive Order 13650 listening sessions, webinars,
and consultations, EPA has engaged states and local communities to
discuss chemical safety issues. In the nine Executive Order 13650
Improving Chemical Facility Safety and Security listening sessions and
webinars, held between November 2013 and January 2014, states and local
communities identified lack of chemical facility participation and
coordination in local emergency contingency planning as a key barrier
to successful local community preparedness. Additionally, EPA has had
consultations with states and local communities through participation
in the NASTTPO annual meetings to discuss key issues related to
chemical facility and local community coordination and what areas of
the RMP regulations need to be modernized to facilitate this
coordination and improve local emergency preparedness and prevention.
Key priority options discussed with NASTTPO states and local
communities included: Improving emergency response coordination between
RMP facilities and LEPCs/first

[[Page 13702]]

responder and requiring emergency response exercises of the RMP
facility plan to involve LEPCs, first responders and emergency response
personnel.
This action may significantly or uniquely affect small governments.
The EPA consulted with small governments concerning the regulatory
requirements that might significantly or uniquely affect them. Through
the July 31, 2014, RFI (79 FR 44604), EPA sought feedback from
governmental entities while formulating the proposed revisions in this
action. Additionally, EPA participated in ongoing consultations with
affected SERs (including small governmental entities) through the SBAR
panel. EPA convened an SBAR panel in accordance with the requirements
of the RFA, as amended by the Small Business Regulatory Enforcement
Fairness Act (SBREFA).

E. Executive Order 13132: Federalism

This action does not have Federalism implications. The EPA
believes, however, that these proposed regulatory revisions may be of
significant interest to local governments. Consistent with the EPA's
policy to promote communications between the EPA and state and local
governments, and to better understand the concerns of local
governments, EPA sought feedback through the July 31, 2014, RFI (79 FR
44604). Additionally, consultations with governmental entities occurred
through the SBREFA process.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

This action has tribal implications. However, it will neither
impose substantial direct compliance costs on federally recognized
tribal governments, nor preempt tribal law. EPA will be consulting with
tribal officials as it develops this regulation to permit them to have
meaningful and timely input into its development. Consultation will
include conference calls, webinars, and meetings with interested tribal
representatives to ensure that their concerns are addressed before the
rule is finalized. In the spirit of Executive Order 13175 and
consistent with EPA policy to promote communications between EPA and
tribal governments, EPA specifically solicits comment on this proposed
rule from tribal officials.

G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

This action is not subject to Executive Order 13045 because the EPA
does not believe the environmental health risks or safety risks
addressed by this action present a disproportionate risk to children.
The EPA believes that the proposed revisions to the Risk Management
Program regulations would further protect human health, including the
health of children, through advancement of process safety.

H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution or Use

This proposed action is not a ``significant energy action'' because
it is not likely to have a significant adverse effect on the supply,
distribution, or use of energy. This proposed action is not anticipated
to have notable impacts on emissions, costs or energy supply decisions
for the affected electric utility industry.

I. National Technology Transfer and Advancement Act (NTTAA)

This action involves technical standards. The EPA proposes to
require third-party auditors to be experienced with applicable RAGAGEP,
which include Voluntary Consensus Standards as well as other measures,
for regulated processes being audited. Numerous different standards
apply to processes regulated under the proposed rule and their
application will vary depending on the particular process and chemicals
involved. EPA is not proposing to list all the various codes, standards
and practices that would apply to the wide variety of chemical
processes covered by this rule as doing so would be impracticable,
given that this rule affects sectors across many industries and listing
the applicable RAGAGEP measures would require the EPA to update that
list every time there was a change in the industry standards or best
practices. The proposed rule would require third-party auditors to be
familiar with standards applicable to processes they audit, and to
obtain their own copies of applicable standards where needed. Auditors
must be knowledgeable of applicable consensus standards because the
accident prevention program provisions of the existing rule (subparts C
and D) require owners or operators to comply with RAGAGEP. Therefore,
auditors must be knowledgeable of those practices in order to perform
an effective audit. EPA seeks comment on this proposed RAGAGEP
requirement.

J. Executive Order 12898: Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations

The EPA believes the human health or environmental risk addressed
by this action will not have potential disproportionately high and
adverse human health or environmental effects on minority, low income,
or indigenous populations. The results of this evaluation are included
in the RIA, located in the docket.

List of Subjects

40 CFR part 68

Environmental protection, Administrative practice and procedure,
Air pollution control, Chemicals, Hazardous substances,
Intergovernmental relations, Reporting and recordkeeping requirements.

Dated: February 25, 2016.
Gina McCarthy,
Administrator.
For the reasons set out in the preamble, title 40, chapter I, part
68, of the Code of Federal Regulations is proposed to be amended as
follows:

PART 68--CHEMICAL ACCIDENT PREVENTION PROVISIONS

0
1. The authority citation for part 68 continues to read as follows:

Authority: 42 U.S.C. 7412(r), 7601(a)(1), 7661-7661f.

0
2. Amend Sec. 68.3 by:
0
a. Adding in alphabetical order the definition ``Active measures'';
0
b. Revising the definition ``Catastrophic release'', and
0
c. Adding in alphabetical order, the definitions, ``CBI'',
``Feasible'', ``Inherently safer technology or design'', ``LEPC'',
``Passive measures'', ``Procedural measures'', ``Root cause'', and
``Third-party audit''.
The additions and revisions read as follows:

Sec. 68.3 Definitions.

* * * * *
Active measures means risk management measures or engineering
controls that rely on mechanical, or other energy input to detect and
respond to process deviations. Examples of active measures include
alarms, safety instrumented systems, and detection hardware (such as
hydrocarbon sensors).
* * * * *
Catastrophic release means a major uncontrolled emission, fire, or
explosion, involving one or more regulated substances that results in
deaths, injuries, or significant property damage on-site, or known
offsite deaths, injuries, evacuations, sheltering in place, property
damage, or environmental damage.
CBI means confidential business information.
* * * * *

[[Page 13703]]

Feasible means capable of being successfully accomplished within a
reasonable time, accounting for economic, environmental, legal, social,
and technological factors. Environmental factors would include
consideration of potential transferred risks for new risk reduction
measures.
* * * * *
Inherently safer technology or design means risk management
measures that minimize the use of regulated substances, substitute less
hazardous substances, moderate the use of regulated substances, or
simplify covered processes in order to make accidental releases less
likely, or the impacts of such releases less severe.
* * * * *
LEPC means local emergency planning committee as established under
42 U.S.C. 11001(c).
* * * * *
Passive measures means risk management measures that use design
features that reduce the hazard without human, mechanical, or other
energy input. Examples of passive measures include pressure vessel
designs, dikes, berms, and blast walls.
* * * * *
Procedural measures means risk management measures such as
policies, operating procedures, training, administrative controls, and
emergency response actions to prevent or minimize incidents.
* * * * *
Root cause means a fundamental, underlying, system-related reason
why an incident occurred that identifies a correctable failure(s) in
management systems.
* * * * *
Third-party audit means a compliance audit conducted pursuant to
the requirements of Sec. Sec. 68.59 and/or 68.80, by an entity
(individual or firm) meeting the competency, independence and
impartiality criteria in those sections.
* * * * *
0
3. Amend Sec. 68.10 by:
0
a. Revising paragraphs (a) introductory text; (a)(2) and (3); and
adding paragraph (a)(4);
0
b. Redesignating paragraphs (b) through (f) as paragraphs (f) through
(j);
0
c. Adding new paragraphs (b) through (e); and
0
d. Revising the newly designated paragraph (f)(2).
The revisions and additions read as follow:

Sec. 68.10 Applicability.

(a) Except as provided in paragraphs (b) through (e) of this
section, an owner or operator of a stationary source that has more than
a threshold quantity of a regulated substance in a process, as
determined under Sec. 68.115, shall comply with the requirements of
this part no later than the latest of the following dates:
* * * * *
(2) Three years after the date on which a regulated substance is
first listed under Sec. 68.130;
(3) The date on which a regulated substance is first present above
a threshold quantity in a process; or
(4) For any revisions to this part, the effective date of the final
rule.
(b) Within 1 year of [DATE 1 YEAR AFTER THE EFFECTIVE DATE OF THE
FINAL RULE] the owner or operator of a stationary source shall comply
with the emergency response coordination activities in Sec. 68.93(a)
and (b).
(c) Within 3 years of the LEPC or equivalent requesting in writing,
pursuant to Sec. 68.90(b)(2), the owner or operator must develop and
implement an emergency response program in accordance with Sec. 68.95.
(d) By [DATE 4 YEARS AFTER THE EFFECTIVE DATE OF THE FINAL RULE],
the owner or operator shall comply with the following provisions
promulgated on [PUBLICATION DATE OF FINAL RULE]:
(1) Third-party audit provisions in Sec. Sec. 68.58(f), 68.58(g),
68.58(h), 68.59, 68.79(f), 68.79(g), 68.79(h), and 68.80;
(2) Incident investigation root cause analysis provisions in
Sec. Sec. 68.60(d)(7) and 68.81(d)(7) and the incident root cause
category information provision in Sec. 68.42(b)(10);
(3) Safer technology and alternative analysis provisions in Sec.
68.67(c)(8);
(4) Emergency response exercise provisions of Sec. 68.96, and;
(5) Availability of information provisions in Sec. Sec. 68.205,
68.210(b), 68.210(c), and 68.210(d).
(e) By [DATE 5 YEARS AFTER EFFECTIVE DATE OF THE FINAL RULE], the
owner or operator shall comply with the risk management plan provisions
of subpart G promulgated on [PUBLICATION DATE OF FINAL RULE].
(f) * * *
(2) The distance to a toxic or flammable endpoint for a worst-case
release assessment conducted under subpart B and Sec. 68.25 is less
than the distance to any public receptor, as defined in Sec. 68.3; and
* * * * *
0
4. Amend Sec. 68.12 by:
0
a. Revising paragraphs (c)(4) and (5), and adding paragraph (c)(6); and
0
b. Revising paragraphs (d)(4) and (5), and adding paragraph (d)(6).
The revisions and additions read as follows:

Sec. 68.12 General requirements.

* * * * *
(c) * * *
(4) Coordinate response actions with local emergency planning and
response agencies as provided in Sec. 68.93;
(5) Develop and implement an emergency response program, and
conduct exercises, as provided in Sec. Sec. 68.90 to 68.96; and
(6) Submit as part of the RMP the data on prevention program
elements for Program 2 processes as provided in Sec. 68.170.
(d) * * *
(4) Coordinate response actions with local emergency planning and
response agencies as provided in Sec. 68.93;
(5) Develop and implement an emergency response program, and
conduct exercises, as provided in Sec. Sec. 68.90 to 68.95 96 of this
part; and
(6) Submit as part of the RMP the data on prevention program
elements for Program 3 processes as provided in Sec. 68.175.
0
5. Amend Sec. 68.42 by redesignating paragraphs (b)(10) and (b)(11) as
paragraphs (b)(11) and (b)(12) and adding a new paragraph (b)(10) to
read as follows:

Sec. 68.42 Five-year accident history.

* * * * *
(b) * * *
(10) Categories of root causes identified based on the root cause
analysis required in the incident investigation in accordance with
Sec. 68.60(d)(7) or Sec. 68.81(d)(7);
* * * * *
0
6. Amend Sec. 68.48 by revising paragraph (a)(1) to read as follows:

Sec. 68.48 Safety information.

(a) * * *
(1) Safety Data Sheets (SDS) that meet the requirements of 29 CFR
1910.1200(g);
* * * * *
0
7. Amend Sec. 68.50 by revising paragraph (a)(2) to read as follows:

Sec. 68.50 Hazard review.

(a) * * *
(2) Opportunities for equipment malfunctions or human errors that
could cause an accidental release, including findings from incident
investigations;
* * * * *
0
8. Amend Sec. 68.54 by revising paragraphs (a), (b), and (d); and
Adding a new paragraph (e) to read as follows:

Sec. 68.54 Training.

(a) The owner or operator shall ensure that each employee presently
involved

[[Page 13704]]

in operating a process, and each employee newly assigned to a covered
process have been trained or tested competent in the operating
procedures provided in Sec. 68.52 that pertain to their duties. For
those employees already operating a process on June 21, 1999, the owner
or operator may certify in writing that the employee has the required
knowledge, skills, and abilities to safely carry out the duties and
responsibilities as provided in the operating procedures.
(b) Refresher training. Refresher training shall be provided at
least every three years, and more often if necessary, to each employee
involved in operating a process to ensure that the employee understands
and adheres to the current operating procedures of the process. The
owner or operator, in consultation with the employees operating the
process, shall determine the appropriate frequency of refresher
training.
* * * * *
(d) The owner or operator shall ensure that employees involved in
operating a process are trained in any updated or new procedures prior
to startup of a process after a major change.
(e) For the purposes of this section, the term employee also
includes supervisors responsible for directing process operations.
0
9. Amend Sec. 68.58 by revising paragraph (a) and adding paragraphs
(f) through (h) to read as follows:

Sec. 68.58 Compliance audits.

(a) The owner or operator shall certify that they have evaluated
compliance with the provisions of this subpart for each covered
process, at least every three years to verify that the procedures and
practices developed under the rule are adequate and are being followed.
When required as set forth in paragraph (f), the compliance audit shall
be a third-party audit.
* * * * *
(f) Third-party audit applicability. The next required compliance
audit shall be a third-party audit when one of the following conditions
apply:
(1) An accidental release meeting the criteria in Sec. 68.42(a)
from a covered process at a stationary source has occurred; or
(2) An implementing agency requires a third-party audit based on
non-compliance with the requirements of this subpart, including when a
previous third-party audit failed to meet the competency, independence,
or impartiality criteria of Sec. 68.59(b).
(g) Implementing agency notification and appeals. (1) If an
implementing agency makes a preliminary determination that a third-
party audit is necessary pursuant to paragraph (f)(2) of this section,
the implementing agency will provide written notice to the owner or
operator stating the reasons for the implementing agency's
determination.
(2) Within 30 days of receipt of such written notice, the owner or
operator may provide information and data to, and may consult with, the
implementing agency on the determination. Thereafter, the implementing
agency will provide a final determination to the owner or operator.
(3) If the final determination requires a third-party audit, the
owner or operator shall comply with the requirements of Sec. 68.59,
pursuant to the schedule in paragraph (h) of this section.
(4) Appeals. The owner or operator may appeal a final determination
made by an implementing agency under paragraph (g)(2) of this section
within 30 days of receipt of the final determination. The appeal shall
be made to the EPA Regional Administrator, or for determinations made
by other implementing agencies, the administrator or director of such
implementing agency. The appeal shall contain a clear and concise
statement of the issues, facts in the case, and any relevant additional
information. In reviewing the appeal, the implementing agency may
request additional information from the owner or operator. The
implementing agency will provide a written, final decision on the
appeal to the owner or operator.
(h) Schedule for conducting a third-party audit. The audit and
audit report shall be completed, and the audit report submitted to the
implementing agency pursuant to Sec. 68.59(c)(3) as follows, unless a
different timeframe is specified by the implementing agency:
(1) Within 12 months of when any third-party audit is required
pursuant to paragraphs (f) and/or (g) of this section; or
(2) Within three years of completion of the previous compliance
audit, whichever is sooner.
0
10. Section 68.59 is added to subpart C to read as follows:

Sec. 68.59 Third-party audits.

(a) Applicability. The owner or operator shall engage a third-party
auditor to evaluate compliance with the provisions of this subpart in
accordance with the requirements of this section when either criterion
of Sec. 68.58(f) is met.
(b) Auditor qualifications. The owner or operator shall determine
and document that the auditor and/or audit team are independent and
impartial, and that the auditor's or audit team's credentials address
the following competency requirements:
(1) Competency requirements. The auditor/auditor team shall be:
(i) Knowledgeable with the requirements of this part;
(ii) Experienced with the stationary source type and processes
being audited and applicable recognized and generally accepted good
engineering practices;
(iii) Trained or certified in proper auditing techniques; and
(iv) A licensed Professional Engineer (PE), or shall include a
licensed PE on the audit team.
(2) Independence and impartiality requirements. The auditor/audit
team shall:
(i) Act impartially when performing all activities under this
section;
(ii) Receive no financial benefit from the outcome of the audit,
apart from payment for the auditing services;
(iii) Not have conducted past research, development, design,
construction services, or consulting for the owner or operator within
the last 3 years. For purposes of this requirement, consulting does not
include performing or participating in third-party audits pursuant to
Sec. 68.59 or Sec. 68.80;
(iv) Not provide other business or consulting services to the owner
or operator, including advice or assistance to implement the findings
or recommendations in an audit report, for a period of at least 3 years
following submission of the final audit report;
(v) Ensure that all personnel involved in the audit sign and date
the conflict of interest statement in Sec. 68.59(c)(1)(v); and
(vi) Ensure that all personnel involved in the audit do not accept
future employment with the owner or operator of the stationary source
for a period of at least 3 years following submission of the final
audit report. For purposes of this requirement, employment does not
include performing or participating in third-party audits pursuant to
Sec. 68.59 or Sec. 68.80.
(3) The auditor shall have written policies and procedures to
ensure that all personnel comply with the competency, independence, and
impartiality requirements of this section.
(c) Third-party audit report. The owner or operator shall ensure
that the auditor prepares and submits an audit report as follows:
(1) The scope and content of each audit report shall:
(i) Identify the lead auditor or manager, participating
individuals, and any other key persons participating in

[[Page 13705]]

the audit, including names, titles, and summaries of qualifications
demonstrating that the competency requirements in paragraph (b)(1) of
this section are met;
(ii) Document the auditor's evaluation, for each covered process,
of the owner or operator's compliance with the provisions of this
subpart to determine whether the procedures and practices developed by
the owner or operator under this rule are adequate and being followed;
(iii) Document the findings of the audit, including any identified
compliance or performance deficiencies;
(iv) Include a summary of the owner's or operator's comments on,
and identify any adjustments made by the auditor to, any draft audit
report provided by the auditor to the owner or operator for review or
comment; and
(v) Include the following certification, signed and dated by the
auditor or supervising manager for the audit:

I certify that this RMP compliance audit report was prepared
under my direction or supervision in accordance with a system
designed to assure that qualified personnel properly gather and
evaluate the information upon which the audit is based. I further
certify that the audit was conducted and this report was prepared
pursuant to the requirements of subpart C of 40 CFR part 68 and all
other applicable auditing, competency, independence, impartiality,
and conflict of interest standards and protocols. Based on my
personal knowledge and experience, and inquiry of personnel involved
in the audit, the information submitted herein is true, accurate,
and complete. I am aware that there are significant penalties for
submitting false information, including the possibility of fines and
imprisonment for knowing violations.

(2) The auditor shall retain copies of all audit reports and
related records for a period of five years, and make them available if
directed by the owner or operator, to the owner or operator and/or the
implementing agency.
(3) The auditor shall submit the audit report to the implementing
agency at the same time, or before, it provides it to the owner or
operator.
(4) The audit report and related records shall not be privileged as
attorney-client communications or attorney work products, even if
written for or reviewed by legal staff.
(d) Third-party audit findings. (1) Findings response report. As
soon as possible, but no later than 90 days after receiving the final
audit report, the owner or operator shall determine an appropriate
response to each of the findings in the audit report, and develop and
provide to the implementing agency a findings response report that
includes:
(i) A copy of the final audit report;
(ii) An appropriate response to each of the audit report findings;
(iii) A schedule for promptly addressing deficiencies; and
(iv) A certification, signed and dated by a senior corporate
officer, or an official in an equivalent position, of the owner or
operator of the stationary source, stating:

I certify under penalty of law that the attached RMP compliance
audit report was received, reviewed, and responded to under my
direction or supervision by qualified personnel. I further certify
that appropriate responses to the findings have been identified and
deficiencies were corrected, or are being corrected, consistent with
the requirements of subpart C of 40 CFR part 68, as documented
herein. Based on my personal knowledge and experience, or inquiry of
personnel involved in evaluating the report findings and determining
appropriate responses to the findings, the information submitted
herein is true, accurate, and complete. I am aware that there are
significant penalties for submitting false information, including
the possibility of fines and imprisonment for knowing violations.

(2) Schedule to address deficiencies. The owner or operator shall
implement the schedule to address deficiencies identified in the audit
findings response report in paragraph (d)(1)(iii) of this section and
document the action taken to address each deficiency, along with the
date completed.
(3) Submission to board of directors. The owner or operator shall
immediately provide a copy of each document required under paragraphs
(d)(1) and (d)(2) of this section, when completed, to the owner or
operator's audit committee of the Board of Directors, or other
comparable committee, if one exists.
(e) Recordkeeping. The owner or operator shall retain at the
stationary source, the following:
(1) The two most recent third-party audit reports, related findings
response reports, documentation of actions taken to address
deficiencies, and related records. This requirement does not apply to
any document that is more than five years old.
(2) Copies of all draft third-party audit reports. The owner or
operator shall provide draft third-party audit reports to the
implementing agency upon request. This requirement does not apply to
any draft audit reports that are more than five years old.
0
11. Amend Sec. 68.60 by:
0
a. Revising paragraph (a);
0
b. Redesignating paragraphs (c) through (f) as paragraphs (d) through
(g);
0
c. Adding a new paragraph (c); and
0
d. Revising the newly designated paragraphs (d) and (g).
The revisions and additions read as follows:

Sec. 68.60 Incident investigation.

(a) The owner or operator shall investigate each incident that:
(1) Resulted in a catastrophic release (including when the affected
process is decommissioned or destroyed following, or as the result of,
an incident); or
(2) Could reasonably have resulted in a catastrophic release (i.e.,
was a near miss).
* * * * *
(c) An incident investigation team shall be established and consist
of at least one person knowledgeable in the process involved and other
persons with appropriate knowledge and experience to thoroughly
investigate and analyze the incident.
(d) A report shall be prepared at the conclusion of the
investigation. The report shall be completed within 12 months of the
incident, unless the implementing agency approves, in writing, an
extension of time. The report shall include:
(1) Date, time, and location of incident;
(2) Date investigation began;
(3) A description of the incident, in chronological order,
providing all relevant facts;
(4) The name and amount of the regulated substance involved in the
release (e.g., fire, explosion, toxic gas loss of containment) or near
miss and the duration of the event;
(5) The consequences, if any, of the incident including, but not
limited to: injuries, fatalities, the number of people evacuated, the
number of people sheltered in place, and the impact on the environment;
(6) Emergency response actions taken;
(7) The factors that contributed to the incident including the
initiating event, direct and indirect contributing factors, and root
causes. Root causes shall be determined by conducting an analysis for
each incident using a recognized method; and
(8) Any recommendations resulting from the investigation and a
schedule for addressing them.
* * * * *
(g) Incident investigation reports shall be retained for five
years.
0
12. Amend Sec. 68.65 by revising the first sentence of paragraph (a)
and the note to paragraph (b) to read as follows:

Sec. 68.65 Process safety information.

(a) The owner or operator shall complete a compilation of written
process safety information before conducting any process hazard
analysis required by the rule, and shall keep process safety
information up-to-date. * * *

[[Page 13706]]

(b) * * *
Note to paragraph (b): Safety Data Sheets (SDS) meeting the
requirements of 29 CFR 1910.1200(g) may be used to comply with this
requirement to the extent they contain the information required by this
subparagraph.
* * * * *
0
13. Amend Sec. 68.67 by:
0
a. Revising paragraph (c)(2);
0
b. In paragraph (c)(6) removing the word ``and'';
0
c. In paragraph (c)(7) removing the period at the end of the paragraph
and adding ``; and'' in its place; and
0
d. Adding paragraph (c)(8).
The revisions and additions read as follows:

Sec. 68.67 Process hazard analysis.

* * * * *
(c) * * *
(2) The findings from all incident investigations required under
section 68.81, as well as any other potential failure scenarios;
* * * * *
(8) For processes in NAICS 322, 324, and 325, safer technology and
alternative risk management measures applicable to eliminating or
reducing risk from process hazards.
(i) The owner or operator shall consider, in the following order of
preference, inherently safer technology or design, passive measures,
active measures, and procedural measures. A combination of risk
management measures may be used to achieve the desired risk reduction.
(ii) The owner or operator shall determine the feasibility of the
inherently safer technologies and designs considered.
* * * * *
0
14. Amend Sec. 68.71 by adding paragraph (d) to read as follows:

Sec. 68.71 Training.

* * * * *
(d) For the purposes of this section, the term employee also
includes supervisors with process operational responsibilities.
0
15. Amend Sec. 68.79 by revising paragraph (a) and adding paragraphs
(f) through (h) to read as follows:

Sec. 68.79 Compliance audits.

(a) The owner or operator shall certify that they have evaluated
compliance with the provisions of this subpart for each covered
process, at least every three years to verify that the procedures and
practices developed under the rule are adequate and are being followed.
When required as set forth in paragraph (f), the compliance audit shall
be a third-party audit.
* * * * *
(f) Third-party audit applicability. The next required compliance
audit shall be a third-party audit when one of the following conditions
apply:
(1) An accidental release meeting the criteria in Sec. 68.42(a)
from a covered process at a stationary source has occurred; or
(2) An implementing agency requires a third-party audit based on
non-compliance with the requirements of this subpart, including when a
previous third-party audit failed to meet the competency, independence,
or impartiality criteria of Sec. 68.80(b).
(g) Implementing agency notification and appeals. (1) If an
implementing agency makes a preliminary determination that a third-
party audit is necessary pursuant to paragraph (f)(2) of this section,
the implementing agency will provide written notice to the owner or
operator stating the reasons for the implementing agency's
determination.
(2) Within 30 days of receipt of such written notice, the owner or
operator may provide information and data to, and may consult with, the
implementing agency on the determination. Thereafter, the implementing
agency will provide a final determination to the owner or operator.
(3) If the final determination requires a third-party audit, the
owner or operator shall comply with the requirements of Sec. 68.80,
pursuant to the schedule in paragraph (h) of this section.
(4) Appeals. The owner or operator may appeal a final determination
made by an implementing agency under paragraph (g)(2) of this section
within 30 days of receipt of the final determination. The appeal shall
be made to the EPA Regional Administrator, or for determinations made
by other implementing agencies, the administrator or director of such
implementing agency. The appeal shall contain a clear and concise
statement of the issues, facts in the case, and any relevant additional
information. In reviewing the appeal, the implementing agency may
request additional information from the owner or operator. The
implementing agency will provide a written, final decision on the
appeal to the owner or operator.
(h) Schedule for conducting a third-party audit. The audit and
audit report shall be completed, and the audit report submitted to the
implementing agency pursuant to Sec. 68.80(c)(3) as follows, unless a
different timeframe is specified by the implementing agency:
(1) Within 12 months of when any third-party audit is required
pursuant to paragraphs (f) and/or (g) of this section; or
(2) Within three years of completion of the previous compliance
audit, whichever is sooner.
0
16. Section 68.80 is added to subpart D to read as follows:

Sec. 68.80 Third-party audits.

(a) Applicability. The owner or operator shall engage a third-party
auditor to evaluate compliance with the provisions of this subpart in
accordance with the requirements of this section when either criterion
of Sec. 68.79(f) is met.
(b) Auditor qualifications. The owner or operator shall determine
and document that the auditor and/or audit team are independent and
impartial, and that the auditor's or audit team's credentials address
the following competency requirements:
(1) Competency requirements. The auditor/auditor team shall be:
(i) Knowledgeable with the requirements of this part;
(ii) Experienced with the stationary source type and processes
being audited and applicable recognized and generally accepted good
engineering practices;
(iii) Trained or certified in proper auditing techniques; and
(iv) A licensed PE, or shall include a licensed PE on the audit
team.
(2) Independence and impartiality requirements. The auditor/audit
team shall:
(i) Act impartially when performing all activities under this
section;
(ii) Receive no financial benefit from the outcome of the audit,
apart from payment for the auditing services;
(iii) Not have conducted past research, development, design,
construction services, or consulting for the owner or operator within
the last 3 years. For purposes of this requirement, consulting does not
include performing or participating in third-party audits pursuant to
Sec. 68.59 or Sec. 68.80;
(iv) Not provide other business or consulting services to the owner
or operator, including advice or assistance to implement the findings
or recommendations in an audit report, for a period of at least 3 years
following submission of the final audit report;
(v) Ensure that all personnel involved in the audit sign and date
the conflict of interest statement in Sec. 68.59(c)(1)(v); and
(vi) Ensure that all personnel involved in the audit do not accept
future employment with the owner or operator of the stationary source
for a period of at least 3 years following submission of

[[Page 13707]]

the final audit report. For purposes of this requirement, employment
does not include performing or participating in third-party audits
pursuant to Sec. Sec. 68.59 or 68.80.
(3) The auditor shall have written policies and procedures to
ensure that all personnel comply with the competency, independence, and
impartiality requirements of this section.
(c) Third-party audit report. The owner or operator shall ensure
that the auditor prepares and submits an audit report as follows:
(1) The scope and content of each audit report shall:
(i) Identify the lead auditor or manager, participating
individuals, and any other key persons participating in the audit,
including names, titles, and summaries of qualifications demonstrating
that the competency requirements in paragraph (b)(1) of this section
are met;
(ii) Document the auditor's evaluation, for each covered process,
of the owner or operator's compliance with the provisions of this
subpart to determine whether the procedures and practices developed by
the owner or operator under this rule are adequate and being followed;
(iii) Document the findings of the audit, including any identified
compliance or performance deficiencies;
(iv) Include a summary of the owner's or operator's comments on,
and identify any adjustments made by the auditor to, any draft audit
report provided by the auditor to the owner or operator for review or
comment; and
(v) Include the following certification, signed and dated by the
auditor or supervising manager for the audit:

``I certify that this RMP compliance audit report was prepared
under my direction or supervision in accordance with a system
designed to assure that qualified personnel properly gather and
evaluate the information upon which the audit is based. I further
certify that the audit was conducted and this report was prepared
pursuant to the requirements of subpart D of 40 CFR part 68 and all
other applicable auditing, competency, independence, impartiality,
and conflict of interest standards and protocols. Based on my
personal knowledge and experience, and inquiry of personnel involved
in the audit, the information submitted herein is true, accurate,
and complete. I am aware that there are significant penalties for
submitting false information, including the possibility of fines and
imprisonment for knowing violations.''

``I certify under penalty of law that the attached RMP
compliance audit report was received, reviewed, and responded to
under my direction or supervision by qualified personnel. I further
certify that appropriate responses to the findings have been
identified and deficiencies were corrected, or are being corrected,
consistent with the requirements of subpart D of 40 CFR part 68, as
documented herein. Based on my personal knowledge and experience, or
inquiry of personnel involved in evaluating the report findings and
determining appropriate responses to the findings, the information
submitted herein is true, accurate, and complete. I am aware that
there are significant penalties for submitting false information,
including the possibility of fines and imprisonment for knowing
violations.''

(2) Schedule to address deficiencies. The owner or operator shall
implement the schedule to address deficiencies identified in the audit
findings response report in paragraph (d)(1)(iii) of this section and
document the action taken to address each deficiency, along with the
date completed.
(3) Submission to board of directors. The owner or operator shall
immediately provide a copy of each document required under paragraphs
(d)(1) and (d)(2) of this section, when completed, to the owner or
operator's audit committee of the Board of Directors, or other
comparable committee, if one exists.
(e) Recordkeeping. The owner or operator shall retain at the
stationary source, the following:
(1) The two most recent third-party audit reports, related findings
response reports, documentation of actions taken to address
deficiencies, and related records. This requirement does not apply to
any document that is more than five years old.
(2) Copies of all draft third-party audit reports. The owner or
operator shall provide draft third-party audit reports to the
implementing agency upon request. This requirement does not apply to
any draft audit reports that are more than five years old.
0
17. Amend Sec. 68.81 by revising paragraphs (a), (d) introductory
text, (d)(1), (d)(3) through (5), and adding paragraphs (d)(6) through
(8) to read as follows:

Sec. 68.81 Incident investigation.

(a) The owner or operator shall investigate each incident that:
(1) Resulted in a catastrophic release (including when the affected
process is decommissioned or destroyed following, or as the result of,
an incident); or
(2) Could reasonably have resulted in a catastrophic release (i.e.,
was a near miss).
* * * * *
(d) A report shall be prepared at the conclusion of the
investigation. The report shall be completed within 12 months of the
incident, unless the implementing agency approves, in writing, an
extension of time. The report shall include:
(1) Date, time, and location of incident;
* * * * *
(3) A description of the incident, in chronological order,
providing all relevant facts;
(4) The name and amount of the regulated substance involved in the
release (e.g., fire, explosion, toxic gas loss of containment) or near
miss and the duration of the event;
(5) The consequences, if any, of the incident including, but not
limited to: Injuries, fatalities, the number of people evacuated, the
number of people sheltered in place, and the impact on the environment;
(6) Emergency response actions taken;
(7) The factors that contributed to the incident including the
initiating event, direct and indirect contributing factors, and root
causes. Root causes shall be determined by conducting an analysis for
each incident using a recognized method; and
(8) Any recommendations resulting from the investigation and a
schedule for addressing them.
* * * * *

[[Page 13708]]

0
18. Revise Sec. 68.90 to read as follows:

Sec. 68.90 Applicability.

(a) Non-responding stationary source. The owner or operator of a
stationary source need not comply with Sec. 68.95 of this part
provided that:
(1) The coordination activities required under Sec. 68.93 indicate
that adequate local public emergency response capabilities are
available to appropriately respond to any accidental release of the
regulated substances at the stationary source;
(2) Appropriate mechanisms are in place to notify emergency
responders when there is a need for a response; and
(3) The LEPC or equivalent has not requested in writing that the
owner or operator comply with the requirements of Sec. 68.95.
(b) Responding stationary source. The owner or operator of a
stationary source shall coordinate response activities as described in
Sec. 68.93. The owner or operator shall also comply with the
requirements of Sec. 68.95 when:
(1) The outcome of the response coordination activities
demonstrates that local public emergency response capabilities are not
adequate to appropriately respond to an accidental release of the
regulated substances at the stationary source; or
(2) The LEPC or equivalent requests in writing that the owner or
operator of the stationary source comply with the requirements of Sec.
68.95.
0
19. Section 68.93 is added to subpart E to read as follows:

Sec. 68.93 Emergency response coordination activities.

The owner or operator of a stationary source shall coordinate
response needs with local emergency planning and response organizations
to ensure resources and capabilities are in place to respond to an
accidental release of a regulated substance.
(a) Coordination shall occur at least annually, and more frequently
if necessary, to address changes: At the source; in the source's
emergency action plan; in local authorities' response resources and
capabilities; or in the local community emergency response plan.
(b) The owner or operator shall document coordination with local
authorities, including: The names of individuals involved and their
contact information (phone number, email address, and organizational
affiliations); dates of coordination activities; and nature of
coordination activities.
(c) The owner or operator shall coordinate potential response
actions as follows:
(1) For stationary sources with any regulated toxic substance held
in a process above the threshold quantity, the owner or operator shall
coordinate potential response actions with the LEPC or equivalent and
ensure that the stationary source is included in the community
emergency response plan developed under 42 U.S.C. 11003; and/or
(2) For stationary sources with only regulated flammable substances
held in a process above the threshold quantity, the owner or operator
shall coordinate response actions with the local fire department.
0
20. Amend Sec. 68.95 by:
0
a. Revising paragraph (a)(1)(i);
0
b. Adding a sentence to the end of paragraph (a)(4); and
0
c. Revising paragraph (c).
The revisions and addition read as follows:

68.95 Emergency response program.

(a) * * *
(1) * * *
(i) Procedures for informing the public and the appropriate
Federal, state, and local emergency response agencies about accidental
releases;
* * * * *
(4) * * * The owner or operator shall review and update the program
annually, or more frequently if necessary, to incorporate
recommendations and lessons learned from emergency response exercises
and/or incident investigations, or other available information.
* * * * *
(c) The emergency response plan developed under paragraph (a)(1) of
this section shall be coordinated with the community emergency response
plan developed under 42 U.S.C. 11003. Upon request of the LEPC or
emergency response officials, the owner or operator shall promptly
provide to the local emergency response officials information necessary
for developing and implementing the community emergency response plan.
0
21. Section 68.96 is added to subpart E to read as follows:

Sec. 68.96 Emergency response exercises.

(a) Notification exercises. At least once each calendar year, the
owner or operator of a stationary source with any Program 2 or Program
3 process shall conduct an exercise of the source's emergency response
notification mechanisms required under Sec. 68.90(a)(2) or Sec.
68.95(a)(1)(i), as appropriate. Owners or operators of responding
stationary sources may perform the notification exercise as part of the
tabletop and field exercises required in Sec. 68.96(b). The owner/
operator shall maintain a written record of each notification exercise
conducted over the last five years.
(b) Emergency response exercise program. The owner or operator of a
stationary source subject to the requirements of Sec. 68.95 shall
develop and implement an exercise program for its emergency response
program, including the plan required under Sec. 68.95(a)(1). When
planning emergency response field and tabletop exercises, the owner or
operator shall coordinate with local public emergency response
officials and invite them to participate in the exercise. The emergency
response exercise program shall include:
(1) Emergency response field exercises. The owner or operator shall
conduct a field exercise involving the simulated accidental release of
a regulated substance (i.e., toxic substance release or release of a
regulated flammable substance involving a fire and/or explosion).
(i) Frequency. The field exercise shall be conducted at least once
every five years, and within one year of any accidental release
required to be reported under Sec. 68.42.
(ii) Scope. The field exercise shall include tests of: Procedures
to notify the public and the appropriate Federal, state, and local
emergency response agencies about an accidental release; procedures and
measures for emergency response actions including evacuations and
medical treatment; communications systems; mobilization of facility
emergency response personnel, including contractors, as appropriate;
coordination with local emergency responders; equipment deployment; and
any other action identified in the emergency response program, as
appropriate.
(2) Tabletop exercises. The owner or operator shall conduct a
tabletop exercise involving the simulated accidental release of a
regulated substance. The exercise shall involve facility emergency
response personnel, response contractors, and local emergency response
and planning officials, as appropriate.
(i) Frequency. The owner or operator of a stationary source shall
conduct tabletop exercises annually, except during the calendar year
when a field exercise is conducted.
(ii) Scope. The exercise shall include tests of: Procedures to
notify the public and the appropriate Federal, state, and local
emergency response agencies; procedures and measures for emergency
response including evacuations and medical treatment; identification of
facility emergency response personnel

[[Page 13709]]

and/or contractors and their responsibilities; coordination with local
emergency responders; procedures for equipment deployment; and any
other action identified in the emergency response plan, as appropriate.
(3) Documentation. The owner/operator shall prepare an evaluation
report within 90 days of each exercise. The report shall include: A
description of the exercise scenario; names and organizations of each
participant; an evaluation of the exercise results including lessons
learned; recommendations for improvement or revisions to the emergency
response exercise program and emergency response program, and a
schedule to promptly address and resolve recommendations.
0
22. Amend Sec. 68.130 by:
0
a. In Table 1, ``List of Regulated Toxic Substances and Threshold
Quantities for Accidental Release Prevention'', under second column
entitled ``CAS No.'', removing the number ``107-18-61'' adding ``107-
18-6'' in its place; and
0
b. Revising Table 4, ``List of Regulated Flammable Substances and
Threshold Quantities for Accidental Release Prevention''.
The revisions read as follows:

Table 4 to Sec. 68.130--List of Regulated Flammable Substances\1\ and Threshold Quantities for Accidental
Release Prevention
[CAS Number Order--63 Substances]
----------------------------------------------------------------------------------------------------------------
Threshold
CAS No. Chemical name quantity (lbs) Basis for listing
----------------------------------------------------------------------------------------------------------------
60-29-7................................. Ethyl ether [Ethane, 1,1'-oxybis- 10,000 g
].
74-82-8................................. Methane......................... 10,000 f
74-84-0................................. Ethane.......................... 10,000 f
74-85-1................................. Ethylene [Ethene]............... 10,000 f
74-86-2................................. Acetylene [Ethyne].............. 10,000 f
74-89-5................................. Methylamine [Methanamine]....... 10,000 f
74-98-6................................. Propane......................... 10,000 f
74-99-7................................. Propyne [1-Propyne]............. 10,000 f
75-00-3................................. Ethyl chloride [Ethane, chloro-] 10,000 f
75-01-4................................. Vinyl chloride [Ethene, chloro-] 10,000 a, f
75-02-5................................. Vinyl fluoride [Ethene, fluoro-] 10,000 f
75-04-7................................. Ethylamine [Ethanamine]......... 10,000 f
75-07-0................................. Acetaldehyde.................... 10,000 g
75-08-1................................. Ethyl mercaptan [Ethanethiol]... 10,000 g
75-19-4................................. Cyclopropane.................... 10,000 f
75-28-5................................. Isobutane [Propane, 2-methyl]... 10,000 f
75-29-6................................. Isopropyl chloride [Propane, 2- 10,000 g
chloro-].
75-31-0................................. Isopropylamine [2-Propanamine].. 10,000 g
75-35-4................................. Vinylidene chloride [Ethene, 1,1- 10,000 g
dichloro-].
75-37-6................................. Difluoroethane [Ethane, 1,1- 10,000 f
difluoro-].
75-38-7................................. Vinylidene fluoride [Ethene, 1,1- 10,000 f
difluoro-].
75-50-3................................. Trimethylamine [Methanamine, N, 10,000 f
N-dimethyl-].
75-76-3................................. Tetramethylsilane [Silane, 10,000 g
tetramethyl-].
78-78-4................................. Isopentane [Butane, 2-methyl-].. 10,000 g
78-79-5................................. Isoprene [1,3,-Butadiene, 2- 10,000 g
methyl-].
79-38-9................................. Trifluorochloroethylene [Ethene, 10,000 f
chlorotrifluoro-].
106-97-8................................ Butane.......................... 10,000 f
106-98-9................................ 1-Butene........................ 10,000 f
106-99-0................................ 1,3-Butadiene................... 10,000 f
107-00-6................................ Ethyl acetylene [1-Butyne]...... 10,000 f
107-01-7................................ 2-Butene........................ 10,000 f
107-25-5................................ Vinyl methyl ether [Ethene, 10,000 f
methoxy-].
107-31-3................................ Methyl formate [Formic acid, 10,000 g
methyl ester].
109-66-0................................ Pentane......................... 10,000 g
109-67-1................................ 1-Pentene....................... 10,000 g
109-92-2................................ Vinyl ethyl ether [Ethene, 10,000 g
ethoxy-].
109-95-5................................ Ethyl nitrite [Nitrous acid, 10,000 f
ethyl ester].
115-07-1................................ Propylene [1-Propene]........... 10,000 f
115-10-6................................ Methyl ether [Methane, oxybis-]. 10,000 f
115-11-7................................ 2-Methylpropene [1-Propene, 2- 10,000 f
methyl-].
116-14-3................................ Tetrafluoroethylene [Ethene, 10,000 f
tetrafluoro-].
124-40-3................................ Dimethylamine [Methanamine, N- 10,000 f
methyl-].
460-19-5................................ Cyanogen [Ethanedinitrile]...... 10,000 f
463-49-0................................ Propadiene [1,2-Propadiene]..... 10,000 f
463-58-1................................ Carbon oxysulfide [Carbon oxide 10,000 f
sulfide (COS)].
463-82-1................................ 2,2-Dimethylpropane [Propane, 10,000 f
2,2-dimethyl-].
504-60-9................................ 1,3-Pentadiene.................. 10,000 f
557-98-2................................ 2-Chloropropylene [1-Propene, 2- 10,000 g
chloro-].
563-45-1................................ 3-Methyl-1-butene............... 10,000 f
563-46-2................................ 2-Methyl-1-butene............... 10,000 g
590-18-1................................ 2-Butene-cis.................... 10,000 f
590-21-6................................ 1-Chloropropylene [1-Propene, 1- 10,000 g
chloro-].
598-73-2................................ Bromotrifluorethylene [Ethene, 10,000 f
bromotrifluoro-].
624-64-6................................ 2-Butene-trans [2-Butene, (E)].. 10,000 f
627-20-3................................ 2-Pentene, (Z)-................. 10,000 g
646-04-8................................ 2-Pentene, (E)-................. 10,000 g
689-97-4................................ Vinyl acetylene [1-Buten-3-yne]. 10,000 f
1333-74-0............................... Hydrogen........................ 10,000 f
4109-96-0............................... Dichlorosilane [Silane, dichloro- 10,000 f
].
7791-21-1............................... Chlorine monoxide [Chlorine 10,000 f
oxide].
7803-62-5............................... Silane.......................... 10,000 f
10025-78-2.............................. Trichlorosilane 10,000 g
[Silane,trichloro-].

[[Page 13710]]

25167-67-3.............................. Butene.......................... 10,000 f
----------------------------------------------------------------------------------------------------------------
\1\A flammable substance when used as a fuel or held for sale as a fuel at a retail facility is excluded from
all provisions of this part (see Sec. 68.126).
Note: Basis for Listing:
\a\ Mandated for listing by Congress.
\f\ Flammable gas.
\g\ Volatile flammable liquid.

0
23. Amend Sec. 68.160 by:
0
a. Revising paragraphs (b)(1), (4), (5), (9), and (12);
0
b. Removing and reserving paragraph (b)(13);
0
c. Revising paragraphs (b)(14) through (18);
0
d. Removing and reserving paragraph (b)(19);
0
e. Revising paragraphs (b)(20)(ii) and (iv); and
0
f. Adding paragraphs (b)(21) through (23).
The revisions and additions reads as follows:

Sec. 68.160 Registration.

* * * * *
(b) * * *
(1) Stationary source name, street, city, county, state, zip code,
latitude and longitude, and description of location that latitude and
longitude represent;
* * * * *
(4) The name, telephone number, mailing address, and email address
of the owner or operator;
(5) The name and title of the person with overall responsibility
for RMP elements and implementation, and the email address for that
person;
* * * * *
(9) The number of full-time equivalent employees at the stationary
source;
* * * * *
(12) If the stationary source has a CAA Title V operating permit,
and if so, the permit number;
* * * * *
(14) The name, mailing address, email address, and telephone number
of the contractor who prepared the RMP (if any);
(15) Source or parent company email address (if an email address
exists);
(16) Source internet address (if an internet address exists);
(17) Phone number at the source for public inquiries (if a public
inquiries phone number exists);
(18) LEPC name, phone number, email address, and internet address
(if applicable and available);
* * * * *
(20) * * *
(ii) Corrections under Sec. 68.195 or for purposes of correcting
minor clerical errors, updating administrative information, providing
missing data elements or reflecting stationary source ownership
changes, and which do not require an update and re-submission as
specified in Sec. 68.190(b);
* * * * *
(iv) Withdrawals of an RMP for any stationary source that was
erroneously considered subject to this part 68;
(21) Whether chemical hazard information has been provided to the
LEPC or emergency response officials, pursuant to Sec. 68.205;
(22) Location or means of public access for chemical hazard
information made available to the public, pursuant to Sec. 68.210; and
(23) Whether a public meeting has been held following an RMP
reportable accident, pursuant to Sec. 68.210(d).
0
24. Amend Sec. 68.170 by:
0
a. Revising paragraph (a);
0
b. Revising paragraph (d);
0
c. Revising paragraphs (e) introductory text, (e)(1), and (f) through
(h);
0
d. Revising paragraphs (i) and (j);
0
e. Removing paragraph (k).
The revisions and additions read as follows:

Sec. 68.170 Prevention program/Program 2.

(a) For each Program 2 process, the owner or operator shall provide
in the RMP the information indicated in paragraphs (b) through (j) of
this section. If the same information applies to more than one covered
process, the owner or operator may provide the information only once,
but shall indicate to which processes the information applies.
* * * * *
(d)(1) Whether safety information requirements, in Sec. 68.48, are
implemented.
(2) A list of all Federal and state regulations, industry-specific
and established company or stationary source design codes and standards
that are applicable, and identify those followed, to demonstrate
compliance with the safety information requirements.
(e) The most recent hazard review or hazard review update
information, pursuant to Sec. 68.50, including:
(1) The date of completion of the most recent hazard review or
hazard review update;
* * * * *
(f) Whether operating procedure requirements, in Sec. 68.52, are
implemented.
(g) Whether training requirements, in Sec. 68.54, are implemented.
(h) Whether maintenance requirements, in Sec. 68.56, are
implemented.
(i)(1) Whether compliance audit requirements, in Sec. 68.58, are
implemented.
(2) The date of the most recent compliance audit.
(3) Whether the most recent compliance audit was a third-party
audit, pursuant to Sec. Sec. 68.58 and 68.59.
(j)(1) Whether incident investigation requirements, in Sec. 68.60,
are implemented.
(2) The date of the most recent incident investigation.
(3) Whether root cause analyses have been completed for all
accidents and incidents that are subject to the incident investigation
requirements in Sec. 68.60.
0
25. Amend Sec. 68.175 by revising paragraphs (a) and (d) through (o)
and removing paragraph (p) to read as follows:

Sec. 68.175 Prevention program/Program 3.

(a) For each Program 3 process, the owner or operator shall provide
the information indicated in paragraphs (b) through (o) of this
section. If the same information applies to more than one covered
process, the owner or operator may provide the information only once,
but shall indicate to which processes the information applies.
* * * * *
(d)(1) Whether process safety information requirements, in Sec.
68.65, are implemented.

[[Page 13711]]

(2) A list of all Federal and state regulations, industry-specific
and established company or stationary source design codes and standards
that are applicable, and identify those followed, to demonstrate
compliance with the process safety information requirements.
(e)(1)The most recent process hazard analysis (PHA) or PHA update
and revalidation information, pursuant to Sec. 68.67, including:
(i) The date of completion of the most recent PHA or update and the
technique used;
(ii) Major hazards identified;
(iii) Process controls in use;
(iv) Mitigation systems in use;
(v) Monitoring and detection systems in use; and
(vi) Changes since the last PHA.
(2)(i) Whether the current PHA addresses safer technology and
alternative risk management measures, as required in Sec. 68.67(c)(8).
(ii) Whether any inherently safer technology or design measures
were implemented.
(iii) If any inherently safer technology or design measures were
implemented, identify the measure and the technology category
(substitution, minimization, simplification, and/or moderation).
(f) Whether operating procedure requirements, in Sec. 68.69, are
implemented.
(g) Whether training requirements, in Sec. 68.71, are implemented.
(h) Whether mechanical integrity requirements, in Sec. 68.73, are
implemented.
(i) Whether management of change requirements, in Sec. 68.75, are
implemented.
(j) Whether pre-startup review requirements, in Sec. 68.77, are
implemented.
(k)(1) Whether compliance audit requirements, in Sec. 68.79, are
implemented.
(2) The date of the most recent compliance audit.
(3) Whether the most recent compliance audit was a third-party
audit, pursuant to Sec. Sec. 68.79 and 68.80.
(l)(1) Whether incident investigation requirements, in Sec. 68.81,
are implemented.
(2) The date of the most recent incident investigation.
(3) Whether root cause analyses have been completed for all
accidents and incidents that are subject to the incident investigation
requirements in Sec. 68.81.
(m) Whether employee participation requirements, in Sec. 68.83,
are implemented.
(n) Whether hot work permit requirements, in Sec. 68.85, are
implemented.
(o) Whether contractor safety requirements, in Sec. 68.87, are
implemented.
0
26. Revise Sec. 68.180 to read as follows:

Sec. 68.180 Emergency response program and exercises.

(a) The owner or operator shall provide in the RMP:
(1) Name, organizational affiliation, phone number, and email
address of local emergency planning and response organizations with
which the stationary source last coordinated emergency response
efforts, pursuant to Sec. 68.10(b)(3) or Sec. 68.93;
(2) Whether coordination with the local emergency response
organizations is occurring at least annually, pursuant to Sec.
68.93(a); and
(3) A list of Federal or state emergency plan requirements to which
the stationary source is subject.
(b) The owner or operator shall identify whether the facility is a
responding stationary source or a non-responding stationary source,
pursuant to Sec. 68.90.
(1) For non-responding stationary sources, the owner or operator
shall identify:
(i) Whether the owner or operator of the stationary source has
confirmed that the local emergency response entity is capable of
responding to accidental releases at the stationary source;
(ii) Whether appropriate mechanisms are in place to notify public
emergency responders when there is a need for emergency response; and
(iii) Whether a notification exercise occurs at least annually, as
required in Sec. 68.96(a).
(2) For responding stationary sources, the owner or operator shall
identify:
(i) Whether the LEPC or local response entity requested the
stationary source to be a responding stationary source as required in
Sec. 68.90(a)(3);
(ii) Whether the stationary source complies with emergency response
program requirements in Sec. 68.95;
(iii) Whether a notification exercise occurs at least annually, as
required in Sec. 68.96(a);
(iv) Whether a field exercise is conducted every five years and
after any RMP reportable accident, pursuant to Sec. 68.96(b)(1)(i);
and
(v) Whether a tabletop exercise occurs at least annually, except
during the calendar year when a field exercise is conducted, as
required in Sec. 68.96(b)(2)(i).
0
27. In Sec. 68.190 amend paragraph (c) by adding a sentence at the end
to read as follows:

Sec. 68.190 Updates.

* * * * *
(c) * * * Prior to de-registration the owner or operator shall meet
applicable reporting and incident investigation requirements in
accordance with Sec. Sec. 68.42, 68.60, and/or 68.81.
0
28. Amend Sec. 68.195 by revising paragraph (a) to read as follows:

Sec. 68.195 Required corrections.

* * * * *
(a) New accident history information. (1) For any accidental
release meeting the five-year accident history reporting criteria of
Sec. 68.42 and occurring after April 9, 2004, the owner or operator
shall submit the data required under Sec. 68.168, except for root
cause information required in Sec. 68.42(b)(10), with respect to that
accident within six months of the release or by the time the RMP is
updated under Sec. 68.190, whichever is earlier.
(2) Root cause information required under Sec. 68.42(b)(10) shall
be submitted within 12 months, or by the alternative timeframe provided
by an implementing agency, as specified in Sec. Sec. 68.60(d) or
68.81(d).
* * * * *
0
29. Revise Sec. 68.200 to read as follows:

Sec. 68.200 Recordkeeping.

The owner or operator shall maintain records supporting the
implementation of this part at the stationary source for five years,
unless otherwise provided in subpart D of this part.
0
30. Section Sec. 68.205 is added to subpart H to read as follows:

Sec. 68.205 Availability of information to the LEPC or emergency
response officials.

(a) RMP availability. The RMP required under subpart G of this part
shall be available to local emergency responders and LEPCs under 42
U.S.C. 7414(c) and 40 CFR part 1400.
(b) Chemical hazard information. The owner or operator of a
stationary source shall develop summaries of chemical hazard
information for all regulated processes and provide the information,
upon request, to the LEPC or emergency response officials. Information
shall include, as applicable:
(1) Information on regulated substances. Names and quantities of
regulated substances held in a process.
(2) Accident history information. Provide the five-year accident
history information required to be reported under Sec. 68.42.
(3) Compliance audit reports. Summaries of compliance audit reports
developed in accordance with Sec. Sec. 68.58, 68.59, 68.79, or 68.80,
as applicable, updated as part of the calendar year submission
described in subparagraph (c). The summary shall include:

[[Page 13712]]

(i) The date of the report;
(ii) Name and contact information of auditor and facility contact
person;
(iii) Brief description of the findings;
(iv) An appropriate response to each of the findings; and
(v) Schedule for addressing each of the findings, as applicable.
(4) Incident investigation reports. Summaries of incident
investigation reports developed in accordance with Sec. 68.60(d) or
Sec. 68.81(d), as applicable. The summary shall include:
(i) Description of the incident and events leading up to it,
including a timeline;
(ii) Brief description of the process involved;
(iii) Names and contact information of personnel on the
investigation team;
(iv) Direct, contributing, and root causes of the incident;
(v) On-site and offsite impacts;
(vi) Emergency response actions taken;
(vii) Recommendations; and
(viii) Schedule for implementing recommendations, as applicable.
(5) Inherently safer technology. For each process in NAICS codes
322, 324, and 325, provide a summary of the inherently safer
technologies (IST) or inherently safer designs (ISD) implemented or
planned, in accordance with Sec. 68.67(c)(8). Update the summary, as
part of the calendar year submission described in subparagraph (c), and
following any revisions prepared in accordance with 68.67(f) and
indicate when no revisions are incorporated, as applicable. The summary
shall include:
(i) The RMP process ID and process description, if provided, of the
process affected;
(ii) A brief description of the IST or ISD and which IST/ISD type
of measure best characterizes it: Minimization, substitution,
moderation or simplification;
(iii) The name of the RMP regulated substance(s) whose hazard,
potential exposure or risk was or will be reduced as a result of the
implementation and whether the substance is listed as a toxic or
flammable. If the chemicals affected are a mixture of flammables, the
name ``flammable mixture'' may be used rather than the individual
flammable substance names; and
(iv) The date of implementation or planned implementation.
(6) Exercises. Information on emergency response exercises required
under Sec. 68.96. The information shall include schedules for upcoming
exercises, reports for completed exercises as described in Sec.
68.96(b)(3), and any other related information.
(c) Submission dates and updates. The owner or operator shall
update summary information every calendar year, including all
applicable information that was revised since the last submission, and
provide the information upon request.
(d) Classified information. The disclosure of information
classified by the Department of Defense or other Federal agencies or
contractors of such agencies shall be controlled by applicable laws,
regulations, or executive orders concerning the release of classified
information.
(e) CBI. An owner or operator asserting CBI for information
required under this section shall provide a sanitized version to the
LEPC or emergency response officials. Assertion of claims of CBI and
substantiation of CBI claims shall be in the same manner as required in
40 CFR 68.151 and 68.152 for information contained in the RMP required
under subpart G of this part. As provided under 40 CFR 68.151(b)(3), an
owner or operator of a stationary source may not claim five-year
accident history information as CBI. As provided in 40 CFR
68.151(c)(2), an owner or operator of a stationary source asserting
that a chemical name is CBI shall provide a generic category or class
name as a substitute.
0
31. Revise Sec. 68.210 to read as follows:

Sec. 68.210 Availability of information to the public.

(a) RMP availability. The RMP required under subpart G of this part
shall be available to the public under 42 U.S.C. 7414(c) and 40 CFR
part 1400.
(b) Chemical hazard information. The owner or operator of a
stationary source shall distribute chemical hazard information for all
regulated processes to the public in an easily accessible manner, such
as on a company Web site, including, as applicable:
(1) Regulated substances information. Names of regulated substances
held in a process.
(2) Safety data sheets (SDS). SDSs for all regulated substances
located at the facility.
(3) Accident history information. Provide the five-year accident
history information required to be reported under Sec. 68.42.
(4) Emergency response program. Summary information concerning the
source's compliance with Sec. 68.10(b)(3) or the emergency response
provisions of subpart E, including:
(i) Whether the source is a responding stationary source or a non-
responding stationary source;
(ii) Name and phone number of local emergency response
organizations with which the owner or operator last coordinated
emergency response efforts, pursuant to Sec. 68.180; and
(iii) For sources subject to Sec. 68.95, procedures for informing
the public and local emergency response agencies about accidental
releases;
(5) Exercises. The summary information required under Sec.
68.205(b)(6).
(6) LEPC contact information. Include LEPC name, phone number, and
Web address as available.
(c) Submission dates and updates. The owner or operator shall
update and submit information required under Sec. 68.210(b) every
calendar year, including all applicable information that was revised
since the last update.
(d) Public meetings. The owner or operator of a stationary source
shall hold a public meeting to provide information required under Sec.
68.42 as well as other relevant chemical hazard information, such as
that described in paragraph (b), within 30 days of any accident subject
to reporting under Sec. 68.42.
(e) Classified information. The disclosure of information
classified by the Department of Defense or other Federal agencies or
contractors of such agencies shall be controlled by applicable laws,
regulations, or executive orders concerning the release of classified
information.
(f) CBI. An owner or operator asserting CBI for information
required under this section shall provide a sanitized version to the
public. Assertion of claims of CBI and substantiation of CBI claims
shall be in the same manner as required in 40 CFR 68.151 and 68.152 for
information contained in the RMP required under subpart G. As provided
under 40 CFR 68.151(b)(3), an owner or operator of a stationary source
may not claim five-year accident history information as CBI. As
provided in 40 CFR 68.151(c)(2), an owner or operator of a stationary
source asserting that a chemical name is CBI shall provide a generic
category or class name as a substitute.

[FR Doc. 2016-05191 Filed 3-11-16; 8:45 am]
BILLING CODE 6560-50-P

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