Wade Foster

Manager, Regulatory and Scientific Affairs

February 22, 2016

Process Safety Management

The Fertilizer Institute

Mission:

• Engage in legislative and regulatory activities to achieve desire public policy outcomes

• Promote a favorable public image of the industry and agriculture, generally

• Share knowledge about the fertilizer industry with members, government and the agriculture industry.

Intent

• PSM = Onsite

• RMP = Offsite

• Protect workers

• Minimize risk and consequence of catastrophic releases

– Toxic

–Reactive

– Flammable

– Explosive

• Minimize offsite risks and protect the surrounding community

• Make it easier for first responders to safely respond

1974 - Flixborough, England • 28 deaths

1984 - Bhopal, India • over 2,000 deaths

1984 - Mexico City, Mexico • over 650 deaths

1989 - Pasadena, TX • 23 deaths, 132 injuries

2001 - Toulouse, France • 31 deaths, over 2,400 injuries

2005 - Texas City, Texas • 15 deaths, 170 injuries

Phillips 66 Explosion, Pasadena, TX -

1989

History

• 1990 – Clean Air Act Amendments – Authorize PSM and RMP

• 1992 – PSM Standard

• 1996 – RMP Rule

• 2007 – National Emphasis Program for Refineries

• August 2013 – Executive Order 13650, “Improving Chemical Facility Safety and Security”

• July 2015 – OSHA Changes “Retail Exemption” for PSM

Preamble

• When OSHA report on the Special Emphasis Program for the Chemical Industry found that "specification standards will not ensure safety in the chemical industry because such standards tend to freeze technology and may minimize rather than maximize employers safety efforts." The report recommended a new approach to the identification and prevention of potentially catastrophic situations. This approach would involve "performance-oriented standards to address the overall management of chemical production and handling systems.“

• The recommendations it contains are a systematic approach to chemical process hazards management which, when implemented, will ensure that the means for preventing catastrophic release, fire, and explosion are understood, and that the necessary preventive measures and lines of defense are installed and maintained.

• The OSHA proposed standard established a comprehensive management program; a holistic approach that integrated technologies, procedures, and management practices.

West Fertilizer - 2013

• Regulatory Oversight

• Hazard Awareness • Emergency Planning and

Response

• FGAN Storage Practices

• Land Use Planning and Zoning

Public Opinion

83 78 73 73 70 67 57

10 15 22 22 25 26 29

Meeting NFPAStandards

Changing ZoningRules

EliminatingExemption from

Community Rightot Know Act

Extending OSHARegulations to AN

Expanding CleanAir Act

EliminatingExemption from

OSHA SafetyMgmt Standard

Eliminating Use ofAN

Do you support or oppose the following proposals for new regulations on the fertilizer industry?

Favorable Unfavorable

“Retail Exemption”

• Initially: 50% of sales of HHC to “end user”

• July 2015: Any facility holding above threshold quantities of HHCs not in NAICS 44 or 45 “retail codes”

• Ag Retail: 424910 “Farm supply merchant wholesalers”

–3,800 facilities with RMP 2

– If it walks like a duck and quacks, it’s a duck

• “Enforcement discretion” until July 22, 2016

• Triggers RMP 3

PSM • Covers facilities that handle or store “Highly Hazardous Chemicals”

– Anhydrous Ammonia (10,000lbs)

– Aqua Ammonia (>40% Ammonia by Concentration) (15,000lbs)

– Propane*

• 14 Elements 1. Process Safety Information 2. Process Hazard Analysis 3. Operating Procedures 4. Training 5. Contractors 6. Mechanical Integrity 7. Hot Work 8. Management of Change 9. Incident Investigation 10. Compliance Audits 11. Trade Secrets 12. Employee Participation 13. Pre-startup Safety Review

14. Emergency Planning and Response

• Recognized as Generally Acceptable and Good Engineering Practices (RAGAGEP)

• National Chemical Emphasis Program =

More Inspections

RMP 2 vs RMP 3 RMP 2 RMP 3

Worst-case release analysis Worst-case release analysis

Alternative release analysis Alternative release analysis

5-year accident history 5-year accident history

Document management system Document management system

Safety Information Process Safety Information

Hazard Review Process Hazard Analysis

Training Training

Maintenance Mechanical Integrity

Incident Investigation Incident Investigation

Compliance Audit Compliance Audit

Management of Change

Pre-Startup Review

Contractors

Employee Participation

Hot Work Permits

Develop plan and program and coordinate with local

responders Develop plan and program and coordinate with local

responders

Submit one Risk Management Plan for All Covered

Processes Submit one Risk Management Plan for All Covered

Processes

Looking Ahead

• Litigation: ARA & TFI

• Congress:

–Appropriations Rider: “No funds shall be used…”

• Compliance

–Compliance with PSM: October 1, 2016

–Submit RMP 3 to EPA: March 31, 2017 (or 6 months after OSHA compliance date)

• Rulemaking

–RMP: Next six months

–PSM: SBREFA Panel

Compliance

Compliance

Questions?

wfoster@tfi.org