HAZCOM and PSM Standards for Petrochemical Companies: Practical - - PowerPoint PPT Presentation

HAZCOM and PSM Standards for Petrochemical Companies: Practical Strategies on How to Comply with New Requirements

Presenters: Mark Dreux, Partner, ArentFox Anne Sefried, Field Applications Specialist, BIOVIA

Presenter: Mark Dreux

Mark Dreux is the head of the OSHA Group in ArentFox’s Labor & Employment Practice and is nationally recognized for his work in occupational safety and health law. He focuses on representing employers and trade associations in all aspects of the Occupational Safety and Health Act (OSH Act). Mark’s practice includes counseling clients in regulatory compliance with the standards and regulations which OSHA and the state plans have promulgated, investigating significant workplace incidents, managing OSHA inspections, contesting OSHA citations, defending employers in OSHA enforcement actions, conducting safety and health audits and due diligence reviews, and engaging in regulatory advocacy.

Presenter: Anne Sefried

Anne is a Presales Field Applications Engineer working for Dassault Systems BIOVIA. She currently provides technical expertise is support of sales globally in regards to CISPro and chemical inventory management. Anne has over a decade of experience in chemical management operations, regulatory compliance, and best practices solution implementation. Anne graduated from Chapman University with a B.S. in Computer Information Systems.

Agenda

Ø Overview of HazCom and PSM Ø Hazard Classifications Ø Labeling and SDS Requirements Ø Significant Changes PSM Ø Hazardous Chemical Management Ø Best Practices Solutions Ø Q&A

Overview

Hazcom 2012 (AKA GHS)

Ø Key Definitions Ø Summary Ø Hazard Classifications Ø Labels Ø Safety Data Sheets (“SDS”) Ø Good Faith Extension Ø Inspection Issues

PSM Issues

Ø Request for Information Ø Two Interpretative Memoranda Ø One Court Case on PSM Ø SBREFA Process Ø Summary

HAZCOM 2012 (GHS)

Key Definitions

Ø Guidance applies only to chemical manufacturers, importers and distributors – not “upstream suppliers of raw materials.” Ø HCS 2012 Definitions:

§ "Chemical manufacturer" means an employer with a workplace where chemical(s) are produced for use or distribution § "Importer" means the first business with employees within the Customs Territory of the United States which receives hazardous chemicals produced in other countries for the purpose of supplying them to distributors or employers within the United States. § "Distributor" means a business, other than a chemical manufacturer or importer, which supplies hazardous chemicals to other distributors or to employers.

Ø Guidance memorandum additionally mentions “product formulators of mixtures” with manufacturers in FAQ section.

Summary of HAZCOM 2012

Ø 2012 – OSHA rolled out new HAZCOM Standard (HCS) § Biggest changes:

– Classification of hazards – Appx. A (health) and B (physical) – Labeling and MSDS requirements brought into alignment with UN's Globally Harmonized System of Classification and Labeling Chemicals (GHS)

Ø June 1st, 2015 – deadline for employers (including chemical manufacturers and importers) to be in compliance with HCS. Ø Chemical distributors have until December 1, 2015 § All chemical labeling and MSDS (now Safety Data Sheets (SDS)) must be updated

Hazard Classification

Ø Each health or physical hazard is a hazard class.

§ Health Class Examples: carcinogenicity, toxicity, corrosive, asphyxiant, etc. § Physical Class Examples: explosive, flammable gas, combustible dust, etc.

Ø Each health or physical class may be further divided into categories based on severity.

§ Health categories 1-4 § Physical categories Divisions 1.1 – 1.6

Types A-G

Hazard Classification – July 9, 2015 CPL

§ Manufacturers or importers who are evaluating the hazards of the chemicals must consider all available data on the hazards. § The quality and consistency of the data shall be considered. § Both positive and negative results shall be considered together in a single weight-of-evidence determination. § Known intermediates and by-products are covered by the HCS and must be addressed in the hazard classification. § Decomposition products which are produced during normal conditions of use or in foreseeable emergencies for the product (e.g., plastics which are injection molded, diesel fuel emissions) are covered. § Under the HCS 1994, a product, if not tested as a whole, that contained 1% of a hazardous component and 99% of a nonhazardous ingredient, was assumed to present the same hazard as the component. This may not be the case under HCS 2012.

Hazard Classification

Ø Classification of Mixtures (general approach)

1. Use available data on mixture as a whole 2. Use Bridging principles to extrapolate 3. Estimate hazards based on known information (cutoffs may apply)

Ø Each class has its specific approach in Appendices Ø Hazard classification must follow the requirements outlined in Appendices A (health hazard) and B (physical hazard) of the standard.

HAZCOM Classification

Ø Hazard Classification

§ Chemical manufacturers and importers are required to classify the hazards of the chemicals they produce or import. If an employer choses to do its own classifications, it is responsible for complying with the classification requirements of the HCS.

Required Label Information for Shipped Containers

Shipped Containers

Ø Manufacturers, importers, and distributors are required to ensure that each container of hazardous chemicals is appropriately labeled. Labeling requirements apply for shipped containers leaving the workplace. Ø Six Requirements for New Labels on Shipped Containers § Product Identifier § Signal Word § Pictograms § Hazard Statement § Precautionary Statement § Name, Address, Phone Number of Manufacturer, Distributor or Importer

Required Label Information for Shipped Containers

Ø Product Identifier

§ Name or number used to identify a chemical

Ø Signal Word

§ Identifies the severity of potential hazard § “Danger” and “Warning” are only signal words allowed § Only one of them can be used on label

Required Label Information for Shipped Containers

Ø Pictograms

§ Usually identify the health or physical hazard class § 8 types required under the HAZCOM 2012 Standard § Must include symbol, white background and red border to convey specific information about the hazards of a chemical § Size of pictogram must be “sufficiently wide to be clearly visible” § Same pictogram may only appear once on the same label

Pictograms

Required Label Information for Shipped Containers

Ø Hazard Statements

§ Explains hazard class and category § Nature of hazard § May combine hazard statements to save space or improve readability provided all required information is conveyed

Ø Precautionary Statement

Ø Phrase with recommended measures to prevent or minimize adverse effects from exposure, storage, handling, disposal and response Ø Can be arranged in any order Ø Can be combined to save space or improve readability

Ø Name, Address, Phone Number of Manufacturer, Distributor or Importer

Labeling: Common Issues

Ø All labels must be in English, however they can be provided in

• ther languages as well.

Ø OSHA does not specify the format of the label, just the minimum information required on the label. A manufacturer, importer or distributor may add supplemental information to a label, as long as it does not lead to unnecessarily wide variation

• r undermine the required information.

Ø Supplemental information need not be physically separated from the required information on the label. Ø Supplemental information may not impede a user’s ability to identify the required information. Ø Label must be updated within 6 months of receiving new information.

HAZCOM – Safety Data Sheets (“SDS”)

Ø SDS – formerly Material Safety Data Sheets (“MSDS”) Ø Standardized Format for SDS § 16 Sections in a specific order. Ø Sections 1-11 and 16 OSHA Required

HAZCOM – Safety Data Sheets

1. Identification; 2. Hazard(s) identification; 3. Composition/information on ingredients; 4. First-aid measures; 5. Fire-fighting measures; 6. Accidental release measures; 7. Handling and storage; 8. Exposure controls/personal protection; 9. Physical and chemical properties;

• 10. Stability and reactivity;
• 11. Toxicological information.
• 12. Ecological information;
• 13. Disposal considerations;
• 14. Transport information;
• 15. Regulatory information; and
• 16. Other information, including date of preparation or last revision.

Ø OSHA will not enforce Sections 12-15 as outside its jurisdiction

HAZCOM – Safety Data Sheets

Ø Chemical manufacturers and importers must develop safety data sheets in accordance with the HCS 2012 by June 1, 2015. Ø The SDS must be provided and maintained in English. Ø Provided an appropriate SDS with their initial shipment, and with the first shipment after a SDS is updated. Ø Chemical manufacturers or importers that become aware

• f significant new information must update their SDS’s

within three months. Ø TLV’s and IARC/NTP carcinogenicity information must be in SDS’s.

HAZCOM 2012: Common SDS Issues

Ø Generic mixture SDSs

§ A manufacturer, importer, or distributor may create one SDS to cover two or more mixtures that are composed of essentially the same ingredients, have similar hazards, but the specific composition varies from mixture to mixture.

Ø Electronic Distribution of SDS

§ If the manufacturer, importer, or distributor chooses to transmit SDSs electronically they must: ensure that the receiving employer has agreed to receive the SDS electronically. § The manufacturer, distributor, or importer cannot require the employer to purchase new technology in order to access the SDS. § The use of electronic distribution does not eliminate the manufacturer’s, or importer’s obligation under (g)(6)(iv) to provide a hardcopy of the SDS upon request by the distributor or employer.

Common SDS Issues

Ø Employers’ Obligations

§ Employers are required to maintain SDSs (or MSDSs) for each hazardous chemical they use. § Employers must maintain the most recent received version of the SDS (or MSDS). § The employer may make SDSs available to employees on a company website or contract with an off-site/web-based SDS service provider. § Employees must have unrestricted access to SDSs. § SDSs may be stored at a primary workplace instead of a mobile, remote,

• r temporary worksite as long as there are no restrictions to workers’

access, email, smart phone or electronic tablet.

Temporary Relief from HAZCOM Deadlines

Ø February 9, 2015 – OSHA issues enforcement guidance memorandum setting out conditions where certain employers who fail to comply with 6/1/15 deadline will be granted temporary relief § Applies to chemical manufacturers, importers and distributors § Memo differentiates between (1) chemical manufacturers and importers, and (2) chemical distributors § Applies to chemical mixtures only Ø OSHA recognizes there will be situations where chemical manufacturers and importers cannot comply “due to circumstances beyond their control.”

§ Upstream suppliers of raw materials have not provided them with the classifications and SDS information for their chemical mixtures.

Ø Standard for Temporary Relief : OSHA will not cite chemical manufacturers, importers and distributors who fail to comply with the 6/1/15 deadline if they can demonstrate they exercised “reasonable diligence and good faith to comply,” but were unable to

• btain the required hazard information from their respective upstream suppliers in

time.

Temporary Relief from HAZCOM Deadlines

Ø “Reasonable Diligence and Good Faith to Comply”

§ In order to satisfy, employer must provide documentation of its efforts to do three things: (1) “Obtain classification information and SDSs from upstream suppliers;” (2) “Find hazard information from alternative sources (e.g., chemical registries);” and (3) “Classify the data themselves.”

Ø Efforts must include both oral and written communications Ø Inspectors are directed to evaluate whether the employer did the following:

§ (1) “Developed and documented the process used to gather the necessary classification information from its upstream suppliers and the status of such efforts;” § (2) “Developed and documented efforts to find hazard information from alternative sources (e.g., chemical registries);” § (3) “Provided a written account of continued dialogue with its upstream suppliers, including dated copies of all relevant written communication with its upstream suppliers;” § (4) “Provided a written account of continued dialogue with its distributors, including dated copies of all relevant written communication with its distributors informing them why it has been unable to comply with HCS 2012;” and § (5) “Developed the course of action it will follow to make the necessary changes to SDSs and labels.”

Ø Employer must also be in compliance with HCS 1994

Temporary Relief from HAZCOM Deadline

Ø Extended Time to Comply if Burden Satisfied

§ Chemical manufacturers and importers – 6 months from receiving the hazard information from the upstream supplier to create compliant SDS – 6 months from then to update container labeling § Chemical distributors – Will be permitted to ship chemicals with labels and MSDS that comply with the previous HCS until December 1, 2017 § Other employers – According to the Q & A Section of the Memorandum, OSHA will not cite other downstream employers until they receive the updated labeling and SDS

Enforcement Issues

Ø Past is Prologue Ø Anticipated Inspections – Enforcement Priorities from the 1994 HAZCOM Standard

l Programs l Labels l MSDS’s l Training

OSHA Rulemaking: PSM Modernization: Background

Ø In May 2014, EPA, OSHA and DHS issued a report to President recommending, inter alia, § Modernize PSM and RMP § Promote safer technology and alternatives § Increase civil fines (Serious - $7,000 – $12,744; repeats/willfuls - $70,000 - $125,428) § Develop guidelines on best practices for process safety Ø OSHA recommends initiating the Small Business Regulatory Enforcement Fairness Act (SBREFA) review, in order to solicit small business views on modernizing the PSM Standard.

PSM Modernization: The 17 Topics Listed in OSHA’s RFI

Ø Eliminating the PSM Exemption for Atmospheric Storage Tanks Ø Oil and Gas-Well Drilling and Servicing Ø Resuming Enforcement for PSM-Covered Oil and Gas Production Facilities Ø Expanding PSM Coverage and Requirements for Reactive Hazards Ø Updating the List of Highly Hazardous Chemicals in Appendix A of the PSM Standard Ø Revising the PSM Standard to Require Additional Management-System Elements Ø Re-evaluation of Equipment Based on Evolving RAGAGEP Ø Defining RAGAGEP for Employers Ø Expansion of Mechanical Integrity to Any Safety-Critical Equipment Ø Clarifying Paragraph (l) of the PSM Standard with an Explicit Requirement that Employers Manage Organizational Changes Ø Requiring Coordination of Emergency Planning with Local Emergency-Response Authorities Ø Overhauling the Auditing Requirements in Paragraph (o) of the PSM Standard Ø Expansion of 1910.109 to Cover the Dismantling and Disposal of Explosives, Blasting Agents and Pyrotechnics Ø Updating the Flammable Liquid and Spray Finishing Standards Ø Updating the Regulations Addressing the Storage, Handling and Management of Ammonium Nitrate Ø Application of PSM Standard to Retailers that Sell Large or Bulk Quantities of Highly Hazardous Chemicals Ø Changing Enforcement Policy for Highly Hazardous Chemicals Listed in Appendix A of the PSM Standard without Specific Concentrations

KEY

• Yellow: Changes by Memo
• Blue: Changes by Court
• Green: Changes by EPA

PSM Modernization

Ø OSHA has addressed five of its RFI issues:

§ Re-evaluation of Equipment Based on Evolving RAGAGEP § Defining RAGAGEP for Employers § Expansion of Mechanical Integrity to Any Safety-Critical Equipment § Change in Definition of Retail Exemption. § Changing Enforcement Policy for Highly Hazardous Chemicals Listed in Appendix A of the PSM Standard without Specific Concentrations

Ø EPA is addressing two of them:

§ Coordination with local responders § Overhauling audit requirements

PSM Modernization: OSHA’S 6/8/15 Memo re: RAGAGEP

RAGAGEP Background

Ø Recognized and Generally Accepted Good Engineering Practices (RAGAGEP) Ø The term is referenced two times in the PSM Standard:

§ Paragraph (d)(3)(ii) requires employers to document that process equipment complies with RAGAGEP; § Paragraph (j)(4)(ii) requires that testing and inspecting procedures of process equipment to comply with RAGAGEP.

Ø No definition for RAGAGEP in PSM Standard or OSHA administrative guidance.

§ Preamble to PSM Standard states that, “[RAGAGEP] would include appropriate internal standards of a facility, as well as codes and standards published by NFPA, ASTM, ANSI, NFPA, etc.” Process Safety Management of Highly Hazardous Chemicals; Explosives and Blasting Agents, 57 FR 6356-01.

PSM Modernization: OSHA’S 6/8/15 Memo re: RAGAGEP

Definition of RAGAGEP Ø June 8 2015 - OSHA publishes memo defining Recognized and Generally Accepted Good Engineering Practices (RAGAGEP) for the first time. Ø 4 categories of acceptable RAGAGEP:

§ (1) Published and widely adopted codes (e.g., NFPA 70 National Electric codes); § (2) Published consensus documents (e.g., ASME B31.3 Process Piping Code); § (3) Published non-consensus documents (e.g., the Chlorine Institute’s (CI) “pamphlets” that depart from ANSI’s due process requirements for rulemaking and specifically focus on chlorine and sodium hypochlorite (bleach) safety); and § (4) “Appropriate” internal standards set by the employer. Ø HOWEVER: “[e]mployers’ internal standards must either meet or exceed the protective requirements of published RAGAGEP where such RAGAGEP exist.”

Ø Translation: RAGAGEP limited to published codes and standards.

PSM Modernization: OSHA’S 6/8/15 Memo re: RAGAGEP

Shall vs. Should in Published Codes/Standards

Ø Shall

§ OSHA considers “shall” requirements to be “a mandatory minimum requirement.” § OSHA will presume a violation if an employer deviates from either a “shall” or “shall not” requirement in the applicable RAGAGEP.

Ø Should

§ “Should” requirements are the “acceptable and preferred approach.” § OSHA will presume employer compliance with a “should” requirement is “acceptable.” § If an employer does not follow a “should” requirement, the compliance officer will do an evaluation to decide if the alternative practice is as protective as the “should” provision in the code or standard.

– Compliance officer will examine documents (e.g., PHAs and MOCs) to determine if the employer’s approach is as protective as the published RAGAGEP and is a good engineering practice.

§ If an employer engages in “should not” activity, OSHA will presume a violation.

PSM Modernization: OSHA’S 6/8/15 Memo re: RAGAGEP

Internal Standards Ø Employers’ internal standards must either meet or exceed the protective requirements of published RAGAGEP where such RAGAGEP exist.

§ Facility internal standards can serve a number of legitimate purposes, including: § Translating the requirements of published RAGAGEP into detailed corporate or facility implementation programs and/or procedures. § Setting design, installation, maintenance, inspection, and testing requirements for unique processes, equipment, and hazards for which no published RAGAGEP exists. § Supplementing (or augmenting) published RAGAGEP that only partially or inadequately address the employer’s processes, occupancies, conditions, and hazards. In this situation OSHA (and often the publisher) expect employers/users to supplement the published RAGAGEP with their own applicable practices, protocols, and procedures to control hazards.

4

§ Controlling hazards more effectively than the available codes, standards, or practices. § Addressing hazards when the codes and standards used for existing equipment are outdated and no longer describe good engineering practice.

PSM Modernization: OSHA’S 6/8/15 Memo re: RAGAGEP

Internal Standards

Ø OSHA has rejected employer standards that deviated from published RAGAGEP where the deviations were less protective than the published requirements. Ø Whether the internal standards are adequately protective should be reviewed on a case-by-case basis. Nutshell: Published codes and standards will be the legal standard by which OSHA does its evaluations.

PSM Modernization: OSHA’S 6/8/15 Memo re: RAGAGEP Deficiencies Ø Employers must select the RAGAGEP with which their equipment and procedures must comply Ø Equipment covered under PSM’s Mechanical Integrity provisions (listed in 1910.119(j)) that is

• utside acceptable limits, as defined by the process

safety information (including RAGAGEP), is deficient under 1910.119(j)(5). Concern: PSI documents often incorporate codes and standards which OSHA will use against you.

PSM Modernization: OSHA’S 6/8/15 Memo re: RAGAGEP

Potential Avenues for Industry Response

Ø Legal challenge in court § Petition for review of OSHA’s memo filed in DC Court of Appeals

• n August 3, 2015.

Ø Wait for Enforcement Action § OSHA will more than likely point to its memo to support a RAGAGEP citation. § During enforcement action, challenge the document as contrary to PSM Standard and preamble; i.e., inconsistent with definition of RAGAGEP and adoption of published codes/standards. Ø Lobby OSHA and Congress § Industry can send advocacy letters to OSHA and their Congressman challenging the memo.

PSM Modernization: OSHA’s 6/8/15 Memo re: Commercial Grade Rule

Ø June 8 2015 - OSHA publishes memo on PSM “commercial grade” rule for determining PSM applicability of Appendix A materials without a minimum concentration. § Abandons “commercial grade” rule and adopts EPA’s Risk Management Program (RMP) 1% mixture rule. Ø Commercial Grade Rule § The PSM standard applies to “a process which involves a chemical at or above the specified threshold quantities listed in Appendix A” of the PSM Standard. § Of the 137 Appendix A chemicals, 126 do not have a listed minimum concentration, which triggers PSM coverage. § Under the previous OSHA guidance, the triggering concentration for these 126 chemicals was “commercial grade” of the chemical. § Commercial grade - “a typical maximum concentration of the chemical that is commercially available and shipped.” 1994 OSHA Interpretation Letter.

PSM Modernization: Eleven Appendix A Substances With Listed Minimum Concentrations

Ammonia solutions (>44% ammonia by weigh) Cellulose Nitrate (concentration > 12.6% nitrogen) Diacetyl Peroxide (concentration >70) Ethyl Methyl Ketone Peroxide (also Methyl Ethyl Ketone Peroxide; concentration >60%) Hydrogen Peroxide (52% by weight or greater) Methyl Ethyl Ketone Peroxide (concentration >60%) Nitric Acid (94.5% by weight or greater) Oleum (65% to 80% by weight; also called Fuming Sulfuric Acid) Peracetic Acid (concentration >60% Acetic Acid; also called Peroxyacetic Acid) Perchloric Acid (concentration >60% by weight) Peroxyacetic Acid (concentration >60% by Acetic Acid; also called Paracetic Acid)

PSM Modernization: OSHA’s 6/8/15 Memo re: Commercial Grade Rule

Ø New Rule: EPA 1% Rule - OSHA adopts EPA’s 1% rule used in the EPA Risk Management Program rule. Ø How the rule works: § In determining whether a process involves a chemical (whether pure or in a mixture) at or above the specified threshold quantities listed in Appendix A, the employer shall calculate: – (a) the total weight of any chemical in the process at a concentration that meets or exceeds the concentration listed for that chemical in Appendix A, and – (b) with respect to chemicals for which no concentration is specified in Appendix A, the total weight of the chemical in the process at a concentration

• f one percent or greater. However, the employer need not include the

weight of such chemicals in any portion of the process in which the partial pressure of the chemical in the vapor space under handling or storage conditions is less than 10 millimeters of mercury (mm Hg). The employer shall document this partial pressure determination.

PSM Modernization: OSHA’s 6/8/15 Memo re: Commercial Grade Rule

Appendix A FAQs for CSHOs Ø Question 1: A process comprises 100,000 pounds of a one percent hydrofluoric acid solution by weight. Is the process covered by PSM? § OSHA Response: Yes. One percent by weight of 100,000 pounds is 1000 pounds of hydrofluoric acid in solution. The threshold quantity of hydrofluoric acid is 1000 pounds, therefore the process is covered under PSM. Ø Question 2: A process comprises 10,000 pounds of 50 percent diacetyl peroxide

• solution. Is the process covered by PSM?

§ OSHA Response: No. Diacetyl peroxide is specifically listed in Appendix A at concentrations greater than 70 percent. Therefore, solutions containing diacetyl peroxide at less than 70 percent are not covered by PSM regardless of the aggregate amount of the highly hazardous chemical.

PSM Modernization: OSHA’s 6/8/15 Memo re: Commercial Grade Rule

Appendix A FAQs for CSHOs (cont.)

Ø Question 3: An employer shows that his process containing 11,000 pounds of a three percent HHC solution has an HHC partial pressure of 7mmHg. The threshold quantity

• f the HHC is 100 pounds. Is the process covered by PSM?

§ OSHA Response: No. Although HHC is present at a concentration above one percent, and in a threshold quantity exceeding 100 pounds, the employer need not count the threshold quantity because it has shown that the partial pressure of the chemical in the process is less than 10 mmHg. To calculate this, the employer measures the vapor space pressure at 14.7 psia (760 mmHg) and determines, through analysis, that HHC makes up less than 0.9 percent of the mass of the vapor. Therefore, the HHC partial pressure is 760 mmHg x 0.009 = 7 mmHg. § In a similar fashion, the EPA RMP rule addresses the same concept. At 40 CFR 68.115(b)(1), EPA states that the covered material in the portion of the process where the partial pressure is less than 10 mmHg should not be counted towards the threshold quantity.

PSM Modernization: OSHA’s 6/8/15 Memo re: Commercial Grade Rule

Appendix A FAQs for CSHOs (cont.) Ø Question 4: A portion of an interconnected process contains a mixture with less than

• ne percent of the covered HHC. Does this mean that this portion of the process is

not covered under PSM? § OSHA Response: No. An interconnected process is a single process for purposes of coverage under PSM; it is either covered or not covered based on whether the weight of one or more HHCs in any portion of the process that meets

• r exceeds the threshold quantity (TQ) in Appendix A. In determining whether

HHCs in any portion of an interconnected process meet or exceed the TQ, the employer need not count any HHC present in a mixture at a concentration less than one percent by weight. However, the employer must determine the total weight of any HHC in a mixture at a concentration of one percent or greater in any portion of the process, and if the total weight meets or exceeds the TQ, the process, as a whole, is covered. § For TQ calculations, consider any portion of whole process with concentration at ≥ 1%. § Question – are boundaries expanded?

PSM Modernization: OSHA’s 6/8/15 Memo re: Commercial Grade Rule

Appendix A FAQs for CSHOs (cont.) Ø Question 5: Four 55-gallon drums of 48 percent by weight aqueous hydrofluoric acid solution are stored in a warehouse on a single pallet. Does a threshold quantity of hydrogen fluoride exist? § OSHA Response: At 1.15 g/ml, 55 gallons of solution weighs 527.85

• pounds. At a concentration of 48 percent, the weight of HF in each

drum is 253.37 pounds. The aggregate amount of HF, therefore, is 1013.5 pounds (253.37 pounds/drum x 4 drums). The threshold quantity

• f HF is 1000 pounds. Because the storage of the four drums on a

single pallet is considered a single process, a threshold quantity of HF is present. § Proximity is based only on physical location – no analysis. Ø Petition to challenge filed in DC Court of Appeals.

Modernization of PSM

Ø OSHA’s Effective Disregard of Comments from RFI

Re-evaluating Equipment/Evolving RAGAGEP Defining RAGAGEP Retail Exemption Mixture Rule for Appendix A substances

Ø Facts:

§ Positive Pressure Unit for Control Room § Ventilation System – intake stack, fan and sparger § Sensors for positive Pressure and LEL § No operational connection to process

Ø Commission concluded: “that the PPU is “process equipment” because: (1) “the PPU has sensors to monitor air pressurization and combustible gas levels, thus satisfying examples of a ‘control’ in the standard’s text” and (2) “the PPU is an integral part of the FCC unit control room, which itself is a ‘mechanism used to regulate or guide the operation of a machine or an apparatus or system,’ Webster’s Third New Int’l Dictionary 496-97 (1986) . . . .” Ø Case is on appeal

Delek Court Case: Safety Critical Equipment

PSM Modernization: OSHA Rulemaking Update – PSM and SBREFA Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)

Ø “In 1996, Congress passed the Small Business Regulatory Enforcement Fairness Act, or SBREFA, in response to concerns expressed by the small business community that Federal regulations were too numerous, too complex and too expensive to implement. SBREFA was designed to give small businesses assistance in understanding and complying with regulations and more of a voice in the development of new regulations…”1

_________________________

• 1. SBA’s webpage answering question “What is SBREFA?”

PSM Modernization: OSHA Rulemaking Update – PSM and SBREFA

SBREFA Process (continued)

Ø Agency provides draft rule and economic analysis Ø Small Enterprise Representatives (“SER”) get to:

§ Review draft Rule § Comment and proposed revisions § Provided own economic data

PSM Modernization and SBREFA

Ø “Small Enterprise” is not limited to “mom and pop

• perations”

Ø SBA has eligibility criteria is based on number of employees:

Example: Subsector 324 – Petroleum and Coal Products Manufacturing

– 324110 Petroleum Refineries (plus 125,000 BPD) 1500 (employees) – 324121 Asphalt Paving Mixture and Block Manufacturing 500 – 324122 Asphalt Shingle and Coating Materials Manufacturing 750 – 324191 Petroleum Lubricating Oil and Grease Manufacturing 500 – 324199 All Other Petroleum and Coal Products Manufacturing 500

PSM Modernization and SBREFA

SBREFA Process

Ø OSHA filed the SBREFA Notice on June 8, 2015. Ø OSHA’s draft rule and draft economic analysis was due on August 7, 2015. (Late) Ø OSHA just announced that it will delay its SBREFA process until January, 2016.

Recommendation:

q Develop data and arguments q Prepare for more litigation

Summary of OSHA’s Actions and Impact on SBREFA Process

Ø Given the Memos; OSHA’s pattern disregards industry’s concerns Ø RAGAGEP, mixture rule, and retail memos are subject to Court challenges Ø OSHA is resolute on its goals Ø SBREFA process will be challenging Ø Court challenges to memos and citations critical Ø Political input especially during Congressional budget cycle critical Ø Review of your own PSI and other documents for discussion of RAGAGEP Ø Future drafting of codes and standards

How does chemical inventory management help ensure compliance with HAZCOM and PSM Standards ?

What Do We Know?

ü New Classifications of Materials ü New Labeling Elements and Requirement ü New Safety Data Sheets

GHS Transition

• New Label Elements

1. Product Identifier 2. Signal Word 3. Hazard Statement 4. Precautionary Statement 5. Supplier Identification 6. Pictograms

What are the Challenges?

ü Not knowing what chemicals are on site ü Not knowing what SDS need updating ü No place to track new classifications ü No way to print GHS compliant labels ü No simple means to update chemical or SDS info

What is the Common Denominator?

• INCLUDING A LIST OF THE HAZARDOUS

CHEMICALS IN THE WORKPLACE

How Do I Address This?

• Use ‘Off the Shelf’ Web-

based Solution

• Implement Centralized

Receiving

• Get the Right People

Involved

• Barcode

All Inventory

• Adopt Simple

Workflows

• Incorporate Safety and

Compliance

BIOVIA CISPro

• Real-time barcode system
• Manage chemicals, biologicals, supplies
• Track inventory receipt to disposal
• Easy to use, intuitive user interface
• Location, owner, expiration date monitoring
• Product-specific SDS management
• Regulatory association and reporting
• Email notifications

Bridge the Gap

• Ability to track GHS elements per chemical
• Ability to track/report on SDS revision date
• Ability to differentiate MSDS/SDS for easy visibility

Tips & Solutions to Ensure Compliance

• Ability to print GHS compliant labels

Tips & Solutions to Ensure Compliance

u Accurate chemical inventory management is the basis for accurate hazardous materials reporting and compliance u Successful compliance is knowing how regulations affect the

• rganization, how to address those

regulations, and streamlining chemical and hazardous materials workflows to ensure the accurate chemical inventory data and site safety

Summary

HAZCOM and PSM Standards for Petrochemical Companies: Practical Strategies on How to Comply with New Requirements

Q&A

www.Managing-OSHA.com www.accelrys.com/CISPro