How to Survive EPA/OSHA Audits 1 Resume - ComPSM ComPSM - - PDF document

1

How to Survive EPA/OSHA Audits

1

Resume - ComPSM

ComPSM

• Aerospace/Mechanical/Nuclear Engineers
• PE License
• 40 years combined NH3 PSM experience among 3 primes
• Audit consulting experience with customers in many regions with both EPA

and OSHA

• Member of RETA, IARW, IIAR

Max

• Worked in PSM/RMP since January 2000
• 10 Years in Secondary Nuclear Plant Piping/Valve Systems
• Started ComPSM with Tom Henry in 2003
• Developed two complete PSM Programs
• Audit consulting experience mitigating/eliminating penalties for customers
• Performed Dozens of Audits across country
• Performed Dozens of PHAs across country

2

2

Process Safety Management (PSM)

– Occupational Safety & Health Administration (OSHA) – OSHA 29 CFR 1910.110 (Process Safety Management of Highly Hazardous Chemicals) – “inside” the plant (loosely speaking)

Risk Management Program (RMP)

– Environmental Protection Agency (EPA) – EPA 40 CFR Part 68 (Accidental Release Prevention Requirements: Risk Management Programs Under Clean Air Act Section 112(r)(7) – “outside” the plant (loosely speaking)

PLUS the General Duty Clause!!!

What are PSM and RMP?

3

Consequences – “OSHA/EPA Shock and Awe” - 1

4

3

Consequences – “OSHA/EPA Shock and Awe” - 2

5

Consequences – “OSHA/EPA Shock and Awe” - 3

6

4

Consequences – “OSHA/EPA Shock and Awe” - 4

7

Why Me???

“Why did my company get chosen???”

– “Name out of a hat” – Injury/Illness – Ammonia release – Whistleblower (OSHA/EPA are often skeptical of these)

National Emphasis Program (NEP)

– OSHA Program – Focuses on „problematic companies‟ – Multi-day grilling

8

5

What’s the Difference Between EPA/OSHA Audits? - 1 EPA (UNDER NORMAL AUDIT CONDITIONS!!!)

– EPA less intrusive – EPA audits are shorter – EPA audits last a half day to a day – EPA seems to be more forgiving than OSHA for plants with less problems – Not super knowledgeable of NH3 refrigeration, but getting training – EPA Audits add environmental issues – On average, EPA fines appear to be less, but when they fine… they fine BIG!!! – EPA and expedited settlements

• Started in January 2004
• Only minor, easily correctable violations.
• Not if violations pose an imminent/substantial endangerment to

human health or the environment

• Title V sources are not eligible for an ESA
• Fines less than $7,500

9

What’s the Difference Between EPA/OSHA Audits? - 2 OSHA

– OSHA walks in door – SURPRISE!!! – Currently focusing on „repeat offenders‟ (NEP) – Metastasizing through a company

• Communicate within your company!!!

– Will focus EXCEPTIONALLY heavy on mechanical integrity – The secret checklist! – OSHA auditors are likely to show up for several „sessions‟ 3-4 visits totaling 20+ hours – At times appear to be digging aimlessly (actually may be?) – OSHA auditors tend to take info back for advice from more knowledgeable people and the COME back – Not super knowledgeable of NH3 refrigeration – Have heard of two auditors who were actually verbally aggressive – Have often overstepped/overstated requirements!

10

6

Current Key Areas of Review General Overview of PSM Mechanical Integrity!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Speed of resolution of recommendations (PHA/Audits) Timing of PHAs/Audits/Inspections/SOP reviews Process Hazard Analysis (PHA) Standard Operating Procedures Training Documentation of Releases (EPA) Audits Contractor Qualifications

11

Mechanical Integrity Targets Mechanical Integrity Review Points

– Records on relief valve replacement – Calibration/Testing of ammonia sensors – Testing of Safety Setpoints

• Compressor cutouts
• Compressor alarms
• High level cutouts on vessels
• Low level cutouts on vessels

– “B109” Form completion – 5 Year Major Mechanical NDT

• Is visual enough?

12

7

Recommendation Implementation PHA Recommendations Audit Recommendations Focus on how fast resolved Priority order Signed off When can we toss old recommendations?

13

Process Hazard Analysis Quick Overview Looking for depth of questions Who performed it? Operators involved? Did you look at the facility? Let me see those recommendations! Did you just sit in a room or did you walk the plant?

14

8

Timeliness of Planned Items Process Hazard Analysis (PHA) – 5 years Risk Management Plan (RMPlan) resubmittal – 5 years Compliance Audits – 3 years Equipment [B109] Reviews – Annually Sign off on Standard Operating Procedures – Annually Maintenance schedules for equipment Annual reviews of NH3 sensors

15

Standard Operating Procedures Are all processes covered

– Each piece versus each common type

Recertified Annually

– Customer hit for missing 4 years prior

Written signatures (not just printed) Dated Reviewed all at once or grouped is okay Make sure it includes information on NH3 All modes of operation addressed? Operating limits/Deviations/Corrections

16

9

Operators/Mechanics Training Up and coming area of review Difficult to review EPA generally scans information/OSHA more focused What do you need to have?

– RETA or class certification papers – Training forms – Technically speaking, something that shows training or implies training on all equipment – If class taken, keep a copy of a detailed syllabus or the class book for company proof of areas covered – On site training???... Maybe

May interview employees about their training

17

Contractors For whom should you have paperwork

– Refrigeration – Sure – Electricians in compressor room – Sure – EVERY contractor that works on or around the system – Be creative in figuring this out (insulation, ammonia detection, water treatment…)

Are you required to have every contracted every year?...

– Only if they have been within a year and also if you prior to anyone starting if

• utside of a year

– Why not get all the „usual suspects‟ annually at a certain date? – Contractors should just send, but…

18

10

Management of Change Program Want to see completed forms Make sure they are fully signed off (real signatures) Make sure they aren‟t being done retroactively Replacement in kind need to be included, but…

– It doesn‟t hurt to do them – Don‟t be surprised if they ask still

May ask to show changes during a walk through If you have an MoC, they can ask about contractor data! If you have an MoC, they‟ll ask about PSSRs

19

Pre-Startup Safety Review Program They should/will ask for completed forms

– Heard them ask about training prior to startup and wanting to see training records

Make sure they are fully signed off (real signatures) Materials of construction – Piping certifications

20

11

Compliance Audit Program Most recent two internal compliance audits

– The will check for 3 year timing – Recent audit wanted a 3rd???

They WILL ask to see recommendations listing They WILL check to see if they are resolved (quickly) Any auditor worth their weight will scan Who did them and are they qualified?

– Internal auditing is risky unless the person doesn‟t have tunnel vision to your company‟s policies – If you have a reputable consultant who makes recommendations…pay attention to the recommendations

21

Risk Management Program and Plan Risk Management Program (RMP) vs Risk Management Plan (RMPlan)? Only EPA Reviews Risk Management Program

– Flow chart that shows PSM in company structure – Management System (who does what)

Risk Management Plan (Submittal)

– May/will ask questions about Offsite Consequence Analysis (OCA) – Most up to date census data used? New census will change new OCAs – Resubmitted every 5? – Emergency point of contact changed? Releases

22

12

Hot Work Program Likely to ask for completed forms Who signs off and are they appropriate How long are they kept Visiting site (inspection) prior to starting OSHA will look at much more heavily

23

Did you say something, Hank?

Confined Space Entry Program Make sure you have a program of some sort

– Facilities will often say they don‟t enter confined spaces

Will review program Generally not as much of an issue with cold storage (non processing) facilities May want to see locations identified as confined spaces

24

13

Lockout Tagout Program Some have required you have a written program! May inspect lock boxes During walk-throughs, may look for lock outs Generally ask questions to maintenance about implementation

25

Psychology of an Auditor

• Auditors are people too… 
• In a natural way (don‟t force it), find common interests (works for

OSHA due to repeat visits)

• Likely to be inexperienced in understanding of NH3 Refrigeration, but

training has been coming

• They may try to hold you to practices in the petro-chem industry

which are not done in NH3 refrigeration

• Tend to go down channels they understand, but may not be what

you would expect

• Some can be confrontational and some even rude (usually only with

radically non-compliant plants)

• Some want to show you they are smarter than you OR YOUR

consultant

26

14

To “Do’s” - 1 Before the Day of the Audit

• If you have a PSM consultant experienced in audit assistance, make sure

they are there. If you don‟t, FIND ONE! Mitigate Negotiate Mitigate

• If you have a corporate person with experience, make sure they are there!
• If another facility in your company has been hit, GET THEM INVOLVED!
• If possible, preparation should be done days in advance
• Who says what
• Have ALL documents in room where audit will take place – no searching!!!
• Organize on a table so it‟s ready for review
• Tabbed for easy access
• Use the IARW as a resource for audits!
• Before the audit, ask the auditor if they have a checklist you could use to

help organize (generally will only work with EPA)

• Do a walk-through of the whole facility (including roof) for housekeeping
• For goodness sake, CLEAN that engine room (dirt/dust free, if possible)!!!
• Make sure to adjust shifts to get the best (and most well spoken) operator

working on the day of the audit

27

To “Do’s” - 2 The Day of the Audit

• Audits are like interviews – tone/opinion set in first couple minutes
• Prep the room (have drinks or donuts)
• Determine room seating arrangement in advance
• Keep a positive attitude that says, “we are always trying to improve”
• Tell the auditor you welcome their expertise and advice
• Be polite… even if things get testy.
• Some aware that some auditors can be testy, confrontational, and rude! Not

normal, but it happens

• Take notes about EVERYTHING
• Try to make a personal connection and get to know them.
• If you disagree and you feel justified, ask for a clarification and insert

what you believe to be correct, but KNOW YOUR STUFF!

• If you get frustrated with the inspector, excuse yourself for some

reason, get it together, and go back in.

28

15

The “Don’ts”

• If possible, no contractors on site
• If possible, no hot work!!!
• You should know your program as well as possible for the audit, do

NOT let your consultant do all the talking!

• Avoid giving electronic files… they may want them ALL
• If you have a fully electronic program AND it allows, print a copy of

the program and organize appropriately

• NEVER be confrontational
• Keep out the operator who wants to tell stories about the plant
• Don‟t offer anything more than drinks and donuts
• If possible, never make them sit and wait while you search for

information (as noted previously, have everything available in the room)

29

Non Negotiables

There are certain fines you just can‟t mitigate/negotiate (the „non negotiables‟)

– Fail to notify of incident to NRC IMMEDIATELY – EXPENSIVE – Fail to initiate investigation team – Fail to change emergency contact in RMPlan – Fail to review (or late) annual review of SOPs – Fail to revalidate (or late) the PHA - every 5 years – Fail to audit internally (or late) - every 3 – Have NOTHING

30

16

Closing IARW resource/database for audits! Make sure to use it.

• Find out if another IARW member has had this auditor and call

them!!!

• What did they ask about?
• Were there any area they went overboard on?
• What were they like personally? ANYTHING.

Likewise, contribute BACK after the audit Dialog of the members in the meeting

• Who has been audited here?
• What have you seen?

General Question and Answer Session

31