CHEM NEP Update Industry Outreach June 7, 2017 Washington, DC USDOL-OSHA, Directorate of Enforcement Programs Office of Chemical Process Safety and Enforcement Initiatives

So We Don’t Experience This….

We Updated This……. OSHA CHEM NEP

Overview PSM CHEM NEP Update Status of PSM enforcement memos CHEM NEP enforcement data

CHEM NEP Update The PSM Covered Chemical Facilities NEP (CHEM NEP) has been updated effective January 17, 2017 Implementation for programmed inspections on hold until outreach is completed The revised NEP could be used for unprogrammed PSM activity/inspection since 1/17/2017

Biggest Change All non-VPP refineries will be inspected (over time) using the CHEM NEP model Limited number of questions (~15) Dynamic list only

CHEM NEP - Refineries (Continued) This is a follow-on to the Refinery NEP using the CHEM NEP approach Better use of OSHA resources Average current hours for CHEM NEP inspection ~ 125 person-hours Average Refinery NEP inspection ~ 1,100 person-hours Inspections will be distributed proportionally across regions based on the number of refineries per region

CHEM NEP (Continued) This update requires mandatory State-Plan adoption Inspection targeting population expanded to include EPA RMP Program 1 and 2 sites. Inspection targeting system set up such that no RMP Program 2 sites which include Ag ammonia are to be inspected under the CHEM NEP

CHEM NEP - Pyrotechnics Clarified targeted population includes both explosive and pyrotechnics manufacturing facilities

CHEM NEP – Target Population Category 1 – Facilities with NAICS Codes likely to have ammonia used for refrigeration as the only HHC; Category 2 – NAICS 32411 or 324110, Petroleum Refineries; Category 3 – NAICS 325, Chemical Manufacturing; Category 4 - NAICS Codes for facilities that are likely PSM covered but not Category 1, Category 2, or Category 3 (all other PSM-Covered processes).

CHEM NEP (Continued) Some mechanics have changed in this updated NEP Targeting and dynamic lists are on an internal OSHA website. Refinery inspections count toward the required number of programmed NEP inspections per area office averaged over each Region Refinery inspections use the same dynamic list questions as other chemical manufacturing PSM covered facilities The breakdown of targeted inspections by category: Category 1 (Ammonia Refrigeration) 25% Category 2+3 (Refineries plus chemical Manufacturing) 45% Category 4 (All other – storage, distribution, etc.) 30%

CHEM NEP – Tools for Expanded Inspections Additional inspection resource tools have been added for expanded inspections: Prior CHEM NEP Dynamic Lists Appendix A – Static List from Refinery NEP Appendix A - PSM CPL Audit Guidelines Appendix B - Supplemental Questions for Hazard Identification contained in Guidelines for Hazard Evaluation Procedures (Third Edition), AIChE – CCPS

CHEM NEP – Dynamic Lists Ammonia Refrigeration Chemical Processing Chemical manufacturing (NAICS 325) and petroleum refining (NAICS 324110 ) Includes separate questions for explosive and pyrotechnic manufacturing PSM General Contractor (Host and contractor)

Dynamic List Utilization Depends on Type Facility Example: Pyrotechnics Manufacturing W questions from Explosives and pyrotechnics manufacturing list X questions from Chemical Processing list Y questions from PSM General list Z questions from Contractor Employer list Example: Storage Only facilities X questions from PSM General list Y questions from Contractor Employer list

CSHO Competencies PSM inspections often times are complex and quite technical. Therefore, there is a need for the Agency to assure that our staff that conducts PSM inspections have minimum levels of training and experience. After conducting a survey of the field to determine current “PSM CSHO” competencies, the following criteria have been established. To lead a team or to conduct a PSM inspection by themselves, a CSHO must be a qualified to Level 1 competencies. For those CSHOs that were already Level 1 or 2 before January 17, 2017 and did not meet the OTI course and number of PSM inspection criteria, you are grandfathered into your current levels.

Status of PSM Enforcement Memos Retail Exemption Awaiting decision RAGAGEP Published May 11, 2016 Covered Concentrations July 18, 2016 Interim enforcement policy thru 3/31/2018 OSHA will make it a top priority for Compliance Assistance Specialists (CASs) in its Area Offices to provide assistance, when requested, to help employers bring such processes into PSM compliance. Eligible employers can also seek assistance from OSHA’s On-site Consultation Program. To the extent relevant expertise is available among consultation program personnel, requests for assistance with these processes should be a high priority for receiving on-site consultation visits. 1.OSHA will not conduct programmed inspections of such processes (covered for the first time as a result of the one percent test). 2.OSHA will not cite an employer under the PSM standard for any PSM violations involving such processes provided the employer is making good faith efforts to come into compliance with the PSM standard by March 31, 2018. OSHA will consider efforts made by employers to be “in good faith” if they can demonstrate that ongoing efforts to comply with the standard are underway and documented. This policy does not apply in cases involving a fatality or catastrophe. 3.Any citations involving PSM violations at such processes shall be submitted to the OSHA Regional Office prior to issuance to ensure consistency and clarity. For cases where the Regional Office needs assistance in its review, it shall consult with OSHA’s Directorate of Enforcement Programs ¿ Office of Chemical Process Safety and Enforcement Initiatives. 18

All CHEM NEP Inspections Opened FY14 thru FY16 692 Inspections in 140 NAICS codes 491 inspections with violations 23 open and unissued inspections 2,202 proposed violations Average 4.79 violations per inspection with citations Penalties proposed – total $13,989,862 Mean $26,975 per inspection Median $14,000 per inspection Max $430,430 I’ll go over the summary numbers for all ChemNEP inspections as well as those in the NAICS Codes of interest to the IDFA – 311511 – 4 and 311520. __________________________________________________________________________________________________________________________ Lewis’ Notes: Data pulled from Inspection Summary for: 692 Inspections, Penalty Proposed Initially, 4.79 violations/inspection Data pulled from Scan Summary 491 Inspections w/ citations, 23 open inspections, mean initial $$, median initial $$, Max initial $$

All CHEM NEP Inspections Opened FY14 thru FY16 78 standards cited 1910, 1926, 1904, 1903, and General Duty Clause 84% standards in General Industry (Part 1910) 66% of GI violations in PSM (1910.119) Programmed – 52% Unprogrammed – 48% Unprogrammed includes Complaint, Referral, Fatality/Multiple Hospitalization, etc. The 60% PSM violations statistic has held pretty steady throughout the ChemNEP. CSHOs are finding many other violations – anecdotally because many are in plain view. ____________________________________________________________________________________________________________________________________________ Lewis’ Notes: 78 Stds drawn from standard cited report at Std Part and Sect level. 84% General Industry includes GI divided by sum(recordkeeping,abatement certification, Construction) drawn from standard cited report at std part and sect level. 66% of GI violations in PSM standards drawn from standard cited report at std part and sect level compared against 1910. and 5a1. Programmed vs Unprogrammed from inspection summary report.

All CHEM NEP Inspections - Top 10 Violations FY14 thru FY16 Standard Description % 1910.119 Process Safety Management 65.9 1910.134 Respiratory Protection 3.8 1910.1200 HazCom 2.6 1910.147 Lockout / Tagout 2.5 1910.305 Electrical Wiring 2.0 1910.23 Ladders 1.7 1910.120 HazWoper 1.5 5(a)(1) OSH Act of 1970, Section 5(a)(1) 1910.132 PPE General 1910.212 Machine Guarding 1.2 _______________________________________________________________________________________________________________ Lewis’ Notes: Data drawn from standard cited report at the std part and sect level.

All ChemNEP Violations by PSM Element FY14 thru FY16 Element Description % of PSM Citations d Process Safety Information 23.6 j Mechanical Integrity e Process Hazard Analysis 15.3 f Operating Procedures 13.5 l Management of Change 6.4 o Compliance Audits 3.8 h Contractors 3.4 g Training 2.8 n Emergency Planning & Response 2.5 m Incident Investigation 2.1 c Employee participation 1.7 i Pre-startup Review 1.0 76% _________________________________________________________________________________________________________________________________________ Lewis’ Notes: Drawn from the standard cited report ChemNEP ordered by standard then divided each element violations by total 119 violation count of 2085.

All CHEM NEP Top PSM - Sub-elements FY14 thru FY16 Sub-element Description % of PSM Citations 119(j)(2) MI written procedures 7.0 119(d)(3)(ii) PSI RAGAGEP compliance 6.4 119(d)(3)(i)(B) PSI P&IDs 4.4 119(j)(5) MI Equipment Deficiencies 3.5 119(j)(4)(i) MI I&T not performed 119(l)(1) Management of Change dev & imp 119(f)(1) OP Developed & Implemented 3.2 119(e)(5) PHA findings & recommendations 3.0 119(j)(4)(ii) MI I&T not in accordance w/ RAGAGEP 119(j)(4)(iii) Inspection frequency inconsistent with RAGAGEP 2.7 119(n) Emergency Planning & Response 2.5 119(e)(3)(i) PHA Hazards of the Process 2.4 119(d)(3)(i)(D) Relief System Design ____________________________________________________________________________________________________________________ Lewis’ Notes: Drawn from standard cited report for all levels of ChemNEP inspections with 119 violations and then sorted by frequently cited most to least.

Office of Chemical Process Safety & Enforcement Initiatives Questions? Office of Chemical Process Safety & Enforcement Initiatives Jeff Wanko: 202-693-2137 jwanko@dol.gov Jim Lay: 202-693-1827 lay.jim@dol.gov Mike Marshall: 202-693-2179 marshall.mike@dol.gov