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

2. So We Don’t Experience This….

3. We Updated This…….
OSHA
CHEM NEP

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

5. 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

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

7. 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

8. 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

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

10. CHEM NEP – Target Population
Category 1 – Facilities with NAICS Codes likely to have ammonia used for refrigeration as the only HHC;
Category 2 – NAICS or , 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).

11. 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%

12. 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

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

14. 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

15. 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.

16. 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, 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

17. 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 – – 4 and
__________________________________________________________________________________________________________________________ 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 $$

18. 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 ( )
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 and 5a1.
Programmed vs Unprogrammed from inspection summary report.

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

20. 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.

21. 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.

22. Office of Chemical Process Safety & Enforcement Initiatives
Questions?
Office of Chemical Process Safety & Enforcement Initiatives
Jeff Wanko:
Jim Lay:
Mike Marshall: