HomeMy WebLinkAboutMINUTES - 12151992 - H.3 � 14. 3
TO: BOARD OF SUPERVISORS
FROM: Mark Finucane, Health Services Director _=f Contra
_ Costa
DATE: December 15, 1992 County
SUBJECT: Establishing a Fee Schedule for the Administration of
the Risk Management and Prevention Program
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
1. Hold public hearing.
2. Following the hearing, adopt a resolution (copy attached) that will establish a fee schedule for
administration of the Risk Management and Prevention Program.
FISCAL IMPACT:
Approximately $200,000 a year in fees. This will cover the cost to administer the program.
BACKGROUND:
The Risk Management and Prevention Program (RMPP) was enacted by the State of California in 1986 in
order to reduce the risk of a chemical accident at industrial plants that handle large amounts of Acutely
Hazardous Materials (AHM). In Contra Cost County, in particular, there has been a great deal of public
concern about the threat to human health and the environment from the County's numerous oil refineries
and chemical manufacturing plants. Contra Costa County Health Services Department has focused on three
goals in implementing the RMPP program:
1) Prevent chemical accidents from occurring by identifying potential causes and taking corrective
action;
2) Prepare for chemical accidents that, nevertheless, may occur by developing emergency response
plans and training programs; and
3) Protect the public in the event of such an accident by ensuring that residents will be notified
immediately of the accident and the appropriate protective action to take.
Following enactment of the law requiring the development of Risk Management and Prevention Programs
(RMPPs), Contra Costa County Health Services Department (HSD), the Administering Agency for the
program, ranked the top facilities that handle Acutely Hazardous Materials according to a variety of risk
factors. In late 1989, the HSD requested the highest-ranked 11 facilities to prepare RMPPs. In January
1991, HSD received the documents. RMPPs review all the programs or aspects of business which are
designed to prevent accidents involving AHMs, including design safety of new and ting equipment,
CONTINUED ON ATTACHMENT: YES 1 SIGNATURE /UZ
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT ON OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON ��- /S�" �.Z APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
V' UNANIMOUS (ABSENT 0 1-AL-i AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
Contact Person: Barbara Masters-370-5022 //
CC: Health Services Department ATTESTED De,Ce,,-n e,- /J!, /f 7 p
2-
Hazardous Materials PHIL BATCHELOR,CLERK OFT E BOARD OF
Environmental Health SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
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operating procedures,preventive maintenance programs,operator training,accident investigation procedures,
emergency response planning, and audit procedures to ensure that these programs are being executed as
planned.
The law required that RMPPs be based on two types of analysis: a Hazard and Operability Study (HazOp)
and an Off-Site Consequence Analysis (OSCA). These documents.review the design and operations of a
facility to determine possible causes of a chemical accident and the potential impact of such an accident on
neighboring communities, respectively.
In April 1991, the HSD determined that the OSCAs contain valuable information for the public as well as
emergency response agencies and concluded that they should be part of the public document. The HSD
developed new guidelines for the preparation of an OSCA and formally requested industry to prepare new
OSCAs and submit them to the Department by September 30, 1991.
The Health Services Department recognizes that the results of the RMPPs and the OSCAs will be of great
interest to the public. Therefore, it has initiated a Public Participation Process to ensure that the public and,
in particular, communities that may be directly affected by a chemical accident know about the RMPPs and
the results of the OSCAs and have an opportunity to have input into the process. All written comments will
receive careful review and written responses by HSD. In addition, the Department will hold workshops,
upon request, to discuss with local residents the results of an individual facility's RMPP and OSCA.
HSD is currently reviewing the 11 facilities' RMPPs and OSCAs. The review is being conducted in three
phases. Phase I included Chevron, Tosco and Unocal refineries. Public review of Phase II, which includes
Shell Oil and Rhone-Poulenc Basic Chemicals, and the GWF Cogeneration Plants,began July 1, 1992. Phase
III review should begin in early 1993.
In addition, on November 15, 1991, HSD requested additional facilities -- Pacific Refining, Chevron
Fertilizer, Imperial West (2 sites), ICI Agricultural Plant and Pacific Gas &Electric Power Plant (Pittsburg) -
- to prepare RMPPs. These have been recently submitted. Also preparing RMPPs are two new facilities,
Contra Costa Water District and C & H Sugar Cogeneration Plant. They will be due at the end of 1992.
Five additional RMPPs were requested on November 16, 1992.
Contra Costa County is one of the leading jurisdictions in the state in implementing the RMPP program.
In addition, the Health Services Department, which administers the program, has taken a number of actions
that go beyond what is required in the law. These actions involve requesting the Off-Site Consequence
Analysis, developing guidelines for the preparation of those documents, and implementing a public
participation process that includes public workshops and written comments to discuss individual RMPPs and
OSCAs.
NEED FOR FEES
In order to carry out this program comprehensively and timely, HSD has had to increase staff from one to
three chemical engineers. Reviews of RMPPs are lengthy, intense and time consuming. For example, the
Chevron RMPP, the first RMPP to be reviewed, took seven person-months to complete.
Thus, although the HSD initially covered the costs of the RMPP program through its AB 2185 fees, they are
no longer adequate. In addition, state law no longer allows 2185 fees to cover the costs of RMPPs and now
provides separate authorization for collecting fees for the RMPP program.
The HSD believes that the RMPP program is one of the most important activities directed at actually
preventing serious chemical accidents. Already, improvements can be seen. Some facilities have eliminated
the use of certain AHMs; others have reduced or relocated them. In the wake of the number of serious
hazardous materials accidents in this county over the last year, the HSD believes that it is essential to
continue devoting sufficient staffing and resources to this program.
The proposed fees are consistent with those established in other jurisdictions. For example, in Los Angeles
County, which uses a different methodology, large facilities pay fees ranging from approximately $10,000 to
$40,000 a year. After the initial 3-year period, those fees will go down by about $4,600. San Mateo charges
a flat fee of $8,800 for the RMPP program. Other counties charge one time fees for the preparation of
RMPPs, hourly fees for reviewing the plans and annual fees thereafter. However, because of the extensive
review conducted by HSD, charging an hourly rate would result in a very expensive fee,in the year during
which the RMPP is being reviewed. By charging an annual fee, the funding for the RMPP is spread out
over multiple years.
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On October 28, the Hazardous Materials Commission unanimously voted to recommend that the Board of
Supervisors adopt the proposed RMPP fees. Subsequently, on November 12, the Health Services
Department met with affected businesses to discuss the rationale for the proposed fees and answer any
questions.
LEGISLATIVE AUTHORITY:
Section 25535.2 of the Health and Safety Code states that "Each administering agency may, upon a majority
vote of the governing body, adopt a schedule of fees to be collected from each business which may be
required to submit an RMPP." It further states, "In determining a fee schedule pursuant to this section, the
administering agency shall consider the volume and degree of hazard potential for the acutely hazardous
materials handled by the businesses subject to this article."
X1.3 t4
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Resolution on December 15, 1992 by the
following vote:
AYES: Supervisors Powers, Torlakson, and Schroder
NOES: None
ABSENT: Supervisors Fanden and McPeak
ABSTAIN: None
SUBJECT: Adopt Fees for Risk ) RESOLUTION NO. 92/ 852
Management and ) (H.&S.C. , § 25535 . 2,
Prevention Program ) Gov.Code, § 66018 . )
The Board of Supervisors of Contra Costa County RESOLVES as
follows :
A. BACKGROUND.
The Health Services Department is the administering agency
responsible for reviewing and making determinations regarding
risk management and prevention programs ( "RMPP" or "RMPP
program" ) in Contra Costa County in accordance with article 2 of
chapter 6 . 95 of the Health and Safety Code (§ 25531 et seq. ) .
The RMPP program is one of the most important activities
directed at actually preventing serious chemical accidents .
RMPPs review the design and operation of a facility to determine
possible causes of a chemical accident and the potential impact
of such an accident on neighboring communities . Reviewing an
RMPP is a time-consuming process, requires highly specialized
education and training, and is therefore expensive. Charging an
hourly rate to a business for reviewing an RMPP may result in a
prohibitively high fee for this important program. In order to
minimize rate impacts on businesses as well as budget impacts on
the County, this Board elects to assess annual fees upon
businesses subject to Health and Safety Code article 2 .
B. FEES.
Pursuant to Health and Safety Code section 25535 . 2 (added by
Stats . 1991, c. 816) , annual fees are established, to be
collected from each business which may be required to submit an
RMPP pursuant to Health and Safety Code article 2 (§ 25531 et
seq. ) , as set forth herein.
1 . The fee assessed is based on the risk ranking assigned
to the business, as follows :
Risk Ranking Annual Fee
100 and greater $10, 000
50 - 99 $ 5, 000
25-49 $ 2 ,500
1-24 $ 500
0 $ 200
If it is determined that a particular business will not be
required to prepare an RMPP, the annual fee will be reduced to
$50 to cover administrative processing expenses .
RESOLUTION NO. 92/852
2 . A 6-month prorated fee shall be due and payable on
January 1, 1993 for the 1992-1993 fiscal year. Thereafter, the
fee shall be due and payable on July 1 of each fiscal year,
commencing on July 1, 1993.
3. Fees shall be waived for those businesses defined in
Health and Safety Code section 25501.4 .
C. NOTICE. This Board finds that notice was given pursuant
to Government Code section 66018 and 6062a, and a public hearing
was held pursuant to Government Code section 66018 .
D. EFFECTIVE DATE. This resolution becomes effective
immediately upon adoption.
1 hereby certify that this is a true and correct Copy of
an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
Originating Dept. : Health Services ATTESTED: 4Z j
cc: CAO PHIL BATCHELOR,Clerk of the Board
of Iso County Admlalst►ator
County Counsel
Auditor-Controller
By OepuN
1tf.8.rmppfee.res
-2-
RESOLUTION NO. 92-852