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HomeMy WebLinkAboutMINUTES - 07102001 - D.2 • � S_h._. L TI TO: BOARD OF SUPERVISORS FROM: William walker, D.,IIead,Services irect �? Contra —� ,- ,••: Costa DATE: July 10,2001 c�sr J° County � Loud' SUBJECT: Power Disruption Plans SPECIFIC RI?QUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Accept the attached report for power disruption plans requested from California Accidental Release Prevention (CaIARP) Program regulated stationary sources. BACKGROUND: The Board of Supervisors is concerned about power disruptions that could result in an accidental release of a hazardous material that could impact the community. On May 8, 2001, the Board of Supervisors passed a Board Order requesting the regulated stationary sources under the California Accidental Release Prevention (CaIARP) Program, submit to Health Services, Power Disruption Plans. The Board Order requested the follow actions: 1. Regulated stationary sources to submit a Power Disruption Plan that would detail how the regulated stationary sources would either continue to safely operate or safely shut down operations during an unplanned power disruption 2. Health Services to perform an Unannounced Inspection to audit any industrial facility that fails to submit a Power Disruption Plan to the County within thirty days of the request 3. Health Services to work with the unprepared regulated stationary sources to assist them in their planning to put in place a system to either continue safe operation or safely shutdown during an unplanned power disruption 4. Health Services to report back to the Board of Supervisors within forty-five days listing each CaIARP Program regulated stationary source and whether the facility has adequate plans to either safely shut down or safely continue operating during an unplanned power disruption 5. Health Services to prepare a fee schedule for any Unannounced Inspections that are required by the Board Order so that the costs will be borne by the regulated stationary sources that have not complied with the requests from this Board Order 6. Health Services to report on the standards of criteria that were used to determine the adequacy of the Power Disruption Plans. FISCAL IMPACT: NONE CONTINUED ON ATTACHMENT: XX YES SIGNATURE: '� RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGN TLJRE(S)e ACTION OF BOAR D& July 10, 2001 APPROVED AS RECOMMENDED M OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE XX UNANIMOUS (ABSENT ---- ) 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: Randy Sawyer CC: Health Services Administration ATTESTED July 10, 2001 Randy Sawyer,Health Services JOHN SWEETEN,CLERK OF THE BOARD OF Lillian Fujii,County Counsel SUPERVISORS AND COUN/TYY ADMINISTRATOR BY �✓� / DEPUTY i I Report to the Board of Supervisor on the Request for Power Disruption Plans July 10, 2001 Background The Board of Supervisors is concerned about power disruptions that could result in an accidental release of a hazardous material that could impact the community. On May 8, 2001, the Board of Supervisors passed a Board Order requesting the regulated stationary sources under the California Accidental Release Prevention (CaIARP) Program submit to Health Services a Power Disruption Plan for,their facility. The Board Order requested the follow actions: 1. Regulated stationary sources to submit a Power Disruption Plan that would detail how the regulated stationary sources would either continue to safely operate or safely shut down operations during an unplanned power disruption . 2. Health Services to perform an Unannounced Inspection to audit any industrial facility that fails to submit a Power Disruption Plan to the County within thirty days of the request 3. Health Services to work with the unprepared regulated stationary sources to assist them in their planning to put in place a system to either continue safe operation or safely shutdown during an unplanned power disruption 4. Health Services to report back to the Board of Supervisors within forty-five days listing each CaIARP Program regulated stationary source and whether the facility has adequate plans to either safely shut down or safely continue operating during an unplanned power disruption 5. Health Services to prepare a fee schedule for any Unannounced Inspections that are required by the Board Order so that the costs will beborne by the regulated stationary sources that have not complied with the requests from this Board Order 6. Health Services to report on the standards of criteria that were used to determine the adequacy of the Power Disruption Plans. County Counsel has reviewed the CaIARP Program regulations and has summarized the requirements of the CaIARP Program, the authority to request the Power Disruption Plans under the CaIARP Program, and stated the standard of criteria as defined by the CaIARP Program regulations. (Attachment 1) Health Services on May 9, 2001 sent out a formal request to all of the CaIARP Program regulated stationary sources for their Power Disruption Plans. The plans were due to Health Services on June 11, 2001. The regulated stationary sources are required, under the CaIARP Program, to perform Process Hazard Analyses (PHA)' if the source is subject to the Program 3 requirements or a Hazard Review2 if the source is subject to the Program 2 requirements. PHA's and ' CCR Title 19,Division 2,Chapter 4.5, §2760.2 2 CCR Title 19,Division 2,Chapter 4.5, §2755.2 Report to the Board of Supervisors on the Request Page 2 for Power Disruption Plans July 10, 2001 Hazard Reviews are a systematic way of looking at the hazards of the different processes that include the following steps: • What are the consequences if something is out of the range of normal operations • The safeguards that are in place to prevent such an occurrence • The risk of the consequences • Any recommendations that are made to decrease the risk PHA's and Hazard Reviews are to consider the loss of utilities and the impact this loss would have on the processes. Utilities include such items as: electricity, cooling water, steam, condensate, nitrogen, instrument air, process air, and firewater. Summary Health Services has received all of the Power Disruption Plans from the CalARP Program stationary sources. Health Services has reviewed all of the Power Disruption Plans and has determined that all of the plans are adequate in addressing a power disruption, including the safe shutdown and start-up after an emergency shutdown of the stationary sources. For many of the facilities, the loss of power would shut down operations with out the possibility of accidentally releasing the regulated substances handled at their facility. The larger regulated stationary sources have either their own power facilities or contracts with co-generation facilities that would supply all or most of their electrical power independent of the electricity power grid. The larger regulated stationary sources that generate only a portion of their electrical needs have plans in place to shut down parts of their facilities, while continue to operate the remaining parts of their facility. Power Disruption Plan Response Letters were sent to fifty-six regulated stationary sources for a Power Disruption Plan. Fifty-two regulated stationary sources submitted their Power Disruption Plans to Health Services. Two regulated stationary sources are no longer subject to the CalARP Program regulations. Two regulated stationary sources are not subject to the CalARP Program at this time, but will be in the near future. Health Services has reviewed all of the Power Disruption Plans and have found them adequate. Attachment 2 is a breakdown of the response of the request for the Power Disruption Plans from the CalARP Program regulated stationary sources and includes the following information: • Name of regulated stationary source • Date when the Power Disruption Plan was submitted • Was the Plan determined adequate • A short description of the regulated stationary source's Power Disruption Plan I Report to the Board of Supervisors on;the Request Page 3 for Power Disruption Plans July 10, 2001 Unannounced Inspection Health Services has received the Power Disruption Plans from all of the regulated stationary sources and will not perform any unannounced inspections of the regulated stationary sources for the review of their Power Disruption Plans. Determination of Adequacy of the Power Disruption Plans Health Services used industry standards, industry practices, industrial experience, and regulatory requirements to determine the adequacy of the Power Disruption Plans. Industry standards are being used,where a standard has been established, such as ensuring that the prevention of an accidental release of a regulated substance does not rely on only one safeguard. This can include having more that one source of electrical power, in case the primary source is lost. Industry practices are used in assisting in the determination of the adequacy of the different plans, such as having multiple electrical leads feeding a regulated stationary sources, where each of these electrical leads can supply the needed electricity to continue to operate the regulated stationary source facility. Some of the refineries have four separate electrical leads that feed the individual refineries and all of the electrical leads are redundant in that each is able to carry the needed supply of electricity to the refinery. The Health Service Accidental Release Prevention Team is composed of engineers that have industrial or equivalent experience. This experience helps the engineers to make the determination of the adequacy of;the Power Disruption Plans. I The regulated stationary sources are required, if they are either a Program 2 or 3 regulated stationary source under the CaIARP Program, to perform PHA's or Hazard Reviews. This process determines what safeguards are in place to prevent the accidental release due to external events, such as the loss of electricity. i I I 1 ATTACHMENT 1 i Office of the County Counsel! Contra Costa County 651 Pine Street, 9th Floor I Phone:(925)335-1800 Martinez, CA 94553 Fax:(925)646-1078 i Date: June 20, 2001 To: William B. Walker, M.D.; Director of Health Services Attn: Lewis G. Pascalli, Director, Hazardous Materials Programs Attn: Randy Sawyer, Accidental Release Prevention Engineer From: Silvano B. Marchesi, County Counsel By: Lillian T. Fujii, Deputy County Couhse5l Re: CaIARP "Power Disruption" Planning Issues SUMMARY: The California Accidental Release Prevention ("CaIARP") Program regulations do not expressly require the preparation of"power disruption" plans. However, the CaIARP regulations require stationary sources to consider and take steps to prevent releases caused by external events. If a power outage (an external event) could cause a release, the stationary source is required to consider the impacts of an outage and take steps to prevent a release from occurring. In preparing a Risk Management Plan ("RMP'l), a stationary source must meet industry standards, but whether that standard has been met, and whether an RMP meets the requirements of the CaIARP regulations, are initially determined by Contra Costa Health Services, as the agency responsibility for implementing the CaIARP program. Health Services' decisions under the CaIARP regulations are subject to review by the Director of the State Office of Emergency Services. i DISCUSSION: i Background. The Board of Supervisors requested CaIARP businesses to submit to the Contra Costa Health Services' Hazardous Materials Division (Health Services) for review, "power disruption plans" detailing the businesses' plans for avoiding or preventing hazardous materials releases during periods of rotating energy outages. This request was precipitated by a release from General Chemical's Richmond facility following a power outage caused by a vehicular accident. The Board also asked the County Counsel's Office to report on two issues relating to power disruption plans under the CaIARP Program. This memorandum addresses those issues and is submitted to you for inclusion with your report to the Board. The California Accidental Release Prevention (CaIARP) Program. We begin with a summary introduction on the CaIARP Program. Both state and federal law require program's for the prevention of accidental releases of regulated substances. (Health and Safety Code Article 2 [§ 25531 et seq.]; Clean Air Act amendments of 1990 [P.L. 101-549].) In order to both reduce regulated substances accident risks as well as avoid regulatory program duplication, the State has developed 1 William B. Walker, M.D., Director of Health Services June 20, 2001 Page 2 � the "California Accidental Release Prevention (CaIARP) Program," which implements the federal risk management program with certain amendments specific to the state. (See Health & Saf. Code, §§ 25531(e), 25533.) The regulations for the CaIARP program are found at Title 19 of the California Code of Regulations, Division 2, Chapter 4.5 (§ 2735.1 et seq.). (Health & Saf. Code, §§ 25531, 25534.05.) CaIARP Program requirements apply to "stationary sources"' that have a "threshold quantity"Z of a "regulated substance.,3 (§2735.1.) A refinery is a typical stationary source subject to the CaIARP program. CaIARP Requires Consideration of External Events, Such as Power Disruptions. The CaIARP regulations do not expressly require the preparation or implementation of"power disruption plans." However, the regulations do require stationary sources to be prepared for disruption due to "external events" for the purpose of preventing accidental releases; as further discussed below. Inasmuch as power disruptions should be anticipatedlby all businesses, especially if a disruption has the potential of causing a release of a regulated substance, under CaIARP, stationary sources must consider and take steps to prevent releases during such event. The CaIARP regulations have different requirements for stationary sources, depending upon the "Program Level"' of the stationary source. The most lenient requirements apply to Program 1lstationary sources. In order to qualify for Program 1 treatment, a stationary source must, among other things, 1) not have had an accidental release of a regulated substance,resulting in injury, death or a government response within the past five years, and 2) be far enough away from a public receptors so that the receptor is not endangered by a worst-case releases (§ 2735.4 (c).) In other words, a release from a Program 1 stationary source is not expected to have a significant impact on the community. There are no'Program 1 refineries. Stationary sources not qualifying for Program 1 treatment, i.e., those which i ' 19 Cal. Code Regs. §12735.3(tt); hereafter,all section references are to Title 19 of the California Code of Regulations unless otherwise specified. 2 §2735.3(uu). 3 §2735.3(PP). 4 §2735.4(b). 5 §2735.3(mm). l 6 §2735.3(yy). 1 William B. Walker, M.D., Director of Health Services June 20, 2001 Page 3 have the potential of having a release which could impact the community, must comply with either Program 2 or Program 3 requirements. Both Programs 2 and 3 require stationary sources to consider and take steps to prevent accidental releases of regulated substances, including releases caused by external events. Program 2 stationary sources have the option of implementing either Program 2 or 3 prevention steps. (§ 2735.5(e)(3).) Program 3 stationary sources must implement program 3 prevention steps. (§ 2735.5(f)(3).) Program 2 prevention steps include the requirement that the stationary source conduct a hazard review which includes the consideration of external events, document the results of the review, and ensure that problems identified are resolved in a timely manner. (§ 2755.2(f).) Program 3 prevention steps contain more requirements, including the requirement that the owner or operator' of a stationary source conduct a Process Hazard Analysis or PHA. (§ 2735.5(f)(3).) This requires the consideration of external events, and the establishment of a system to address the PHA team findings. (§ 2760.2(c)(8),(d).) Furthermore, stationary sources must prepare Risk Management Plans (RMPs) which must address the above external event accident prevention considerations discussed above. (§§ 2745.6(1)(1), 2745.7.) In short, the CalARP regulations require Program 2 and 3 facilities (but not Program 1 facilities) to consider and address risks of releases due to external events, such as a power outage if a power outage has a potential to cause a release. Standard of Adequacy The Board also requested information on the standard of adequacy that CalARP facilities must meet in their release prevention plans. i In reviewing or auditing an RMP (which must address release prevention steps), the Health Services Department (the administering agency') may issue preliminary determinations as to necessary revisions to the RMP to meet the criteria of article 3 (on RMPs). (§ 2775.2(e).) "...The preliminary determination shall include an explanation for 7 §2735.3(ff). i 8§2735.3(a). Health Services is the Administering Agency for CalARP,a state program, because it has been designated the CU PA(certified unified program agency)for Contra Costa County by the Secretary of the State EPA. i William B. Walker, M.D., Director of Health Services June 20, 2001 1 Page 4 I I the basis for the revisions, reflecting industry standards and guidelines (such as [specified industrial guidelines]) to the extent that such standards and guidelines are applicable, and shall include a timetable for their implementation." (§ 2775.2(e).) I Thus, RMPs must meet "industry standards" "where applicable." We note however, that Health Services is the initial agency charged with making the determination whether an RMP meets industry standards or otherwise meets the criteria of the CaIARP regulations, As the administering agency, Health Services is responsible for implementing the CalARP program. In addition to being charged with inspecting and auditing an RMP for compliance with the CaIARP regulations (§ 2775.2, 2775.3) Health Services has-the express authority to: I 1) request an external 'events analysis and request supplemental information (see § 2745.1(f)); I 2) work with the stationary source to determine if the RMP contains an appropriate level of detail (§ 2745.2(a)(1)). In short, the CalARP regulations give Health Services broad authority to review and require revisions or additions to stationary sources' plans, for the purpose of determining whether the plans adequately address risks of releases, including potential releases due to a power outage. I Lastly, we note that the regulations provide for an appeal to the Director of the State Office of Emergency Services whenever there is a dispute between Health Services and the stationary source. (§ 2780.1(b).) This appeal procedure benefits both Health Services and the stationary source. 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