New Massachusetts Regulations On Hazardous Material Storage

The Chemical Safety and Hazard Investigation Board (CSB) has approved changes to Massachusetts regulations on hazardous materials storage and processing in the state, which includes monitoring of high risk facilities to ensure they are complying with key federal process safety and risk management programs.

The Massachusetts Department of Fire Services has satisfied a key recommendation made by the CSB in its 2008 final report on the 2006 explosion at an ink and paint products manufacturing facility in Danvers, MA. The CSB concluded that an unattended mixing tank overheated in an unventilated building causing the release of flammable vapors which subsequently ignited. The facility stored alcohols, heptanes, other solvents, pigments, resin and nitrocellulose; all of which were destroyed in the explosion. In addition, 24 houses and 6 businesses were destroyed.

An investigation found that the company had increased its quantities of flammable liquids over the years. The additional quantities went undetected by local authorities who had not inspected the facility for over 4 years prior to the time of the incident.

Massachusetts now requires companies storing and handling flammable materials to amend their license and re-register with state or local authorities when increasing their quantities of flammable materials; they must also verify compliance with local and state fire codes and hazardous chemical regulations. The Massachusetts regulations classify hazardous materials into five categories based on threshold quantities. Categories 1–4 must be in compliance with OSHA's Hazard Communication standard. Category 5, under which the ink and paint product manufacturing facility would have fallen, requires companies to certify compliance with the OSHA Process Safety Management standard and with the EPA Risk Management Program regulation.

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Finished Water Storage Facility Inspection Rule

EPA is considering proposing the addition of finished water storage facility inspection (SFI) requirements to the Revised Total Coliform Rule (RTCR). In the preamble to the July 2010 proposed RTCR (75 FR 40926), EPA requested comment on the value and cost of storage facility inspection and cleaning.

EPA received comments regarding unsanitary conditions and contamination that can be found in finished water storage facilities that are not routinely inspected and cleaned, including breaches and accumulation of sediment, animals, insects, and other contaminants. While EPA could finalize such requirements based on the comments received on proposed RTCR, the Agency is considering a proposal in order to allow interested parties to comment and provide relevant information. EPA is considering requirements for public water systems to inspect the interior and exterior of their finished water storage facilities at least once every five years and to correct any sanitary defects found. Any potential requirements would apply to all public water systems that have one or more finished water storage facilities. Like the final RTCR, the proposed storage tank inspection requirements will maintain or improve public health protection by reducing cases of illnesses, and possibly deaths, due to exposure to waterborne pathogens.

EPA current projects a Notice of Proposed Rule Making will be published in the Federal Register in August 2012.

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National Emission Standards for Hazardous Air Pollutants (NESHAP) For Off-Site Waste and Recovery Operations

EPA has announced it will perform risk and technology review for National Emission Standards for Hazardous Air Pollutants (NESHAP) from Off-Site Waste and Recovery Operations. EPA is subject to a consent decree requiring proposal of this revised NESHAP by 10/31/2012, and promulgation by November 2013

Clean Air Act (CAA) sections 112(f)(2) and 112(d)(6) require EPA to conduct residual risk and technology reviews. Under the "technology review" provision of CAA section 112, EPA is required to review maximum achievable control technology (MACT) standards and to revise them "as necessary (taking into account developments in practices, processes and control technologies)" no less frequently than every 8 years. Under the "residual risk" provision of CAA section 112, EPA must evaluate the MACT standards within 8 years after promulgation and promulgate standards if required to provide an ample margin of safety to protect public health or prevent an adverse environmental effect. As part of this NESHAP revision, EPA will also remove startup, shutdown, and malfunction exemptions as required by recent court decisions.

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Severe Weather Emergency Procedures To Minimize Releases

In advance of hurricane season, U.S. Environmental Protection Agency (EPA)has issued a Hazardous Weather Release Prevention and Reporting alert to remind facility operators of certain regulations that require minimization of chemical releases during process shutdown operations. This alert is designed to increase awareness among facility operators about their obligation to operate facilities safely and report chemical releases in a timely manner.

The alert specifies operational release minimization requirements and clarifies reporting requirements, including exemptions. Unlike some natural disasters, the onset of a hurricane is predictable and allows for early preparations to lessen its effect on a facility. Before hurricane force winds and associated storm surge flooding damage industrial processes, the alert recommends that operators take preventive action by safely shutting down processes, or otherwise operate safely under emergency procedures.

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FERC Policy Regarding Mercury and Air Toxics Standards

The Federal Energy Regulatory Commission (FERC) has released a policy statement that outlines how it will advise EPA on requests for extra time for electric generators to comply with the new Mercury and Air Toxics Standards (MATS) rule. FERC says the policy addresses the need for timeliness, fairness, and transparency while respecting FERC's jurisdiction over reliability of the electric power system. FERC notes that the statement is not a policy regarding how it will handle all electric reliability concerns arising from compliance with EPA regulations.
Electric generators have 3 years to comply with the MATS. Some generators will be eligible for a 1-year extension and possibly an additional year if they need to meet specific reliability concerns. FERC's policy statement addresses this final year to comply. The Commission points out that any decision on whether to grant this additional time, and the extent to which FERC's advice is considered, rests entirely with EPA.

The FERC policy statement says:

• Generators should submit copies of their requests to EPA for extra time for compliance to FERC as informational filings.
• FERC's Office of Electric Reliability will lead the review of the filings under the Commission's general investigative authority; the reviews will examine whether compliance with EPA's rule could result in a violation of a FERC-approved reliability standard or other issues within FERC's jurisdiction.
• There are no specifically required analyses to show that operation of a generating unit beyond the compliance date is critical to maintain reliability, though informational filings should provide the types of data used by the Commission to examine potential violations of its mandatory reliability standards.
• The Commission will not seek comments on the informational filings, though EPA requires that requests for extra time contain any written comments by other parties. The EPA policy encourages such comments, which should be included in the informational filings.

When considering extension requests, FERC recommends EPA also seek advice from other reliability experts such as state regulators, regional market operators, planning authorities, and the North American Electric Reliability Corp. and its affiliated regional entities.

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FInal Rule Phasing Out Gas Vapor Recovery Systems For Refueling

The U.S. Environmental Protection Agency (EPA) has determined that the systems used at gas station pumps to capture gasoline vapors while refueling cars can be phased out. Modern vehicles are equipped to capture those emissions. This final rule is part of initiatives to ensure that regulations protect public health and the environment without being unnecessarily burdensome.

Beginning later this year, states may begin the process of phasing out vapor recovery systems at the pump since approximately 70% of all vehicles are equipped with on-board systems that capture these vapors. This final rule will ensure that air quality and public health are protected while potentially saving the approximately 31,000 affected gas stations located in mostly urban areas more than $3,000 each year when fully implemented.

Since 1994, gas stations in areas that do not meet certain air quality standards have been required to use gasoline vapor recovery systems. The systems capture fumes that escape from gasoline tanks during refueling. However, as required by the Clean Air Act, automobile manufacturers began installing onboard refueling vapor recovery (ORVR) technologies in 1998, making gas stations’ systems increasingly redundant. Since 2006, all new automobiles and light trucks (pickups, vans and SUVs) are equipped with ORVR systems.

The final rule responds to public comments on EPA’s July 2011 proposal, and will take effect upon publication in the Federal Register.

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BLM Rule On Disclosure Of Hydraulic Fracturing Chemicals

The Bureau of Land Management (BLM) has announced a proposed rule to require companies to publicly disclose the chemicals used in hydraulic fracturing operations on public and Indian lands, with appropriate protections for proprietary information. Currently, there is no specific requirement for operators to disclose these chemicals on federal and Indian lands. The proposed rule would require public disclosure of chemicals used during hydraulic fracturing after fracturing operations have been completed.

The draft rule, along with economic analysis and an appendix, also contains two additional, measures:
•Improving assurances on well-bore integrity to verify that fluids used in wells during fracturing operations are not escaping; and
•Confirming that oil and gas operators have a water management plan in place for handling fracturing fluids that flow back to the surface.

In developing the proposed rule, BLM sought feedback from a wide range of sources, governments, industry, members of the public and other interested stakeholders. BLM began formal tribal consultations in January 2012 with tribal governments about the proposed rule's ongoing development, including outreach, communication and substantive discussions. Consultation with tribal leaders remains ongoing and will continue throughout the rulemaking process.

Once the proposed rule is published in the Federal Register, a 60-day public comment period will begin.

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