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HomeMy WebLinkAboutRISK MANAGEMENT 12/3/1998 HAZ~US MATERIAIS D~SION ~ TIME CHARGED ADDRESS: PROJECT DESCRIPTION: PROJECT NUMBER: DATE: NAME: CHGD: COMMENTS: PROJECT COMPLETION: C~~' ~c-~ort:~ DATE: '~/2¢//~'~ May 3, 1999 _ David Martin Frito Lay Inc FraE C.~EF 1209 Trade Drive RON FRAZE South Las Vegas, NV 89030 ADMINISTRATIVE SERVICES 2101 'H' Street Bakersfield, CA 93301 VOICE (805) 326-3941 CERTIFIED MAIL ~,,,x (805) 39s-1~9 _ suPP.ESSlON SE.VICES EXEMPTION NOTICE 2101 'H' Street Bakersfield, CA 93301 CALARP RISK MANAGEMENT PLAN VOICE (805) 326-3941 F~x (805) 305-1a~0 Dear Mr. Martin: PREVENTION SERVICES 1715 Chester Ave. 8akers,e~d, C^ 93301 The attached notice from the United States Environmental VOICE (805) 326-3951 ~x (8o5) 326-o575 Protection Agency effectively exempts flammable hydrocarbon fuels in total storage quantities les~' than 18,000 gallons. ENVIRONMENTAL SERVICES 1715 Chester Ave. 8ak~.~e~d, C^ 933O1 Our records indicate that your facility now qualifies under this VOICE (805) 326-3979 F~ (8051328.o578 exemption. You will not be required to submit a Risk Managemen~ Plan _ nor comply with the additional California Accidental Release Program TP. qu~uo OIVIS~ON (CalARP). You will, however, still be required to comply with all 5642 Victor Ave. aa~ersne~d, C^ 933O8 existing local fire codes and ordinances for the safe storage and handling vOiCE (805) 390489? F~ (805)39,-57~ of flammable gases, but will not be subject to further regulation involving the new CalARP Risk Management Plan. If you have any questions regarding this exemption, please call me at (661) 326-3979. Sincerely, Howard H. Wines, III Hazardous Materials Specialist - Office of Environmental Services HHW/dm _ attachment P 024 368 590 Receipt for Certified Mail No Insurance Coverage Provided ~. Do not use f{;~ tnt.~tional Mail (See Reverse) Street and NO. 1209 TRADE P.O., State end ZIP (;ode S01J~EI ]J~S VEGAS ~ 89030 Postage $ .32 Certified Fee Special Delivery Fee Restricted Oelive~ Fee Return Receipt Showing 1.10 to Whom & Date Delivered Return Receip~ Showing to Whom, Date, and Addressee' s Address TOTAL Postage 2.52 {~ &Fees $ Postmark or Date Official Business ¥% 07 MAY ~:;/ P~N~,~-'r~l~l~'l~--~,~'~-"~--r~a~ ~', ~~r USE ~ AV~P~E~ Print your name, address and ZIP Code here 3AK:ERSFIELD FIRE DEPARTMENT OFFICE OF ENVIRONMENTAL SERVICES 1715 Chester Avenue, Suite 300 Bakersfield, CA 93301 I1,1,,,,!1,,,11,11,,,,,,!1,1,,11 II1,,,,,,1i,i,t,,,i,i,i,,1,i,,i,1,,11 SENDER: · Complete items 1 and/or~2~i~additional services. I also wish to receive the : Complete items 3, and 4~ following s~ ;s (for an extra Print your name and addre~ the reverse of this form so that we can fee): return this card to you. · Attach this form to the front of the mailpiece, o~on 'the k if space 1. [] Addressee's Address does not permit. · Write "Return Receipt Requested" on the mailpiece below the article number. 2. [] Restricted Delivery · The Return Receipt will show to whom the article was delivered and the date delivered. Consult postmaster for fee. 3. Article Addressed to: P 024 368 590 DAVID ~I~TIN 4b. Service Type ~RITO LAY I~C [] Registe~ured 1209 TRADE DRIVE [] Certifi~-~:?J~'C~.,~k [] Exp r~'~ SOUTH LAS VEGAS NV 89030 RE: 6320 DISTRICT BLVD' 5. Signature (Addressee) 8. Addr~seeX~A~ldre,~ (O~lly if requested and fe~ P~l~orm 3811, December 1991 ~u.s. GPO: 1093~352-714 DOMESTIC RETURN RECEIPT .SENDER: I als~l~wish to receive the Complete items 1 aj~l~r 2 for additional services. · Complete~tems 3,~a & b. follo~l~ervices (for an extra · Print your name an~ress on the reverse of this form so that we can fee): ~ return this card to you, · Attach this form to the front of the mailpiece, or on the back if space 1. ~ Addressee's Address does not permit. · Write "Return Receipt Requested" on the mailpiece below the a~icle number 2. ~ Restricted Delivery · The Return Receipt will show to whom the a~icle was delivered and the date delivered. Consult postmaster for fee. 3, A~icle Addressed to: ~ 4a, Article Number / ~ 024 368 545 DAVID ~T~N ~ ~ ~ ~ITO ~Y I~C / ~' Service Type ~ ..... / ~ Registered ~ Insured IZU~ ~E D~ZVE /~Certifed ~ COD SO~ ~ VEGAS ~ 89030 ~ise/Q Exp~R~turn Receipt for ~: 6320 DISTRICT BL~ I {~ ~?- .~1 5. Signatu[e (Addressee) [ 8~~~~nty if requested I a~eeis~ / ~ P~orm 381 1, December 1991 ~u.s.~.o:~..~=~-~. DOMESTIC RETURN RECEIPT UNITED STATES SERVICE I I Official Business PENALTY FOR PRIVATE USE TO AVOID PAYMENT OF POSTAGE, $300 Print your name, address and ZIP Code here BAKERSFIELD FIRE DEPARTMENT OFFICE OF ENVIRONMENTAL SERVICES 1715 Chester Avenue, Suite 300 Bakersfield, CA 93301 BAKERSFIELD FIRE DEPARTMENT FAX Transmittal TO: ~'~/~J~ ~J~"~ ~J COMPANY: ~-'(~ /-~"~/ FAX No: 70 2. ~'2. ~'(~ ~.o~: ~.~..~ ~,,~ Office of Environmental Services FAX No. (805) 326-0576 · Bus No. (805) 326-3979 1715 Chester Ave. · Bakersfield, CA 93301 RMP Propane and Fuels Desk ~jmo (April 20, 1999) Page 1 of 2 ,~,~° ,,4% UNITED STATES ENVIRONMENTAL PROTECTION AGENCY .'~ . ~ " WASHINGTON, D.C. 20460 April 20, 1999 CHEMICAL EMERGENCY PREPAREDNESS AND PREVENTION OFFICE Fuels & The Risk Management Program The Environmental Protection Agency (EPA) intends to issue an interim stay of the effective date of the Clean Air Act section 112(r) Risk Management Program (RMP) rule as it applies to flammable hydrocarbon fuels, including propane, butane, ethane, propylene, and methane, stored in quantities no greater than 67,000 pounds in a process. Currently, facilities with more than 10,000 pounds of any listed flammable substance in a process must submit a Risk Management Plan to EPA by June 21, 1999. "In a process" means one or more tanks that are interconnected or located close enough together that a release from one tank could result in a release from neighboring tanks ("collocation"). EPA plans to propose an exemption from the RMP rule for flammable hydrocarbon fuels that are stored in separate tanks that are no larger than 18,000 gallons. Since under existing standards, an 18,000-gallon propane tank may normally be filled to no more than 88% of its capacity and propane represents the vast majority of fuel use among listed flammables, the Agency intends to cap eligibility for the exemption at 67,000 pounds. Fuel stored in multiple tanks that are interconnected or collocated and have an aggregate amount of more than 67,000 pounds, or stored in tanks that are interconnected or collocated with another process covered by the RMP rule, would not be eligible for the exemption. EPA intends to stay the rule as it applies to fuels that would be eligible for the proposed exemption while it conducts rulemaking to establish the exemption. Representatives of fuel users have urged EPA not to apply the RMP rule to flammable hydrocarbons when used as fuel. After reviewing the available information, EPA believes that when regulated flammable hydrocarbons are used as fuel (e.g., for heating or drying) and are not interconnected to or collocated with another process covered by the RMP rule, they do not generally present a significant risk to the surrounding community. Typically, use of regulated flammable hydrocarbons as fuel is a simple process and does not involve storage of large quantities on-site. Consequently, fuel use generally occurs in circumstances and amounts that do not result in the kind of risk the RMP rule was intended to address. By contrast, regulated flammable hydrocarbons when used as a feedstock in a manufacturing process, stored in large quantities on-site, or interconnected with a covered process pose a significant risk of catastrophic accidental release. In light of its review, EPA believes it is appropriate to propose exempting from the RMP rule flammable hydrocarbons when used as a fuel in a separate process in amounts that do not pose a significant risk to the surrounding community. For the sake of administrative simplicity, EPA plans to propose exempting flammable hydrocarbon fuels to the extent they are stored in an amount not exceeding 67,000 pounds in a process and are not interconnected or collocated with another covered process at the facility. Based on available information, EPA believes that fuels exempted under this provision would be used as fuel in circumstances that do not pose a significant risk. The Agency http://www.epa.gov/swercepp/pubs/rmp-imp/propdesk.htm 4/24/99 RMP Propane and Fuels Desk' (April 20, 1999) Page 2 of 2 intends and expects the proposed exemption to provide relief to fuel users such as farms, hoSpitals, restaurants, and hotels. The Agency does not intend the exemption to provide relief to industrial users or fuel retailers and distributors, as EPA believes those facilities' use, storage and handling of large quantities of regulated fuels continues to present a serious risk to the surrounding community that warrants coverage by the RMP rule. While EPA believes that the 67,000-pound criterion described above will be sufficient to distinguish between fuel users and fuel retailers and distributors, the Agency will take comment on whether additional criteria are needed to ensure that the exemption is properly utilized. For more information: Contact EPA's hotline at (800) 424-9346 (during regular business ho. urs) or the Chemical Emergency Preparedness and Prevention Office website (www.epa.gov/ceppo). http ://www.epa.gov/swercepp/pubs/rmp-imp/propdesk.htm 4/24/99 04/26/99 10:39 8805 326 0576 BFD HAZ MAT DIV ~001 *** ACTIVITY REPORT *** TRANSMISSION OK TX/RX NO. 1332 CONNECTION TEL 17026428880 CONNECTION ID START TIME 04/26 10:36 USAGE TIME 03'35 PAGES 3 RESULT OK Frito-Lay, Inc. To: Howard H. Wines,III Copies: Date: April 6, ]999 Subject: CalARP Risk Management Plan Howard, per our conversation yesterday, the Bakersfield Frito-Lay Distribution Center will discontinue use of Propane by the end of this month. The tank will be purged and temporarily remain on site. As the result of this action we will not be submitting a Risk Management or Prevention Program. I will copy you on the proper documentation of the purging of the existing propane tank. Thank you for your assistance and guidance over the last several weeks. Sincerely, Dave Martin Operations Manager RECORD OF TELEPHONE CONVERSATION Location: ID# Business Name: Contact Name: ~""~--~ (-~ ~- Business Phone: FAX: Inspector's Name:, Time of Call: Date': ~:~t/~"/~5 ,, Time: # Min: Type of Call: Incoming [~]- Outgoing [ ] Returned [ ] Content of Call: Time Required to Complete Activity # Min: April 20, 1999 David Martin Frito Lay Inc 1209 Trade Drive South Las Vegas, NV 89030 Frae C.~EF CERTIFIED MAIL RON FRAZE ADMINISTRATIVE SERVICES 2101 'H' Street Bakersfield, CA 93301 60 DAY NOTICE vo,cE (805)326-3~ FAX (805)3o~-~n9 CALARP RISK MANAGEMENT PLAN & su..REss,o~ SERVICES PREVENTION PROGRAM REQUIRED FOR 21Ol 'H' St~t SUBMISSION & IMPLEMENTATION PRIOR TO · Bakersfield, eA 93301 vo,c~ (~o5) ~6-~1 F~ (805) ~9s-1~9 JUNE 21, 1999 PREVENTION SERVICES Dear Mr. Martin: 1115 Chester Av~. Bakersfield, CA 93301 vo~c~ 1805) ~6-3,s~ FAX (805) 326-0578 , The intent of this letter is to inform you of the rapidly approaching deadline for complying with the California Accidental Release Program e~aaoNa£mn, s~aVIc~s (CalARP) including submission of the required Risk Management Plan 1715 Chester Ave. ~akersf~d. CA 93304 and implementation of the appropriate Prevention Program prior to VOICE (805) 326-3979 FAX (~o5) 320-o578 June 21, 1999. x~n,,o o,,as,on Our records indicate that your facility is subject the CalARP 5642 Victor Ave. Bakersn~d, CA 933O8 requirements. By this time, you should have already completed the vOiCE (sos) 3~J-4597 FAX (8o5)399-8783 Hazard Review or Process Hazard Analysis, the Off-Site Consequence Analysis, and have entered the necessary data into your Risk Management Plan (RMP) for submission to this office and possibly the United States Environmental Protection Agency (if also subject to federal regulations). If you have not yet done so, or have any questions regarding the necessary level of coordination be. tween your facility and our office Concerning CalARP, please call me immediately at 661-326-3979. Sincerely, Howard H. Wines, III Hazardous Materials Specialist Office of Environmental Services P 024 368 545 Receipt for Certified Mail No Inspire C~verage Provided Do not use for International Mail (See Reverse) P.O., State and ZIP Code SOUTlt L~ V~CAS NV 89030 Postage $ · 3 2 Certified Fee ~ Special Delivery Fee Restricted Delivery Fee Return Receipt Showing 1 o 10 to Whom & Date Delivered Return Receipt Showing to Whom, Date, and Addressee's Address TOTAL Postage ~ tees $ 2.5 2 Postmark Date or March 29, 1999 David Martin Frito Lay, Inc. 1209 Trade Drive South Las Vegas, NV 89030 CERTIFIED MAIL FIRE CHIEF ~o~ ~R~E 90 DAY NOTICE ~M,.,s~.~m~ s~.~CES CalARP RISK MANAGEMENT PLAN & 2101 'H' Street Bakersfield, CA 93301 vo,cE (805)326-3~41 PREVENTION PROGRAM REQUIRED FOR F~x (805)395-1349 SUBMISSION & IMPLEMENTATION PRIOR TO su...~ss,o. SEa. CaS JUNE 21, 1999 2101 'H" Street Bakersfield, CA 93301 VOICE (805) 326-3941 FAX (805) 395-1349 Dear Mr. Martin: PREVENTION SERVICES The intent of this letter is to inform you of the necessary deadlines 1715 Chester Ave. Bakersfield, CA 93301 for complying with the California Accidental Release Program (CalARP) vOiCE (8o5) 326-3951 FAX (805)328-0578 including submission of the required Risk Management Plan and implementation of the appropriate Prevention Program prior to June 21, ENVIRONMENTAL SERVICES 1999. 1715 Chester Ave. Bakersfield, CA 93301 VOICE (805) 326-3979 FAX (805) 326-0576 Our records indicate that your facility was previously notified of these requirements by Certified Mail dated June 17, 1998. At this time, vmun~no onns~o, yOU should have already coordinated with this office on the method of 5642 Victor Ave. Bakersfield, CA 93308 Hazard Review or Process Hazard Analysis to be conducted, the VOICE (805) 309-4697 FAX (805) 399-5763 appropriate Prevention Program level to be implemented and the Management System employed at your facility to oversee all such CalARP requirements. If you have not yet done so, or have any questions regarding the necessary level of coordination between your facility and our office concerning CalARP, please call me immediately at 661-326-3979. Sincerely, Howard H. Wines, III Hazardous Materials Specialist Office of Environmental Services HHW/dm ,~ P 024 368 523 ~ Receipt for Certifie~ M~ail No Insurance CoVerage Provided ~l~c~ Do not use for International Mail (See Reverse) ~ostaoe $ .3 2 Certified Fee Special Detivery Fee Restricted Delivery Fee  Return Receipt Showing to Whom & Date Delivered 1 o 10 Return Receipt Showing to Whom, ~ Date, and Addressee's Address "~ TOTAl. Postage  Postmark or Date .SENDER: Complete items 1 and/?~ll[Or additional services. I also wish to receive the · Complete items 3, and ~b. following · Print your name and ad--on the reverse of this form so that we can fee): return this card to you. · Attach this form to the front of the mailpiece, or on the bacK if space 1. [] Addressee's Address does not permit. · Write "Return Receipt Requested" on the mailpiece below t_he article number. · The Return Receipt will show to whom the article was delivered and the date delivered. Consult postmaster for fee. 3. Article Addressed to: 4a. Article Number DAVID MARTIN FRITO LAY INC [] Registered [] Insured 1209 TRADE DRIVE ~(Certified [] COD SOUTH 7~_S VEGAS ~ 89030 [] Express/'Mail [] Return Receipt for [ i Merchandise Ie 5. tu 8. Ad s Add ss {Only if requested and fee is paid) 6. ~l~nature (Agent) ~PS Form 3811, December 1991 ¢tU.S. GPO:1993---352-714 DOMESTIC RETURN RECEIPT UNITED STATES SERVICE Official Business · ~ ~ ~, ~ ~ , ,.. PENALTY FOR PRIVATE / USE TO AVOID PAYMENT /,~ ~c ~ OF POSTAGE,.~O0_ Print your name, address and ZIP Code here · · BAKERSFIELD FIRE DEPARTMENT ; :'~;~ CF ENVIRONMENTAL SERVICES 17'J 5 Ch~,ster Avenue, Suite 300 Bakersfield, CA 93301 Ihh,,,Ih,,ll,lh,,,,,lhJ,,ll December 16, 1998 David L. Martin Frito Lay Inc. 1209 Trade Drive South Las Vegas, NV 89030 FIRE CHIEF ~o~ ~ RISK MANAGEMENT WORKSHOP FOR INDUSTRY ADMINISTRATIVE SERVICES 2101 'H' Street Bake~e~d. C^93~01 JANUARY 7, 1999, 9:00 A.M. VOICE (805)32~-3941 OLIVE DRIVE FIRE TRAINING FACILITY FAX (805) 395-1349 SUPPRESSION SERVICES Dear Mr. Martin: 2101 'H' Street Bakersfield, CA 93301 VOICE (805)325-3941 A workshop conducted by the Governor's Office of Emergency Services FAX (805) 395-1349 regarding the new California Accidental Release Prevention (CalARP) and associated Risk Management Plan programs will be held in Bakersfield on PREVENTION SERVICES 1715 Chester Ave. Thursday, January 7, 1999 at 9:00 a.m. at the Olive Drive Fire Training Facility Bakersfield. CA 93301 VOICE (805) 326-3951 located at 5642 Victor Street. FAX (805) 326-0576 You have been previously notified by this office that your facility is EN~RONUENT~ SERVICES likely to be subject to the new CalARP requirements, including the 1715 Chester Ave. Bakersfield, CA 93301 implementation of a specified Prevention Program and submission of a Risk VOICE (805) 326-3979 FAX (805) 326-0576 Management Plan on or before June 21, 1999. This workshop should help answer any questions you may have. TRAINING DIVISION 5642 Victor Ave. A letter of invitation, agenda, Request for Comments Letter, and the text Bakersfield, CA 93308 VOICE (805) 3994697 of the CalARP regulations are enclosed. You may wish to familiarize yourself FAX (805) 399-5763 with the regulations and bring them along to the workshop for your reference. A map of the workshop location and surrounding restaurants is also attached. Please make every effort to attend this important event. Sincerely, Howard H. Wines, III Hazardous Materials Specialist Office of Environmental Services HHW/dm attachment enclosures RECORD OF TELEPHONE CONVERSATION Location: Business Name: Cona~ N~e: Busings Phone: Insp~or's N~e: ~me of C~I: D~e~ Type of C~I: In.ming Content of C~I: Time Required to Complete Activity # Min: ~;~ l~ ~,. December 3, 1998 Mr. David L. Martin Frito Lay Incorporated 1209 Trade Drive Las Vegas, NV 89030 RE: 6320 District Blvd in Bakersfield, CA FIRE CHIEF RON FEAZE CERTIFIED MAIL ADMINISTRATIVE SERVICES 2101 'H' Strut NOTICE OF RISK MANAGEMENT PLAN (RMP) Bakersfield, CA 93301 REQUIRED BY JUNE 21, 1999 VOICE (805) 326-3941 FAX (805) 395~1349 Dear Mr. Maritn: SUPPRESSION SERVICES 2101 'H' Stmot Your facility has been identified by this office as a probable candidate to be Bakersfield, CA 93301 subject to the new California Accidental Release Program (CalARP), which will involve VOICE (805) 326-3941 FAX (805) 395-1349 among many other requirements, the submission of a Risk Management Plan to this office, and also to the United States Environmental Protection Agency (USEPA) in many PREVENTION SERVICES cases, on or before June 21, 1999. 1715 Chester Ave. Bakersfield, CA 93301 VOICE (805) 326-3951 The CalARP regulations are a merging of the federal and state risk management FAX (805) 326-0576 prevention programs for accidental release prevention of several hundred listed flammable or toxic substances (e.g.: ammonia, chlorine, propane, etc.) which pose the ENVIRONMENTAL SERVICES greatest risk of causing death, injury, or seriously affecting human health or the 1715 Chester Ave. Bakersfield, CA 93301 environment if accidentally released. VOICE (805) 326-3979 FAX (805) 326-0576 The rule requires certain facilities to develop and implement an integrated system to identify hazards and manage risks associated with these regulated substances. TRAINING DMSlON Since your facility appears to be subject to this rule, you will be required to analyze 5642 Victor Ave. Bakersfield, CA 93308 worst-case releases, document a five-year history of serious accidents, coordinate with VOICE (805) 399-4697 local emergency responders, develop and implement a prevention program that includes, FAX (805) 399-5763 among other steps, identification of hazards, written operating procedures, training, maintenance, and accident investigation. If your employees also respond to accidental releases, you must implement an integrated local emergency response program. An informative digest is enclosed for your reference. The text of the regulations, technical assistance, and other information is available from our office by calling me directly at (805) 326-3979. Sincerely, Howard H. Wines, III Hazardous Materials Specialist Office of Environmental Services HHW/dm enclosure P 024 368 514 Receiver for ' ,. Cert~ed~ail No Insurance CoveraGe Provided ,~ Do not use for International Mail (See Reverse) SentffAVlD MARTIN S're~b~°' TRADE DRIVE P'°'I~ 'VI~,X°~e NV 89030 poet~Q. $ .3 2 Certified Fee 1.10 Special Delivery Fee Restricted Delivery Fee Return Receipt Showing to Whom & Date Delivered 1 o l 0 Return Receipt Showing to Whom, Date, end Addressee's Address TOTAL Postage ~ ~.es $ 2.52 Postmark or Da~e ,SENDER: I also wish to receiv,~.he Complete items 1 and/or 2 for additional services. · Complete items 3, and 4a & b. following services (for aftra · Print your name and address on the reverse of this form so that we can fee): return this card to you. · Attach this form to the front of the mailpiece, or on the back if space 1. [] Addressee's Address does not permit. · Write "Return Receipt Requested" on the mailpiece below the article number 2. Restricted Delivery · The Return Receipt will show to whom the article was delivered and the date delivered. Consult postmaster for fee. 3. Article Addressed to: 4a. Article Number MR DAVID NARTIN P-024-368-514 FRITY LAY INCORPOP, ATF~ [] Registered [] Insured 1209 TRADE DRIVE ~l[Certified [] COD tJ~S VEGAS [W 89030 [] Express Mail [] Return Receipt for Merchandise RE: 6320 DISTRICT BLVD 7. Date of Delivery 5. Signature (Addressee) 8. Addressee's Address (Only if requested ~ ~ and fee is paid) PS,-P'orm~]l,Decem~r 1991 ~.~.GPO:1~-352-714 DOMESTIC RETURN USE TO AVOID PAYMENT- OF~POSTAGE; $300 Print your name, address and ZIP Code here · CITY OF BAKERSFIEL~ FIRE DEPT · OFFICE OF ENVIRONI~ENTAL SERVICES 1715 CHESTER AVENIIE SUITE 300 BAKERSFIEI~) CA 93301 B A K E R,,$ F I E L D FIRE DEPARTMENT ENVIRONMENTAL SERVICES 1715 Chester Ave. · Bakersfield, CA 93301 Business Phone (805) 326-3979 · FAX (805) 326-0576 FAX Transmittal COMMENTS: INFORMATIVE DIGEST Effective January I, 1997, Senate Bill 1889 (Health and Safety Code, Chapter 6.95, Article 2, Sections 25531-25543.3) eliminated the existing chemical Risk Management and Prevention Program (RMPP). This law required the Governor's Office of Emergency Services to seek and receive delegation of the federal accidental release prevention (AR.P) program (40 CFR, Part 68) and to adopt regulations to establish and implement the federal ARP program, with certain amendments that are specific to the state. This action is intended to reduce duplication and overlap between state and federal accidental release prevention regulations. Emergency Rulemakings As required by state statute, OES adopted emergency regulations for the CalARP program on June 30, 1997. The emergency regulations were effective on July 11,1997, and readopted effective November 7, 1997 and March 9, 1998. To assist in the development of the emergency regulations, OES established a multidisciplinary working group. The working group assisted OES with the integration of the federal ARP program requirements and state specific requirements and have provided valuable input throughout the regulatory development process. The working group included representatives from regulated businesses, environmental groups and local administering agencies (AAs). The administering agency is the local agency responsible for administering the CaIARP program. OES also established a separate state agency working group to ensure that interested state agencies had input to the development of the proposed CaIARP regulations. State Program Regulations :~ -, These proposed regulations include federally mandated regulations and amendments to : federally mandated regulations. U.S. Environmental Protection Agency (USEPA) promulgated chemical accident prevention regulations on June 20, 1996, as codified in Title 40, of the Code of Federal Regulations (40 CFR), Part 68. Those regulations were promulgated pursuant to Section 112(r ) of the federal Clean Air Act (CAA). Interpretation of intent can be found in Federal Registers dated January 31, 1994, and June 20, 1996. Pursuant to HSC Section 25533 (a), "the state's implementation of the federal program adopted by the Environmental Protection Agency is not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code," referring to the Administrative Procedures Act. OES has identified sections of the proposed regulations that differ from the federal regulations. Where the CalARP regulations differ, it is for clarity or to reflect differences in state and federal law. Except for necessary section renumbering, the federal regulations are used verbatim in the remaining sections. In addition to adopting the federal ARP, these regulations would: Establish a state list of regulated substances. Cover the registration of regulated businesses. · Require the owner or operator of each stationary source to work closely with the AA to decide which process hazard review technique is best suited for each stationary source to evaluate the hazards of all covered chemical processes. · Provide a method for hazard analysis which includes the consideration of external events, including seismic events, if applicable. implementation of the program to a person or position, implement a preVention program, have an emergency response program, and submit an RMP. Using industry experience and engineering expertise, USEPA developed cost estimates per regulated source for each element of the program. The average initial cost per regulated source to comply with the federal ARP rule was estimated by multiplying the unit cost of each risk management element by the adjustment factors for the expected likelihood that a source would already be in compliance with the risk management program elements. The offsite consequence analysis cost was multiplied-by, the-average number 'of substances. The average cost of each program element was then consolidated to estimate the average cost for manufacturers and non-manufacturers, depending on whether they were assumed to be already covered by another similar regulation. According to USEPA's economic analysis, costs per regulated business (stationary source) vary as follows: Source with a single Program I process $260 Program 2 retailer $1,400 Drinking water system covered by OSHA PSM $2,000 to $3,900 Program 2 manufacturer $17,000 Largest chemical manufacturer $785,000 Number of Businesses Impacted The CalARP economic impact analysis then used data from USEPA's 1991 toxic release inventory (TRI) database to determine the estimated number of businesses (by industry type) that would be regulated under the federal ARP rule. The estimates for California are as follows. However, actual numbers may vary considerably per USEPA. Business Type Number Pulp & Paper and Chemical Manufacturers (SIC 28/29/2611) 367 Other Manufacturers (based on toxic releases inventories; includes SIC 2911) 960 Cold Storage Systems 770 Agricultural Retailer 0 Propane Retailer 1100 Utilities 66 Drinking Water Companies 876 Wholesale 141 Total 4280 8 assist local agencies. An additional 15 percent was requested to offset uncollected fees for a statewide total of $488,750. Divided by 8,000 regulated businesses, this equates to approximately $62 per business. These services fees are included in the initial costs for businesses to comply with these regulations. Local Government Fees: Administering agencies will incur costs to implement and enforce the CalARP regulations, and to provide technical assistance to regulated businesses within their jurisdictions. · ' Under HSC Section~25404'.5; these'AAs have-the authority to recoup their costs for administering the CalARP program and assisting regulated businesses in the development of their RMPs. These "fees for service" were included in the cost per business in the OES economic impact analysis. They were estimated by identifying the requirements specified in the regulations for which AAs have direct responsibility. Cost estimates were based on the time required to complete each activity multiplied by the following loaded hourly wage rates for local government employees: $33.84 for a management employee, $35.44 for a technical employee, and $16.58 for a clerical employee. The resulting estimated "service fee" per business was $1,100 to $7,500. However, some gAs have indicated that they will not charge businesses "service fee" but will instead absorb these costs. Therefore, the unit cost for local governmentz~'~.~'" fees used in determining the total cost per regulated business was $0 to $7,500. Impact on Small Businesses : .: This analysis uses USEPA estimates based upon the number of employees to determine .'~i 'whether a business was large or small. Based upon this information, it is estimated that "-:~ approximately 17 percent of the 4,280 regulated businesses subject to the federal ARP rule in California are small businesses. This same percentage was then applied to the total number of regulated businesses (5,768) expected to have to provide RMPs to gAs as explained above. The' resulting estimate of small businesses which will incur full initial compliance costs with the CalARP regulations is 980. " There is no fixed schedule for determining when an AA will request a business to submit an RMP. Therefore, these initial compliance costs could be incurred anytime over the five year" lifetime of these regulations. Therefore, these initial compliance costs represent total costs for businesses to comply with the CalARP regulations but do not include the opportunity costs over the lifetime of the regulations. These costs are addressed in the following sections. To calculate the total initial compliance cost to all small regulated businesses in California, this analysis assumed that most small regulated businesses would constitute "sources with a single Program 1 process" as described in the section regarding "ARP Program Unit Costs," above. Using the ARP unit of $260 for these type of sources, plus additional state program costs of $4,408 to $16,427 (as explained above), plus state UPA service charge of $67, plus local government (AA) service fees of $0 to $7,500, the total initial compliance cost for a small business is $4,735 to $24,254 per business. Multiplying this cost per business by 980 estimated small regulated businesses (as calculated above), the total initial compliance costs to all small businesses in California is estimated to be $4,640,300 to $23,768,920. Then, assuming that 3 to 10 percent of the regulated small businesses will incur the additional costs of $273 to 10 $2,004 associated with preparing an RMP for a new or modified source during the 5 year lifetime of these regulations, the total compliance cost for all small businesses in California is estimated at $4,648,326 to $23,965,312 or approximately $4.6 million to $24 million over five years. Impact on Large Businesses The cost to a large business was determined using the same methodology as described above for small businesses, but assuming that a "typical" large business would incur the ARP unit cost of a Program 2 Manufacturer, or $17,000 per source. This analysis assumed 4,788 large businesses (5,768 total businesses impacted less 980 small businesses). Adding the same additional state program costs, state service charge, and AA service fees described above, the total initial compliance cost for a large businesses in California is estimated at $21,475 to $40,994 per business. Multiplying this cost by 4,788 large businesses estimated to be impacted by these regulations, initial compliance costs for all large businesses in California ranges from · $102,822,300 to $196,279,272. This analysis assumes that 3 to I 0 percent of these businesses will incur the additional cost associated with preparing another RaMP for a new or modified source during the next 5 years at a cost of $17,013 to $18,744 per business. Therefore, the total cost of compliance for all large businesses in California is estimated at $105,266,047 to $205,253,899. or approximately $105 million to $205 million over five years. Total Costs to California Businesses Over the Lifetime of the Regulations The total statewide economic impact to all businesses in California over the lifetime of the regulations was determined by adding the total costs to small businesses to the total costs for all large businesses (estimated above), and then adding the opportunity costs over the lifetime of the regulations. This calculation assumed that (1) the lifetime of the regulations is five years (per Executive Order W-144-97 which requires a sunset review of these regulations every five years); and (2) the annual discount rate is 5.08 percent (based upon the three month Treasury Bill rate reported in the March 31, 1998, issue of the Wall Street Journal). The resulting total cost ~ . estimate over the lifetime of the CalARP regulations is approximately $141 million to $295 million. Estimated Benefits of the CalARP Regulations The costs to California businesses to comply with the proposed CalARP regulations are outweighed by the benefits resulting from preventing a catastrophic event, and are less than required by the previous California Risk Management Prevention Program, enacted in 1986. The primary benefits expected from the CalARP regulation are similar to those identified by USEPA for the federal ARP program. These include reductions in human injuries and fatalities, and damage to property and the environment from accidents involving fires, explosions, and toxic releases at sources covered under these regulations. In addition, this analysis considered the cost savings from the avoidance of lost production that would result from an event that caused a release of a regulated substance and the cost of litigation that would result from the harmful effects of such an event. It is difficult to determine the direct effect on mitigating certain categories of these damages due to the uncertainty between the cause of the accident and the impact the regulations will have in preventing or mitigating future accidents. The types of damages or costs in this analysis includes 12/08/98 15:30 ~805 326 0576 BFD HAZ MAT DIV ~001 *** ACTIVITY REPORT TRANSMISSION OK TX/RX NO. 9546 CONNECTION TEL 17026428880 CONNECTION ID START TIME 12/08 15:25 USAGE TIME 04'08 PAGES 5 RESULT OK C~ALIFY~'~NIA ACCIDENTAtj~iELEASE PREVENTION I REC~VED I PROGRAM REGISTRATIOI~ i . · ~ r.'nu ~ ~oao OE; 27~.; (N~ ~7) ~, ~.~ ~=~9'~ ._ _ I PAGE I._} ffff//~~'"~"}Business~' OwnerlO~rator~ ~Y ~c.lnf°mati~n' 'i~ ~ ~"-}~-~- ~ ' ' IL R~ulated Substan~ List A,: Name of Eac~ R~u~ S~tance I .......... : , .. I :. . ' ~e~n, ~r~ Bi Na~ of Ea~ R~u~t~ S~~ in a Minute W~ ~ (~) ~ ' III. 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