Small Businesses: Why Do You Need To Know About The Risk Management Program?

On June 21, 1999, companies of all sizes that use certain listed chemicals will submit for the first time plans that detail how they will prevent accidental chemical releases from occuring. The type and quantity of chemicals that you use will determine if you are affected rather than the size of your company. Chemicals covered by this new regulation (a.k.a. the "regulated substances") include propane, ammonia and chlorine that many small businesses commonly store. This article is meant to be a brief introduction to this new program and is by no means a comprehensive explanation - but it should help answer your most crucial questions and serve as a starting point for further investigation.

What is the Risk Management Program all about - and why might I be covered?

The Clean Air Act Section 112(r) required the U.S. Environmental Protection Agency to publish regulations focusing on chemical accident prevention. Congress and EPA's Chemical Emergency Preparedness and Prevention Office intended this new regulation to build upon the chemical safety work begun under the Emergency Planning and Community Right-to-Know Act which requires state and local governments to properly plan for and respond to chemical accidents. The Risk Management Program focuses us all on prevention of these accidents, not just preparation and response.

Your business will likely be required to comply with the Risk Management Program if you use any of the 100+ regulated substances in quantities that meet certain thresholds. Even if you are a small business, you may be using common hazardous chemicals in quantities great enough to cause harm to the surrounding community if there were an accident:

• chlorine - covered if you exceed 2,500 lbs
• ammonia (anhydrous) - covered if you exceed 10,000 lbs
• propane - covered if you exceed 10,000 lbs (2,500 gallon water capacity tank)

If you have discovered that you are subject to the Risk Management Program, you will then determine which tiered program you fit into. EPA established three levels of requirements to reduce the regulatory burden for facilities with a low risk of offsite impacts in the event of a chemical accident. Program Level 1 has the fewest requirements, while Program Levels 2 and 3 require more work because their processes present a greater risk to the surrounding communities.

We strongly urge you to contact EPA's confidential Hotline (see below) and your State Technical Assistance Director as you determine whether the chemicals you use are RMP-covered substances and trigger thresholds and as you determine whether you should comply with Level 1, 2, or 3 requirements.

OK... so what's the good news?

In the course of adhering to good business practices, you probably already have some of the information at your fingertips to fill out your Risk Management Plan or you may already have put in place some elements of a Risk Management Program. The following is a general list of programs and processes that likely will be included in your Risk Management Plan (depending upon whether you fit into Program Level 1,2, or 3) and that you may have already implemented in the normal course of doing business and will therefore not have to duplicate:

• Employee training on operating procedures for equipment;
• Compliance with OSHA's hazard communication standard;
• Maintenance programs for your equipment and processes (in accordance with industry standard practices);
• Safety information found on MSDS sheets that you are required to retain;
• Documentation of equipment that you have (most likely given to you by the vendor upon purchase);
• Accident investigation procedures mandated by your insurance company; and
• Compliance with OSHA's Process Safety Management program (if so, you will have most of the prevention part of the Plan completed)

Why is the Risk Management Program important to me?

The Risk Management Program is the outgrowth and expansion of successful federal and industry standards that established practices for prevention and mitigation of incidents involving toxic chemicals. Facilities that voluntarily adopted industry standards for accident prevention (such as programs created by the Chemical Manufacturers Association, the American Petroleum Institute, and the Center for Chemical Process Safety) or have complied with OSHA's Process Safety Management program have found that the benefits far outweigh the initial costs incurred for development accident prevention programs. Facilities have seen:

• Improved operating performance due to better training and safer operations;
• Avoidance of serious accidents involving evacuation, injury and even death;
• Better community and employee relations;
• Improved prevention of chemical accidents; and
• Reduction in downtime caused by equipment malfunctions.

Compliance with the Risk Management Program will put you on the road to seeing these important benefits.

When do I need to comply and how will I do it?

Facilities must have their Risk Management Program developed and implemented and a Risk Management Plan (which is the written summary statement verifying that the facility has all the required elements of a Risk Management Program in place and operational) submitted by June 21, 1999. The regulation requires that your Plan be submitted electronically to EPA via diskette, where it will then be made publicly available on the Internet. Small businesses that are unable to comply with required electronic submission may be eligible for an "electronic waiver" whereby they can submit their Risk Management Plan on paper. The diskettes and paper forms that you will need to fill out will be available in January, 1999. However, we recommend that you get a head start on creating your Risk Management Program and get the necessary information ready for the Plan by ordering a copy of the Risk Management Plan data elements that you can expect to see on the diskettes. The ordering numbers are 550-B96-012 and 550-B96-012A and you can request a copy free-of-charge by calling our publications warehouse at 1-800-490-9198.

Where can I get help?

We realize that compliance with the Risk Management Program may impose an additional burden on your facility's existing environmental obligations, and we are making small business technical and compliance assistance our top program priority. U.S. EPA's Chemical Emergency Preparedness and Prevention Office and our Regional counterparts are taking the lead in providing assistance to you as you prepare to comply with this new regulation, and we are working with your trade associations and other industry groups to develop guidance aimed at industry sectors dominated by small businesses. In addition, each state has a Small Business Technical Assistance Director who understands your small business concerns, can provide access to information and resources, and can provide technical assistance on the Risk Management Program (as well as a variety of other clean air programs). Your most important sources of assistance at this point are:

• U.S. EPA's Hotline (1-800-424-9346): a confidential Hotline staffed by technical experts that can help you determine if you are covered by these regulations, explain the data elements in the Risk Management Plan, and assist you as you prepare your Risk Management Program. The Hotline can also suggest useful publications, provide you with updates, and get you in touch with important Regional/state personnel and the Small Business Technical Assistance Director in your state.
• CEPPO's website (www.epa.gov/swercepp/) provides one-stop shopping for our RMP publications and program updates.
• Trade Associations that represent your industry sector are gearing up to assist you in complying with RMP by providing technical assistance, sector-specific publications and training.
• Small Business Ombudsman Update Newsletter: stay tuned to this publication for further updates on the Risk Management Program as it develops.

How can I let EPA know if we need more or different kinds of help?

Our office is always interested in hearing directly from the regulated community on additional sources of information that may be needed in order to make sure that small businesses can comply on time, accurately and with a minimum of headaches. I would be interested in hearing any ideas you might have for technical or compliance assistance, so please write me:

Future Articles

Keep an eye out for future articles in this newsletter that will help you comply with the RMP. We will be keeping you up to date on issues such as:

• Additional sources of assistance;
• Industry-specific guidance for majority-small business industry sectors;
• Development of the electronic submission system and public access system;
• Ways in which you can help the community understand your prevention programs; and
• How you can expect the information you submit to be used.

Maintained by the Chemical Emergency Preparedness and Prevention Office (CEPPO), Office of Solid Waste and Emergency Response (OSWER), U.S. Environmental Protection Agency (EPA)

URL:http://www.epa.gov/swercepp/article.html

Last Updated: January 8, 1998