Respondent is the owner and operator of a facility which receives and stores liquefied petroleum gas (“LPG”) for wholesale customers. Respondent filed an RMP for the Facility with EPA, which was most recently updated on March 21, 2013 and identified a covered LPG storage process at the Facility subject to Program 3 requirements, with specified quantities of 14,422,278 pounds of propane, 283,422,939 pounds of butane, and 13,000 pounds of ethyl mercaptan. On November 11 , 2007, EPA conducted an inspection of the Facility and identified multiple violations of the requirements of Section 112(r)(7) of the CAA and the regulations at 40 C.F.R. Part 68.
A Consent Agreement and Final Order was entered on June 1, 2010, and imposed a civil penalty of $52,630.40 for the violations. 15. EPA conducted a subsequent inspection of the Facility on or about April 1-2, 2013, to assess compliance with Section l 12(r) of the Act and 40 C.F.R. Part 68 (the “Inspection”). On July 15, 2013, EPA sent a letter to the Facility regarding the results of the Inspection and included a copy of the Inspection Report which identified violations of the regulations at 40 C.F.R. Part 68 at the Facility, including, among other violations, failure to fully comply with:
- the process safety information requirements at 40 C.F.R. § 68.65 regarding the preparation of updated and accurate piping and instrumentation diagrams and documentation demonstrating that equipment complies with recognized and generally accepted good engineering practices;
- the process hazard analysis (“PHA”) requirements at 40 C.F.R. § 68.67 related to ensuring that the Facility’s flare system, as part of the covered LPG storage process, is included in the PHA and that all PHA recommendations are resolved in a timely manner;
- the mechanical integrity requirements at 40 C.F.R. § 68.73 that concern conducting and/or documenting inspections and tests of all covered equipment;
- the management of change (“MOC”) requirements at 40 C.F.R. § 68.75 regarding review of all changes that meet MOC criteria;
- the pre-start up review requirements at 40 C.F.R. § 68.77 that concern pre-start up review for all modifications requiring a change to process safety information; and
- the contractors requirements at 40 C.F.R. § 68.87 related to obtaining and evaluating information regarding contractors’ safety performance and programs
EPA CONCLUSIONS OF LAW
Respondent handles and stores, and has handled and stored, propane, butane, and ethyl mercaptan in a process at the Facility in quantities exceeding the threshold quantity. Respondent’s failures to comply fully with the requirements of 40 C.F.R. Part 68 regarding the Facility constitute violations of Section 112(r).
Respondent agrees to pay a civil penalty in the total amount of $154,000.00.
Respondent certifies that it has already come into compliance at its Facility regarding the majority of the violations of Section 112(r)(7) of the CAA and 40 C.F.R. Part 68 described in the Findings of Fact and EPA Conclusions of Law sections above and in the EPA Inspection report for the April 1-2, 2013 Inspection.
Respondent identifies the following areas with which the Facility is not fully in compliance: certain process safety information requirements at 40 C.F.R. § 68.65 ; certain training requirements of 40 C.F.R. § 68.71; certain MOC requirements of 40 C.F.R. § 68.75; and certain mechanical integrity requirements of 40 C.F.R. § 68.73. Respondent agrees to come fully into compliance with Section l l 2(r)(7) of the CAA and 40 C.F.R. Part 68 at the Facility and to address the violations described above.
Respondent further agrees to have an audit conducted by a third party by May 31, 2017 to confirm compliance regarding the matters identified above.
The name and qualifications of the proposed third party auditor shall be submitted to EPA by December 31, 2016 for approval, and the third party auditor shall be knowledgeable about the requirements of 40 C.F.R. Part 68 and be impartial and independent when conducting audit activities. A third party audit report shall be prepared by the third party auditor, which shall identify any noncompliance with 40 C.F .R. Part 68 requirements. This report shall be submitted to EPA by June 30, 2017, along with the following certification, signed and dated by a representative of the third-party auditor: “I certify that this report was prepared under my direction or supervision and that the audit was conducted and this report was prepared pursuant to the requirements of subpart C of 40 CFR part 68 and all other applicable auditing, competency, independence, impartiality, and conflict of interest standards and protocols. Based on my personal knowledge and experience, and inquiry of personnel involved in the audit, the information submitted herein is true, accurate, and complete.”
Supplemental Environmental Project
Respondent agrees to, and shall in accordance with the terms and conditions of this CAFO, implement and perform a Supplemental Environmental Project (“SEP”) that consists of the purchase of vehicles and equipment, as described in Attachment I, for the Savona Fire Department and the Bath Volunteer Fire Department in Steuben County, New York, and the Watkins Glen Fire Department in Schuyler County, New York.
To implement this SEP, Respondent agrees that its total expenditure shall not be Jess than $157,624. Respondent agrees to purchase the vehicles and equipment listed in Attachment 1 and provide them (or cause them to be provided) to the appropriate fire department pursuant to the following schedule:
Respondent agrees to expend $71,859.00 toward the purchase of the vehicles/equipment on or before November 30, 2016, and Respondent agrees to expend $85,765.00 in purchasing the remainder of the vehicles/equipment listed in Attachment I on or before January 31, 2017.
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