Respondent owns and/or operates a refrigeration-based cold storage facility which is located within a populated residential, commercial, and industrial area and is adjacent to a significant roadway. At the Facility, Respondent handles, stores, and uses, and has handled, stored, and used anhydrous ammonia. On April 24, 2018, EPA performed an inspection of the Facility pursuant to Section 112(r) of the CAA, Sections 304-312 of EPCRA, and Section 103 of CERCLA. Based upon the information gathered during the Inspection and subsequent investigation, EPA determined that Respondent violated certain provisions of the CAA.
ALLEGED VIOLATIONS
COUNT 1 – Failure to Identify Hazards: Inadequate Hazard Review
CAA Section 112(r)(1) provides that owners and operators of a stationary source that produces, processes, handles, or stores a regulated substance (as defined in 40 C.F.R. § 68.130) or an extremely hazardous substance have a general duty to identify hazards which may result from accidental releases using appropriate hazard assessment techniques.
One hazard assessment technique to identify hazards in the anhydrous ammonia industry is the performance of a hazard review, also called a hazard assessment or hazard evaluation. An adequate hazard review will generally result in the following information:
- hazards associated with the substance and the process,
- potential release scenarios developed from site-specific hazard analysis or review, and facility or industry historical data, and
- the consequences of the release in each case
Respondent did not conduct a hazard review using appropriate hazard techniques consistent with industry practice and the standard of care for ammonia refrigeration systems.
Accordingly, EPA alleges that Respondent failed to identify hazards which may result from accidental releases using appropriate hazard assessment techniques in violation of CAA Section 112(r)(1).
COUNT 2 – Failure to Design and Maintain a Safe Facility
CAA Section 112(r)(1) provides that owners and operators of a stationary source that produces, processes, handles, or stores a regulated substance (as defined in 40 C.F.R. § 68.130) or an extremely hazardous substance have a general duty to design and maintain a safe facility taking such steps as are necessary to prevent releases.
It is a recognized hazard within the anhydrous ammonia industries for a facility not to maintain design information necessary to understand and evaluate the functioning, limits, and capacity of its process equipment and protective systems (e.g., information to determine whether pressure relief systems are correctly sized and designed to provide adequate protection against over pressurization). The failure to maintain necessary design information is likely to cause harm because it increases the likelihood that process equipment and protective systems are operated outside of safe limits or that malfunctions are not promptly recognized. Respondent did not maintain necessary design information about equipment and protective systems consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is when a facility lacks adequate safeguards at entrances to areas containing refrigeration equipment. One way to address this hazard is to install signage in appropriate locations indicating the presence of anhydrous ammonia and prohibiting the entry of unauthorized personnel. The lack of adequate safeguards at entrances to areas containing refrigeration equipment is likely to cause harm because it increases the likelihood that people in and around such areas will be unaware of the hazards and need for safety precautions. Respondent did not provide safeguards at entrances to areas containing refrigeration equipment consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is when process equipment and piping is not labeled to indicate system information needed to safely perform the operation, maintenance, repair, or emergency response activities. One way to address this hazard is to label all ammonia-containing piping to indicate the contents, direction of flow, physical state (i.e., liquid or vapor), and pressure level (i.e., high or low), and, for other system equipment, such as receivers and accumulators, to install distinctive component markers and labels indicating the installer, the refrigerant, the lubricant, and testing procedures. The absence of properly labeled process equipment and piping is likely to cause harm because it increases the likelihood that individuals performing maintenance, repair, or emergency activities will be unaware of critical system information needed to safely and effectively perform their duties. Respondent did not label process equipment and piping consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is when ammonia-containing machinery rooms permit refrigerant to escape to other parts of the facility. One way to address this hazard is to design and maintain machinery rooms so that they are sealed off from other areas and refrigerant cannot escape. Permitting refrigerant to escape the machinery room is likely to cause harm because personnel in proximity to the machinery room may be unknowingly exposed to the refrigerant. Respondent’s machinery room was not designed and maintained to prevent refrigerant from escaping to other parts of the Facility consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is machinery room doors that are not designed to mitigate the consequences of an accidental release. One way to address this hazard is to design machinery room doors so that they are self-closing, tight-fitting, and outward-opening. Harm is likely to result if a facility does not have machinery room doors designed to mitigate the consequences of an accidental release because it increases the likelihood that ammonia vapors will spread outside the machinery room and because employees will have greater difficulty evacuating during an emergency. Respondent did not have machinery room doors designed to mitigate the consequences of an accidental release consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is ammonia detection systems that are not actuated to detect ammonia at sufficiently low levels. An ammonia detection system that is not actuated to detect ammonia at sufficiently low levels is likely to cause harm because it will impair a facility’s ability to detect a release and to initiate appropriate emergency procedures. During the Inspection, enforcement staff observed that Respondent’s ammonia detection system was not actuated at a sufficiently low level consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is the accumulation of excessive ice on process equipment, pipes, valves, and fittings. One way to address this hazard is to protect equipment subject to ice accumulation by mitigating condensation and frost buildup. Excessive accumulation of ice on process equipment is likely to cause harm because the accumulated ice can interfere with operation, maintenance, and repair activities, and can damage the refrigeration system and associated electrical equipment. Respondent did not maintain the Facility to mitigate condensation and frost buildup consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is the lack of adequate ventilation in ammonia-containing machinery rooms. One way to address this hazard is to install and maintain standard and emergency ventilation systems capable of adequate circulation based on industry metrics and site-specific conditions. The lack of adequate ventilation in machinery rooms is likely to cause harm because it facilitates vapor buildup, which increases the likelihood of significant inhalation, dermal hazards, and fire or explosion. Respondent did not install and maintain ventilation in its machinery room consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is when a facility emergency systems are not designed to be operated remotely during a release. This hazard can be addressed by installing remote control equipment immediately outside the machinery room door, or by installing an automatic detection and override system. Not having emergency systems capable of remote operation during a release is likely to cause harm because personnel will be forced to enter areas where dangerous levels of vapors may be present to activate emergency systems. Respondent did not design the Facility to be operated remotely during a release consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is when a facility does not maintain written procedures for its refrigeration system operation, maintenance, or repair. One way to address this hazard is to develop, implement, and regularly update procedures for the refrigeration system s operation, maintenance, and repair and to ensure that the procedures are available to all appropriate personnel. Not maintaining procedures for refrigeration system operation, maintenance, or repair is likely to cause harm because such procedures establish the limits of safe operation for process equipment and identify process variables and corrective measures for emergency situations, thereby reducing the likelihood of accidents and mitigating the consequences of accidents that do occur. Respondent did not have written procedures for operation, maintenance, and repair consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is when a facility does not investigate incidents as they occur and, based on such investigations, develops and implements corrective measures to prevent similar incidents in the future. One way to address this hazard is to develop and implement a formal incident investigation program. Harm is likely to result if a facility does not properly investigate incidents because the facility will be less likely to implement corrective measures that prevent similar incidents from reoccurring. Respondent did not investigate incidents at the Facility consistent with industry practice and the standard of care for ammonia refrigeration systems.
A hazard recognized in the anhydrous ammonia industries is the malfunction, degradation, or breakdown of equipment due to inadequate preventive maintenance. One way to address this hazard is to implement a preventive maintenance program that identifies equipment inspection and testing protocols and schedules and provides for the repair or replacement of faulty or damaged equipment. Malfunction, degradation, or breakdown of equipment due to inadequate preventive maintenance is likely to cause harm because it increases the likelihood of a release or other accident. Respondent did not have a preventative maintenance program consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is when vapor barriers on system piping fail due to inadequate maintenance and repair procedures. One way to address this hazard is to require that system piping showing signs of vapor barrier damage is promptly removed and inspected. Vapor barrier failure on system piping is likely to cause harm because the uninsulated pipes can deteriorate over time. Respondent did not require that system piping showing signs of vapor damage be promptly removed and inspected consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is improperly installed or maintained electrical equipment and wiring. Improperly installed or maintained electrical equipment and wiring is likely to cause harm because it is prone to malfunction and failure and because personnel working on and around exposed electrical components are at an increased risk of injury from electric shock. Respondent did not install and maintain the facility’s electrical equipment and wiring consistent with industry practice and the standard of care for ammonia refrigeration systems.
Another hazard recognized in the anhydrous ammonia industries is buildings and structures are not maintained in a safe and sanitary condition. Not maintaining buildings and structures in a safe and sanitary condition is likely to cause harm because it creates conditions that increase the likelihood of releases and other accidents. Respondent did not maintain buildings and structures condition consistent with industry practice and the standard of care for refrigeration systems.
Accordingly, EPA alleges that Respondent failed to design and maintain a safe facility taking such steps as are necessary to prevent releases, in violation of CAA Section 112(r)(1).
COUNT 3 – Failure to Minimize the Consequences of a Release
CAA Section 112(r)(1), provides that owners and operators of a stationary source that produces, processes, handles, or stores a regulated substance (as defined in 40 C.F.R. § 68.130) or an extremely hazardous substance, have a general duty to minimize the consequences of accidental releases that occur.
A hazard recognized in the anhydrous ammonia industries is the potential for an ineffective emergency response to an accidental release due to a facility’s failure to conduct adequate emergency response planning. One way to address this hazard is to develop a plan thoroughly analyzing how to mobilize and coordinate an effective emergency response under each of the facility’s most likely release scenarios. Inadequate emergency response is likely to cause harm because it will prolong or exacerbate the consequences of an accidental release. Respondent did not conduct emergency response planning consistent with industry practice and the standard of care for ammonia refrigeration systems.
Accordingly, EPA alleges that Respondent breached its duty to minimize the consequences of accidental releases in violation of CAA Section 112(r)(1).
CIVIL PENALTY
EPA proposes that Respondent be assessed, and Respondent agrees to pay a total of ONE HUNDRED FIFTEEN THOUSAND TWELVE DOLLARS ($115,012), as the civil penalty for the violations alleged herein.
Corrective Actions:
Label Piping and Equipment.
On or before July 30, 2021, Respondent shall certify to EPA that it has labeled all piping and equipment in the ammonia system consistent with IIAR, American Society of Mechanical Engineers ASME, or an equivalent system of labeling; clearly and consistently tagged and labeled all anhydrous ammonia refrigeration system piping, equipment, and valves; and installed a hazard identification sign consistent with National Fire NFPA 704 on the HPR located outside the engine room.
Fix Condenser Catwalk and Drift Eliminators
On or before May 31, 2021, Respondent shall certify to EPA that it has installed on the condenser platform a catwalk that facilitates safe access to valves and the top of condensers for service, maintenance, and inspection; and that it has repaired or replaced damaged drift eliminators on the condenser.
Install Overhead Relief Lines
On or before July 30, 2021, Respondent shall certify to EPA that it has implemented all recommendations identified in the Mechanical Integrity Inspection Report ensuring the relief header is sound, not obstructed, and running overhead instead of in trough; that Respondent has obtained and documented all relief valve and relief discharge system design information and that such information is complete and available onsite at the Facility.
Install Supports for Piping Through Walls and Insulation
On or before August 31, 2021, Respondent shall certify to EPA that all piping supports at the Facility are adequate to prevent piping from resting on wall penetrations; that all insulation continues through wall openings, wall openings are large enough to prevent piping from resting on wood, and pipe supports are adjusted to prevent piping from resting on wall openings.
Install Proper Relief Devices for Air Unit Surge Drums
On or before August 31, 2021, are ASME rated or field fabricated; if the Air Unit Surge Drums are ASME rated, Respondent shall further certify that it has installed proper relief protection; if the relief protection is field fabricated, Respondent shall further certify that it has either: (a) installed an appropriately sized pressure relief device (i.e., engineering control) and developed procedures to prevent isolation of surge drums and units while full of liquid (i.e., administrative control); or (b) replaced the field fabricated equipment with appropriate ASME rated vessels and installed an appropriately sized PRV.
Label Bunker Coils
On or before July 30, 2021, Respondent shall certify to EPA that it has properly labeled unit and piping in Rooms 15-34 consistent with IIAR Bulletin 114.
Install Remote E-Stop Shutdown Switches
On or before August 31, 2021, Respondent shall certify to EPA that it has installed remote e-stop shutdown switches on the northeast and northwest corners of the machinery room.
Install Evaporator Impact Guards
On or before August 31, 2021, Respondent shall certify to EPA that it has installed crash guards on all the facility’s evaporators and installed impact protection for all the facility’s air units and piping.
Design Capacities
On or before August 31, 2021, Respondent shall certify to EPA that it has performed design calculations for all the Facility’s PRVs including the high-pressure receiver, and the capacity of the diffusion tank to receive relief valve discharges; the design calculations demonstrate the PRVs and the diffusion tank have appropriate capacities to prevent a catastrophic buildup of ammonia; and that Respondent has developed a safe method to monitor diffusion tank operation.
Ventilation System Upgrade
On or before August 31, 2021, Respondent shall certify to EPA that it has modified the machinery room consistent with CMC, IIAR 2, and American Society of Heating, Refrigerating and Air-conditioning Engineers (ASHRAE) standards, including ensuring that machinery room doors are tight-fitting, self-closing, and have a panic bar to open the door in the direction of evacuation; that the machinery room walls do not contain holes or gaps for piping or conduit, open windows, or access to other rooms, which may permit refrigerant to escape to other areas; that the ammonia detection alarms in the machinery room are set to 25 ppm; and that all ventilation modifications identified in the MI Report have been properly implemented, including repairing ductwork on makeup and exhaust fans, reviewing ventilation capabilities against codes and standards.
Repair or Replace Insulation
On or before November 1, 2021, Respondent shall certify to EPA that it has repaired or replaced all broken or missing insulation at the Facility.
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