EPA RMP GDC Citations @ Cold Storage (NH3 $108K w/ SEP of $205K)

EPA alleged that each facility failed to comply with Section 112(r)(1) of the CAA (the “General Duty Clause”) in its handling of anhydrous ammonia at four (4) cold storage warehouses. Specifically, with respect to the General Duty Clause, the four Complaints alleged that each facility failed to:

• identify hazards which may result from accidental releases of anhydrous ammonia, which is an extremely hazardous substance, using appropriate hazard assessment techniques;
• design and maintain a safe facility taking such steps as are necessary to prevent releases of ammonia; and 
• minimize the consequences of accidental releases of ammonia that do occur.

Additionally, EPA alleged three (3) of the facilities also failed to comply with Section 312(a) of EPCRA and the federal regulations that set out these statutory requirements in greater detail, 40 C.F.R. Part 370.

By no later than June 1, 2014, one facility shall complete implementation of the following items, which address the remaining compliance deficiencies identified in Counts 2 and 3 of the Complaint and which specify alterations to be made at the Facility in order to achieve a safe Machinery Room:
a) cover all drywall in the Machinery Room with wire mesh and concrete-based skim coat to minimize potential air flow and increase wall-strength, and
b) install bollards and guardrails in maintenance storage area outside the CSSI Machinery Room to prevent impact to Machinery Room drywall partitions.

Supplemental Environmental Projects Facilities shall complete the SEPs described below and in the Scope of Work attached hereto as Exhibit A, which will:

1. help prevent or mitigate releases of ammonia from, and improve chemical safety at, the Facility, and
2. enhance the emergency planning and chemical spill response capabilities for first response agencies.

The Parties agree that the SEPs are intended to secure significant environmental or public health protection and benefits.

Safety Upgrades to Prevent and Minimize Ammonia Releases Facilities shall make safety improvements according to the requirements and deadlines described in the Scope of Work attached hereto as Exhibit A and incorporated herein by reference. The purpose of this SEP is to protect workers, emergency responders, and the community by preventing ammonia releases at the facilities and by limiting the effects of any releases that do occur.

Facility Safety Upgrades to Prevent and Minimize Ammonia Releases Facilitys represent that the safety upgrades described in Exhibit A exceed the requirements of the most current industry standards. The total expenditure for the Safety Upgrade SEP shall not be less than $205,302. If the expenditures for the entire Safety Upgrade SEP are less than currently anticipated, facilities may apply the excess to completion of the Equipment Purchase SEP, described below, if that project costs less than anticipated.

Equipment Purchase for Local and Regional Emergency Responders Facilities shall provide emergency response equipment to local and regional response agencies. The purpose of this SEP is to enhance the emergency planning and chemical spill response capabilities for local and regional first responders. Hereinafter this SEP shall be referred to as the “Equipment Purchase SEP.”

The total expenditure for the Equipment Purchase SEP shall not be less than $140,457 dollars. Facilities shall include documentation of the expenditures made in connection with the Equipment Purchase SEP as part of the SEP Completion Report described in paragraph 24 below. If the Equipment Purchase SEP costs less than currently anticipated, facilities may apply the excess to completion of the Safety Upgrade SEP, described above and in Exhibit A, if that project costs less than anticipated.

Taking into account the relevant statutory penalty criteria, the facts alleged in the Complaints, the SEPs described above, and such other circumstances as justice may require, EPA has determined that it is fair and proper to assess a civil penalty of $108,000, collectively, for the violations alleged in these matters. The penalty shall be apportioned in the following manner: $14,000 for the alleged EPCRA violations and $94,000 for the alleged CAA violations.

1. Facility Safety Upgrades to Prevent and Minimize Ammonia Releases

Although ammonia is a very efficient refrigerant, it is toxic when released and can be flammable at certain concentrations. Accordingly, the refrigeration industry has taken steps to improve safety at ammonia refrigeration facilities by publishing industry standards and guidelines to help the refrigeration operators identify hazards at their facilities, avoid releases, and mitigate the effects of any releases that do occur. In Clean Air Act Section 112(r) cases, EPA often refers to these industry standards and guidelines when it is determining whether a particular refrigeration facility is meeting the standard of care that one would expect from such a facility. To prevent and limit the effects of releases of ammonia at the four cold storage facilities, the facilities shall make the safety upgrades:

1. Install Solid Fencing and Gates Facilities shall install solid fencing, posts, and gates around the perimeter of the three Facilities with outdoor receivers. Expenditure on this project will be $51,856, including capital and labor costs.  This safety upgrade will provide a degree of physical barrier as well as limit visibility of the systems to outside parties, which will reduce the chance of accidental damage to or intentional tampering with ammonia-containing devices and vessels. Accordingly, this project will help prevent ammonia releases from occurring.
2. Install Computerized Control System at CSSI: Facilities shall install and operate a centralized, computerized control system to monitor and control the entire refrigeration system at one Facility, by February 13, 2015. The control system will be comprised of a system control panel and two compressor retrofit panels (for two screw compressors), along with various pressure, temperature, and ammonia probes and sensors. The installation of control system shall include approximately two weeks of startup supervision by a company technician. Expenditure on this project will be $140,053, including capital, labor, and permit costs.  The entire system will be fully integrated to monitor and control all components for temperature, pressure, and ammonia and will provide immediate detection and notification (via alarms, text messages, or electronic mail) of any problematic reading or device failure. It can prevent or minimize ammonia releases by triggering automatic shutdown of certain components or refrigeration zones if readings hit specified set-points, and by providing for remote control and shutdown (by owner and authorized third parties, such as the Companies’ refrigeration contractor) more quickly than currently possible, and from any personal computer, without specialized software. The system tracks historical trends, aiding in predictive maintenance to avoid potential failures, and logs maintenance tasks, including when the next service action/inspection is due.
3. Install Video Monitoring and Controlled Door Access Systems Facilities shall install closed-circuit video monitoring (“CCTV” systems) at each of the four facilities, as well as controlled (swipe) facility door access systems at each facility, by February 13, 2015. The view area of at least one of the CCTV cameras installed at each facility will include that facility’s receiver, which is inside the Machinery Room at one of the facilities, and which are just outside each Machinery Room. Additionally, the controlled door access system will be installed, at a minimum, on each Machinery Room door at each of the four facilities. Expenditure on this project, which focuses on the most easily accessible areas of the facilities containing large quantities of ammonia, is estimated to be $13,393, including capital and labor costs.  The Controlled Door Access Systems will restrict entry through the doors of the facilities to personnel in possession of a pre-programmed key tag, ensuring no unauthorized person can gain access to the Machinery Rooms. The CCTV systems will include cameras and monitors focused on areas of the Facilities that are most vulnerable to intruder access. Therefore, these safety upgrades will reduce the likelihood of ammonia releases by helping to prevent and detect unauthorized access to the Facilities and their surroundings. Additionally, the cameras offer the ability to visually detect gas clouds indicative of an ammonia leak, offering the ability to detect ammonia leaks remotely, without jeopardizing personnel safety.

2.  Equipment Purchase for Local and Regional Emergency Responders

Facilities shall purchase and deliver, or shall ensure the purchase and delivery of, certain emergency response equipment for emergency responders operating in the vicinity of the facilities. Expenditure on the purchase of the emergency response equipment shall be $142,915. The equipment to be purchased is relevant to responses to emergencies involving chemicals that are regulated pursuant to Section 112(r) of the Clean Air Act’s General Duty Clause and Section 325(c) of EPCRA, including anhydrous ammonia. It includes: 

CLICK HERE for the agreement