Respondents owned and operated a seafood processing and cold storage warehouse facility. The Facility is one building that consists of two separate spaces on either side of a dividing wall. One side of the Facility is used for seafood processing and packaging. The other side of the Facility is a cold storage warehouse used to store the packaged seafood. The Facility is located alongside Gloucester’s Inner Harbor in a large and densely populated residential area. It is within half of a mile of hundreds of homes, restaurants, and other businesses and within a quarter of a mile of an elementary school and at least two houses of worship.
At the time relevant to the violations alleged herein, Respondents used anhydrous ammonia in two refrigeration systems at the Facility. The ammonia refrigeration system on the processing and packaging side of the Facility uses approximately 1,543 pounds of anhydrous ammonia, and the ammonia refrigeration system on the storage side of the Facility uses approximately 7,075 pounds of anhydrous ammonia. Accordingly, Respondents “stored” and “handled” anhydrous ammonia, subject to the General Duty Clause.
On September 15, 2022, EPA conducted an inspection at the Facility. The purpose of the Inspection was to determine whether Respondents were complying with Section 112(r) of the CAA and the Emergency Planning and Community Right t o-Know Act. The EPA inspectors toured the Facility’s perimeter, roof, the ammonia machinery room (“AMR”) for each refrigeration system, cold storage spaces on the first and third floors, and the chemical storage area. The Inspection and EPA’s review of information provided by Respondents revealed several potentially dangerous conditions relating to the refrigeration systems.
VIOLATIONS
COUNT I – FAILURE TO DESIGN AND MAINTAIN A SAFE FACILITY
The recommended industry practice and standard of care for designing and maintaining a safe facility so as to prevent releases of extremely hazardous substances is to base design considerations upon applicable design codes, federal and state regulations, and industry guidelines to prevent releases or minimize t heir impacts as well as to develop and implement standard operating procedures, maintenance programs, personnel training programs, management of change practices, incident investigation procedures, self-audits, and preventative maintenance programs. EPA’s Guidance for Implementation of the General Duty Clause: Clean Air Act Section 112(r}{1) (May 2000) explains broad categories of measures appropriate for preventing releases of extremely hazardous substances, and the International Institute of Ammonia Refrigeration and others have developed more specific standards and guidelines for preventing releases of ammonia, set out in Appendix A.
The instances in which EPA alleges that Respondents failed in their general duty to design and maintain the Facility in a safe manner, taking such steps as are necessary to prevent a release of an extremely hazardous substance, are listed under Conditions 1-5 of Appendix A, which is incorporated by reference into this CAFO. They include, for example, the failure to provide impact protection and adequate supports for piping and equipment, to address areas of breached insulation, and to adequately label all ammonia piping.
Accordingly, from at least June 1, 2019, through September 30, 2023, EPA alleges that Respondents failed to design and maintain a safe facility, taking such steps as were necessary to prevent a release of an extremely hazardous substance, in violation of the General Duty Clause, Section 112(r)(1) of the CAA.
COUNT II – FAILURE TO MINIMIZE THE CONSEQUENCES OF ACCIDENTAL RELEASES THAT MIGHT OCCUR
Industry standards and guidelines for minimizing the consequences of an accidental release from ammonia refrigeration systems are found, among other places, in the industry standards referenced in Appendix A. They include emergency planning and preparedness measures, as well as design and maintenance measures to minimize the severity and duration of releases that do occur.
The instances in which EPA alleges that Respondents failed in their general duty to minimize the consequences of a release should one occur are listed under Conditions 2-10 of Appendix A, which is incorporated by reference into this CAFO. They include, for example, the failure to provide an emergency ventilation switch, readily available emergency shutdown instructions, and adequate signage/labeling on piping, alarms, emergency switches, an eyewash/shower station, a machinery room door, and the emergency stop (King) valve.
Examples of industry standards associated with each instance in which Respondents failed in their general duty to minimize the consequences of a release (identified in Appendix A) demonstrate that the ammonia refrigeration industry recognizes the hazard and has identified a standard means by which Respondents could have eliminated or reduced the hazard.
Accordingly, from at least June 1, 2019, through September 30, 2023, EPA alleges that Respondents failed to minimize the consequences of an accidental release of an extremely hazardous substance should one occur, in violation of the General Duty Clause, Section 112(r)(1) of the CAA.
EPA has determined that it is fair and proper to assess a civil penalty of $25,000 for the violations alleged in this matter. Respondents consent to the issuance of this CAFO and consent for purposes of settlement to:
a. pay the penalty cited in Paragraph 52 below;
b. complete the Compliance Measures as outlined in Paragraphs 59-60; and
c. perform the Supplemental Environmental Projects (“S EPs” ), as described in Paragraphs 62- 90 below.
Non-Penalty Conditions
Compliance Measures
Respondents agree to replace the piping and insulation in the cold storage area of the Facility within six (6) months of the Effective Date of this CAFO .
Respondents shall satisfactorily complete the SEPs described below and in the
Respondents shall provide to the Gloucester Fire Department, which Respondents have selected to be the SEP Recipient, a suite of portable gas detectors (twelve in total) and associated equipment, a supply of calibration gases for the detectors, and a three-year maintenance and service contract for the equipment, according to the requirements, specifications, and deadlines described in Appendix B. The purpose of this SEP is to enhance the chemical spill response capabilities, including those for an ammonia release, for local first responders. The Gloucester Fire Department SEP is expected to cost approximately $20,500.
Safety Upgrades SEP
Respondents shall replace two existing ammonia liquid pumps in the Atlantic Fish ammonia machinery room with seal-less ammonia liquid pumps at an estimated cost of $108,500.
Appendix A
Condition 1
Ammonia piping was not provided with adequate protection from accidental physical impact (including elevated ammonia piping in the first-floor cold storage room). Additionally, drip/drain lines off of oil pots in the GCS Ammonia Machinery Room (“AMR”) lacked support.
Condition 2
A significant amount of ammonia piping throughout the Facility (including in the cold storage rooms, both AMRs, and the roof) was not consistently color-coded and labeled to indicate the contents, direction of flow, pipe service, physical state (i.e., liquid or vapor), and pressure level (i.e., high or low).
Condition 3
The AMR door lacked an NFPA diamond.
Condition 4
There was compromised insulation and ice buildup on the ammonia piping and valves in several locations within the first and third floors cold storage rooms and the AMR.
Condition 5
The GCS AMR was being used to store auxiliary materials that obstructed access with adequate clearance to refrigeration machinery for inspection, maintenance, service, and emergency shutdown.
Condition 6
The facility did not have an emergency ventilation switch outside the AMR door, but it had a tamper-resistant cover. Additionally, the emergency stop switch outside the AF AMR door and the emergency stop and ventilation switches outside the GCS AMR were not adequately labeled to identify the purpose of the controls.
Condition 7
The Facility’s audible/visual ammonia alarms (including in the cold storage areas, outside the GCS AMR entrance, and in the production area adjacent to the AF AMR) were not identified by signage to indicate their purpose.
Condition 8
The eyewash and shower station outside the GCS AMR lacked adequate signage .
Condition 9
There were no schematic drawings and/or ammonia system emergency shutdown documentation posted outside the AF AMR (or at another readily accessible location to trained refrigeration system staff and emergency responders.
Condition 10
The king valve in the AF AMR was not labeled.
Appendix B
Scope of Work for Supplemental Environmental Projects
1. Safety Upgrade SEP
Required Action: Respondents or their contractors shall replace two existing mechanically sealed ammonia liquid pumps in the machinery room at the Facility with two seal-less pumps.
This project shall be completed no later than nine (9) months aft er the effective date of this CAFO . The cost of this project including equipment , other materials, labor, shipping, and other related expenses has been quoted at $108,500.
Benefit: This pollution prevention project goes beyond the industry standard (as defined by applicable RAGAGEP) to enhance public safety by eliminating a potential point of failure that can lead to an ammonia release.
2. Gloucester Fire Department SEP
Required Action: Respondents shall provide the following suite of portable detectors and associated equipment to the Gloucester Fire Department:
Six (6) portable four-gas detectors (each of which includes sensors for carbon monoxide, oxygen, and hydrogen sulfide);
Three (3) portable ammonia detectors;
Six (6) portable oxygen detector replacement kits;
Six (6) combustible lower explosion limit (LEL) detector replacement kits;
Three (3) solo hydrogen cyanide detectors;
One (1) docking station;
One (1) enabler kit of power cords, cables, filters, tubing, and fittings;
One (1) multi -inlet key;
Two (2) sets of calibration gases; and
A three-year maintenance and service contract for the equipment.
Respondents shall provide the above items by no later than four (4) months after the effective date of this CAFO. The cost of this project is approximately $20,500.
Benefit: This emergency planning and preparedness project will improve the Gloucester Fire Department’s ability to detect and safely respond to releases of ammonia and other toxic substances at the Facility and around the Gloucester community.
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