EPA RMP GDC @ cold storage facility (NH3 & $40K w/ 1,865 pound release)

Respondent is a refrigerated warehousing and storage business which experienced a release of anhydrous ammonia on March 29, 2017 that resulted in a response from the local Fire and Rescue department. Following this event, the facility was requested to provide answers to a Chemical Release Questionnaire (CRQ) by EPA, pursuant to CERCLA § 104(e). Respondent’s answers to the questionnaire stated that the March 29, 2017 release was 1,865 pounds of anhydrous ammonia. During the March 29, 2017 release, traffic on nearby streets was shut down. The Facility’s alarm and ventilation system failed to operate in the “machine room” where the ammonia system was located, although the machine room’s sprinkler system had improperly activated. The Facility’s refrigeration process and ventilation system were only manually operated from inside the machine room (where the release occurred), and Respondent and the Fire Department were unable to shut down the system or ventilate the machine room. “Level A” personal protective equipment was ultimately required to make entry to activate ventilation. The release continued for at least four hours. The cause of the ammonia release was found to be a failed pressure relief valve. Respondent’s CRQ response stated that 1,265 pounds of anhydrous ammonia were released to the air, and 600 pounds drained to the sewer system.  On or about October 3, 2017, the EPA conducted an inspection of the Facility to determine Respondent’s compliance with Section 112(r) of the CAA (the EPA inspection). Information gathered from Respondent’s answers to the CRQ and during the EPA inspection revealed that the Respondent processed, handled, and/or stored the anhydrous ammonia at the Facility. From the time Respondent first stored and used onsite anhydrous ammonia at the Facility, Respondent was subject to the requirements of Section 112(r)(1) of the CAA because it was the owner and operator of a stationary source that was producing, processing, handling or storing a regulated substance listed pursuant to Section 112(r)(3).

Individual engineering standards exist for the safe management and maintenance of anhydrous ammonia systems in refrigeration operations. These standards include but are not limited to the American National Standard Institute (ANSI) and the International Institute of Ammonia Refrigeration (IIAR) standards (2-2014 version), which state in pertinent part:

a) Section 1.1 states: “Purpose. This standard specifies minimum requirements for the safe design of closed-circuit ammonia refrigeration systems. “

b) Section 5.9.3 states: “Oil Removal. Oil removal shall be accomplished by one or more of the following:

1. A rigid-piped oil return or transfer system.
2. A vessel equipped with a shut-off valve in series with a self-closing shutoff valve.
3. A valve and piping assembly at the draining point where oil is removed from the system. At a minimum, a shut-off valve in series with a self-closing shut-off valve is required. “

c) Section 6.7.1 (Eyewash/Safety Shower) states: “General. Each machinery room shall have access to a minimum of two eyewash/safety shower units, one located inside the machinery room and one located outside of the machinery room, each meeting the requirements in Section 6. 7.3 Additional eyewash/safety shower units shall be installed such that the path of travel in the machinery room is no more than 55 ft to an eyewash/safety shower unit.”

d) Section 6.9.3 states: “Control of Ammonia Spills. A means shall be provided to limit the spread of a liquid ammonia spill into the machinery room drainage system.”

e) Section 6.10.2 states: “Door Features. Machinery room doors shall be self-closing and tight fitting. Doors that are part of the means of egress shall be equipped with panic hardware and shall be side hinged to swing in the direction of egress for occupants leaving the machinery room. Where the machinery room is not provided with fire sprinklers, doors communicating with the building interior shall be I-hour fire rated. Doors to the outdoors shall be fire rated where required by the Building Code based on the fire rating required for exterior wall openings.”

f) Section 6.12.1 states: “Emergency Stop Switch. A clearly identified emergency shut-off switch with a tamper- resistant cover shall be located outside and adjacent to the designated principal machinery room door. The switch shall provide off-only control of refrigerant compressors, refrigerant pumps, and normally closed automatic refrigerant valves located in the machinery room. The function of the switch shall be clearly marked by signage near the controls.”

g) Section 6.12.2 states: “Emergency Ventilation Control Switch. A clearly identified control switch for emergency ventilation with a tamper-resistant cover shall be located outside the machinery room and adjacent to the designated principal machinery room door. The switch shall provide “ON/ AUTO” override capability for emergency ventilation. The function of the switch shall be clearly marked by signage near the controls. “

h) Section 6.13.2.2 (Ammonia Detection and Alarm) states: “Detection of ammonia concentrations equal to or exceeding 25 ppm shall activate visual indicators and audible alarms as specified in Section 6.13.1. The visual indicator and audible alarm shall be permitted to automatically reset if the ammonia concentration drops below 25 ppm.”

i) Section 6.13.2.3 (Ammonia Detection and Alarm) states: “Detection of ammonia concentrations equal to or exceeding 150 ppm (1/2 IDLH) shall activate visual indicators and an audible alarm and shall activate emergency ventilation, where required, in accordance with Section 6.14. 7. Once activated, emergency ventilation shall continue to operate until manually reset by a switch located in the machinery room. “

j) Section 6.14.7.2 (Emergency Ventilation) states: “Emergency mechanical ventilation shall be activated by both of the following:

1. Ammonia leak detection complying with Section 6.13.
2. A manual control switch provided in accordance with Section 6.12.2.”

Allegations of Violation

Count 1

Pursuant to Section 112(r)(1) of the CAA, the owners and operators of stationary sources producing, processing, handling, or storing any substance listed pursuant to Section 112(r)(3) of the CAA or any other extremely hazardous substance, have a general duty, in the same manner and the same extent as the Occupational Safety and Health Act, 29 U.S.C. § 654 et seq., inter alia to design and maintain a safe facility, taking such steps as are necessary to prevent releases.

At least through the date of EPA’ s inspection, Respondent had failed to design and maintain a safe facility, taking such steps as necessary to prevent releases. Specifically, Respondent had not identified nor implemented the following:

1. the facility had no written operating procedures for the ammonia refrigeration system;
2. the facility had no maintenance logs or documentation of maintenance for the ammonia refrigeration system;
3. the facility had no calibration records for the ammonia refrigeration system;
4. the facility had no training records for the ammonia refrigeration system;
5. the facility had no incident investigation program;
6. the facility had no documentation of self-audits;
7. the facility had failed to maintain and operate a safe facility in conformance with current codes/standards (ANSI/HAR 2-2014), including but not limited to the following:
   1. adequate eyewash/safety shower installations (Section 6.7.1).
   2. the facility maintenance person was not aware or trained in the operation procedure for the proper and safe draining of oil from the ammonia refrigeration system although he performed this function (Section 5.9.3).
   3. the drain in the machine room was not designed to prevent releases of ammonia from reaching the sewer system (Section 6.9.3).
   4. the machinery room interior door from the facility was not hinged to swing in the direction of egress (Section 6.10.2). emergency switches did not function; alarm was not installed or did not function.
   5. the facility did not have functioning emergency stop or ventilation switches (Sections 6.12.1 and 6.12.2).
   6. the facility did not have a functioning ammonia detection and alarm system, or a manual system, that would activate the machine room ventilation system to address a release (Sections 6.13.2.2, 6.13.2.3 and Section 6.14. 7.2).

As a result, Respondent failed to meet its general duty to design and maintain a safe facility, taking such steps as are necessary to prevent releases.  Respondent’s failure to meet its general duty to design and maintain a safe facility, taking such steps as are necessary to prevent releases, is a violation of Section 112(r)(1) of the CAA.

Penalty Payment

Respondent agrees that, in settlement of the claims alleged herein, Respondent shall pay a civil penalty of $40,400, as set forth below.

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