1. How to Survive EPA/OSHA Audits

2. Resume - ComPSM ComPSM Max Aerospace/Mechanical/Nuclear Engineers
PE License
40 years combined NH3 PSM experience among 3 primes
Audit consulting experience with customers in many regions with both EPA and OSHA
Member of RETA, IARW, IIAR
Max
Worked in PSM/RMP since January 2000
10 Years in Secondary Nuclear Plant Piping/Valve Systems
Started ComPSM with Tom Henry in 2003
Developed two complete PSM Programs
Audit consulting experience mitigating/eliminating penalties for customers
Performed Dozens of Audits across country
Performed Dozens of PHAs across country

3. What are PSM and RMP? Process Safety Management (PSM)
Occupational Safety & Health Administration (OSHA)
OSHA 29 CFR (Process Safety Management of Highly Hazardous Chemicals)
“inside” the plant (loosely speaking)
Risk Management Program (RMP)
Environmental Protection Agency (EPA)
EPA 40 CFR Part 68 (Accidental Release Prevention Requirements: Risk Management Programs Under Clean Air Act Section 112(r)(7)
“outside” the plant (loosely speaking)
PLUS the General Duty Clause!!!

4. Consequences – “OSHA/EPA Shock and Awe” - 1

5. Consequences – “OSHA/EPA Shock and Awe” - 2

6. Consequences – “OSHA/EPA Shock and Awe” - 3

7. Consequences – “OSHA/EPA Shock and Awe” - 4

8. “Why did my company get chosen???”
Why Me???
“Why did my company get chosen???”
“Name out of a hat”
Injury/Illness
Ammonia release
Whistleblower (OSHA/EPA are often skeptical of these)
National Emphasis Program (NEP)
OSHA Program
Focuses on ‘problematic companies’
Multi-day grilling

9. What’s the Difference Between EPA/OSHA Audits? - 1
EPA (UNDER NORMAL AUDIT CONDITIONS!!!)
EPA less intrusive
EPA audits are shorter
EPA audits last a half day to a day
EPA seems to be more forgiving than OSHA for plants with less problems
Not super knowledgeable of NH3 refrigeration, but getting training
EPA Audits add environmental issues
On average, EPA fines appear to be less, but when they fine… they fine BIG!!!
EPA and expedited settlements
Started in January 2004
Only minor, easily correctable violations.
Not if violations pose an imminent/substantial endangerment to human health or the environment
Title V sources are not eligible for an ESA
Fines less than $7,500

10. What’s the Difference Between EPA/OSHA Audits? - 2
OSHA walks in door – SURPRISE!!!
Currently focusing on ‘repeat offenders’ (NEP)
Metastasizing through a company
Communicate within your company!!!
Will focus EXCEPTIONALLY heavy on mechanical integrity
The secret checklist!
OSHA auditors are likely to show up for several ‘sessions’ 3-4 visits totaling 20+ hours
At times appear to be digging aimlessly (actually may be?)
OSHA auditors tend to take info back for advice from more knowledgeable people and the COME back
Not super knowledgeable of NH3 refrigeration
Have heard of two auditors who were actually verbally aggressive
Have often overstepped/overstated requirements!

11. Current Key Areas of Review
General Overview of PSM Mechanical Integrity!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Speed of resolution of recommendations (PHA/Audits) Timing of PHAs/Audits/Inspections/SOP reviews Process Hazard Analysis (PHA) Standard Operating Procedures Training Documentation of Releases (EPA) Audits Contractor Qualifications

12. Mechanical Integrity Targets
Mechanical Integrity Review Points
Records on relief valve replacement
Calibration/Testing of ammonia sensors
Testing of Safety Setpoints
Compressor cutouts
Compressor alarms
High level cutouts on vessels
Low level cutouts on vessels
“B109” Form completion
5 Year Major Mechanical NDT
Is visual enough?

13. Recommendation Implementation
PHA Recommendations Audit Recommendations Focus on how fast resolved Priority order Signed off When can we toss old recommendations?

14. Process Hazard Analysis
Quick Overview Looking for depth of questions Who performed it? Operators involved? Did you look at the facility? Let me see those recommendations! Did you just sit in a room or did you walk the plant?

15. Timeliness of Planned Items
Process Hazard Analysis (PHA) – 5 years Risk Management Plan (RMPlan) resubmittal – 5 years Compliance Audits – 3 years Equipment [B109] Reviews – Annually Sign off on Standard Operating Procedures – Annually Maintenance schedules for equipment Annual reviews of NH3 sensors

16. Standard Operating Procedures
Are all processes covered
Each piece versus each common type
Recertified Annually
Customer hit for missing 4 years prior
Written signatures (not just printed)
Dated
Reviewed all at once or grouped is okay
Make sure it includes information on NH3
All modes of operation addressed?
Operating limits/Deviations/Corrections

17. Operators/Mechanics Training
Up and coming area of review
Difficult to review
EPA generally scans information/OSHA more focused
What do you need to have?
RETA or class certification papers
Training forms
Technically speaking, something that shows training or implies training on all equipment
If class taken, keep a copy of a detailed syllabus or the class book for company proof of areas covered
On site training???... Maybe
May interview employees about their training

18. For whom should you have paperwork
Contractors
For whom should you have paperwork
Refrigeration – Sure
Electricians in compressor room – Sure
EVERY contractor that works on or around the system
Be creative in figuring this out (insulation, ammonia detection, water treatment…)
Are you required to have every contracted every year?...
Only if they have been within a year and also if you prior to anyone starting if outside of a year
Why not get all the ‘usual suspects’ annually at a certain date?
Contractors should just send, but…

19. Management of Change Program
Want to see completed forms
Make sure they are fully signed off (real signatures)
Make sure they aren’t being done retroactively
Replacement in kind need to be included, but…
It doesn’t hurt to do them
Don’t be surprised if they ask still
May ask to show changes during a walk through
If you have an MoC, they can ask about contractor data!
If you have an MoC, they’ll ask about PSSRs

20. Pre-Startup Safety Review Program
They should/will ask for completed forms
Heard them ask about training prior to startup and wanting to see training records
Make sure they are fully signed off (real signatures)
Materials of construction – Piping certifications

21. Compliance Audit Program
Most recent two internal compliance audits
The will check for 3 year timing
Recent audit wanted a 3rd???
They WILL ask to see recommendations listing
They WILL check to see if they are resolved (quickly)
Any auditor worth their weight will scan
Who did them and are they qualified?
Internal auditing is risky unless the person doesn’t have tunnel vision to your company’s policies
If you have a reputable consultant who makes recommendations…pay attention to the recommendations

22. Risk Management Program and Plan
Risk Management Program (RMP) vs Risk Management Plan (RMPlan)?
Only EPA Reviews
Risk Management Program
Flow chart that shows PSM in company structure
Management System (who does what)
Risk Management Plan (Submittal)
May/will ask questions about Offsite Consequence Analysis (OCA)
Most up to date census data used? New census will change new OCAs
Resubmitted every 5?
Emergency point of contact changed? Releases

23. Did you say something, Hank?
Hot Work Program
Likely to ask for completed forms Who signs off and are they appropriate How long are they kept Visiting site (inspection) prior to starting OSHA will look at much more heavily
Did you say something, Hank?

24. Confined Space Entry Program
Make sure you have a program of some sort
Facilities will often say they don’t enter confined spaces
Will review program
Generally not as much of an issue with cold storage (non processing) facilities
May want to see locations identified as confined spaces

25. Lockout Tagout Program
Some have required you have a written program! May inspect lock boxes During walk-throughs, may look for lock outs Generally ask questions to maintenance about implementation

26. Psychology of an Auditor
Auditors are people too… 
In a natural way (don’t force it), find common interests (works for OSHA due to repeat visits)
Likely to be inexperienced in understanding of NH3 Refrigeration, but training has been coming
They may try to hold you to practices in the petro-chem industry which are not done in NH3 refrigeration
Tend to go down channels they understand, but may not be what you would expect
Some can be confrontational and some even rude (usually only with radically non-compliant plants)
Some want to show you they are smarter than you OR YOUR consultant

27. Before the Day of the Audit
To “Do’s” - 1
Before the Day of the Audit
If you have a PSM consultant experienced in audit assistance, make sure they are there. If you don’t, FIND ONE! Mitigate Negotiate Mitigate
If you have a corporate person with experience, make sure they are there!
If another facility in your company has been hit, GET THEM INVOLVED!
If possible, preparation should be done days in advance
Who says what
Have ALL documents in room where audit will take place – no searching!!!
Organize on a table so it’s ready for review
Tabbed for easy access
Use the IARW as a resource for audits!
Before the audit, ask the auditor if they have a checklist you could use to help organize (generally will only work with EPA)
Do a walk-through of the whole facility (including roof) for housekeeping
For goodness sake, CLEAN that engine room (dirt/dust free, if possible)!!!
Make sure to adjust shifts to get the best (and most well spoken) operator working on the day of the audit

28. To “Do’s” - 2 The Day of the Audit
Audits are like interviews – tone/opinion set in first couple minutes
Prep the room (have drinks or donuts)
Determine room seating arrangement in advance
Keep a positive attitude that says, “we are always trying to improve”
Tell the auditor you welcome their expertise and advice
Be polite… even if things get testy.
Some aware that some auditors can be testy, confrontational, and rude! Not normal, but it happens
Take notes about EVERYTHING
Try to make a personal connection and get to know them.
If you disagree and you feel justified, ask for a clarification and insert what you believe to be correct, but KNOW YOUR STUFF!
If you get frustrated with the inspector, excuse yourself for some reason, get it together, and go back in.

29. The “Don’ts” If possible, no contractors on site
If possible, no hot work!!!
You should know your program as well as possible for the audit, do NOT let your consultant do all the talking!
Avoid giving electronic files… they may want them ALL
If you have a fully electronic program AND it allows, print a copy of the program and organize appropriately
NEVER be confrontational
Keep out the operator who wants to tell stories about the plant
Don’t offer anything more than drinks and donuts
If possible, never make them sit and wait while you search for information (as noted previously, have everything available in the room)

30. Non Negotiables
There are certain fines you just can’t mitigate/negotiate (the ‘non negotiables’)
Fail to notify of incident to NRC IMMEDIATELY – EXPENSIVE
Fail to initiate investigation team
Fail to change emergency contact in RMPlan
Fail to review (or late) annual review of SOPs
Fail to revalidate (or late) the PHA - every 5 years
Fail to audit internally (or late) - every 3
Have NOTHING

31. IARW resource/database for audits! Make sure to use it.
Closing
IARW resource/database for audits! Make sure to use it.
Find out if another IARW member has had this auditor and call them!!!
What did they ask about?
Were there any area they went overboard on?
What were they like personally? ANYTHING.
Likewise, contribute BACK after the audit
Dialog of the members in the meeting
Who has been audited here?
What have you seen?
General Question and Answer Session