EPA Revamps Risk Management, Hazardous Substance Programs

Last month, the U.S. Environmental Protection Agency unveiled two new rules aimed at safeguarding at-risk communities from chemical and environmental hazards, signaling a pivotal shift in how certain manufacturers manage extremely hazardous substances and respond to potential spills.

This includes some chemical companies, food and beverage manufacturers, cold storage facilities, and water and wastewater treatment facilities.

EPA first finalized the Safer Communities by Chemical Accident Prevention rule, which revamps the accidental release prevention framework of Risk Management Plans required under the Clean Air Act.

This update was followed quickly by new requirements for Hazardous Substance Facility Response Plans required under the Clean Water Act to address worst-case discharges of hazardous substances that could impact navigable waters, adjoining shorelines, or public water systems.

Both rules require compliance within three years, by May 2027.

These sister rules underscore EPA’s heightened focus on safeguarding at-risk communities from potential environmental hazards as manufacturers must now pay closer attention to the potential impacts on vulnerable populations.

They also offer a unique opportunity for manufacturers to revisit and streamline their existing suite of risk management practices and programs, including those required by OSHA.

Environmental Justice Focus

Under the amended RMP rule, regulated facilities must update their comprehensive assessment of potential risks posed by their use of hazardous materials to include a more thorough evaluation of the possible impacts from a release of these materials to surrounding at-risk or marginalized communities.

The rule emphasizes greater transparency, accountability, and community engagement, compelling owners/operators to interact with local residents, solicit their input, and tailor risk management strategies accordingly.

Similarly, the FRP rule allows EPA to require facilities to address potential impacts on a case-by-case basis of a “worst-case” discharge to communities with environmental justice concerns.

By prioritizing the well-being of vulnerable populations, the amended rules aim to address historical disparities in environmental protection and ensure that manufacturing operations are conducted with due consideration for the surrounding communities’ safety and welfare.

Other New Requirements, Implications

Under the amended RMP rule, regulated facilities are required to maintain adequate backup power for monitoring equipment associated with detecting and preventing covered chemical releases, conduct more thorough root cause analyses for chemical releases that do occur, and, in some instances, submit to third-party audits after certain releases.

Additionally, some facilities must conduct safer technologies and alternatives analyses to evaluate risk mitigation measures, e.g., reducing complexity through process changes and using fewer and/or less hazardous substances.

Under the FRP rule, facilities must establish response plans for the worst-case discharge of hazardous substances from non-transportation incidents that consider severe weather and climate change, provide for personnel training, and ensure the availability of necessary response equipment.

Regulated facilities are required to submit updated response plans to EPA by May 2027.

Streamline Risk Management

The new rules present an opportunity for facilities to review and streamline their existing suite of risk management programs.

This coordination fosters a holistic approach to managing chemical hazards, promoting workplace safety, environmental protection, and community well-being.

For example, facility environmental safety and health managers may align existing OSHA Process Safety Management frameworks with EPA’s newly amended RMP and FRP requirements.

Harmonizing these plans is crucial for ensuring comprehensive risk management and protection for both workers and nearby communities, especially in workplaces where hazardous chemicals are present, as these interconnected agency requirements all emphasize the importance of hazard assessment, preventive maintenance, employee training, and emergency response planning.

Action Steps for Manufacturers

Manufacturers should coordinate with trusted legal counsel and technical experts to review the new and updated regulations and the implications on their specific operations.

Although EPA is offering a three-year runway to compliance, developing integrated safety and risk management programs, including increasing transparency and engagement with local communities as well as aligning OSHA standards with EPA’s new RMP and FRP requirements, is a robust technical, legal, and time-consuming endeavor.

Beyond compliance, this regulatory overhaul underscores a broader commitment to environmental justice, aiming to both evaluate and mitigate new and potential risks but also to rectify the burden of pollution borne by marginalized communities through more sustainable and equitable practices.

By embracing this imperative, manufacturers can contribute to a more just and environmentally conscious future, where the well-being of all communities is more intentionally considered and protected.

This article first appeared on CBIA's website and is published here with permission.