Purpose of SB 1300
Currently, there is no requirement for oil refineries to report their schedule of “turnarounds,” or other related information, to the Division of Occupational Safety and Health (Cal/OSHA).
This bill would require petroleum refineries to annually report their schedule for “turnarounds” to Cal/OSHA on September 15. It would also require them to provide Cal/OSHA with documentation on refinery safety and infrastructure.
Problem and Need for the Bill
Under existing law, there is no requirement for an oil refinery to inform Cal/OSHA when it is going to perform a “turnaround.” A “turnaround” is a planned partial or total shutdown of any unit of an oil refinery for certain purposes including maintenance, overhaul, or repair, and to inspect, test, and replace process materials and equipment.
According to the American Petroleum Institute (API), “turnarounds” are a necessary part of refinery operations. They can last anywhere from one to four weeks. They are usually scheduled at least one or two years in advance. The API admits that “refinery incidents are more likely to occur” during turnarounds than during normal operations.”
Despite the obvious importance of “turnarounds,” Cal/OSHA is often unaware of when one will occur at an oil refinery. This prevents Cal/OSHA from preparing for a possible incident during a scheduled refinery “turnaround.” It also means that Cal/OSHA inspectors are left unaware when the last “turnaround” was done while performing inspections of refinery facilities.
This is not an abstract concern. Chevron Corp. did not inspect several sections of piping of its Richmond refinery during a November 2011 “turnaround.” One of the sections of had thinned in thickness by 80 percent, which contributed to the August 6 fire at the facility, one of the worst incidents in recent years. The fire caused 15,000 Richmond residents to seek medical attention.
During its inspection of the Chevron refinery after the August 6 fire, Cal/OSHA found that several refinery parts were in place at least 30 months past their last “turnaround.” Cal/OSHA found that the failure to replace the parts sooner to be a “willful” violation of state law. Had Cal/OSHA known about Chevron’s failure to inspect or replace those parts during recent “turnarounds,” it is possible that Cal/OSHA inspectors could have done their own targeted inspection. Doing so could have prevented an incident that threatened the public health, affected the environment, and imposed severe financial costs upon Chevron. Additionally, in its investigation of the August 6 fire at the Chevron refinery, the federal Chemical Safety Board advocated for targeted inspections.
What SB 1300 Would Do
SB 1300 would require oil refineries to do three things with reference to “turnarounds.”
First, it would require refineries to submit a full schedule of planned “turnarounds” to Cal/OSHA annually on September 15th.
Second, upon Cal/OSHA request, refineries would be required to provide access on site and submit certain documentation at least 60 days before a planned “turnaround.”
This required documentation would include corrosion reports, unfulfilled work orders, risk-based inspection reports, Process Hazard Analyses, and all management of change records related to repairs, design modifications, and process changes.
Third, at least 30 days submit a planned “turnaround,” refineries would have to supplemental documents to Cal/OSHA explaining any changes since their previous, 60-day report.
This bill would prohibit any information identified as a trade secret that is submitted to Cal/OSHA to be released to the public.
This bill would instead authorize the Department of Industrial Relations (DIR) rather than Cal/OSHA under existing law, to fix and collect fees to cover necessary expenses including fees for consultation, inspection, adoption of standards, and participation in interagency efforts to improve safety in refineries and chemical plants.
DIR will be authorized to hold any unexpended funds as a contingency fund for expenses in emergency situations at a petroleum refinery.
Current Status: 03/26/2014: From SENATE Committee on LABOR AND INDUSTRIAL RELATIONS: Do pass to Committee on JUDICIARY.
See attached analysis for the Senate Committee on Labor and Industrial Relations for additional information. |