Assembly Bill No. 535–Committee on Natural Resources, Agriculture and Mining
(On Behalf of Commission on Workplace Safety)
March 15, 1999
____________
Referred to Committee on Commerce and Labor
SUMMARY—Expands and revises provisions governing regulation of facilities where highly hazardous substances are produced, used, stored or handled. (BDR 40-779)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
~
EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. Chapter 459 of NRS is hereby amended by adding thereto1-2
the provisions set forth as sections 2 and 3 of this act.1-3
Sec. 2. "Explosive" means gunpowders, powders used for blasting,1-4
all forms of high explosives, blasting materials, fuses other than electric1-5
circuit breakers, detonators and other detonating agents, smokeless1-6
powders, other explosive or incendiary devices and any chemical1-7
compound, mechanical mixture or device that contains any oxidizing and1-8
combustible units, or other ingredients, in such proportions, quantities or1-9
packing that ignition by fire, friction, concussion, percussion, or1-10
detonation of the compound, mixture or device or any part thereof may1-11
cause an explosion. The term includes any mixture of ammonium nitrate1-12
and fuel oil.2-1
Sec. 3. 1. At least 60 days before a highly hazardous substance or2-2
explosive is newly introduced into a regulated facility, the owner or2-3
operator of the facility shall submit the facility to an assessment of risks2-4
through analysis of hazards.2-5
2. The owner or operator of a regulated facility shall not newly2-6
introduce into the facility a highly hazardous substance or explosive:2-7
(a) Until the recommendations in the plan to abate hazards proposed2-8
by the person who conducted the assessment are carried out; or2-9
(b) If written modifications are proposed to the plan to abate hazards,2-10
until a plan to reduce accidents is issued by the division pursuant to NRS2-11
459.386 and the owner of the facility complies with the requirements of2-12
the plan.2-13
Sec. 4. NRS 459.3802 is hereby amended to read as follows: 459.3802 As used in NRS 459.380 to 459.3874, inclusive, and2-15
sections 2 and 3 of this act, unless the context otherwise requires, the2-16
words and terms defined in NRS 459.3804 to 459.3812, inclusive, and2-17
section 2 of this act, have the meanings ascribed to them in those sections.2-18
Sec. 5. NRS 459.381 is hereby amended to read as follows: 459.381 "Regulated facility" means a building, equipment and2-20
contiguous area where2-21
1. Highly hazardous substances are produced, used, stored or handled2-22
2-23
2. Explosives are produced and stored.2-24
Sec. 6. NRS 459.3813 is hereby amended to read as follows: 459.3813 1. Except as otherwise provided in this section and NRS2-26
459.3814, the provisions of NRS 459.380 to 459.3874, inclusive, and this2-27
section , and sections 2 and 3 of this act, apply to a regulated facility that2-28
2-29
(a) Produces, uses, stores or handles a highly hazardous substance in a2-30
quantity:2-31
2-32
459.3816; or2-33
2-34
two or more releases from the regulated facility of the same or different2-35
highly hazardous substances during any 12-month period and:2-36
2-37
pursuant to 40 C.F.R. Part 302; or2-38
2-39
maximum quantity allowable as established by regulation of the state2-40
environmental commission2-41
(b) Produces and stores explosives.3-1
2. A regulated facility described in3-2
of paragraph (a) of subsection 1 is exempt from complying with the3-3
provisions of NRS 459.380 to 459.3874, inclusive, and this section , and3-4
sections 2 and 3 of this act, if:3-5
(a) The division determines that the regulated facility has:3-6
(1) Carried out the detailed plan to abate hazards recommended3-7
pursuant to subsection 8 of NRS 459.3852; and3-8
(2) Complied with such other provisions of NRS 459.380 to3-9
459.3874, inclusive, and this section, and sections 2 and 3 of this act, and3-10
the regulations adopted pursuant thereto, as the division requires; and3-11
(b) The regulated facility obtains an exemption from the state3-12
environmental commission. The state environmental commission shall3-13
adopt by regulation the procedures for obtaining such an exemption.3-14
3. As used in this section, "highly hazardous substance" means any3-15
substance designated as such in NRS 459.3816 or any regulations adopted3-16
pursuant thereto.3-17
Sec. 7. NRS 459.3824 is hereby amended to read as follows: 459.3824 1. The owner of a regulated facility shall pay to the3-19
division an annual fee based on the fiscal year. The annual fee for each3-20
facility is the sum of a base fee set by the state environmental commission3-21
and any additional fee imposed by the commission pursuant to subsection3-22
2. The annual fee must be prorated and may not be refunded.3-23
2. The state environmental commission may impose an additional fee3-24
upon the owner of a regulated facility in an amount determined by the3-25
commission to be necessary to enable the division to carry out its duties3-26
pursuant to NRS 459.380 to 459.3874, inclusive. The additional fee must3-27
be based on a graduated schedule adopted by the commission which takes3-28
into consideration the quantity of hazardous substances or explosives3-29
located at each facility.3-30
3. After the payment of the initial annual fee, the division shall send3-31
the owner of a regulated facility a bill in July for the annual fee for the3-32
fiscal year then beginning which is based on the applicable reports for the3-33
preceding year.3-34
4. The owner of a regulated facility shall submit, with any payment3-35
required by this section, the number assigned by the department of3-36
taxation, for the imposition and collection of taxes pursuant to chapter3-37
364A of NRS, to the business for which the payment is made.3-38
5. All fees collected pursuant to this section and any interest earned3-39
thereon must be deposited with the state treasurer for credit to the fund for3-40
precaution against chemical accidents3-41
created as a special revenue fund.4-1
Sec. 8. NRS 459.3828 is hereby amended to read as follows: 459.3828 1. The division shall develop and issue a form for4-3
registration to be completed by the owner or operator of each facility in the4-4
state which at any time4-5
(a) Produces, uses, stores or handles any highly hazardous substance in4-6
the quantity required to make it hazardous, or more4-7
(b) Produces and stores any explosive.4-8
2. This form must provide, in addition to any other information that4-9
may be required by the division:4-10
(a) A list of the highly hazardous substances produced, used, stored or4-11
handled at the facility and the quantity of each, which must identify4-12
whether those substances are end products, intermediate products, by-4-13
products or waste products4-14
4-15
hazardous substances;4-16
(b) A list of the explosives produced and stored at the facility and the4-17
quantity of each, if the facility produces and stores explosives;4-18
(c) A general description of the process and principal equipment4-19
involved in the management of the substances4-20
4-21
(d) A description of the area in which the facility is situated, including4-22
its proximity to population and water supplies;4-23
4-24
identified, evaluated and abated, and the expert knowledge and affiliation4-25
of the evaluators and any direct or indirect relationship between the4-26
evaluators and the owner or operator of the facility; and4-27
4-28
environmental liability of the facility and the scope of these policies,4-29
including any limitations and exclusions.4-30
4-31
4-32
4-33
3. The owner or operator of the facility shall file with the division the4-34
registration form developed and issued by the division and the report on4-35
safety of the facility required by NRS 459.3834-36
(a) After a substance is added to the list of highly hazardous4-37
substances, if the facility produces, uses, stores or handles highly4-38
hazardous substances;4-39
(b) Before a highly hazardous substance is newly introduced into the4-40
facility, if the facility produces, uses, stores or handles highly hazardous4-41
substances; and4-42
(c) Before an explosive is newly introduced into the facility, if the4-43
facility produces and stores explosives.5-1
Sec. 9. NRS 459.3836 is hereby amended to read as follows: 459.3836 1.5-3
act, the owner or operator of a facility shall submit the facility to an5-4
assessment of risks through analysis of hazards at least every 5 years. The5-5
assessment must be conducted by a person or persons who possess the5-6
qualifications required pursuant to NRS 459.3842 and are selected by the5-7
owner or operator with the approval of the division.5-8
2. In addition to other duties deemed necessary by the owner or5-9
operator or the division, the person conducting the assessment shall5-10
confirm the accuracy of the facility’s current registration and report on5-11
safety.5-12
3. The person conducting the assessment shall, at the conclusion of the5-13
assessment, issue a report of findings, conclusions and recommendations.5-14
One executed original of this report must be sent by the consultant directly5-15
to the division.5-16
Sec. 10. NRS 459.384 is hereby amended to read as follows: 459.384 1. The owner or operator of a regulated facility shall,5-18
5-19
5-20
the facility to an assessment of risks through analysis of hazards,5-21
designate a person or persons who are capable of performing an5-22
assessment of risks through analysis of hazards on its facility.5-23
2. If any personnel of a regulated facility possess the necessary5-24
qualifications to conduct the assessment, the owner or operator of that5-25
facility may designate any of those persons to conduct the assessment.5-26
3. Each person designated to conduct the assessment shall present5-27
appropriate documentation demonstrating his ability to perform the5-28
assessment. The documentation must include:5-29
(a) The person’s qualifications in:5-30
(1) Engineering related to chemical processes;5-31
(2) Engineering related to safety;5-32
(3) Preparation of operating procedures;5-33
(4) Preparation or review of procedures for maintenance;5-34
(5) Preparation or review of procedures for safety;5-35
(6) Preparation or review of programs to train operators;5-36
(7) Performance or review of investigations of accidents;5-37
(8) Performance of analyses of hazards;5-38
(9) Performance of risk assessments of risk;5-39
(10) Preparation or review of plans for response to emergencies;5-40
(11) Performance of audits of programs to manage risks; and5-41
(12) Knowledge of the state of the art as it relates to the technology5-42
of the processes used;6-1
(b) The qualifications and experience of additional personnel who may6-2
be assigned as needed; and6-3
(c) The level of effort to be dedicated and a schedule, including the total6-4
time, for performing the assessment, including the following:6-5
(1) Names of personnel assigned;6-6
(2) Expected dates of starting and completion;6-7
(3) Estimated total hours for all personnel; and6-8
(4) Scope and extent of usage of collateral items such as computers6-9
and outside consultants.6-10
Sec. 11. NRS 459.3872 is hereby amended to read as follows: 459.3872 1. If any person violates any of the provisions of NRS6-12
459.380 to 459.386, inclusive, or 459.387, or section 3 of this act, or any6-13
regulation or order adopted or issued pursuant thereto, the division may6-14
institute a civil action in a court of competent jurisdiction for injunctive or6-15
any other appropriate relief to prohibit and prevent the violation and the6-16
court may proceed in the action in a summary manner.6-17
2. Except as otherwise provided in NRS 445C.010 to 445C.120,6-18
inclusive, a person who violates a provision of NRS 459.380 to 459.386,6-19
inclusive, or 459.387, or section 3 of this act, or any regulation or order6-20
adopted pursuant thereto is liable to a civil administrative penalty as set6-21
forth in NRS 459.3874. If the violation is of a continuing nature, each day6-22
during which it continues constitutes an additional, separate and distinct6-23
offense. No civil administrative penalty may be levied until after6-24
notification to the violator by certified mail or personal service. The notice6-25
must include a reference to the section of the statute, regulation, order or6-26
condition of a permit violated, a concise statement of the facts alleged to6-27
constitute the violation, a statement of the amount of the civil penalties to6-28
be imposed, and a statement of the violator’s right to a hearing. The6-29
violator has 20 days after receipt of the notice within which to deliver to6-30
the division a written request for a hearing. After the hearing if requested,6-31
and upon a finding that a violation has occurred, the administrator of the6-32
division may issue a final order after assessing the amount of the fine6-33
specified in the notice. If no hearing is requested, the notice becomes a6-34
final order upon the expiration of the 20-day period. Payment of the6-35
penalty is due when a final order is issued or when the notice becomes a6-36
final order. The authority to levy a civil administrative penalty is in6-37
addition to all other provisions for enforcement of NRS 459.380 to6-38
459.387, inclusive, and the payment of a civil administrative penalty does6-39
not affect the availability of any other provision for enforcement in6-40
connection with the violation for which the penalty is levied.6-41
Sec. 12. NRS 459.3874 is hereby amended to read as follows: 459.3874 1. The civil administrative penalties are:7-1
Category of Offense Penalty in U.S. Dollars7-2
A. Failure to register a new or existing regulated7-3
facility: $25,000 plus $2,000 per day7-4
from the due date7-5
B. Failure to pay annual fee: 75 percent of the fee7-6
C. Failure to submit a safety report: $10,000 plus $1,000 per day7-7
from the due date7-8
D. Failure to conduct an assessment of risk7-9
through analysis of hazards pursuant to the7-10
conditions set forth in NRS 459.3844: $25,0007-11
E. Failure to put into effect plan: $50,0007-12
F. Failure to comply with plan to reduce7-13
accidents and schedule of compliance: up to $5,0007-14
G. Failure to comply with approved plan to7-15
reduce accidents, each requirement: up to $10,0007-16
H. Failure to provide information requested by7-17
the division: $25,0007-18
I. Failure to grant access to employees or agents7-19
of division for inspections: $25,0007-20
J. Failure to provide information or grant access7-21
to employees or agents of division during7-22
an emergency: $50,0007-23
K. Falsification of information submitted to7-24
division: up to $10,000 per incident7-25
2. The division may compromise and settle any claim for any penalty7-26
under this section in such amount in the discretion of the division as may7-27
appear appropriate and equitable under all of the circumstances, including7-28
the posting of a performance bond by the violator. If a violator is subject to7-29
the imposition of more than one civil administrative penalty for the same7-30
violation, the division shall compromise and settle the claim for the penalty7-31
under this section in such amount as to avoid the duplication of penalties.7-32
3. No penalty may be imposed pursuant to this section for the failure7-33
to perform a required act within the time required if the delay was caused7-34
by a natural disaster or other circumstances which are beyond the control7-35
of the violator.7-36
4. Any person who violates any of the provisions of NRS 459.380 to7-37
459.386, inclusive, or 459.387, or section 3 of this act, or any regulation7-38
or order adopted or issued pursuant thereto, or an administrative order7-39
issued pursuant to subsection 2 of NRS 459.3872 or a court order issued7-40
pursuant to subsection 1 of NRS 459.3872, or who fails to pay a civil7-41
administrative penalty in full is subject, upon order of the court, to a civil8-1
penalty not to exceed $10,000 per day of the violation, and each day’s8-2
continuance of the violation constitutes a separate and distinct violation.8-3
Any penalty imposed pursuant to this subsection may be recovered with8-4
costs in a summary proceeding by the attorney general.8-5
Sec. 13. NRS 459.3838 is hereby repealed.8-6
Sec. 14. The amendatory provisions of this act do not apply to8-7
offenses that were committed before October 1, 1999.
8-8
TEXT OF REPEALED SECTION459.3838 Schedule for assessments; establishment of priority
8-10
system.8-11
1. Within 60 days after receiving a completed form for registration and8-12
the annual fee from the owner or operator of a facility, the division shall8-13
establish for that facility a schedule for the assessment of risks through the8-14
analysis of hazards which is based on a priority system that is established8-15
considering the volume of hazardous substances at the facility and the8-16
population potentially affected by those substances.8-17
2. The state environmental commission of the state department of8-18
conservation and natural resources shall adopt regulations for the8-19
establishment of a priority system.~