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.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
AN ACT relating to public safety; providing for the registration and regulation of facilities that manufacture explosives for sale by the division of environmental protection of the state department of conservation and natural resources; requiring an assessment of risks through analysis of hazards to be conducted at a regulated facility where highly hazardous substances are located or explosives are manufactured for sale if such a substance or explosive is newly introduced into the facility; abolishing the requirement that the division establish a schedule for those assessments; providing penalties; and providing other matters properly relating thereto.
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 nitrate2-1
and fuel oil. The term does not include any ammunition, powder,2-2
percussion caps, fuses, quills, matches, primers or explosive materials2-3
specified in 18 U.S.C. § 845(a)(4)-(6).2-4
Sec. 3. 1. At least 60 days before a highly hazardous substance or2-5
explosive is newly introduced into a regulated facility, the owner or2-6
operator of the facility shall submit the facility to an assessment of risks2-7
through analysis of hazards.2-8
2. The owner or operator of a regulated facility shall not newly2-9
introduce into the facility a highly hazardous substance or explosive:2-10
(a) Until the recommendations in the plan to abate hazards proposed2-11
by the person who conducted the assessment are carried out; or2-12
(b) If written modifications are proposed to the plan to abate hazards,2-13
until a plan to reduce accidents is issued by the division pursuant to NRS2-14
459.386 and the owner of the facility complies with the requirements of2-15
the plan.2-16
Sec. 4. NRS 459.380 is hereby amended to read as follows: 459.380 The legislature hereby declares that the purposes of NRS2-18
459.380 to 459.3874, inclusive, are to:2-19
1. Protect the health, safety and general welfare of the residents of this2-20
state from the effects of the improper handling of hazardous chemicals or2-21
explosives at the point where2-22
(a) The chemicals are produced, used or stored in this state; or2-23
(b) The explosives are manufactured for sale in this state;2-24
2. Ensure that the employees of this state who are required to work2-25
with hazardous chemicals or explosives are guaranteed a safe and healthful2-26
working environment;2-27
3. Protect the natural resources of this state by preventing and2-28
mitigating accidental or unexpected releases of hazardous chemicals into2-29
the environment; and2-30
4. Ensure the safe and adequate handling of2-31
(a) Hazardous chemicals that are produced, used, stored or handled in2-32
this state2-33
(b) Explosives that are manufactured for sale in this state.2-34
Sec. 5. NRS 459.3802 is hereby amended to read as follows: 459.3802 As used in NRS 459.380 to 459.3874, inclusive, and2-36
sections 2 and 3 of this act, unless the context otherwise requires, the2-37
words and terms defined in NRS 459.3804 to 459.3812, inclusive, and2-38
section 2 of this act, have the meanings ascribed to them in those sections.2-39
Sec. 6. NRS 459.3808 is hereby amended to read as follows: 459.3808 "Hazard" means a characteristic of a:2-41
1. Highly hazardous substance designated as such in NRS 459.3816 or2-42
any regulations adopted pursuant thereto;2-43
2. System involving the use of such a highly hazardous substance;3-1
3. Manufacturing plant using or producing a highly hazardous3-2
substance;3-3
4. Regulated facility that manufactures explosives for sale; or3-4
3-5
which makes possible a chemical accident3-6
Sec. 7. NRS 459.381 is hereby amended to read as follows: 459.381 "Regulated facility" means a building, equipment and3-8
contiguous area where3-9
1. Highly hazardous substances are produced, used, stored or handled3-10
3-11
2. Explosives are manufactured for sale.3-12
Sec. 8. NRS 459.3812 is hereby amended to read as follows: 459.3812 "Risk" means a risk posed by3-14
1. A highly hazardous substance that is produced, used, stored or3-15
handled at a regulated facility3-16
2. An explosive that is manufactured for sale at a regulated facility.3-17
Sec. 9. NRS 459.3813 is hereby amended to read as follows: 459.3813 1. Except as otherwise provided in this section and NRS3-19
459.3814, the provisions of NRS 459.380 to 459.3874, inclusive, and this3-20
section , and sections 2 and 3 of this act, apply to a regulated facility that3-21
3-22
(a) Produces, uses, stores or handles a highly hazardous substance in a3-23
quantity:3-24
3-25
or3-26
3-27
two or more releases from the regulated facility of the same or different3-28
highly hazardous substances during any 12-month period and:3-29
3-30
pursuant to 40 C.F.R. Part 302; or3-31
3-32
maximum quantity allowable as established by regulation of the state3-33
environmental commission3-34
(b) Manufactures explosives for sale.3-35
2. A regulated facility described in3-36
of paragraph (a) of subsection 1 is exempt from complying with the3-37
provisions of NRS 459.380 to 459.3874, inclusive, and this section , and3-38
sections 2 and 3 of this act, if:3-39
(a) The division determines that the regulated facility has:3-40
(1) Carried out the detailed plan to abate hazards recommended3-41
pursuant to subsection4-1
(2) Complied with such other provisions of NRS 459.380 to4-2
459.3874, inclusive, and this section, and sections 2 and 3 of this act, and4-3
the regulations adopted pursuant thereto, as the division requires; and4-4
(b) The regulated facility obtains an exemption from the state4-5
environmental commission. The state environmental commission shall4-6
adopt by regulation the procedures for obtaining such an exemption.4-7
3. As used in this section, "highly hazardous substance" means any4-8
substance designated as such in NRS 459.3816 or any regulations adopted4-9
pursuant thereto.4-10
Sec. 10. NRS 459.3824 is hereby amended to read as follows: 459.3824 1. The owner of a regulated facility shall pay to the4-12
division an annual fee based on the fiscal year. The annual fee for each4-13
facility is the sum of a base fee set by the state environmental commission4-14
and any additional fee imposed by the commission pursuant to subsection4-15
2. The annual fee must be prorated and may not be refunded.4-16
2. The state environmental commission may impose an additional fee4-17
upon the owner of a regulated facility in an amount determined by the4-18
commission to be necessary to enable the division to carry out its duties4-19
pursuant to NRS 459.380 to 459.3874, inclusive. The additional fee must4-20
be based on a graduated schedule adopted by the commission which takes4-21
into consideration the quantity of hazardous substances or explosives4-22
located at each facility.4-23
3. After the payment of the initial annual fee, the division shall send the4-24
owner of a regulated facility a bill in July for the annual fee for the fiscal4-25
year then beginning which is based on the applicable reports for the4-26
preceding year.4-27
4. The owner of a regulated facility shall submit, with any payment4-28
required by this section, the number assigned by the department of taxation,4-29
for the imposition and collection of taxes pursuant to chapter 364A of NRS,4-30
to the business for which the payment is made.4-31
5. All fees collected pursuant to this section and any interest earned4-32
thereon must be deposited with the state treasurer for credit to the fund for4-33
precaution against chemical accidents, which is hereby created as a special4-34
revenue fund.4-35
Sec. 11. NRS 459.3826 is hereby amended to read as follows: 459.3826 1. Each owner or operator of a new regulated facility shall,4-37
within 10 days after the opening of the facility, tender the base fee and any4-38
additional fee imposed by the state environmental commission of the state4-39
department of conservation and natural resources pursuant to NRS4-40
459.3824 for the first fiscal year with the form for registration of the4-41
facility.4-42
2. Each owner or operator of a regulated facility registering a new4-43
highly hazardous substance or explosive at the facility shall tender the fee5-1
computed from the inventory of the highly hazardous substance or5-2
explosive when he registers the substance5-3
Sec. 12. NRS 459.3828 is hereby amended to read as follows: 459.3828 1. The division shall develop and issue a form for5-5
registration to be completed by the owner or operator of each facility in the5-6
state which at any time5-7
(a) Produces, uses, stores or handles any highly hazardous substance in5-8
the quantity required to make it hazardous, or more5-9
(b) Manufactures any explosive for sale.5-10
2. This form must provide, in addition to any other information that5-11
may be required by the division:5-12
(a) A list of the highly hazardous substances produced, used, stored or5-13
handled at the facility and the quantity of each, which must identify whether5-14
those substances are end products, intermediate products, by-products or5-15
waste products5-16
5-17
hazardous substances;5-18
(b) A list of the explosives manufactured for sale at the facility and the5-19
quantity of each, if the facility manufactures explosives for sale;5-20
(c) A general description of the process and principal equipment5-21
involved in the management of the substances5-22
5-23
(d) A description of the area in which the facility is situated, including5-24
its proximity to population and water supplies;5-25
5-26
identified, evaluated and abated, and the expert knowledge and affiliation5-27
of the evaluators and any direct or indirect relationship between the5-28
evaluators and the owner or operator of the facility; and5-29
5-30
environmental liability of the facility and the scope of these policies,5-31
including any limitations and exclusions.5-32
5-33
5-34
5-35
3. The owner or operator of the facility shall file with the division the5-36
registration form developed and issued by the division and the report on5-37
safety of the facility required by NRS 459.3835-38
(a) Not later than 90 days after a substance is added to the list of5-39
highly hazardous substances, if the facility produces, uses, stores or5-40
handles highly hazardous substances;5-41
(b) Not later than 90 days after an explosive is added to the list of5-42
explosives that are manufactured for sale at the facility, if the facility5-43
manufactures explosives for sale;6-1
(c) At least 90 days before a highly hazardous substance is newly6-2
introduced into the facility, if the facility produces, uses, stores or6-3
handles highly hazardous substances; and6-4
(d) At least 90 days before an explosive is newly introduced into the6-5
facility, if the facility manufactures explosives for sale.6-6
Sec. 13. NRS 459.3836 is hereby amended to read as follows: 459.3836 1.6-8
act, the owner or operator of a facility shall submit the facility to an6-9
assessment of risks through analysis of hazards at least every 5 years. The6-10
assessment must be conducted by a person or persons who possess the6-11
qualifications required pursuant to NRS 459.3842 and are selected by the6-12
owner or operator with the approval of the division.6-13
2. In addition to other duties deemed necessary by the owner or6-14
operator or the division, the person conducting the assessment shall confirm6-15
the accuracy of the facility’s current registration and report on safety.6-16
3. The person conducting the assessment shall, at the conclusion of the6-17
assessment, issue a report of findings, conclusions and recommendations.6-18
One executed original of this report must be sent by the consultant directly6-19
to the division.6-20
Sec. 14. NRS 459.384 is hereby amended to read as follows: 459.384 1. The owner or operator of a regulated facility shall,6-22
6-23
6-24
assessment of risks through analysis of hazards, designate a person or6-25
persons who are capable of performing an assessment of risks through6-26
analysis of hazards on its facility.6-27
2. If any personnel of a regulated facility possess the necessary6-28
qualifications to conduct the assessment, the owner or operator of that6-29
facility may designate any of those persons to conduct the assessment.6-30
3. Each person designated to conduct the assessment shall present6-31
appropriate documentation demonstrating his ability to perform the6-32
assessment. The documentation must include:6-33
(a) The person’s qualifications in:6-34
(1) Engineering related to chemical processes;6-35
(2) Engineering related to safety;6-36
(3) Preparation of operating procedures;6-37
(4) Preparation or review of procedures for maintenance;6-38
(5) Preparation or review of procedures for safety;6-39
(6) Preparation or review of programs to train operators;6-40
(7) Performance or review of investigations of accidents;6-41
(8) Performance of analyses of hazards;6-42
(9) Performance of risk assessments of risk;6-43
(10) Preparation or review of plans for response to emergencies;7-1
(11) Performance of audits of programs to manage risks; and7-2
(12) Knowledge of the state of the art as it relates to the technology of7-3
the processes used;7-4
(b) The qualifications and experience of additional personnel who may7-5
be assigned as needed; and7-6
(c) The level of effort to be dedicated and a schedule, including the total7-7
time, for performing the assessment, including the following:7-8
(1) Names of personnel assigned;7-9
(2) Expected dates of starting and completion;7-10
(3) Estimated total hours for all personnel; and7-11
(4) Scope and extent of usage of collateral items such as computers7-12
and outside consultants.7-13
Sec. 15. NRS 459.3848 is hereby amended to read as follows:7-14
459.3848 The findings of the person who conducted the assessment7-15
must include, without limitation:7-16
1. The identity and quality of all highly hazardous substances7-17
produced, used, stored, handled, or that could unwittingly be produced in7-18
the event of a breakdown of equipment, human error, defect in design or7-19
procedural failure, or the imposition of an external force;7-20
2. The identity and quantity of all explosives that are manufactured7-21
for sale at the regulated facility;7-22
3. The nature, age and condition of all of the equipment and7-23
instruments7-24
and manage a highly hazardous substance or explosive at the regulated7-25
facility, and the schedules for7-26
7-27
4. The measures and precautions designed to protect against the7-28
intrusions of internal or external forces and events7-29
contain discharges within the regulated facility;7-30
7-31
knowledge to appropriate personnel regarding the dangers posed by a7-32
release of a highly hazardous substance or a discharge of an explosive and7-33
the training provided to prepare7-34
operation of the facility and for unanticipated occurrences;7-35
7-36
regulated facility to an emergency7-37
developed to safeguard against the occurrence of an accidental release of a7-38
highly hazardous substance or accidental discharge of an explosive or any7-39
other aspect or component of the facility deemed relevant by the division;7-40
7-41
hazard at the7-42
7-43
purposes of the report.8-1
Sec. 16. NRS 459.385 is hereby amended to read as follows: 459.385 The conclusions of the person who conducted the assessment8-3
must include, without limitation:8-4
1. The nature and magnitude of any hazard at the regulated facility;8-5
2. The likelihood of a chemical accident resulting from the hazard at8-6
the regulated facility;8-7
3. The circumstances that would result in a discharge of a highly8-8
hazardous substance or explosive at the regulated facility;8-9
4. The effectiveness of the systems and procedures for safety at the8-10
regulated facility and for the control of any hazards; and8-11
5. Any other information which is relevant for the purposes of the8-12
report.8-13
Sec. 17. NRS 459.3852 is hereby amended to read as follows: 459.3852 The recommendations of the person who conducted the8-15
assessment must include, without limitation, the following information if8-16
applicable to the facility:8-17
1. Alternative processes, procedures or equipment which8-18
reduce the risk of a release of a highly hazardous substance or a discharge8-19
of an explosive at the regulated facility while yielding the same or8-20
commensurate results;8-21
2. The8-22
(a) A change in a process;8-23
8-24
(b) A chemical substitution or change;8-25
8-26
(c) Any additional safety equipment;8-27
8-28
8-29
(d) A mitigation system;8-30
(e) Any additional preventive maintenance or responses at the regulated8-31
facility to emergencies, to safeguard against a hazard;8-32
8-33
(f) Any additional planning near the regulated facility to meet8-34
emergencies;8-35
8-36
accident reduction plan to reduce accidents; and8-37
8-38
report.8-39
Sec. 18. NRS 459.3872 is hereby amended to read as follows: 459.3872 1. If any person violates any of the provisions of NRS8-41
459.380 to 459.386, inclusive, or 459.387, or section 3 of this act, or any8-42
regulation or order adopted or issued pursuant thereto, the division may8-43
institute a civil action in a court of competent jurisdiction for injunctive or9-1
any other appropriate relief to prohibit and prevent the violation and the9-2
court may proceed in the action in a summary manner.9-3
2. Except as otherwise provided in NRS 445C.010 to 445C.120,9-4
inclusive, a person who violates a provision of NRS 459.380 to 459.386,9-5
inclusive, or 459.387, or section 3 of this act, or any regulation or order9-6
adopted pursuant thereto is liable to a civil administrative penalty as set9-7
forth in NRS 459.3874. If the violation is of a continuing nature, each day9-8
during which it continues constitutes an additional, separate and distinct9-9
offense. No civil administrative penalty may be levied until after9-10
notification to the violator by certified mail or personal service. The notice9-11
must include a reference to the section of the statute, regulation, order or9-12
condition of a permit violated, a concise statement of the facts alleged to9-13
constitute the violation, a statement of the amount of the civil penalties to9-14
be imposed, and a statement of the violator’s right to a hearing. The9-15
violator has 20 days after receipt of the notice within which to deliver to the9-16
division a written request for a hearing. After the hearing if requested, and9-17
upon a finding that a violation has occurred, the administrator of the9-18
division may issue a final order after assessing the amount of the fine9-19
specified in the notice. If no hearing is requested, the notice becomes a9-20
final order upon the expiration of the 20-day period. Payment of the penalty9-21
is due when a final order is issued or when the notice becomes a final order.9-22
The authority to levy a civil administrative penalty is in addition to all other9-23
provisions for enforcement of NRS 459.380 to 459.387, inclusive, and the9-24
payment of a civil administrative penalty does not affect the availability of9-25
any other provision for enforcement in connection with the violation for9-26
which the penalty is levied.9-27
Sec. 19. NRS 459.3874 is hereby amended to read as follows: 459.3874 1. The civil administrative penalties are:9-29
Category of Offense Penalty in U.S. Dollars9-30
A. Failure to register a new or existing regulated9-31
facility: $25,000 plus $2,000 per day9-32
from the due date9-33
B. Failure to pay9-34
pursuant to NRS 459.3824: 75 percent of the fee9-35
C. Failure to submit a safety report: $10,000 plus $1,000 per day9-36
from the due date9-37
D. Failure to conduct an assessment of risk9-38
through analysis of hazards pursuant to the9-39
conditions set forth in NRS 459.3844: $25,0009-40
E. Failure to put into effect plan: $50,00010-1
F. Failure to comply with plan to reduce10-2
accidents and schedule of compliance: up to $5,00010-3
G. Failure to comply with approved plan to10-4
reduce accidents, each requirement: up to $10,00010-5
H. Failure to provide information requested by10-6
the division: $25,00010-7
I. Failure to grant access to employees or agents10-8
of division for inspections: $25,00010-9
J. Failure to provide information or grant access10-10
to employees or agents of division during10-11
an emergency: $50,00010-12
K. Falsification of information submitted to10-13
division: up to $10,000 per incident10-14
2. The division may compromise and settle any claim for any penalty10-15
under this section in such amount in the discretion of the division as may10-16
appear appropriate and equitable under all of the circumstances, including10-17
the posting of a performance bond by the violator. If a violator is subject to10-18
the imposition of more than one civil administrative penalty for the same10-19
violation, the division shall compromise and settle the claim for the penalty10-20
under this section in such amount as to avoid the duplication of penalties.10-21
3. No penalty may be imposed pursuant to this section for the failure to10-22
perform a required act within the time required if the delay was caused by a10-23
natural disaster or other circumstances which are beyond the control of the10-24
violator.10-25
4. Any person who violates any of the provisions of NRS 459.380 to10-26
459.386, inclusive, or 459.387, or section 3 of this act, or any regulation or10-27
order adopted or issued pursuant thereto, or an administrative order issued10-28
pursuant to subsection 2 of NRS 459.3872 or a court order issued pursuant10-29
to subsection 1 of NRS 459.3872, or who fails to pay a civil administrative10-30
penalty in full is subject, upon order of the court, to a civil penalty not to10-31
exceed $10,000 per day of the violation, and each day’s continuance of the10-32
violation constitutes a separate and distinct violation. Any penalty imposed10-33
pursuant to this subsection may be recovered with costs in a summary10-34
proceeding by the attorney general.10-35
Sec. 20. NRS 459.3838 is hereby repealed.10-36
Sec. 21. The amendatory provisions of this act do not apply to10-37
offenses that were committed before October 1, 1999.
11-1
TEXT OF REPEALED SECTION459.3838 Schedule for assessments; establishment of priority
11-3
system.11-4
1. Within 60 days after receiving a completed form for registration and11-5
the annual fee from the owner or operator of a facility, the division shall11-6
establish for that facility a schedule for the assessment of risks through the11-7
analysis of hazards which is based on a priority system that is established11-8
considering the volume of hazardous substances at the facility and the11-9
population potentially affected by those substances.11-10
2. The state environmental commission of the state department of11-11
conservation and natural resources shall adopt regulations for the11-12
establishment of a priority system.~