October 15, 2024
Community Development
DATE: October 15, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Richard Diaz, Emergency Services Manager
Nicole Health, Director of Contra Costa Hazardous
Materials Programs
Michael Dossey, Supervising Accidental Release
Prevention Engineer, Contra Costa Hazardous Materials
Program
SUBJECT: Richmond Industrial Safety Ordinance Amendments (RISO) Regarding Tank Terminals
FINANCIAL IMPACT: The proposed Ordinance amendments to include tank terminal storage facilities, if adopted, would align the City’s industrial safety ordinance with the County’s recent updates to their Industrial Safety Ordinance (ISO). The updated ordinance is not expected to have any fiscal
impact on the General Fund as staff costs associated
with implementation of this Ordinance will be covered by fees charged to tank storage facilities
PREVIOUS COUNCIL
ACTION:
June 3, 2014; June 17, 2014; July 1, 2014
STATEMENT OF THE
ISSUE:
In October 2019, a tank terminal facility located in
Crockett had a fire and explosion that necessitated a
shelter-in-place order. Following the investigation,
Contra Costa County staff began working with the tank
storage facility industry and stakeholders on developing updates to the Industrial Safety Ordinance language to
address issues identified in the incident investigation to enhance safety standards for tank terminals and
improving accidental release prevention. Since the City of Richmond houses half of the tank terminals within the County, staff seeks to amend the RISO to align with the AGENDA
REPORT
October 15, 2024
County’s recently adopted requirements for similar tank terminals operating in the County’s jurisdiction.
RECOMMENDED ACTION: INTRODUCE an ordinance (first reading) amending Chapter 6.43 of the Richmond Municipal Code to include
specific requirements for tank terminals to afford
additional public safety and protections against
accidental releases from incidents - Community
Development Department (Lina Velasco/Richard Diaz
510-620-6841).
BACKGROUND:
On October 15, 2019, at around 1:48 pm, a fire and explosion occurred at the NuStar Facility involving two ethanol storage tanks. Both tanks, each holding less than 3,000 barrels of denatured ethanol, were static at the time. The facility was evacuated, and emergency response teams quickly arrived to control the blaze using water and firefighting foam. A grass fire on a nearby hillside was also extinguished with the help of aircraft.
By 3:11 pm, a Shelter in Place was ordered for the nearby community, and Interstate 80 was closed in both directions. The fire was extinguished by 7:00 pm, and the Shelter in Place was lifted at 7:38 pm. The incident destroyed two large storage tanks, each with a capacity of 200,000 barrels (8.4 million gallons).
An investigation led by the Contra Costa County Fire Protection District found that an electrical fault caused the incident. Recommendations arising from the investigation included ensuring proper grounding of automatic level gauge devices, using inert gas to pad tank head spaces, complying with relevant standards, and monitoring tanks for explosive conditions.
The fire and explosion at the NuStar Facility had immediate and potential long-term environmental impacts, including air and water contamination, soil disruption, and ecosystem damage. The subsequent regulatory response aims to address these issues by enhancing safety standards for tank terminals and improving accidental release prevention.
SUMMARY OF PROPOSED AMENDMENTS:
After the fire and explosion, a team was put together to investigate the incident. The team was led by Contra Costa County Fire Protection District. The investigation in addition to reviewing the details of the NuStar incident also evaluated similar incidents investigated by the US Chemical Safety and Hazards Investigation Board. The aim of the investigation was to identify the contributing factors of the incident.
October 15, 2024
The incident investigation report identified an electrical fault as the cause of the incident and made the following recommendations:
All automatic level gauge floats and tapes should be grounded in compliance with American Petroleum (API) 2003 and manufacturer’s recommendations. All gauge devices and transmitters should be grounded in compliance with manufacturer’s recommendations.
Pad the head space in the tanks with an inert gas to mitigate the hazardous atmosphere within the tanks. This should be done in addition to removing all potential ignition sources.
Overall compliance with all agency requirements and standards, including but not limited to the National Fire Protection Association (NFPA) and American Petroleum Institute (API).
Tanks should be monitored for Lower Explosive Limit (LEL) conditions.
Contra Costa Health (CCH) Hazardous Materials Program staff reviewed the incident investigation report conclusions and worked with stakeholders to identify safety program elements which would be beneficial in accidental release prevention for Tank Terminals such as NuStar.
Based upon the conclusions, staff recommended to the Industrial Safety Ordinance/Community Warning System (ISO/CWS) Ad Hoc Committee of the Contra Costa County Board of Supervisors at the May 16, 2022, meeting that a revision be made to the Contra Costa County Industrial Safety Ordinance (ISO) to include Tank Terminals.
The Contra Costa County Board of Supervisor adopted similar amendments to those proposed in this ordinance to their Industrial Safety Ordinance in September 2024.
The draft ISO amendments include the following new definitions:
• "Ignitable liquid" means a flammable liquid or combustible liquid. • “Tank terminal” means at least one field erected tank with a minimum shell capacity of 50,000 gallons that contains a minimum of 10,000 pounds of flammable liquid, or the owner or operator thereof, on one or more contiguous properties. • "Tank terminal activities" mean any activity at a tank terminal involving an ignitable liquid, including but not limited to using, storing, blending, producing, gathering, refining, transferring, distributing, consuming, handling or moving an ignitable liquid. • "Tank terminal equipment" means equipment that is at a tank terminal and involved in tank terminal activities, and such equipment is under the control of the tank terminal owner or operator. This equipment includes, but is not limited to, tanks, pumps, piping, valves, and ancillary equipment.
The above definitions address gaps in current Federal, State, and local accidental release prevention programs by capturing ignitable liquids that were not previously captured, such as ethanol. CCH Hazmat has identified 8 facilities in the County that are considered tank terminals that could be subject to the new ISO section for Tank Terminals.
October 15, 2024
In addition, the proposed amendments include nine (9) safety program elements for inclusion. Table 1 shows each element and provides a brief justification for inclusion.
October 15, 2024
Figure 1 shows the approximate location of each facility in Richmond.
Within the County, there is one facility in the City of Martinez, three in unincorporated Contra Costa County, and four in the City of Richmond. The four (4) facilities in Richmond are: 1) TransMontaigne; 2) Kinder Morgan; 3) IMTT; and 4) Philips 66 Richmond Terminal.
A working group was established to draft proposed language for the Industrial Safety Ordinance which would be applicable to Tank Terminals that met the proposed criteria.
The working group is comprised of members from the community, members from facilities who would be covered by the proposed regulations, a representative from existing ISO facilities, agency representatives, and city representatives. This working group met monthly from September 2022 to January 2023 to develop the draft ISO language.
The proposed amendments would impose process safety requirements on tank terminals, with the intent of reducing the likelihood of industrial incidents. Modification of existing tank terminals or establishment of new tank terminals would each be separate discretionary projects subject to review under their own subsequent CEQA analysis.
As part of the amendments, staff is also updating Contra Costa Health’s name change from Contra Costa Health Services to Contra Costa Health. The amendments also include other minor clerical changes that were needed to align with current code references and to better align with Council ISO text.
October 15, 2024
ENVIRONMENTAL ANALYSIS:
The adoption of the subject Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that this activity could have a significant effect on the environment.
DOCUMENTS ATTACHED:
Attachment 1 – Ordinance (Redline)
Attachment 2 – Ordinance (Clean)