Slide 0 © 2007, ioMosaic Corporation; all rights reserved Do not copy or distribute without the express written permission of ioMosaic Corporation © ioMosaic

© 2007, ioMosaic Corporation; all rights reservedDo not copy or distribute without the express written permission of ioMosaic Corporation

Slide 1

© ioMosaic Corporation. All Rights Reserved. DO NOT distribute or copy in any form without the express written permission of ioMosaic Corporation

Business Confidential Document

Completing CSAT - Top Screen

Co-Sponsors include:

Conrad Law &

Policy Counsel

SALEM OFFICE93 Stiles RoadSalem, New Hampshire 03079Tel: 603-893-7009Fax:603-893-7885Email: [email protected]: www.iomosaic.com

HOUSTON OFFICE2650 Fountain View, Suite 410Houston, Texas 77057Tel: 713-490-5220Fax:713-490-5222Email: [email protected]: www.iomosaic.com

MINNEAPOLIS OFFICE333 Washington Avenue NorthMinneapolis, Minnesota 55401Tel: 612-373-7037Fax:832-553-7283Email: [email protected]: www.iomosaic.com

ioMosaic Offices


Slide 2

Introduction to Speakers

Scott Butner - Facilitator ChemAlliance

Judy Perry - Partner ioMosaic

Jamie Conrad - Principal Conrad Law & Policy Counsel

Participants for Q&A Department of Homeland Security

Marybeth Kelliher, Deputy Branch Chief, Policy and Programs, CSCD

Matt Bettridge, CSAT Program Manager, CSCD

ioMosaic Judy Perry Pete Stickles

Conrad Law & Policy Counsel Jamie Conrad


Slide 3

Completing your Top-Screen AGENDA-Part I

Introduction to Chemical Facility Anti-terrorist standards (CFATS)

Exemptions

How Appendix A Works

What is CSAT – Top Screen?

Do you have potential to be covered?

CSAT User Registration

Overview of Sections

Concentrations/Mixtures for Chemicals of Interest (COI)

How to calculate inventory relative to Screening Threshold Quantity (STQ) CFATS not same as RMP & PSM

Example Case Study

Economic and Mission Critical Chemicals


Slide 4

Completing your Top-Screen AGENDA-Part II

What to expect after CSAT submission

Overview of Timeline

Security Vulnerability Assessment (SVA)

Site Security Plan (SSP)

Risk Based Performance Standard

Resubmissions

Enforcement

Information Protection

Question and Answer Session


Slide 5

Introduction to CFATS

CSAT/Top-Screen part of DHS “Chemical Facility Anti-Terrorism Standards”

Required by § 550 of FY07 DHS Appropriations Act of 2007 (PL 109-295)

Implementing regulations: 6 CFR Part 27 Basic rules published April 9, 2007 “Appendix A” rules published November 20, 2007

Enhance and ensure the security of the nation's chemical industry

Establishes Risk Based Performance Standards

Requires covered chemical facilities to: Prepare Security Vulnerability Assessments Develop Site Security Plans Implement security measures meeting risk-based performance standards


Slide 6

Introduction to CFATS

Applies to “chemical facilities” presenting “high levels of security risk.”

Includes the following:

chemical manufacturing, storage and distribution facilities;

petroleum refineries, and

liquefied natural gas storage (peak shaving) facilities

Any facility possessing ≥ STQ of any COI is “presumptively high risk,”

Must complete CSAT- Top-Screen

DHS estimates 50,000 facilities will need to do Top-Screen

DHS then decides if facility is high-risk

subject to other requirements discussed later

DHS estimates 5,000-8,000 high risk facilities. Balance off the hook . . . for now.


Slide 7

Exemptions

The following facilities are statutorily exempted from the CFATS:

Facilities regulated pursuant to the Maritime Transportation Security Act (MTSA);

Public Water Systems, as defined in the Safe Drinking Water Act;

Treatment Works, as defined in the Federal Water Pollution Control Act;

Clean Water Act

Facilities owned or operated by the DOD or DOE; and

Facilities subject to regulation by the Nuclear Regulatory Commission (NRC).


Slide 8

Additional Exemptions

CFATS rule exempts solid/hazardous waste as defined by RCRA

Except discarded commercial chemicals, off-spec species, and container & spill residues

Other CFATS exemptions largely track RMP exemptions

Note: DHS did NOT adopt two EPA RMP exemptions:

COIs in natural gas or LNG stored in “peak shaving” facilities

COIs in fuels w/ NFPA hazard ratings <4 when stored in above ground storage tanks

Does not currently include truck/trucking terminals


Slide 9


Three Key Security Issues

1. Release

Toxic

Flammable

Explosive

2. Theft and Diversion

Chemical Weapons (CW)/ Chemical Weapon Precursors (CWP)

Weapons of Mass Effect (WME)

Explosives (EXP)/Improvised Explosive Device Precursor (IEDP)

3. Sabotage/Contamination


Slide 10


Example

Differing mixture/minimum concentration rules for each security issue

Some COI have more multiple STQs


Slide 11

Other Notes on Complexities

In addition to Appendix A being complex;

Differing mixture/minimum concentration rules for each security issue

Special rules for release chemicals e.g.;

Excluded while in transportation

Excluded when used in laboratories supervised by a technically qualified individual

Include process intermediates, byproducts

Theft/diversion chemicals only covered when in transportation packaging

Sabotage/contamination chemicals covered if facility required to placard shipments of same.

Receiving facilities not required to count chemicals against these STQs


Slide 12

Understanding CSAT

Chemical Security Assessment Tool

Top-Screen submission required if possess a COI at any applicable STQ

Top-Screen submissions due January 22, 2008

Web-based tool

Registration First step if facility has potential to be covered

Top Screen Tool for DHS to assign initial risk-based tier level

Security Vulnerability Assessment (SVA) Tool

Site Security Plan (SSP) Template

1CFATs –multi-step process

1Homeland Security “Securing the Chemical Sector: An Overview of the Chemical Facility Anti-Terrorism Standards,

May 2, 2007


Slide 13

CSAT Registration

2Example from “CSAT User Registration Guide “User Guide

October 2007

Version 1.2.3

Grants CSAT access to authorized users

Designate roles in advance of Registering

Requires Pre-planning

For Companies with >50 Facilities Bulk upload spreadsheet available

– Performed by CSAT Help Desk 866-323-2957

Link to CSAT Registration Guide: http://www.dhs.gov/xlibrary/assets/chemsec_csatuserregismanual.pdf

2


Slide 14

Registration Roles

Roles –Can be same or different individuals

Preparer Enters data but can not submit to DHS

Submitter Submits information to DHS

Must be an officer of the corporation – Good role for corporate attorney or chief security officer

Authorizer Assurance to DHS that Preparer and Submitter are qualified

Must be an officer or designated by an officer

Must live in the U.S.

Certifies, but cannot enter or edit data

Reviewer (Optional Role) Read only role

Another potential role for lawyers or CSOs


Slide 15

Registration Hints

Times out after 20 minutes

All information must be reentered

Enter multiple facilities in one session

“user name” and “password” issued each time system entered

Can not edit entries once entered and PDF created

Initial Facility Information Screen

Name must be legal name of the parent company

Key document to assist

http://www.dhs.gov/xlibrary/assets/chemsec_csatuserregismanual.pdf

Secured system

Separate emails for password and user name

Not in public domain

Must view Authorized User Training prior to signing on


Slide 16

Overview of Sections

Sections of CSAT Top-Screen User Manual

http://www.dhs.gov/xlibrary/assets/chemsec_csattopscreenusersmanual.pdf

1 – Information needed to be prepared to complete Top-Screen

2 – General Facility Information

3 – Specific to Petroleum Refineries (Others may skip)

4 – Specific to LNG (Others may skip)

5 - Chemical Manufacturing, Use, Distribution or Storage

6 – Reviewing and submitting data to DHS


Slide 17

CFATS vs. RMP & PSM

Critical Difference

RMP & PSM use inventory in a “process”

CFATS uses Maximum Total On-Site Inventory Also requests Area of Highest Quantity (AHQ)

May require different total inventory amounts

– STQ Amounts differ based on Security Issue of COI

Crucial points for properly counting inventories (relative to STQ):

Understand highest total inventory amount within 170 ft. radius. (AHQ)

Same chemical may have multiple STQs

Differing mixture rules for each security issue

Some Appendix A chemicals have own minimum concentrations


Slide 18

Concentrations & Mixtures - Release

Release – Toxic

RMP toxic chemical STQs range from 500-20,000 lbs

If COI ≥ 1% of mixture, count amount of COI toward STQ

If COI ≤ 1% of mixture, do not count

Release – Flammable

RMP flammable chemicals STQ is 10,000 lbs

If COI > 1% and entire mixture is NFPA Hazard Rating 4, count entire mixture amount

If COI > 1% and mixture is NFPA Hazard Rating 1-3, do not count Unless mixture is gasoline, diesel, or jet fuel and is stored in aboveground storage

tanks (incl. associated pipelines) -- then count entire mixture

If COI ≤ 1% of mixture, do not count

Release -- Explosives

Class 1, Div. 1.1 explosives under DOT Hazmat Rules. STQ is 5,000 lbs

Count any commercial grade of the substance


Slide 19

Concentrations & Mixtures-Theft –CW/CWP

Note: Theft/diversion issue only applies to chemicals in transportation packages under DOT Hazmat Rules (e.g., cylinders, bulk bags, bottles, cargo tanks, tank cars)

Theft/Diversion -- Chemical Weapons (CW)/ Chemical Weapon Precursors (CWP)

“Easily weaponized” chemicals

From Chemical Weapons Convention schedules

STQ for Schedule 1 items (limited industrial use) is “CUM 100g’’

aggregate of all Schedule 1 chemicals onsite

STQs for Schedules 2 & 3 are 2.2 & 220 lbs respectively.

Not cumulative.

Count entire mixture if equal to > min. conc.

Appendix A table lists minimum concentrations for mixtures


Slide 20

Concentrations & MixturesTheft – WME/EXP

Theft/Diversion -- Weapons of Mass Effect (WME)

Class 2, Div. 2.3,

Hazard Zone A-C explosives under DOT Hazmat Rules.

STQs are Zone A: 15 lbs; Zone B: 45 lbs, Zone C: 500 lbs

STQs equate to:

Three commercial size cylinders for Hazard Zones A & B

Five cylinders for “C”

Appendix A table lists minimum concentrations for mixtures Count entire mixture

Theft/Diversion -- Explosives (EXP/IEDP)

Assortment of different explosive substances. STQs are 400 lbs

Appendix A table lists minimum concentrations for mixtures of some chemicals; o/wise count any commercial grade of the substance


Slide 21

Concentrations & Mixtures-Sabotage/Contamination

Sabotage/Contamination

Chemicals capable of creating a poison gas when exposed to water

STQ: Any amount that triggers placarding under DOT Hazmat Rules

Appendix A table lists minimum concentrations for mixtures of some chemicals; o/wise count any commercial grade of the substance

W


Slide 22

Example – Reference Appendix A

Chlorine – Theft-WME and Release-toxic (500 lb & 2500 lb STQs respectively)Theft -- 2000 lb Container > 500 lb STQ theftTotal Release Inv. = 2000 + (300 lb. COI in mixture)

2300 lb < 2500 lb therefore < STQ Release

Note: 9.77% min con on

theft & 1% for release


Slide 23

Release - Example

Acetaldehyde – Release-Flammable, STQ = 10,000 lbs

65720 lb -Bulk Storage329 lb in tank E-8

675 lb in mixture –

Entire Mixture in Tanker = 35,205 lb

162 lb COI in mixture, 3250 total for mixture

650 lb. in E-2


Slide 24

Acetaldehyde Totals from Example

Facility Example Notes:

Inventory Questionnaire completed by: ioMosaic

If material is release-flammable (IA) and makes up ≥ 1% of a mixture, the entire mixture must be counted in inventory

Date Questionnaire Completed: 12/1/2007

If the material is release-toxic and makes up ≥ 1% of a mixture, only the amount of the covered chemical in the mixture is counted.

Chemical Name: AcetaldehydeAHQ = Area of Highest Quantity (within 170 ft. radius)

CAS No. 75-07-0

Security Class Flammable

Tank/Vessel NO.

Max. Inventory (lbs) within container (s)

Is Inventory part of a Mixture?

Inventory in Col. C Include COI or entire volume? Type of Container Exact Location

Mobile Tank Truck 35,205 yes Entire amount Trailers parked onsite S. side Bldg.

E-8 329 yes No - lab Tank Bldg. 1

Bulk Tank 65720 no Entire amount Outside Bulk Storage SE Corner of Property

E-2 650 no Entire amountReactors and Process Vessels Bldg. 2

E-1 3250 yes Entire amountReactors and Process Vessels Bldg. 2

Inventory Total 104825

An independent worksheet, per chemical, is a a great record for future reference.


Slide 25

AHQ Example

E-7

E-1

E-2

E-3

E-4

E-5

E-6 E-8

E-9

5000 Tanker w/Motive Force

2% Acetaldehyde /90% Ethanol/8% Chloroform

P-1

In Process Laboratory

20 - 55 GAL. DrumsYard Storage

4- 55 Gal. Drums

Dist. Col. -liquid hold up of 100 Gal.

500 Gal Reactor.

100 Gal Receiver

100 Gal Vat

Centrifuge – 100 Gal wash liquors

5000 Gal Truck -No Motive force attached

10,000 Gal. Storage Tank

50 Gal Tank

50 Gal Tank

50 Gal Tank

10 Gal. (Chloroform)

in Safety Cabinet

Note: All Circles have 170 ft. Radius

CSAT Inventory and AHQ Example

Acetaldehyde

Chloroform

Chloroform2000 lb. Chlorine Cylinder

P-3

5% Acetaldehyde/5% Chlorine/90%

Ethanol Acetaldehyde

Chloroform

Ethanol

Chloroform

© Copyright 2007, ioMosaic Corporation. All Rights Reserved.

Methanol Methanol Acetaldehyde

Bldg. 2

Bldg. 1

AHQ is Bulk Tank = 65,720 lbs.

Report as 66,000 lbs.

-2 Significant digits


Slide 26

Release - Distance of Concern

Distance of Concern

Release – Flammable

Release – Toxic

Calculated using RMP*COMP

Easy free online down load

Use AHQ for amount

Use “Worst Case”

Do not select any mitigation

Excellent Step by Step Directions in CSAT Top Screen Users Manual

Link to RMP* COMP is:

comp-dwn.htm

http://yosemite.epa.gov/oswer/ceppoweb.nsf/content/rmp-comp.htm


Slide 27

Theft –All Subcategories

Remember -- only covered if in transportation packaging:

Portable

Fork truck or 1-3 people

Bulk Transport

Tank cars

Rail cars

Bulk Storage

Can be safely transferred and packaged or moved with mechanical assist

Note on CW/CWP

CUM 100g = cumulative 100 grams

Aggregate all individual Schedule 1 substances onsite


Slide 28

Mission Critical Chemicals For DHS internal purposes at this point; Currently not a security issue.

Facilities will not be regulated solely on this basis.

>20% of domestic production

Supplies to a critical sector Defense industrial base

Energy (electrical only)

Public health or healthcare

Public drinking water

Note: Definitions for these “Sectors” on pg 45 of “CSAT Top Screen User Manual”

Additional Information requested includes: Domestic market share

Exact or functional substitutes for chemical

Facility’s capacity utilization rate

Annual production

Estimated replacement cost of the production unit


Slide 29

Economically Critical Chemicals

For DHS internal purposes at this point; Currently not a security issue.

Facilities will not be regulated solely on this basis

Total value of products shipped

Annual Survey of Manufacturers from Census Bureau

List each item (including non-Appendix A) > 35% of domestic production

All business sectors

Application of use

List primary business sector produced for

Information basically same as “Mission Critical”


Slide 30

What next?

Based on Top-Screen results, DHS will assign facility to preliminary risk tier

Tier 1 – Tier 4 (4 = lowest risk).

Key factors considered for preliminary Tier assignments include:

Amount and toxicity of chemicals on site Focus on inhalation hazards and high order flammables

Population density around site

Serious economic harm or a shortage of materials

Letter to be issued to facility with preliminary tier assignment

Letter will include: Preliminary facility tier

Chemicals at facility to address in SVA

Security issues associated with each chemical

1 GAO-06-150 “DHS is Taking Steps to Enhance Security at Chemical Facilities, but Additional Authority is Needed.”


Slide 31

Overview of Timeline

3. Securing the Chemical Sector: An Overview of the Chemical Facility Anti-Terrorism Standards May 2, 2007

1. 1/22/08 - Top-Screens due

2. Late March 08 - DHS respond to facilities

3. Late June 08 - SVAs due

4. Late August 08 - DHS responds to facilities

5. Late Dec. 08 - SSPs due

These deadlines are the same for all four tiers.


Slide 32

SVA

Due 90 days after receipt of DHS letter w/ preliminary tier assignment

Tiers 1-3 must use CSAT SVA methodology; Tier 4 can use other credible SVAMs, under concept of “alternative security program” (ASP) (need DHS approval)

CSAT SVAM modified from “RAMCAP”

The SVA evaluates security vulnerabilities:

Asset characterization

Threat assessment

Security vulnerability analysis

Risk assessment

Countermeasures analysis

Applies standardized “terrorist attack modes” (ostensibly not “design basis threats”)


Slide 33

SSP

Due 120 days after receipt of DHS letter w/ final tier assignment

CSAT contains an SSP template, but any tier facility can use an alternative security program if approved by DHS

SSP must:

Address each vulnerability identified in SVA and corresponding security measures

Describe how selected security measures will address applicable terrorist attack modes

Describe how selected security measures will meet or exceed applicable risk-based performance standards (RBPS) for the facility’s tier

By statute, facilities are free to choose security measures to meet RBPS. DHS cannot disapprove an SSP on the basis of its failure to include any particular security measure. Thus DHS cannot mandate “inherently safer technology.”


Slide 34

Risk Based Performance Standards

RBPS are:

1. Restrict Area Perimeter 10. Monitoring

2. Secure Site Assets 11. Training

3. Screen and Control Access 12. Personnel Surety

4. Deter, Detect, and Delay 13. Elevated Threats

5. Shipping, Receipt, and Storage 14. Specific Threats, Vulnerabilities, or Risks

6. Theft and Diversion 15. Reporting of Significant Security Incidents

7. Sabotage 16. Significant Security Incidents and Suspicious Activities

8. Cyber 17. Officials and Organizations

9. Response 18. Records

19. Others that DHS may determine

Each RBPS is less demanding as you move from Tier 1 to Tier 4

DHS to issue non-binding guidance explaining its interpretation of level of performance required by each RBPS by tier


Slide 35

Resubmission of CSAT

If initial submission inadequate

New Top-Screen within 60 days of “material modification” of operations or site

DHS will advise re need to do more

2 year cycle for Tiers 1 & 2

Do Top-Screen, SVA & SSP on same 60/90/120 day schedule as before

3 year cycle for Tiers 3 & 4

Ditto


Slide 36

Enforcement

DHS must review & approve each SVA & SSP (Letter of Authorization), inspect facilities (Letter of Approval)

30 officers from Federal Protective Services detailed as DHS inspectors

If DHS finds violation, must give facility:

Clear, written explanation of deficiencies

Opportunity for consultation

Order to comply by date “appropriate under the circumstances”

If facility does not comply DHS may:

Impose civil penalty of up to $25,000 per violation (same as MTSA)

“Issue an order for the facility to cease operation, until the owner or operator complies with the order.”

Adjudication rules, with appeal process to Under Secretary. Then off to court.

But what’s reviewable? Much discretion for DHS.


Slide 37

Information Protection

CFATS creates new concept: “Chemical-Terrorism Vulnerability Information”

CVI may be shared with state/local officials “possessing the necessary security clearances”; they may not disclose it under state/local law

In enforcement actions, CVI to be treated as if classified

No access to CVI for other civil litigation, says DHS

DHS CVI Procedural Manual requires web-based training, execution of nondisclosure agreement, for access to CVI -- even own facility information

Criteria for “high risk”/not, tier dividing lines classified


Slide 38

Acronyms

ACG - A Commercial GradeCVI-Chemical-terrorism Vulnerability

Information NRC-Nuclear Regulatory Commission

AHQ-Area of Highest QuantityDHS-U.S. Department of Homeland

SecurityOSHA-Occupational Safety and

Health Administration

APA - A Placarded Amount DOD- Department of Defense PSM-Process Safety Management

CAS-Chemical Abstract Service DOE- Department of Energy RMP-Risk Management Plan

CCPS-Center for Chemical Process Safety DOT-Department of Transportation SDWA-Safe Drinking Water Act

CFR-Code of Federal RegulationsIED/IEDP-Improvised Explosive

Device/Improvised Explosive Device Precursor

SBU-Sensitive but Unclassified

CUM-100g -Cumulative STQ of 100 grams for designated Chemical Weapons

LNG-Liquefied Natural Gas SSP-Site Security Plan

CW/CWP-Chemical Weapons/Chemical Weapons Precursor

MTSA-Maritime Transportation Security Act

STQ-Screening Threshold Quantity

CWC-Chemical Weapons Convention NAICS-North American Industrial

Classification System SVA-Security Vulnerability

Assessment

CSAT-Chemical Security Assessment Tool NFPA-National Fire Protection

Association WME-Weapon of Mass Effect


Slide 39

Process Overview

4

14


Slide 40

Thank You Co-Sponsors!

Conrad Law & Policy Counsel


Slide 41

Contact information

For additional assistance contact:

ioMosaic Corporate Headquarters

93 Stiles Road

Salem, New Hampshire 03079

Tel: 603-893-7009

Fax: 603-893-7885

Email: [email protected]

Web: www.iomosaic.com

or contact Judy Perry-(St. Louis, MO)

directly: [email protected]

Conrad Law & Policy Counsel

1615 L Street, NW, Suite 1350

Washington, D.C. 20036-5668

202-822-1970

202-822-1971 (fax)

703-405-1660 (cell)

[email protected]

www.conradcounsel.com

EHS&S Consulting Services

Environmental Consultant21 Cummings Park, Suite 226

Woburn, MA 01801

781-935-7555 (O)

781-788-9783 (F)

781-864-3800 (C)

[email protected]

.

[email protected]

Help Desk (866) 323-2957


Slide 42

Co-Sponsors Sites

ChemAlliance – www.ChemAlliance.org

NACD - http://www.nacd.com

iiar – http://www.iiar.org

SOCMA - http://www.socma.com/

ioMosaic -www.iomosaic.com

Conrad Law and Policy Counsel- www.conradcounsel.com


Slide 43

Founded by former Arthur D. Little Inc. executives and senior staff, ioMosaic Corporation is the leading provider of safety and risk management consulting services. ioMosaic has offices in Salem, New Hampshire and Houston, Texas, and Minneapolis, Minnesota.

Since the early 1970's, ioMosaic senior staff and consultants have conducted many landmark studies including an audit of the Trans-Alaska pipeline brought about by congressional whistle blowers, investigation of the Bhopal disaster, and the safety of CNG powered vehicles in tunnels. Our senior staff and consultants have authored more than ten industry guidelines and effective practices for managing process safety and chemical reactivity and are recognized industry experts in LNG facility and transportation safety.

ioMosaic Corporation is also the leading provider of pressure relief systems design services and solutions. Its pressure relief system applications are used by over 250 users at the world's largest operating companies. It holds key leadership positions in the process industries' most influential and active pressure relief system design, and chemical reactivity forums, and plays a pivotal role in defining relief system design, selection, and management best practices.

SALEM OFFICE93 Stiles RoadSalem, New Hampshire 03079Tel: 603-893-7009Fax:603-893-7885Email: [email protected]: www.iomosaic.com

HOUSTON OFFICE2650 Fountain View, Suite 410Houston, Texas 77057Tel: 713-490-5220Fax:713-490-5222Email: [email protected]: www.iomosaic.com

MINNEAPOLIS OFFICE333 Washington Avenue NorthMinneapolis, Minnesota 55401Tel: 612-373-7037Fax:832-553-7283Email: [email protected]: www.iomosaic.com

About ioMosaic Corporation

Documents

Slide 0 © 2007, ioMosaic Corporation; all rights reserved Do not copy or distribute without the express written permission of ioMosaic Corporation © ioMosaic