(What we are trying to achieve)
Outcomes and Targets
Safety case/report assessment is a key tool used by HID to contribute to the overall major hazard objective of minimising the risks and effects of major hazards. Specifically this activity:
(How we plan to meet the above objectives)
Outline Description of Activity/Programme
This programme relates principally to:
In addition, HID puts a small amount of resource towards:
Policy and Approach
COMAH: The principal legal framework regulating onshore major chemical hazards is the Control of Major Accident Hazards Regulations 1999 (COMAH). These Regulations implement a European directive (known as the Seveso II directive) in Great Britain. This Directive aims to prevent major accidents involving dangerous substances and to limit the consequences to people and the environment of any that do occur within the member States of the European Community.
The COMAH Regs require all Top Tier operators to submit a safety report to demonstrate 'all measures necessary' have been taken. COMAH safety reports have a 5-year life and must be re-submitted for assessment after this period.
A safety report must be submitted for revision when modifications which could have significant repercussions with respect to the prevention of major accidents or the limitation of their consequences are made.
The assessment of COMAH safety reports is undertaken by a team of competent assessors drawn from both HSE and the Environment Agencies and covers risk assessment, technical, environmental and safety management controls. This determination is based primarily on the documentary evidence in the report. Assessment need not examine every element of every report; the Safety Report Assessment Manual (SRAM) guides the assessment team on the selection factors to achieve the CA's objectives. The assessment process is strictly to establish (not approve or accept) to the CA's satisfaction that the relevant requirements of COMAH have been properly addressed, and within constraints, determine that the operator has taken 'all measures necessary'. The duty to ensure that an establishment is designed constructed and managed safely remains with the operator.
Offshore: The Offshore Safety Case Regulations (OSCR) require that every offshore installation must have a safety case accepted by HSE before it can be operated, or continue to operate. Operational safety cases have a 3-year life, and must be resubmitted in sufficient time for HSE to re-assess the case. In addition, safety cases have to be submitted for acceptance when a revision is made to the safety case that will render the case materially different, before combined operations between installations commence and before abandonment of an offshore installation.
The assessment of safety cases is managed by Inspection Management Teams (IMTs) and undertaken by the Topic and Discipline Specialists in line with OSD's Safety Case Handling and Assessment Manual quality procedures. HID OSD's role is to evaluate the case and decide whether a satisfactory case for safety has been made. Acceptance is based solely on assessment of the submitted safety case document (verification of the content of the safety case is done through inspection). Any delay in the assessment process can mean that an installation is unable, legally, to commence or continue operating, which places obligations upon OSD to undertake assessment within the tight pre-activity timescales.
The Gas Safety (Management) Regulations 1996 (GSMR) require conveyors of natural gas to prepare safety cases to show they are safely managing the flow of gas in their networks. The main aim of the Regulations is to prevent supply emergencies which could have a major safety implication for domestic consumers. The safety cases have to be accepted by HSE before gas can be transported. A safety case is also required from a network emergency co-ordinator (currently Transco plc) who has responsibility for managing potential or actual gas supply emergencies.
Through the Explosives Act 1975, which will be replaced by the Manufacture and Storage of Explosives Regulations 2004 (MSER) a licensing regime is imposed to regulate the manufacture and large scale storage of explosives. The principle effect of this is to specify the quantities and types of explosives permitted and set safety distances in and around the site. In addition, licenses are issued for movement of explosives through ports and competent authority documents are issued for the classification of individual explosives for transport, storage and supply.
Mining legislation gives rise to a number of permissioning activities, such as: exemptions from technically obsolete legislation; approvals of mining explosives, fuels etc. and some equipment; and consent and restriction of certain activities below ground. Equipment approvals work has reduced substantially in recent years with the progressive implementation of a number of EU Machinery and Equipment Product Directives. While there is no legal obligation to do so the current policy is to assess all mining notifications and to follow up where there appear to be substantive issues.
Petroleum license appeals are a statutory duty undertaken by HSE on behalf of the Secretary of State (SoS). Local Authorities have the responsibility to issue licenses to petrol filling stations and this is usually carried out by the Fire Authority or Licensing Officers. In the case of dispute to the conditions of the license HID undertakes the appeal, setting up an official hearing and receiving representations from both parties. Recommendations are then made to the SoS.
Approval of Transportable Pressure Receptacles (gas cylinders) is a statutory duty for HSE under European Agreements on transport of dangerous goods by road and domestic Carriage of Dangerous Goods legislation. In essence, nobody is allowed to fill cylinders for transport of dangerous goods unless those cylinders have been approved for the purpose. Cylinder manufacturers are required to apply to HSE for approval of the design of any cylinder or type of cylinder intended for transport of dangerous goods. An official certificate specifying details of the cylinder and the regulation it has been approved under is issued once HID is satisfied that the cylinders are fit for purpose, this can be withdrawn at any time if it is felt that the conditions of its issue have been breached.
Supporting activities
Significant change in permissioning regulation and convergence of processes based upon best practice are likely to flow from HSC's Permissioning Principles, Cullen II, the Comparative Study of Permissioning Processes, and the Civil Service Commission recommendations.
The regimes will therefore continue to require a significant amount of support, which includes:
Resource allocation
The resource put to assessment/statutory activity varies depending on where we are in the permissioning cycle, however presently (04/05) around 13% of HID's total resource is put to this activity.
Cost Recovery
The amount recovered depends on the permissioning cycle, and whether HID are in the assessment or inspection phase. Currently (04/05) we are in the inspection phase and can expect to receive around 4 million for assessment.
(Why this?)
Programme Drivers
This activity is mandatory under the following regulations:
Why it works
Assessment and licensing is a key tool used by HSE in ensuring:
The risks being addressed
This programme addresses all major hazard risks.
COMAH:
Offshore:
Gas/Pipelines:
Explosives:
Mines:
Sector Performance
Offshore, the overall number of major hazard related accidents/incidents is gradually falling but only in line with the declining numbers in the industry, in comparison with worldwide performance the UK offshore industry is perceived (probably erroneously) as being poor. To date in 2003 there have been 3 fatalities in the offshore sector, two of which were associated with major hazard risks.
Onshore, the numbers of Dangerous Occurrences have plateaued over the past 3 years, however, accident figures for 02/03 have reduced by around 20% from the previous year. The number of MAs meeting the criteria for notification to the EC has dropped from 10 in 1999/2000 to 2 in 2002/03. Across the EU 15% of Major Hazard sites over the last 15 years have experienced a major accident on a scale sufficient to require reporting at EC level.
Scope to pull out of/reduce this work
There is little or no scope for HID to reduce the effort spent on assessment, this programme sets out the resources required to meet our statutory requirements.
The risk of significantly reducing this activity would be major, placing HSE in a position of non-compliance with the duties placed on it under Regulations and its published procedures and standards, with a direct impact on revenue, reputation, ability to influence and an inevitable increase in harm and loss.
Evidence and assumptions
Assessment is an integral requirement of the COMAH and OSC Regulations. Impact evaluation has only been carried out against the implementation of the Regulations.
Two independent major reviews of the impact of the post Cullen offshore regime have found safety benefits of the regime outweigh the implementation costs and a high level of industry and workforce confidence in the regulatory regime. The significant number of adverse findings and subsequent rectifications as a result of safety case assessment will undoubtedly have resulted in safety benefit to the industry.
COMAH is a relatively new regime so evidence is limited. A 2002 study by Entec to evaluate the impact on new entrants to COMAH states that:
"the overall results show that 90% of the establishments taking part in the study had made some changes to their arrangements for managing major accident hazards as a result of COMAH."
From this study it is concluded that COMAH has significantly changed the way major hazards are managed and that this would have been very unlikely without the regulations being implemented. However the change has come at a significant cost and the judgement as to whether this represents value for money is finely balanced.
A study by SEPA on the impact of COMAH on Scotch Whiskey concluded:
"COMAH has made a significant difference on some sites and there have been a number of changes that would not have been made without COMAH as a driver. These changes have occurred at the instigation of the operators before the Safety Reports have been assessed and the controls evaluated."
After extensive consultation in recent years it has been decided that the requirement for licensing of explosives manufacture and storage will continue. MSER which is due to come into force in April 2004 requires a licensing regime broadly similar to the 1875 Act.
Options
None.
(How HID will manage this programme)
Business Risks
The main business risks are:
Control measures include:
Inputs: resource requirements and cost
Approximately 80 staff years is directed to Assessment and Statutory Functions at an estimated cost of 4,089,300 (3,665,450 staff costs and 423,850 GAE).
Sources of Funding
This programme is largely self-funding - see income projection in part 2.
Engagement with stakeholders
European Influence Fora - Attend and present UK CA views at EU CCA meetings and give feedback; coordinate HID actions and responses re EU initiatives related to Seveso II.
COMAH CA Steering Group - support efficient and effective delivery of actions and strategic direction to MH programme.
Offshore - Safety Case Practitioners workshops (with UKOOA), Safety Case Conference (with UKOOA & IADC) and agenda item on HILF (HSE, Industry Leaders Forum) meetings.
Baselines and performance indicators
OPM A requires that "safety cases/reports are processed in accordance with ODDs' arrangements for ensuring quality and timeliness - target 100%". HID's OG Core systems can measure whether the safety reports/cases have been assessed within the set timescales and include tracking systems to ensure key milestones in the process are met.
Accountabilities
HID is responsible for delivering this contribution to HSE's Major Hazard Strategic Programme. There is no single programme manager within HID. Heads of Division (primarily OSD, SID and CID - also CD for elements of business and technical support work) are responsible for delivery of their contributions to the HID programme.
Programme Plan
The programme detail is put together from HID's OG Core operating plan - resources are allocated to it at Unit level, determined by the estimated number of assessments etc. required to meet the OPM target, and the resource capacity within the Units. The aggregation of this is shown above under resources and costs - more detailed planning for work of this nature (reactive, against a target with little or no flexibility) would be of no benefit.
Evaluation and review
HID has developed a programme of planned impact evaluation work which will cover, inter alia, its major permissioning activities. It has already sponsored an evaluation of the impact of the Safety Report assessment activities within COMAH and will be co-operating with Policy Group in a forthcoming evaluation of the Regulations themselves.
The main business risks identified above will be used to inform and prioritise a rolling programme of internal audit and review.