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The HFSP training manual

1. Introduction, course overview and objectives

2. History and legislative context

3. HFSP overview

4. How is the HFSP integrated into district plans?

5. When a resource consent is required for a hazardous facility

6. Classifying and rating hazardous substances for the HFSP

7. Using the HFSP – a step by step guide

8. Case studies

9. HFSP workbook and spreadsheet

10. Implementing the HFSP

Module 5: When a resource consent is required for a hazardous facility

What, why and how|Considerations when a resource consent is required for a hazardous facility|Hazardous facilities establishment and management|Hazardous facilities and risk|Hazardous facility consent application|Resource consents for hazardous facilities|Monitoring and enforcement

What, why and how

What

• overview of the steps required to prepare an Assessment of Environmental Effects (AEE) for a hazardous facility and submitting a resource consent application
• an overview of hazards and risks
• what needs to be covered by resource consents

Why

• to understand the requirements and the scope for an AEE for a hazardous facility
• to understand the background of hazards and risks
• to appreciate the areas that need to be covered by a resource consent for a hazardous facility

How

• presentation
• exercise and report in

Considerations when a resource consent is required for a hazardous facility

Overview

The HFSP, or other land use methods to control hazardous facilities, helps users establish whether a resource consent is required and therefore whether a more detailed assessment of the effects and risks of the facility is required.

This raises the question about the nature and detail of such an assessment, the nature of consultation required, and also the design of suitable resource consent conditions.

This module provides an overview of assessment methods for hazardous facilities, the nature of consultation required and the criteria adopted for evaluating resource consents and applying suitable resource consent conditions.

How to find out more

This module is largely based on the document “ Assessment Guide for Hazardous Facilities: a resource for local authorities and hazardous facility operators (Ministry for the Environment, 1999).

This document is a very good information source which both applicants and local authorities can use in an effort to standardise the approach for assessing hazardous facilities, preparing AEEs (Assessment of Environmental Effects) and setting resource consent conditions.

It is noted while there is a standard assessment procedure, the level of detail and the extent of an AEE for a hazardous facility will vary significantly with the scale and nature of the risks presented by each hazardous facility.

A level of discretion can therefore be applied. This is best discussed between the applicant and the territorial authority before any work on the resource consent application is carried out.

In summary, the following aspects are essential in dealing effectively with hazardous facilities matters:

• an understanding of the legislative requirements for hazardous substances and facilities.
• a systematic and consistent approach to describing and analysing the risks associated with hazardous facilities.
• early and comprehensive risk communication and consultation with affected parties.
• the preparation of an Assessment of Environmental Effects (including a risk assessment) when applying for a resource consent for the facility.
• checking for compliance with, monitoring and enforcement of the resource consent conditions.

Hazardous facilities establishment and management

Considering factors for locating a hazardous facility

The establishment and operation of a hazardous facility require careful consideration of the following factors:

• selection of an appropriate site
• compliance with minimum performance requirements of relevant legislation
• general resource management issues
• adherence to recognised management systems

Selection of an appropriate site

The choice of an appropriate site for a hazardous facility is generally influenced by the following criteria -

Commercial considerations:

• location, size and access of/to the site
• vicinity of suppliers and customers
• proximity of competitors
• price

Planning/resource management requirements:

• regional and/or district plan provisions which may be favourable or present barriers according to community aspirations
• the type and extent of the risk presented by the facility

Environmental aspects:

• proximity to sensitive environmental features such as a water body, natural protected area or a similar environmentally valuable resource is likely to add to the risk profile of the facility

Social considerations:

• the vicinity of sensitive land uses such as schools, hospitals or residential areas will influence the suitability of the site.

Compliance with minimum performance requirements of relevant legislation

A hazardous facility must comply with minimum performance requirements promulgated under several pieces of legislation, as follows:

The HSNO Act:

Limiting the ability of hazardous substances to manifest their hazardous characteristics (explosiveness, flammability, oxidising capacity, corrosiveness, toxicity and/or ecotoxicity) to the detriment of humans, ecosystems and/or the built environment through adherence to relevant controls, including:

• secure packaging and containment
• clear and consistent identification (or hazard communication) through labels, signs and material safety data sheets
• tracking of highly hazardous substances
• ensuring that persons dealing with hazardous substances are qualified to do so
• provision of clear and effective information on responding to an emergency involving hazardous substances
• reducing the hazardous properties of substances to allow for safe disposal.

RMA:

• Compliance with relevant rules in the ‘Hazardous Substances Management’ part of district and/or regional plans, which may set out requirements for:
  • site design
  • site lay-out
  • storage of hazardous substances
  • site drainage systemso spill containment systems
  • washdown areas
  • underground storage tanks
  • signage
  • waste management
  • maximum permissible quantities of hazardous substances, above which a resource consent for the site will be required.

General resource management issues

The establishment and operation of hazardous facilities also needs to consider aspects of the RMA beyond the narrow focus of hazardous substances management, for example:

• policies and rules the national, regional (regional policy statements and/or regional plans) and territorial (district plans) level
• transport and traffic issues
• landscaping matters
• building restrictions
• discharges to the environment

Adherence to recognised management systems

A variety of internationally recognised management systems exist which provide an effective framework for operating a hazardous facility in a responsible, efficient and legally defensible manner. Adoption of one or more of such systems should be considered. Examples particularly suited to hazardous facilities management are:

• ISO 14001, the international standard for environmental management systems;
• ISO 9000, the international standard for quality management systems;
• Responsible Care, a management system administered by the New Zealand Chemical Industry Council (NZCIC);
• Fire Service Approved Evacuation Schemes, pursuant to the Fire Safety and Evacuation of Buildings Regulations 1992.

Hazardous facilities and risk

The concept of “hazard” and “risk”

Land use planning controls for hazardous facilities under the RMA aim to prevent and mitigate potentially significant environmental effects resulting from accidental events. This requires that the hazards and risks presented by hazardous facilities are well understood and managed.

The terms ‘hazard’ and ‘risk’ are often used interchangeably, but have distinct meanings, as follows:

Hazard:

Physical situations, processes and actions that have the potential to exert adverse effects on people, ecosystems or the built environment;

Risk:

The likelihood of specified consequences of a specific event (for example, an explosion, a fire or a toxic release) on people, ecosystems or the built environment.

Process of assessing the hazards and risks of a facility

It is not the presence of the hazard in itself, but the magnitude of the risk it presents which determines its significance and consequently its need to be managed.

These risks can be assessed and managed by working through the following risk management process (refer Figure 5.1):

• Establish the context by describing the nature, location, scale and time frame of the proposed hazardous facility as well strategic and organisational aspects such as legal obligations, relationships with stakeholders and company structure and responsibilities.
• Undertake a hazard analysis in a structured and systematic manner, using one or more of the tools available for this purpose:
  • site surveys and hazard audits
  • checklists
  • maps, drawings and overlays
  • networks
  • matrices
  • hazard and operability studies (HAZOP)
• Analyse the risk by estimating probabilities and potential consequences of the hazards, using one of the following types of analysis:
  • qualitative
  • semi-quantitative
  • quantitative
    
    The range of tools available to undertake this work includes:
    
  • site surveys and hazard audits
  • field studies
  • checklists and matrices
  • fault and event trees
  • human reliability assessment
  • computer software
  • Delphi technique
  • cost-benefit analysis
• Assess the reliability of the risk analysis by providing an estimate of uncertainty and/or generating a sensitivity analysis.
• Evaluate the risk, using risk criteria appropriate to the situation. This will enable an assessment of risk acceptance.
• Identify and implement risk control measures. Possible options include:
  • reducing probabilitie
  • reducing consequences
  • transferring risk
  • avoiding risk
  The development and implementation of a risk control plan is a suitable method.
• Communicate the risks by disseminating information to relevant stakeholders that is appropriate to the situation. This should be done with the guidance of a consultation strategy, identifying:
  • the stakeholders and interested parties to be consulted
  • the stage at which consultation should occur
  • the methods used

Hazardous facility consent application

Overview

The regulatory part of the process of establishing a hazardous facility should begin well before a consent is actually applied for. This process can be categorised as follows:

• consultation between the applicant and the regulatory authorities
• preliminary risk analysis to assess the scope of the assessment required
• identification of required expertise and consequent engagement of specialists (if necessary)
• preparation of the AEE in accordance with the Fourth Schedule of the RMA, addressing the following matters:
  • description of the nature and scale of the proposed facility as well as possible alternatives
  • outline of the AEE’s scope
  • description of affected environments
  • summary and results of preliminary risk analysis
  • detailed hazard and risk assessment of on-site hazardous facilities
  • outline of hazardous waste management measures
  • transport of hazardous substances
  • description of proposed site management systems relating to hazardous substances
  • emergency preparedness measureso outline of the consultation strategy
• submission of consent application by the applican
• processing of the consent application in accordance with Part VI of the RMA by the regulatory authority

Resource consents for hazardous facilities

Applying necessary criteria

When processing a consent application for a hazardous facility, a regulatory authority must apply the criteria for evaluating the application as outlined in the district plan.

Additional criteria may be applied on a case-by-case basis, but generally the criteria include, but are not limited to the following elements:

• consistency with the objectives, policies and rules of the district plan and other relevant planning documents
• justification for the proposed site· appropriateness, accuracy and completeness of the AEE
• the nature of the environments affected by the proposal
• scale and significance of the risks associated with the proposal
• appropriateness of the proposed risk control and mitigation measures
• adequacy and comprehensiveness of the consultation process
• suitability of the proposed site management systems and plans
• adequacy of the proposed hazardous waste management measures
• consideration of hazardous substances transport management measures
• suitability of emergency management proposals

Assignment of conditions

Once the application has been considered and the consent has been agreed to in principle, conditions to suit the individual circumstances of the operation need to be developed.

These will usually follow the minimum performance requirements set out in the district plan, but may also include additional conditions in line with the nature and scale of the proposed facility.

Resource consent conditions should address the following matters:

• Site design, construction and management, addressing such issues as:
  • spill containment systems
  • identification of stormwater drainage
  • separation requirements between facilities and the site boundary
  • emergency installations or equipment
• Hazard communication, i.e. signage on the site and facilities.
• Hazardous substances management plan, covering:
  • site and process plans
  • monitoring and maintenance schedules
  • notification procedures and details for incident/accident reporting
  • emergency preparedness and response procedures
  • training and review procedures
• Hazardous waste management, covering reduction measures, and storage and disposal issues.
• Hazardous substances transport on and off the site.
• Monitoring, covering:
  • hazardous substances inventories, inspection schedules for the site, storage areas and equipment;
  • equipment performance testing
  • emergency procedures practice
  • training programmes
  • site audits
  • management system audits
• Codes of Practice, which may be specified with regard to complying with specific consent conditions
• Requirements for reporting, requesting data to be submitted to the regulatory authority to demonstrate compliance with consent conditions

Monitoring and enforcement

Overview

Monitoring and enforcement of district plans and other applicable rules for hazardous facilities/substances and hazardous facilities land use consent conditions are generally carried out by territorial authorities. This includes nomination of enforcement staff.

While regional councils generally monitor and enforce conditions in relation to discharges, gaps and/or overlaps between these jurisdictions need to be addressed.

Any persons carrying out monitoring functions under the RMA in respect to hazardous substance management will require appropriate training, for example planning/resource management or technical skills.

A monitoring fee may apply for monitoring carried out by the regulatory authority.

Exercise 5.1

The following show a range of methods that can be used for assessing risks, using qualitative, semi-quantitative and quantitative approaches.

When do you think is it appropriate to use a qualitative or a quantitative risk assessment method to assess a hazardous facility?

Key application

Identify a key application of the information you’ve learnt in your day-to-day working environment.