Legal Alert: Amendments to the Law on Hazardous Industrial Facilities

Legal Alert: Amendments to the Law on Hazardous Industrial Facilities

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The Law On Industrial Safety of Hazardous Production Facilities has been significantly amended by the entry into force of the Federal Law N 22-FZ On Amendments to Federal Law On Industrial Safety of Hazardous Production Facilities dated 04.03.2013 (further “the Law”). The main provisions of the Law came into force on March 15, 2013 and other provisions of the Law will enter into force later on July 01, 2013 and on January 1, 2014.

The purposes of these changes are to simplify the requirements for the documentation related to hazardous industrial facilities and to loosen the regulation of the least hazardous production facilities.

Classification of Hazardous Industrial Facilities

As a one of the main new amendments the Law introduces 4 categories of hazardous industrial facilities depending on their hazard level:

• Class I – Extremely hazardous facilities (the most hazardous industrial facilities) or Extremely high risk facilities;

• Class II – High risk facilities;

• Class III – Medium risk facilities;

• Class IV – Low risk facilities.

The Law sets out industrial safety requirements for each hazard or risk class. In particular, the frequency of scheduled state inspections of companies operating hazardous industrial facilities varies and is dependent on the risk class of such companies. A risk class is assigned upon registration of an industrial facility with the State Register of Hazardous Industrial Facilities.

Under the Law, elevators, lifting/hoisting platforms for persons with disabilities and power supply facilities are no longer considered hazardous production facilities.

It is important to note that all hazardous industrial facilities registered with the State Register prior to March 15, 2013 are subject to re-registration for assignment of a risk class. Companies are required to re-register hazardous industrial facilities by January 1, 2014.

Limits on Frequency of Scheduled Inspections

The Law also restricts the frequency of scheduled inspections of companies operating hazardous industrial facilities. As of January 1, 2014 the frequency of inspection will depend on the risk class of the industrial facilities. Class I or II industrial facilities may be inspected once a year, class III industrial facilities once in 3 years and class IV facilities will not be subject to any scheduled inspection.

Simplified Licensing

Currently, companies planning to use explosive/flammable and chemically hazardous industrial facilities should obtain 2 licenses: (а) to operate explosive/flammable facilities and (b) to operate chemically hazardous industrial facilities. From July 1, 2013 onwards, these 2 licenses will be replaced with one license to operate class I, II or III explosive/flammable and chemically hazardous industrial facilities. The costs incurred by licensees will thus be decreased since they will be required to get only one license instead of two.

No license will be required to operate class IV explosive/flammable and chemically hazardous industrial facilities as of July 1, 2013 thus loosening the regulation of less hazardous facilities.

Use of Technical Equipment

To use technical equipment (vehicles, equipment, apparatus, etc.) in hazardous industrial facilities, only an expert assessment of the industrial safety of technical equipment will be required from January 1, 2014 onwards. It will therefore no longer be necessary to obtain a permit to use technical equipment in hazardous industrial facilities.

The Law also allows using technical devices in hazardous industrial facilities in test mode without any prior expert assessment of their industrial safety.

Introduction of Industrial Safety Management System

From January 1, 2014 onwards, companies operating class I or II hazardous industrial facilities should put in place an industrial safety management system. This system is to include a range of technical and organizational measures aiming to reduce the risk of accidents in industrial facilities. The Government is to develop specific requirements for documentation of industrial safety management systems.

Companies operating class I, II or III hazardous industrial facilities should also develop and approve action plans to localize and manage the consequences of accidents in such industrial facilities.

If you have any questions related to the industrial safety of hazardous production facilities or if you would like to find out more about any other legal issues, please do not hesitate to contact us.

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