EPA’s proposed changes to the RMP Retail Facility Exemption

The current definition of “retail facility” at 40 CFR 68.3 is “a stationary source at which more than one-half of the income is obtained from direct sales to end users or at which more than one-half of the fuel sold, by volume, is sold through a cylinder exchange program.”

The period of sales to end users is unclear; it lacks a definite time frame to calculate whether more than one-half of the facility’s direct sales are to end users. Specifying a definite period of time would eliminate this uncertainty and allow owners and operators to determine more accurately whether regulated substances in a process are subject to the RMP provisions. It also may reduce the amount of sales documentation that the owner or operator of a regulated facility must provide to establish its status as a retail facility.

EPA is therefore proposing to adjust the regulatory text to clarify that the definition of “retail facility” is one in which more than one-half of the “annual” income “in the previous calendar year” is obtained from direct sales to end users or at which more than one-half of the fuel sold over that period, by volume, is sold through a cylinder exchange program. EPA is proposing one year of sales activity because the Agency believes it captures the seasonality of propane sales at propane distribution facilities. EPA seeks comment on the proposed annual time frame for sales documentation.

 

Source: https://www.regulations.gov/document/EPA-HQ-OLEM-2022-0174-0003

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