The existing PSM standard (1910.119) applies in part to processes involving a flammable liquid or gas on site in one location in a quantity of 10,000 pounds or more. However, the existing PSM standard contains an exemption for “[f]lammable liquids stored in atmospheric tanks or transferred which are kept below their normal boiling point without benefit of chilling or refrigeration.” 29 CFR § 1910.119 (a)(1)(ii)(B). OSHA is considering clarifying this exemption in response to a decision by an Administrative Law Judge of the Occupational Safety and Health Review Commission. In Secretary of Labor v. Meer Corporation, No. 95-0341 (OSHRC 1997), an administrative law judge ruled that PSM coverage does not extend to flammables stored in atmospheric tanks, even if the tanks are connected to a process. As a result, employers can exclude the amount of flammable liquid contained in an atmospheric storage tank, or in transfer to or from storage, from the quantity contained in the process when determining whether a process meets the 10,000-pound threshold quantity.
OSHA is considering:
Changing the language in § 1910.119(a)(1)(ii)(B) to make clear that it applies only to processes in NAICS 4247 Petroleum and Petroleum Products Merchant Wholesalers.
Because of the particular conditions under which the potential rule amendment would have an impact, and the lack of information about the specific processes that might be used, the estimates of the additional entities and processes that would be covered by the proposed change are approximate. OSHA estimates that 656 entities would be added, along with 38,504 employees.