Propane retailers should remain vigilant regarding OSHA’s enforcement of the Process Safety Management (PSM) standard, which applies to facilities handling over 10,000 lbs of hazardous materials. While retail facilities were traditionally exempt under the "50% standard," recent developments have created uncertainty. Over the course of 2024, NPGA and its members have been actively working with the U.S. Department of Labor (DOL) to clarify and amend guidance on this pressing safety issue.
- Background: OSHA’s PSM standard initially exempted retail facilities if over 50% of sales were to end users. In 2015, OSHA revised this definition through an interpretation without formal notice-and-comment rulemaking, which the DC Circuit Court later deemed invalid. OSHA’s current guidance (2018) emphasizes whether a “large release is unlikely” rather than relying on the 50% sales threshold, causing confusion.
- Current Situation: Pending the outcome of ongoing discussions, the official Code of Federal Regulations still reflects the original exemption, but OSHA’s enforcement guidance appears to conflict with the court’s opinion.
Recommendations for Retail Propane Facilities
- Stay Informed: NPGA is advocating for clarity and working to secure fair enforcement discretion. Watch for updates from NPGA and TPGA.
- Challenge Citations: NPGA encourages members to contest any citation or enforcement action by OSHA or state OSHA inspectors. The agency may be acting without proper authority based on guidance that courts have questioned.
- Contact TPGA: Notify the Texas Propane Gas Association (TPGA) of any violations or enforcement actions. TPGA and NPGA are collaborating to help propane retailers navigate these challenges.
Again, for more updates on this issue and how it may impact propane retailers, stay tuned to NPGA and TPGA communications.
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