Revisions took place in accordance with the President Obama's August 1, 2013 Executive Order 13650 called Improving Chemical Facility Safety and Security.
The retail facility 50% testIn the former PSM policy there were two interpretations OSHA didn't like:
1. Under the former policy, retail facilities were defined as, "establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise."
2. Also under former policy, establishments were deemed exempt by way of something called the "Fifty Percent Test." According to this interpretation, retail facilities that derived 50% or more of their income from direct sales of hazardous chemicals to end users claimed an exempt status.
Each of these interpretations directly contradicts their original intent, says OSHA. Thus, OSHA has rescinded all prior policy documents, letters of interpretation, and memoranda related to the retail exemption and fifty percent test.
Exempt? Maybe not anymoreIn accordance with OSHA's new policy regarding "PSM Retail Exemption Enforcement," all facilities once formerly exempted under OSHA's 1992 interpretation of 'retail facility' must now comply with requirements (29 CFR 1910.119).
However, this only applies if the facility, or portion of the facility, processing highly hazardous chemicals does not fall under the North American Industrial Classification System definition of retail trade (NAICS 44 and 45). Employers with covered processes are already effectively complying with most of OSHA’s PSM requirements through requirements of EPA's Risk Management Program rule, RMP Program 2.
When will OSHA enforce the new PSM?OSHA notes that the new PSM interpretation will take time to gel. So, for the first six months after the Retail Exemption Memorandum's issue, OSHA says it will exercise enforcement discretion and will:
- focus on providing compliance assistance to affected employers
- engage key industry stakeholders
- advise its State On-Site Consultation Projects that during this period requests from newly covered employers should be their highest priority for receiving an on-site visit
However, the new policy will be enforced if OSHA discovers facility conditions which expose workers to an immediate and severe danger — and if OSHA determines the employer hasn't made a reasonable good faith effort to eliminate or substantially control the hazard.
For more, visit the OSHA web site: https://www.osha.gov/pls/oshaweb
To learn more about this chemicals and risk in facility compliance, try Wikipedia: https://en.wikipedia.org/wiki/Material_Disclosure
To learn more about the longest German word, which was a regulatory term (or course it was), visit our previous post: http://supply-chain-data-mgmt.blogspot.com/2015/07/rindfleischetikettierungsuberwachungsau.html #ForFun