(8b) OSHA Process Safety Management and the Distillery Industry - Evaluating Regulatory Applicability and Practical Application of PSM Concepts

The applicability of the OSHA Process Safety Management (PSM) regulation to alcoholic spirit distillery operations has long been debated. On a March 14, 2003, OSHA issued a letter to the Deputy Secretary and General Counsel of the Commonwealth of Kentucky Labor Cabinet that outlined its formal position that “although distillers are required to comply with the PSM standard, OSHA is not enforcing and will not enforce the PSM standard with respect to processes in distilleries and their related facilities in Standard Industrial Classification (SIC) 2085, except in the event of a fatality or catastrophe involving a process that uses ethyl alcohol in a distillery or related facility.”

Currently, there is a significant amount of confusion across the industry as related to PSM regulatory obligations, practical concerns regarding exemption status of atmospheric storage of flammable products, OSHA’s stated enforcement policies, and in general the need to formalize process safety and reduce risk at distilleries.

This paper and presentation will review the historical stances adopted by OSHA and discuss the practical considerations when conducting formal PSM applicability analyses, as well as developing Process Safety Management programs for distilleries. Items to be covered will include:

The March 2003 OSHA Letter of Interpretation;

• OSHAs Enforcement Policy for Distilleries;
• Practical considerations as related to “storage” of high proof products and the PSM exemption for atmospheric storage tanks and the Meer Court Decision;
• Effective implementation of Process Safety Management elements and concepts at distilleries.