RMP/PSM Chemical Supplier Responsibility

Agency Clarification of Chemical Supplier Responsibility for PSM/RMP Compliance Programs

The purpose of OSHA's Process Safety Management (PSM) standard and EPA's Risk Management Program (RMP) regulations is to prevent or minimize the consequences of a catastrophic release of hazardous chemicals from regulated processes. When an industrial facility is the only owner or operator at the site, the responsibility for complying with the program elements is clearly the industrial facility. However when a chemical supplier (vendor) owns and operates a gas or chemical supply system that is connected to a production process owned by the industrial facility, a common scenario in the semiconductor and pharmaceutical industries, the compliance responsibilities are not clear. To gain clarification from OSHA and EPA, STC wrote a letter requesting interpretation of the PSM and RMP regulations as they apply to a facility where the vendor and industrial facility each owns and operates process equipment at the facility. Both agencies have responded to the request for information and a summary of their responses is provided below.

The EPA was asked, "What is the correct method(s) for registering a RMP-regulated system with two distinct parts, one subpart of which is owned and operated by a vendor and another subpart of which is owned and operated by industrial facility?" In their response, the EPA referred to Chapter 1 of their guidance document , General Risk Management Program Guidance (http://www.epa.gov/oem/content/rmp/rmp_guidance.htm#General). On page 1-16 of that document, EPA states "If both companies have covered processes, each is considered a separate stationary source and must file separate RMPs even if they have contractual relationships, such as supplying product to each other or sharing emergency response functions." Thus, if a chemical supply system is independently operated by the vendor and exceeds the threshold for RMP eligibility, it is likely that both the vendor and host company must file for an RMP. At many current sites, only the host company has registered and thus many suppliers will now be required to register their systems with the EPA.

OSHA was asked, "Does the OSHA multi-employer workplace policy apply?" OSHA declined to clarify the applicability of the multi-employer workplace policy in these types of settings, stating "the application of the multi-employer workplace policy is highly dependent on the individual relationship and contractual obligations at each worksite."

Both the EPA and OSHA were asked, "Is the vendor a contractor (as defined under PSM/RMP) to the industrial site or are they essentially an equal party subject to PSM/RMP requirements for the portion of the system that they own, operate, and maintain?" Both agencies clarified that in the circumstances described in the interpretation request letter the onsite vendor is not considered a contractor under PSM or RMP, but is instead a separate entity responsible for preparing and implementing their own process safety management system. The vendor and the host site must both cooperate in certain key areas (at a minimum process hazard analysis, incident investigation, and emergency planning and response). The response given by EPA differed from OSHA' response by adding that they would look to the contractual, managerial, and operational aspects of each individual circumstance when determining who has primary responsibility for the compliance processes. OSHA, on the other hand, considers each entity to be responsible for their own compliance with PSM requirements such as mechanical integrity, change management, and compliance audits.

A copy of the original request for clarification and the OSHA and EPA interpretation letters are available on the Resources page of our website at http://www.specialtytechnicalconsultants.com/resources/. If you have further questions on these issues or wish help interpreting shared roles for RPM/PSM regulated systems between suppliers and hosts, please contact Randy Roig at rroig@stcenv.com or (510)495-6060.

Randy Roig, PhD, a Principal and co-founder of STC, is recognized nationally and internationally as a leader in the fields of EHS auditing and management systems development. He has 31 years of experience in EHS management for the aerospace, food, manufacturing, medical, pharmaceutical, semiconductor, transportation, and utility industries. Dr. Roig has designed and developed many environmental audit, risk, and evaluation programs. He pioneered implementation of root cause analysis in environmental auditing and developed new processes to implement ISO 14000 at reduced costs. Dr. Roig helped design and direct corporate EHS evaluation programs as Director of Environmental information services for Martin Marietta. He has also been responsible for licensing and evaluating electric power generation facilities when he served as director of the Maryland Power Plant Siting Agency. His present concentration is on strategic compliance evaluation and management, with an emphasis on efficient and effective implementation.

Kathy McKinney-Tovar is an STC Senior Analyst located in Vallejo, CA and has over 20 years experience in the consulting industry assisting businesses with environmental compliance, regulatory issues, and due diligence. She has extensive project management experience and technical knowledge across a wide range of environmental programs. Ms. McKinney-Tovar has performed multi-media environmental compliance audits throughout the U.S. at aerospace and cogeneration facilities, hazardous waste TSDFs, oil terminals, semiconductor, electronics, pharmaceutical, explosives, chemical and paint manufacturing facilities and office buildings, and has assisted numerous industrial clients in the development of customized environmental auditing protocols and training programs.