Recently, I published a survey on LinkedIn asking the question: How long do PHA reports need to be kept on file? Here are the results from 43 votes:
5 Years: 16%
10 Years: 0%
Need to keep the 2 most recent: 12%
Retain for the life of the process: 72%
While no one fell for the 10 year option, a lot of people selected 5 years. While PHAs need to be completed or revalidated every 5 years, that is not the requirement for how long they should be kept on file.
I also think I successfully tripped up some voters with the option for keeping the 2 most recent. If that sounds familiar, it’s because it is—just not for PHAs. You need to keep the 2 most recent Compliance Audit reports, but this doesn’t apply to PHA reports.
The correct answer is that PHAs need to be retained for the life of the process.
PSM: Title 29 CFR §1910.119(e)(7) states, “Employers shall retain process hazards analyses and updates or revalidations for each process covered by this section, as well as the documented resolution of recommendations described in paragraph (e)(5) of this section for the life of the process.”
RMP: Title 40 CFR §68.67(g) states: “The owner or operator shall retain process hazards analyses and updates or revalidations for each process covered by this section, as well as the documented resolution of recommendations described in paragraph (e) of this section for the life of the process.”
While the results of the survey were interesting enough, a very intriguing question was posed in the comments of the survey by Bill Lape of SCS Engineers. He said, “Here’s another question. When does a process die?” This question was followed up with some interesting points about ammonia evacuation and equipment dismantling, but Bill brought up another interesting point: “I will also argue that a process ‘dies’ when the company is sold, as there is no legal requirement to transfer anything other than process safety information to the new owner. In fact, transferring anything other than PSI can often generate liability.”
I responded: “I would love if regulators agreed with you on the process dying when it transfers ownership. I’ve seen many clients get into hot water with EPA and OSHA because the previous owner failed to pass on old PHAs. Savvy businesses will put a clause into their transaction indicating the PSM program (including PSI and PHAs) must be provided.”
But the reason I wanted to turn this LinkedIn exchange into a blog is because of Bill’s final point on the matter: “I personally do not believe that OSHA or EPA have any sort of regulatory standing to cite the new owner in that situation UNLESS the new owner has not developed their own program with operating procedures and a PHA. The new owner's regulatory requirements start when they purchase the facility, therefore, their first PHA is the initial PHA.”
As far as Macha PSM is concerned, Bill’s interpretation of this requirement is accurate, and the onus lies on EPA and OSHA to disprove it. I hope this conversation spurs further clarity from the regulatory community. Ambitious businesses should not be penalized for purchasing facilities which may or may not have had a compliant PSM program.
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