in-20250910-IR-355240619RAA: (765) 494-1547

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Summary

I. Statement Whether the Subject Matter Covered by the Rule Remains Carried out by the Agency Yes, IC 15-16-1-6 states that the State Chemist shall administer the Agricultural Ammonia chapter and any rules from it. Additionally, the state chemist is charged with adopting rules to establish safety standards in IC 15-16-1-10: There is a continued need for these rules. Anhydrous ammonia is an inherently dangerous substance, and these rules set safety standards for its storage, handling, and use. OISC performs cursory inspections at retail locations annually, with a thorough inspection by our agricultural ammonia specialist approximately every 5 years and with follow-up as needed. When updated, these rules will be harmonized with the federal standards that EPA, DHS, and DOT and OSHA use in different parts of their regulations. OISC has reviewed previous cost benefit, economic impact, fiscal impact statements. There has been no change in circumstances that affect the analysis. We do not see an alternative method available that would fulfill the IC 15-16-1-10 requirement for safety standards. While other agencies regulate different parts of an agricultural ammonia system, in my 29 years with the agency I have not seen any substantial inspections or enforcement from another agency. We have heard of a few EPA inspections where their focus was strictly on the storage vessel and not the other parts of the facility and that their inspection went off a checklist with limited...

The agency’s own summary, as published.

The rule, in full

2,459 words as published, September 10, 2025. View the original →

TITLE 355 STATE CHEMIST OF THE STATE OF INDIANA Readoption Review LSA Document #24-619

I. Statement Whether the Subject Matter Covered by the Rule Remains Carried out by the Agency

Yes, IC 15-16-1-6 states that the State Chemist shall administer the Agricultural Ammonia chapter and any rules from it. Additionally, the state chemist is charged with adopting rules to establish safety standards in IC 15-16-1-10: Sec. 10. (a) Except as provided in subsection (d), the state chemist shall adopt rules establishing the minimum safety standards for the design, construction, location, installation, and operation of equipment for storage, handling, use, and transportation (not otherwise regulated) of ammonia and ammonia solutions. There is a continued need for these rules. Anhydrous ammonia is an inherently dangerous substance, and these rules set safety standards for its storage, handling, and use. OISC performs cursory inspections at retail locations annually, with a thorough inspection by our agricultural ammonia specialist approximately every 5 years and with follow-up as needed. When updated, these rules will be harmonized with the federal standards that EPA, DHS, and DOT and OSHA use in different parts of their regulations. Reexamine: OISC has reviewed previous cost benefit, economic impact, fiscal impact statements. There has been no change in circumstances that affect the analysis. Alternative methods: We do not see an alternative method available that would fulfill the IC 15-16-1-10 requirement for safety standards. While other agencies regulate different parts of an agricultural ammonia system, in my 29 years with the agency I have not seen any substantial inspections or enforcement from another agency. We have heard of a few EPA inspections where their focus was strictly on the storage vessel and not the other parts of the facility and that their inspection went off a checklist with limited understanding of what they were inspecting. We feel that more should be provided to the regulated community. Our specialist is an expert in this area. a. The rationale for the agency's determination under subsection IC 4-22-2.6-4 (a) that the rule, if readopted, will meet each of the standards in IC 4-22-2-19.5 and (if applicable) the requirements for fees, fines, and civil penalties in IC 4-22-2-19.6. The standards in IC 4-22-2-19.5 have been reviewed and are satisfied by the rules in 355 IAC 3. Minimizing expenses: There are approximately 290 agricultural anhydrous ammonia facilities in the state. About 210 of those are commercial ag retail facilities and the rest are farmer locations. The last revision of these rules was in 2001, and nearly all facilities have complied with the requirements. The only expense incurred by facilities is the ongoing maintenance and the replacement of expiring safety equipment. OISC is a self-funded agency. We do not receive taxes or any appropriations to administer these rules. The users of commercial fertilizers fund the program through an inspection fee that hasn’t been increased since the early 2000’s. The Indiana Commercial Fertilizer Law requires a $20 per product registration fee for bulk fertilizer products with an additional inspection fee of $0.45/ton paid to the State Chemist. Basing the inspection fee on usage leads to the larger firms appropriately having a larger total fee. Achieve regulatory goal in the least restrictive manner: Through surveying ag retailers, we estimate there are approximately 4,500 farms that use anhydrous ammonia as a fertilizer. As stated above, approximately 80 facilities are operated by farmers with the majority of the users obtaining their anhydrous fertilizer from an agricultural retail location. Operating an anhydrous ammonia storage facility is a choice that many do not make. In 2024 there were approximately 52,000 farms in Indiana. Less than 100 have on-farm anhydrous ammonia storage and less than 10% of the farms use anhydrous ammonia as a fertilizer source. 355 IAC 1 sets minimum safety standards, and it is difficult to argue that the safety requirements are restrictive. Avoiding duplicating standards found in state or federal laws: Anhydrous ammonia is regulated by several federal and state agencies in a piecemeal fashion. The Department of Homeland Security (DHS), Department of Transportation (DOT), Environmental Protection Agency (EPA), and Occupational Safety and Health Administration (OSHA) are the major agencies that regulate this area. Their state counterparts likewise regulate anhydrous ammonia, in addition to the Office of the State Fire Marshal and the Boiler and Pressure Vessels group that are both within the Indiana DHS system. While several agencies are involved, none of them capture the entire system like 355 IAC 3 does. OISC does not regulate the transport vehicles bringing fertilizer to the storage facility but does regulate and inspect every aspect after that. This is important because historically most releases occur from the nurse tank in the field while the anhydrous is being applied into the ground. DOT only has jurisdiction on these nurse tanks if they are on the road. OISC inspects the tanks, appurtenances, and the running gears. Accidents still happen due to human error and mechanical failure, but many problems are avoided due to our inspections and enforcement of safety standards. Be written for ease of comprehension: As with all OISC fertilizer rules, we formed a working group to develop and revise the regulations. The working group includes individuals from all aspects of the regulated industry. Members of this working group represented farmers, ag retailers, environmental health & safety personnel, and terminal operations managers. The thoughts and words from the individuals working in these areas are what were used to write and revise this article. Have practicable enforcement: OISC has been analyzing fertilizer products since 1881. Our staff of inspectors visit the retail locations multiple times a year to perform their sampling duties, allowing cursory inspections to be performed at the same time. Our agricultural ammonia specialist is an engineer with real life experience dealing with anhydrous ammonia as a farmer, volunteer fire fighter, ag retail operations coordinator & manager, and as our specialist. When possible, we offer compliance assistance and a generous timeline to resolve compliance issues. 355 IAC 3 does not include any fees, fines, or civil penalties, so IC 4-22-2-19.6 is not applicable. III. Analysis of fees, fines, and civil penalties under IC 4-22-2-19.6 These rules do not include fees, fines, or civil penalties. IV. Cost-Benefit, Economic Impact, Fiscal Impact, or Regulatory Burden Statements OISC is reproducing below a prior regulatory burden statement. Regulatory Burden Statement Agency: Office of Indiana State Chemist Proposed Rule: 355 IAC 3 Agricultural Ammonia

1. Identification of Requirements or Costs Not Expressly Mandated by State or Federal Law:

The Indiana Agricultural Ammonia law specifically charges OISC with establishing safety standards under IC 15-16-1-10. Every requirement in this rule readoption pertains to the minimum safety standards for the design, construction, location, installation, and operation of equipment for storage, handling, use, and transportation of ammonia and ammonia solutions. The requirements are technical unless you are familiar with pressurized systems, but a basic overview of the regulations covers the storage vessel, the facility’s systems, transportation including implements of husbandry, and user safety. OISC ensures that the pressure vessel desired for use as a storage tank was manufactured in accordance with American National Standards Institute (ANSI) standard and will be installed according to the setbacks in these rules. The rules require that safety systems are in place as specified by the ANSI national standard and that materials used are compatible and protected. The rules prescribe the placement of additional safety devices, such as back check valves, emergency shut off valves, excess flow mechanisms, and hydrostatic relief valves, be installed in any system that uses agricultural ammonia, which is consistent with the national standards. The requirements also include the use of personal protective equipment, as well as mandating safety training. It is impossible to provide a cost, as each storage facility has its own unique requirements. The last major revision of this article was in 2001, and all active facilities have made the required upgrades from the 1965 rules. The only cost to existing facilities is the maintenance of the system, including safety devices and hoses that have an expiration date. These ongoing costs related to the expiration of safety equipment and devices are as follows: We estimate there are approximately 14,000 nurse tanks in the state. Most are owned by the ag retailers, but many are owned by the farmers themselves. One ag retailer around Rochester has over 200 nurse tanks. There are approximately 650 storage tanks in Indiana with the majority of those at ag retail locations. We did not include the cost of repainting storage tanks and plumbing which are ongoing maintenance requirements as well as replacing decals on the tanks as they will fade in the sunlight.

2. Justification for Imposing Requirements or Costs:

The Indiana Agricultural Ammonia law specifically charges OISC with establishing safety standards under IC 15-16-1-10. Every requirement in this rule readoption pertains to the minimum safety standards for the design, construction, location, installation, and operation of equipment for storage, handling, use, and transportation of ammonia and ammonia solutions.

3. Supporting Data, Studies, or Analyses:

The Indiana Agricultural Ammonia law specifically charges OISC with establishing safety standards under IC 15-16-1-10. Every requirement in this rule readoption pertains to the minimum safety standards for the design, construction, location, installation, and operation of equipment for storage, handling, use, and transportation of ammonia and ammonia solutions. OISC’s agricultural ammonia specialist is a member of the ANSI K61.1 that sets the national standard. He is the source of much of the information.

4. Conclusion:

The Indiana Agricultural Ammonia law specifically charges OISC with establishing safety standards under IC 15-16-1-10. Every requirement in this rule readoption pertains to the minimum safety standards for the design, construction, location, installation, and operation of equipment for storage, handling, use, and transportation of ammonia and ammonia solutions.

V. Alternative Methods of Achieving the Purpose of the Rule

We do not see an alternative method available that would fulfill the IC 15-16-1-10 for safety standards. While other agencies regulate different parts of an agricultural ammonia system, in my 29 years with the agency I have not seen any substantial inspections or enforcement from another agency. We have heard of a few EPA inspections where their focus was strictly on the storage vessel and not the other parts of the facility and that their inspection went off a checklist with limited understanding of what they were inspecting. We feel that more should be provided to the regulated community. Our specialist is an expert in this area. VI. Complaints and Comments This is a rule readoption for 355 IAC 3. The last changes to these rules were in January, 2001. In the last 24 years, I cannot recall a large number of complaints or comments received from the public. VII. Difficulties Encountered. As with all OISC fertilizer rule changes, we allow ample time for changes to be made as some require extensive planning and budgeting. We have not had any difficulties administering these rules. Only a very small number of facilities have always had issues with complying with the rules. Those that do are the ones that refuse to replace expired safety equipment after they were directed to do so. The situation is generally similar to this: We performed a routine inspection in 2015, notifying the farmer that his excess flow valves had expired in 2008 and directed the farmer to replace the valves. Reinspection in 2020 indicated the same thing where we left a correction order to replace the critical safety equipment before his next use. Follow up inspection in 2025 shows that the farmer has still not changed the valves and we were forced to issue a stop use order. It is hard to argue that in the above example the farmer had difficulties, but compliance was not achieved in that example. VIII. Changes in Technology, Economic Conditions, or Other Factors There have been substantial changes in technology since the rule was last changed in 2001. That is why we are in the process of revising the rules, but we need to readopt them, so the article does not expire in the interim. IC 15-16-1-10(d) does allow for the use of technologies until they can be incorporated into the rules. IX. Other State or Federal Requirements IL – The Illinois regulations for agricultural ammonia are nearly identical to our rules. Theirs have been updated more recently to the current ANSI standard plus Illinois requires individuals that use and handle ag ammonia to be certified. KY – Kentucky has no agricultural anhydrous ammonia regulations. Ammonia is not used prominently as a fertilizer in Kentucky and there apparently is no need to regulate for its safe storage, handling and use. OH – The Ohio regulations for agricultural ammonia are more restrictive as they require plans be submitted and approved for all new and changes to storage facilities. The Ohio Department of Agriculture does not regulate nurse tanks. That responsibility falls to the Department of Transportation and the Ohio State Police. MI – Agricultural anhydrous ammonia is regulated by several agencies in Michigan. Four state agencies in Michigan, including the Michigan Department of Agriculture & Rural Development, are responsible for certain components of anhydrous ammonia issues: Michigan Department of Agriculture & Rural Development (MDARD), Pesticide and Plant Pest Management Division There are approximately only 5 facilities in Michigan that handle agricultural anhydrous ammonia. ID – Idaho has no anhydrous ammonia regulations. Ammonia is not used prominently as a fertilizer in Idaho and there apparently is no need to regulate for its safe storage, handling and use. SD – South Dakota regulations reference the 2014 ANSI K61.1 standards. The Federal standard is more restrictive than the OISC requirements, as they are operating under a newer standard. Furthermore, the standard is for all anhydrous ammonia facilities, including those used for manufacturing and refrigeration that require additional safety measures. X.  Previous Amendments This article was written in 1965 and has only had substantial revisions done in 2001. We are currently working on another revision but have encountered several issues. We are currently readopting the article to keep it from sunsetting. As with all OISC fertilizer rules we formed a working group to develop and revise the regulations. The working group includes individuals from all aspects of the regulated industry. Members of this working group represented farmers, ag retailers, environmental health & safety personnel, and terminal operations managers. The thoughts and words from the individuals working in these areas are what were used to write and revise this article. XI. Integration into Indiana Code With the very technical requirements needed when incorporating and referencing the national standard, ANSI K61.1, it may not be easily accomplished through law. ANSI updates happen on a 4-year schedule with some revisions taking much longer than others. OISC is in the unique position to have our Ag Ammonia Specialist sit on the ANSI review committee and he fully understands what the requirements are and is well-suited to assist in rule revisions. XII. Contact Information of Staff to Answer Substantive Questions Matthew E. Pearson Fertilizer Administrator Office of Indiana State Chemist 175 S University St West Lafayette IN 47907-2063 (765) 494-1547 www.OISC.purdue.edu fertregistration@groups.purdue.edu Notice of Public Comment Period for Rule Readoption: 20250910-IR-355240619RNA Notice of Determination Received: September 2, 2025

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