What 29 CFR 1910.106 requires (plain English)
29 CFR 1910.106 governs flammable liquids in general industry: how they are stored, handled, and dispensed so their vapors do not ignite and cause a fire or explosion. Flammable liquids are dangerous not because the liquid burns, but because they give off vapors that mix with air and ignite readily; the standard is built around controlling those vapors and keeping ignition sources away from them. It applies to everything from a can of solvent to bulk storage.
The standard limits how much can be stored and where. No more than 60 gallons of Category 1, 2, or 3 flammable liquids, nor more than 120 gallons of Category 4, may be stored in a single approved storage cabinet, and cabinets and inside storage rooms have specific fire-resistance and construction requirements. Flammable liquids must be kept in approved, closed containers, and dispensing and transfer must control static electricity (bonding and grounding) that could spark a vapor ignition. The 2012 HazCom update aligned 1910.106's category system with GHS (Category 1 having the lowest flash point).
Two controls run throughout: ignition-source control and ventilation. Where flammable vapors may be present, precautions must be taken to prevent ignition by eliminating or controlling sources of ignition: open flames, sparks, hot surfaces, static electricity, and smoking. And areas where flammable liquids are used or stored must be ventilated so vapors do not accumulate to a dangerous concentration. Together with the fire prevention plan (1910.39) and portable fire extinguisher (1910.157) requirements, 1910.106 keeps a common but serious hazard under control.