[Histonet] MSDS regarding waste alcohol, xylene, etc

[Troyer, Dean A.]

We were considering ways to tidy up a hospital pathology grossing room where specimens are accessioned, grossed, and frozen sections performed.  There is one tissue processor in the room.  
The room has only one doorway and has no windows.
 
Several large plastic jugs of liquid waste (alcohols, xylene) are retained within the room for weekly pick up by a waste disposal service.
 
It was suggested that the waste jugs take up valuable floor space and might be stored in an adjacent room, equally well ventilated, where additional tissue processors are located.
 
One of our laboratory supervisors indicated that the waste jugs could not be stored outside the room because "waste liquids must be stored within site of where they are generated".  
 
I believe the MSDS sheets/regulations were cited, but not sure.
 
Is there experience with regulations that address this?  It seems counterintuitive to store flammable liquids in a room such as this with a number of people there all day and evenings.  Particularly if there is an option of storing them in an adjacent room with releatively fewer personnel.
 
Dean Troyer