2009 Gas Outlook

CGA continues focus on safety and security.

By Marc Meteyer

In 2008, the Compressed Gas Association (CGA) made significant progress in resolving major issues of interest to the industry. First, CGA participated with Congressional staff in policy discussions surrounding the transfer of ownership of medical gas equipment under Medicare.

CGA was very concerned that the transfer of ownership of oxygen cylinders and concentrators to patients and eventually to their heirs would pose serious safety issues. As a result of discussions, Congress passed an amendment to the law that allows homecare providers to continue to hold title to their equipment.

We also were successful in addressing a new issue developing in California. The state passed regulations, mainly targeted to prevent counterfeiting, that would require tracking the “pedigree” for pharmaceuticals. For many reasons, medical gases are not targets for counterfeiting yet were included in this regulation. In addition, the aspect of co-mingling product in multiple stages of our manufacturing and distribution process makes it nearly impossible to maintain a pedigree. As a result of these efforts, California passed an exemption for medical gases from the tracking requirements.

CGA has been very active in discussions with the U.S. Pharmacopeia (USP) and the Food and Drug Administration regarding updates to the medical gas monographs and the potential of USP developing reference standards for medical gases. We expect these discussions to continue through 2009.

Standards development relative to the use of hydrogen continues to advance at a rapid rate, and CGA is involved to help ensure that this product can be handled safely. That involvement is in both the international and domestic standards arenas.

As globalization affects the industrial gas industry, so does it affect standards development. CGA is not only participating with the International Organization for Standardization (ISO) and the United Nations on international standards development, but is also engaged in harmonization of standards within our industry. The rate at which harmonization is occurring has increased. If you do business in the states or internationally, the standards that apply will have broader application, thereby reducing the costs for maintaining safe practices.

2009 Outlook
In 2009, CGA is expected to be involved in important areas relative to safety, many of which will continue from 2008. Those of particular interest to GAWDA members include accidents and security.

Accidents — Unfortunately, there have been several serious accidents involving acetylene and other gases in the past year. The Chemical Safety Board and the National Transportation Safety Board investigated, and it is expected that the results of those investigations will be released in the coming months. CGA will evaluate those reports and determine whether any action is necessary in how we address safety in the areas of concern. If there are issues, our standards will be revised or other appropriate action will be taken. Those standards may apply to distributor operations.

Security — By now you are probably aware of the new Department of Homeland Security (DHS) regulations and the government's efforts to address “high risk” chemical facilities. DHS's final regulations are far-reaching and can affect smaller companies, depending on the types and quantities of chemicals that are present at the facility. DHS has made significant progress in determining which facilities are affected. They are now in the process of finalizing the performance standards that companies must meet in designing their security plans. CGA is in the process of filing comments on these standards to help ensure that they are feasible and appropriate, especially for smaller industrial gas facilities.