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2007 was a very busy year for the Compressed Gas Association in our efforts to further advance the safety of the industrial and medical gas and equipment industry. We have responded to numerous issues that affect companies of all sizes, including distributors. We have also taken the opportunity to make advances in our safety standards and ensure that these standards are reflected in the latest building and fire codes. Our standards operation was very productive, and as of press time, we are projecting that CGA will publish about 70 new and revised standards and related documents by year’s end—a new record! International harmonization of standards has been a priority as the world becomes a single market for our members’ products and services.
No one can accurately predict the future, but there are some things happening in our industry that affect how safety is addressed.
Consolidation of the Industry
This affects companies of all sizes and has been a continuing trend, especially among distributors. As smaller companies become larger ones, life in the regulatory arena becomes more complex, since increased size often triggers additional safety and environmental compliance at the federal and state levels. Depending on your perspective, consolidation can be good or bad, but from a safety viewpoint, it can be a positive as more resources dedicated to safe operations in the new company usually become available.
“Mainstreaming” of the Industry’s Products
You see it everywhere: Gases and equipment now in the hands of consumers that you may not have seen at your store counter. Not just paintball, but compressed gases for nail guns, infused beverages, broader use in food production and preservation, more personal use of medical gases and ownership of the equipment. Now we see the potential for hydrogen use in virtually all aspects of our lives. This may provide increased business opportunities, but also represents a tremendous responsibility for our industry to ensure that these products can be handled safely. With more untrained people handling our products, accidents will happen.
Globalization of the Industry
Globalization of our industry is forcing “standards globalization,” which has a direct impact on your companies. This is a complex process that ultimately hits home. First, there is consolidation of industry standards in the international arena. It is here where input from the U.S. and other nations drives the creation of standards by the International Organization for Standardization (ISO) and action by the United Nations. Industry is also consolidating or “harmonizing” standards from different regions of the world. As standards are consolidated in the international arena, U.S. regulators and building and fire prevention code writers incorporate them into their requirements. States also play a role, as many will adopt these codes or take independent regulatory actions. CGA is working in all of these areas to ensure that the industry’s standards are the basis for any action that these entities decide to take. We strive to maximize safety and the consistency of any requirements that may apply.
Now let’s take a look at specific challenges and opportunities for 2008.
Security
The most significant challenge to our industry in recent years is the new security regulations mandated by Congress for “high-risk” chemical facilities. The Department of Homeland Security’s final regulations are far-reaching and can affect smaller companies, depending on the types and quantities of chemicals that are present at your facility. DHS has yet to finalize the list of chemicals that apply and the quantities that would trigger coverage under the regulations. Once the list is published, affected companies will have to act quickly to determine their status with DHS. For distributors that are covered, there likely will be significant investments necessary to comply.
The distributor continues to play a significant role in ensuring the safe and secure use of industrial and medical gases. In fact, if current trends are realized, the distributor is likely to play even a larger role.
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CGA has requested that DHS adopt our security standards as an “Alternative Security Plan,” which would allow them to substitute for most of the applicable regulatory requirements. This approval may take some time. In the interim, those affected by the regulations can request that DHS use the CGA standards as a means of achieving compliance for their individual facilities.
Accidents
There have been several major accidents involving industrial gases in recent months. They have resulted in significant property damage and, in one case, loss of life. The U.S. Chemical Safety and Hazard Investigation Board (CSB) and the National Transportation Safety Board are investigating and will most likely look to CGA relative to the recommendations that will result from these investigations. CGA will cooperate with the investigators to determine if changes to our standards and practices can improve safe practices relative to these incidents. There is potential fallout for these high-profile accidents as regulators and code officials feel pressure to act. CGA will bring the expertise to bear to help ensure that only prudent and effective actions are taken.
Hydrogen
In the race to make the “hydrogen economy” a reality, the technology needed to deliver this potentially dangerous product to the consumer is rapidly changing. This is driving efforts by many standards development organizations to get in on the ground floor so as to establish rules for the development of the infrastructure-related safe practices. Many of these organizations do not have the expertise to write these standards.
As the landscape has grown more complicated, CGA is now undertaking a strategic evaluation of our engagement in the development of standards that will support the broader use of hydrogen. It is not yet clear what role the distributor network will play in a new hydrogen economy, but whatever it is, safe practices developed by the industry should be followed.
Despite all the changes in our industry, I firmly believe that the distributor will continue to play a significant role in ensuring the safe and secure use of our products. In fact, if current trends are realized, the distributor is likely to play even a larger role. I urge GAWDA members to continue to look to CGA for the guidance that they need to conduct their businesses safely. |
