Page 6 - Oil and Energy January 2013
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6 • OIL
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ENERGY
U.S. DOT Says Legalized Pot Is Not
Allowed Under Federal Drug Testing Program
The U. S. Department of Transportation (DOT) recently issued a drug
and alcohol policy notice concerning recreational use of marijuana,
in light of recent legalization votes in Colorado and Washington State.
The DOT has received numerous inquiries about whether these state
and local initiatives will have an impact on federal regulations
prohibiting the use of marijuana by hazardous materials transportation
employees, including CDL/HAZMAT drivers.
The issue is of concern because marijuana can be detected in the
bloodstream many days after initial use. Off-duty CDL/HAZMAT drivers
using marijuana under these state and local initiatives could test
positive under employer-based drug testing requirements. The federal
drug and alcohol testing regulations (40 CFR Part 40) do not authorize
the use of Schedule I drugs including marijuana for any reason.
Therefore, a medical review officer (MRO) will not verify a drug test as
negative based upon learning that the employee used marijuana in
state and local jurisdictions that allow such use. In addition an MRO
will not verify a drug test as negative based upon information that a
physician recommended that the employee use “medical marijuana”
where states have passed “medical marijuana” initiatives. Medical
marijuana is legal in Alaska, Arizona, California, Colorado, Connecticut,
the District of Columbia, Delaware, Hawaii, Maine, Massachusetts,
Michigan, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode
Island, Vermont and Washington.
For more information contact Mark S. Morgan, NEFI Regulatory
Counsel at
DOE Study Says Nat Gas Export Is Good Idea Despite
Likely Price Increases for Domestic Consumers
The U.S. Department of Energy (DOE) recently released a much-
anticipated study measuring the national economic consequences
from lifting a longstanding federal ban on the exportation of natural
gas. Lifting the export ban is important to heating oil dealers because
the current supply glut of natural gas is keeping prices artificially low
and fueling a higher rate of residential oil to gas conversions.
Lifting the ban would reduce domestic supply and cause natural
gas prices to rise, making heating oil more cost competitive. While the
study concluded that lifting the export ban would have net benefits to
the economy in general, U.S. consumers would gain little as natural
gas prices would increase significantly during the first five years of
export. According to the study, during the first year after the ban is
lifted, domestic natural gas price increases could range from zero to
$0.33 (2010$/Mcf). Expected growth in exports over the next five years
would cause domestic natural gas prices to increase from $0.22 to
$1.11 (2010$/Mcf). The higher end of the range is reached only under
conditions of ample U.S. supplies and low domestic natural gas prices,
with smaller price increases when U.S. supplies are more costly and
domestic prices higher.
The study is likely to remove the final barriers to approval for the 15
pending natural gas export license applications already filed with the
DOE. Those applications have been stalled pending publication of the
DOE economic impact report.
EPA Fines 16 Firms for Violations of
Lead Renovation Repair and Repainting Rule
The U.S. Environmental Protection Agency (EPA) recently
announced 16 enforcement actions for violations of the lead-based
paint Renovation, Repair and Painting Rule (RRP). The rule is designed
to protect children, and others, from exposure to lead dust that can
cause lead poisoning by ensuring that renovators follow the RRP and
other lead rules. The rule is triggered when any lead paint surface
greater than six square feet is “disturbed”.
The RRP rule requires contractors, including heating oil dealers
installing HVAC who work on pre-1978 dwellings and child-occupied
facilities, to be trained and certified to use lead-safe work practices.
The rule requires that common renovation and repair activities like
sanding, cutting and replacing windows are done in ways that
minimize dangerous lead dust. EPA finalized the RRP rule in 2008 and
the rule took effect on April 22, 2010.
The enforcement actions include cases where the contractor failed
to follow lead-safe work practices. Also, in several cases, contractors
failed to obtain firm certification prior to performing or offering to
perform renovation activities on pre-1978 homes. The RRP Rule’s
certification requirements ensure that firms and renovators know the
RRP Rule, and how to employ lead-safe work practices. Other alleged
violations include the respondent’s failure to provide EPA’s “Renovate
Right” pamphlet to homeowners and occupants. The pamphlet is an
important mechanism for helping homeowners and tenants
understand the risks of lead-based paint hazards, and how best to
minimize these risks to protect themselves and their families.
The rule does not apply where an EPA certified state program for
lead containment and control at worksites has been adopted.
Currently 11 states have such programs, including Alabama, Georgia,
Iowa, Kansas, Masssachusetts, Mississippi, North Carolina, Oregon,
Rhode Island, Utah, Washington and Wisconsin.
CONTACTS:
Michael Trunzo, President & CEO: michael
Jim Collura, NEFI Vice President for Government Affairs: jim
Mark S. Morgan, Esq., New England Fuel Institute Regulatory Counsel:
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