95-4405. Facilities Transferring Oil or Hazardous Materials in Bulk  

  • [Federal Register Volume 60, Number 36 (Thursday, February 23, 1995)]
    [Proposed Rules]
    [Pages 10044-10052]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-4405]
    
    
    
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    DEPARTMENT OF TRANSPORTATION
    33 CFR Parts 154 and 156
    
    [CGD 93-056]
    RIN 2115-AE59
    
    
    Facilities Transferring Oil or Hazardous Materials in Bulk
    
    AGENCY: Coast Guard, DOT.
    
    [[Page 10045]] ACTION: Notice of proposed rulemaking.
    
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    SUMMARY: The Coast Guard proposes to revise the regulations covering 
    facilities transferring oil or hazardous material in bulk. These 
    revisions are intended to update and clarify the current regulations. 
    The revisions should result in regulations that are more effective in 
    providing a high level of safety and environmental protection.
    
    DATES: Comments must be received on or before May 24, 1995.
    
    ADDRESSES: Comments may be mailed to the Executive Secretary, Marine 
    Safety Council (G-LRA/3406) (CGD 93-056), U.S. Coast Guard 
    Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may 
    be delivered to room 3406 at the same address between 8 a.m. and 3 
    p.m., Monday through Friday, except Federal holidays. The telephone 
    number is (202) 267-1477. Comments on collection-of-information 
    requirements must be mailed also to the Office of Information and 
    Regulatory Affairs, Office of Management and Budget, 725 17th Street 
    NW, Washington, DC 20503, ATTN: Desk Officer, U.S. Coast Guard.
        The Executive Secretary maintains the public docket for this 
    rulemaking. Comments will become part of this docket and will be 
    available for inspection or copying at room 3406, U.S. Coast Guard 
    Headquarters, between 8 a.m. and 3 p.m., Monday through Friday, except 
    Federal holidays.
    
    FOR FURTHER INFORMATION CONTACT: Lieutenant Jonathan C. Burton, Marine 
    Environmental Protection Division, (202) 267-6714.
    
    SUPPLEMENTARY INFORMATION:
    
    Request for Comments
    
        The Coast Guard encourages interested persons to participate in 
    this rulemaking by submitting written data, views, or arguments. 
    Persons submitting comments should include their names and addresses, 
    identify this rulemaking (CGD 93-056) and the specific section of this 
    proposal to which each comment applies, and give the reason for each 
    comment. Please submit two copies of all comments and attachments in an 
    unbound format, no larger than 8 by 11 inches, suitable for copying and 
    electronic filing. Persons wanting acknowledgment of receipt of 
    comments should enclose stamped, self-addressed postcards or envelopes.
        The Coast Guard will consider all comments received during the 
    comment period. It may change this proposal in view of the comments.
        The Coast Guard plans no public hearing. Persons may request a 
    public hearing by writing to the Marine Safety Council at the address 
    under ADDRESSES. The request should include the reasons why a hearing 
    would be beneficial. If it determines that the opportunity for oral 
    presentations will aid this rulemaking, the Coast Guard will hold a 
    public hearing at a time and place announced by a later notice in the 
    Federal Register.
    
    Drafting Information
    
        The principal persons involved in drafting this document are 
    Lieutenant Jonathan C. Burton, Project Manager, Marine Environmental 
    Protection Division and Ms. Helen Boutrous, Project Counsel, Office of 
    Chief Counsel.
    
    Background and Purpose
    
        Until 1990, the regulations covering the transfer of products 
    between vessels and facilities capable of transferring oil or hazardous 
    materials in bulk to or from a vessel with a capacity of 250 barrels or 
    more were contained in two different parts of the Code of Federal 
    Regulations. Facilities transferring oil in bulk were covered by 33 CFR 
    part 154, while those transferring hazardous materials in bulk were 
    covered by 33 CFR part 126 (Handling of Explosives or Other Dangerous 
    Cargoes Within or Contiguous to Waterfront Facilities). The Coast Guard 
    consolidated and revised the provisions into part 154 (Facilities 
    Transferring Oil or Hazardous Material in Bulk) in a final rule 
    published on September 4, 1990 (55 FR 36252). Since that time, numerous 
    comments have been received from Coast Guard personnel and industry 
    about problems in working with part 154. Coast Guard personnel and 
    industry advisory groups have provided numerous suggestions for 
    improving part 154. In 1992, a Coast Guard task force, chartered as the 
    result of a General Accounting Office report on the Coast Guard's 
    facility inspection program, recommended a number of changes to 33 CFR 
    part 154. Based on the task force's recommendations, the Coast Guard 
    decided to initiate a rulemaking project to review all of 33 CFR part 
    154. A solicitation was sent to all Coast Guard Marine Safety Officers 
    and Captains of the Ports asking for assistance in identifying problem 
    areas. Every unit solicited responded with comments identifying changes 
    to provisions that, if adopted, would greatly improve their facility 
    oversight and enforcement operations, and thereby enhance industry's 
    ability to comply with the regulations.
    
    Discussion of Proposed Changes
    
    Section 154.100  Applicability
    
        There has been confusion regarding the applicability of the 
    regulations in 33 CFR part 154. Particularly, there has been confusion 
    over whether applicability is determined by the capacity of the 
    facility or the capacity of the vessel. The proposed rule seeks to 
    clarify that the total capacity of the vessel is the determining 
    factor. Part 154 applies to facilities transferring oil or hazardous 
    materials to vessels capable of carrying 250 barrels or more of oil or 
    hazardous materials, or a combination of oil types, or hazardous 
    materials, or both.
        Also, a new paragraph is proposed to be added to the applicability 
    section which would specify all of the requirements that are applicable 
    to mobile transfer facilities. Both industry and Coast Guard personnel 
    have indicated that such a provision would be helpful. Inclusion of 
    this paragraph should eliminate confusion in determining which 
    requirements are applicable to mobile facilities.
        Included in the proposed list of requirements that would apply to 
    mobile facilities are certain safety requirements found in Sec. 154.735 
    that do not currently apply to mobile facilities. These include 
    standards for access to the mobile facility by firefighting personnel, 
    proper storage of hazardous material, sufficient fire extinguishers, 
    rubbish containment, protective equipment, heating equipment placement, 
    electrical wiring and three way warning signs. Additionally, this NPRM 
    proposes to subject mobile facilities to the ``person in charge 
    requirements'' of 33 CFR 154.710. Comments on the cost of applying 
    these regulations to mobile facilities are requested.
    
    Section 154.105  Definitions
    
        A definition for ``caretaker status'', and revisions to the 
    definitions of ``facility'', and ``transfer'' are proposed.
        ``Caretaker status'' is proposed to be defined as a facility that 
    is free of oil or hazardous material, certified as gas free and where 
    specified piping has been blanked off and the letter of adequacy has 
    been suspended by the COTP.
        The proposed revisions to the definition of ``facility'' clarify 
    that tank cleaning and stripping facilities, and floating docks or 
    barges used as part of the transfer platform, are considered to be 
    within the definition of facility. The proposed rule also makes it 
    clear that barges and other floating structures used to support an 
    intricate part of the facility's operation, such as piping for 
    [[Page 10046]] the facility, are to be considered part of the facility.
        Finally, the proposed revision to the definition of ``transfer'' 
    would specify that a transfer begins once the transfer hose is 
    connected, thereby requiring owners and operators to comply with the 
    safety requirements pertaining to the transfer of oil or hazardous 
    material at an early stage of the process. Safety measures at this 
    stage are crucial because as soon as a transfer hose is connected, 
    there is a risk of oil or hazardous material being inadvertently 
    transferred, resulting in a spill. Therefore, hose connections should 
    be made only while complying with the supervisory and other 
    requirements specified in part 154.
    
    Section 154.107  Alternatives
    
        This section is proposed to be revised to provide that the Captain 
    of the Port (COTP) will take final approval or disapproval action 
    within 60 days, rather than 30 days, of a request from a facility 
    operator to use alternate methods, procedures or equipment standards 
    from those required by part 154. The additional 30 days will allow more 
    time for the COTP to thoroughly evaluate requests. Every effort will be 
    made to respond to requests in less than 60 days if possible.
    
    Section 154.110  Letter of Intent
    
        This NPRM proposes to require that the facility owner's name, 
    address, and telephone number be included in the letter of intent 
    required by Sec. 154.110. Currently, this information is required of 
    the facility operator only. This additional information will be of 
    great assistance in determining and locating the responsible party 
    during a spill or other emergency.
    
    Section 154.310  Operations Manual: Contents
    
        This NPRM proposes to require that a map of the facility, drawn to 
    scale, be included in the operations manual. In the past there has been 
    confusion among industry and enforcement personnel over the boundaries 
    of various facilities subject to regulation. The required map would 
    depict the physical boundaries of the facility and include all 
    structures, such as wharfs, and would indicate which piping in the 
    facility is subject to the testing requirements of 33 CFR 
    156.170(c)(4). This revision would assist Coast Guard and industry 
    personnel in more readily determining which pipes are subject to Coast 
    Guard inspection as opposed to those regulated by the Environmental 
    Protection Agency. The accuracy of the facility operator's 
    determinations as to which pipes are subject to Coast Guard inspection 
    under Sec. 156.170 would be reviewed by the COTP when the operations 
    manual is submitted to the COTP for a review of adequacy under 
    Sec. 154.300. This revision would help the Coast Guard and facility 
    owners and operators ensure that all piping subject to the regulations 
    is properly tested.
        The proposed rule seeks to simplify for industry the information 
    retention requirements of part 154. Currently, Sec. 154.310(a)(5) 
    requires facility operators to retain specified information about the 
    products handled by the facility. This NPRM proposes that Material 
    Safety Data Sheets be retained rather than the information currently 
    required by Sec. 154.310(a)(5). This revision would provide the Coast 
    Guard access to information of equivalent value, while providing an 
    easier method of recordkeeping for facility operators.
        In the past there has been confusion regarding the appropriate 
    state and local personnel to contact in the event of a spill or other 
    emergency. Therefore, this NPRM proposes to add a requirement that the 
    names and telephone numbers of state and local officials be included in 
    the list of names and addresses currently required under 
    Sec. 154.310(a)(7). This would require the facility owners to determine 
    who the appropriate state and local officials to contact are in 
    advance, so that time will not be wasted in the event of an emergency. 
    Also, this NPRM proposes to require that the name and telephone number 
    of the ``qualified individual'' listed in the facility response plan 
    required by 33 CFR 154.1026 be included. This is also vital information 
    in the event of an emergency.
        Currently, Sec. 154.310(a)(16) requires that the operations manual 
    include the maximum relief valve setting for each transfer system. This 
    rule proposes that the Maximum Allowable Working Pressure (MAWP) also 
    be recorded. This revision is necessary because of proposed changes to 
    Sec. 154.500 which would no longer require that each hose assembly have 
    a MAWP of 150 pounds per square inch. Recording of the MAWP will ensure 
    that tests conducted under 33 CFR 156.170 are conducted using the 
    correct MAWP for the transfer piping system being tested.
    
    Section 154.320  Operations Manual: Amendment
    
        Currently, under Sec. 154.320(a)(1), facility operators have 14 
    days to respond to a notice from the COTP regarding any inadequacies in 
    the operations manual. Industry has indicated that 14 days is an 
    insufficient amount of time to respond to a COTP's request for 
    amendments to the operations manual. This NPRM proposes a 45 day 
    response period starting from the date of the COTP's notice. Also, 
    Sec. 154.320(a)(1) provides that the COTP shall notify the facility 
    operator of any amendment required or adopted, and that such amendment 
    becomes effective 30 days after the facility operator receives notice. 
    This NPRM proposes to delay the effective date of such amendments until 
    60 days after notification of the facility operator.
    
    Section 154.500  Hose Assemblies
    
        In the past there has been confusion regarding the maximum 
    allowable working pressure (MAWP) to be used for the testing 
    requirements in 33 CFR 156.170. Part of this confusion was caused by 
    the fact that a minimum (MAWP) was specified for hose assemblies. This 
    forced industry to test their hose assemblies, and usually their piping 
    systems, at a minimum of 225 pounds per square inch. It is more 
    reasonable for the MAWP to be based on the actual design of the 
    transfer system, rather than a pre-specified number. The proposed 
    changes to this section would eliminate a minimum burst pressure and 
    MAWP for hose assemblies. With this revision, industry could develop 
    their tests and inspection criteria based on the actual needs of their 
    systems, and avoid unnecessary expense testing to a level higher than 
    that of their systems' designs.
    
    Section 154.520  Closure Devices
    
        Under the current regulations, industry must have enough valves to 
    blank off a transfer hose, even when it is stored, unless it is new and 
    unused. The proposed change would clarify that such hoses must be 
    blanked off during transfer. Also, the revisions would allow for 
    treating a hose that is cleaned of product in the same manner as a new, 
    unused hose.
    
    Section 154.530  Small Discharge Containment
    
        Experience reveals that many small spills occur during the coupling 
    and uncoupling of transfer hoses, and from coupled joints. Present 
    regulations require containment around manifold areas, but do not 
    specifically require containment around those areas where coupled hoses 
    may cross or are uncoupled or coupled. Therefore, a paragraph is 
    proposed to be added to Sec. 154.530 that would require that fixed or 
    portable containment be placed under each hose connection during 
    coupling, uncoupling, and transfer. Comments on the viability and costs 
    of this proposed revision are solicited. [[Page 10047]] 
    
    Section 154.540  Discharge Removal
    
        The current regulations require that facilities have a means to 
    safely and quickly remove oil and hazardous material from the 
    containment required by Sec. 154.530. To provide greater specificity, 
    this NPRM proposes that facilities must have a means to remove 
    discharged oil or hazardous material from the containment within one 
    hour.
    
    Section 154.545  Discharge Containment Equipment
    
        This NPRM proposes to add a paragraph to Sec. 154.545 that would 
    specify that equipment required to be retained under this section may 
    be used in the planning requirements of the facility response plan 
    required by subpart F.
    
    Section 154.560  Communications
    
        This NPRM proposes to revise Sec. 154.560 to require that only 
    intrinsically safe radios that have been marked accordingly by the 
    manufacturer of the radio may be used to meet the requirements of 
    Sec. 154.560(a). This requirement would help to ensure that appropriate 
    communications equipment is used. Also, the references included in 
    Sec. 154.560(e) regarding the definition of ``intrinsically safe'' are 
    incorrect. Instead of the current references, the NPRM requires that a 
    qualified testing laboratory, such as Underwriters Laboratories, 
    certify that a radio is intrinsically safe and is marked accordingly. 
    In most cases, radios used by facilities already meet the requirements 
    of this proposed regulation.
    
    Section 154.710  Persons in Charge: Designation and Qualification
    
        Numerous spills have been caused by the inattention or poor 
    training of the person in charge at some facilities. Therefore, it is 
    proposed that the facility operator must certify that the person in 
    charge has completed a training program that has been approved by the 
    Captain of the Port, in accordance with revised Sec. 154.710(c) and 
    (d). This revision is intended to ensure that the person in charge has 
    received the basic training necessary to properly operate transfer 
    equipment and has a thorough understanding of the hazards involved in a 
    transfer of oil or hazardous materials, and what his duties are 
    relative to that operation in the event of emergency. The proposed 
    requirement would, however, allow facility operators the flexibility to 
    develop their own training program, appropriate to the needs and 
    operation of their facility. The list of those persons certified would 
    be kept with the operations manual.
        Comments are solicited from industry on what specific basic 
    training requirements should be required for the person in charge, what 
    established industry training already exists to ensure their 
    competence, and the cost of such training.
        Additionally, there has been confusion as to where the person in 
    charge is to be during the transfer, as required by 33 CFR 
    156.120(t)(1). This NPRM adds the requirement that the person in charge 
    is to be in visual sight of the transfer system from the time a hose 
    connection is completed, until the time when the connection is broken.
        Given the importance of the person in charge, it is also proposed 
    that this section apply to mobile transfer facilities.
    
    Section 154.735  Safety Requirements
    
        This NPRM proposes that Sec. 154.735 be revised to abolish the 
    current ``hot work permit'' program which is cumbersome and obsolete. 
    Under the current program a permit must be obtained from the Captain of 
    the Port, prior to conducting welding or hot work at a facility. A new 
    provision is proposed to be added which would place responsibility for 
    the safety of all hot work at the facility, and the vessels moored to 
    it, on the facility's owner and operator.
        Currently, Sec. 154.735(s) provides that tank cleaning or gas 
    freeing operations conducted by the facility on vessels carrying oil 
    residues or mixtures must be conducted in accordance with specified 
    sections of the International Safety Guide for Oil Tankers and 
    Terminal(s) (ISGOTT). Experience with use of the ISGOTT standards has 
    revealed that, particularly in reference to barges, some of the ISGOTT 
    provisions are problematic. A provision would be added to allow 
    facility owners or operators to request authorization from the COTP, in 
    accordance with Sec. 154.107, to follow an alternative method of 
    compliance based on sound industry practices. An example of guidelines 
    that could be approved for use by the COTP are the ``Safety Guidelines 
    for Tank Vessel Cleaning Facilities'', First Ed., 1992, developed by 
    the American Waterways Shipyard Conference. Copies of these guidelines 
    may be obtained from American Waterways Shipyard Conference, 1600 
    Wilson Blvd., Suite 1000, Arlington, VA 22209.
        The current regulations are vague regarding security at a facility. 
    The proposed rule would require that access to the marine transfer area 
    from the shoreside or waterside is limited to facility personnel, 
    delivery and service personnel, Coast Guard personnel, and other 
    authorized persons. It further proposes that these personnel have 
    identification. These parameters are similar to those found in 33 CFR 
    127.703 and therefore should be better understood by both industry and 
    inspection personnel.
        Currently part 154 does not prohibit smoking. This NPRM would 
    propose to limit smoking in the same manner as the provisions of 33 CFR 
    126.15(b). Most facilities already follow this standard.
        This NPRM proposes to require that three way warning signs, similar 
    to those required under 33 CFR 126.15(o)(2)(i), be displayed on the 
    facility at the point of transfer, without obstruction, at all times on 
    a fixed facility and during coupling, transfer operation, and 
    uncoupling on a mobile facility. Many of the facilities previously 
    covered by part 126 still have these warning signs. Both industry and 
    Coast Guard personnel have suggested that these signs would be valuable 
    for all facilities covered by 33 CFR part 154.
    
    Section 154.740  Records
    
        One of the primary goals of this rulemaking is to consolidate 
    documents and descriptions of procedures and tests required by part 154 
    into one centralized location that would greatly facilitate inspections 
    and ensure that this information is immediately available in the event 
    of a spill or other emergency. Therefore, this NPRM proposes that the 
    records required by this section, such as the Letter of Intent, Letter 
    of Adequacy, person-in-charge qualifications, and the piping and hose 
    tests be maintained in the same location as the operations manual but 
    not as a part of the operations manual.
    
    33 CFR Part 156
    
        Conforming changes to certain sections of 33 CFR part 156 have been 
    proposed as discussed below to ensure consistency with the changes 
    proposed for part 154.
    
    Section 156.120  Requirements for Transfer
    
        This section is proposed to be revised to explicitly state that a 
    transfer begins when a connection of any transfer hose or loading arm 
    is made. At that point, all elements required to conduct a transfer 
    must be in place. This revision is consistent with the proposed 
    definition of ``transfer'' in Sec. 154.105 and is intended to prevent 
    an accidental spill from the transfer of oil or hazardous material 
    before all protections required during a transfer are in place. 
    [[Page 10048]] 
    
    Section 156.160  Supervision by Person in Charge
    
        To conform with the training requirements set forth in 
    Sec. 154.710, a provision is proposed to be added to Sec. 156.160 to 
    clarify that the person in charge must visually monitor the transfer, 
    throughout the transfer.
    
    Section 156.170  Equipment Tests and Inspections
    
        Revisions are proposed to this section to complement the testing 
    records required to be kept with the operations manual by Sec. 154.720.
        The revisions clarify that a static liquid pressure test is 
    acceptable, and the test medium for transfer hoses is not required to 
    be water. Those facilities in a caretaker status or that only transfer 
    infrequently will now be required to test 30 days before their first 
    transfer occurring more than one year from their last tests and 
    inspections. This inspection schedule will allow a reduction in costs 
    for facilities that transfer infrequently while still providing an 
    appropriate level of environmental protection.
        It would also be made clear that the COTP has the authority to 
    allow alternative methods of compliance to the testing requirements in 
    this section.
    
    Regulatory Evaluation
    
        This proposal is not a significant regulatory action under section 
    3(f) of Executive Order 12866 and does not require an assessment of 
    potential costs and benefits under section 6(a)(3) of that order. It 
    has not been reviewed by the Office of Management and Budget under that 
    order. It is not significant under the regulatory policies and 
    procedures of the Department of Transportation (DOT) (44 FR 11040; 
    February 26, 1979). A draft Regulatory Evaluation under paragraph 10e 
    of the regulatory policies and procedures of DOT has been prepared and 
    is available in the docket for inspection or copying where indicated 
    under ADDRESSES. The Evaluation is summarized as follows.
        It is estimated that 2591 fixed and 539 mobile marine 
    transportation related facilities will be affected by these 
    regulations. Many of the proposed revisions are clarifying changes that 
    will pose no additional costs on facilities presently in compliance 
    with the regulations. For example, certain information previously kept 
    separately would now be required to be kept in the same location as the 
    operations manual but requires little additional information not 
    already prescribed by some other regulation. Since this information is 
    not required to be included in the operations manual no additional cost 
    is incurred for review by the Coast Guard or the facility.
        There are some new requirements associated with this NPRM. These 
    requirements include a map showing the boundaries of the Coast Guard's 
    jurisdiction (Sec. 154.310(a)(2)); additional requirements for mobile 
    transfer facilities including standards for access by firefighting 
    personnel, proper storage of hazardous material, sufficient fire 
    extinguishers, rubbish containment, protective equipment, heating 
    equipment placement, three way warning sign, electrical wiring and the 
    ``person in charge requirements'' (Sec. 154.100(d)); a more extensive 
    training and qualification program for persons in charge 
    (Sec. 154.710(c)); containment under each hose connection during 
    coupling, uncoupling, and transfer (Sec. 154.530(a)(3)); and three way 
    warning signs (Sec. 154.735(v)).
        However, other proposed revisions lessen the burden on industry in 
    such areas as the use of the material safety data sheets rather than 
    maintaining this information separately (Sec. 154.310(a)(5)); deletion 
    of the requirement that transfer hoses have a minimum maximum allowable 
    working pressure of 150 psi (Sec. 154.500(b)); and the deletion of the 
    requirement for a facility to obtain a hot work permit 
    (Sec. 154.735(l)).
        Comments are requested on the cost of the small discharge 
    containment proposed by Sec. 154.530(a)(3); the additional requirements 
    for mobile facilities proposed by Sec. 154.100(d); and the training and 
    qualification program for persons in charge proposed by Sec. 154.710(c) 
    and the overall cost of all of the proposed regulations to consumers. 
    Comments are also solicited on the cost saving from deleting the 
    requirement that transfer hoses have a minimum, maximum allowable 
    working pressure of 150 psi (Sec. 154.500(b)).
        In consideration of the additions and deletions to part 154 and 156 
    it is estimated that the annual net cost to all facilities, would be 
    $7,665,971, where captial costs are incurred over a five year period.
        The overriding benefit to industry and the Coast Guard of the 
    proposed rules would be the establishment of rules that are easier to 
    understand and that would therefore facilitate and foster industry 
    compliance, leading to a higher level of environmental protection.
        The direct monetary benefit of increased protection would come from 
    the reduction of spills resulting from facility operations. These 
    proposed regulations are designed to achieve an overall reduction of 
    oil and hazardous materials spilled into the water from facilities by 
    20%. The weighted average of the annual volume of bulk oil and 
    hazardous material spilled from 1987-1991 from facilities was 436,147 
    gallons. The estimated costs of spill cleanup, third party damages, and 
    natural resource damages resulting from this volume totals $8,722,940. 
    A 20% reduction will give an annual benefit of $1,744,588.
        Comparing the monetary benefits of the proposed provisions against 
    the compliance cost to industry, the annual cost of the regulations is 
    estimated to be $5,921,383.
    
    Small Entities
    
        Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the 
    Coast Guard must consider whether this proposal, if adopted, will have 
    a significant economic impact on a substantial number of small 
    entities. ``Small entities'' may include (1) small businesses and not-
    for-profit organizations that are independently owned and operated and 
    are not dominant in their fields and (2) governmental jurisdictions 
    with populations of less than 50,000.
        The majority of facilities are owned by large corporations. The new 
    requirements proposed by this NPRM, measured against the proposed 
    relief from other requirements currently in effect, will result in a 
    negligible cost increase for facilities that presently comply with part 
    154.
        Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
    this proposal, if adopted, will not have a significant economic impact 
    on a substantial number of small entities. If, however, you think that 
    your business or organization qualifies as a small entity and that this 
    proposal will have a significant economic impact on your business or 
    organization, please submit a comment (see ADDRESSES) explaining why 
    you think it qualifies and in what way and to what degree this proposal 
    will economically affect it.
    
    Collection of Information
    
        Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the 
    Office of Management and Budget (OMB) reviews each proposed rule that 
    contains a collection-of-information requirement to determine whether 
    the practical value of the information is worth the burden imposed by 
    its collection. Collection-of-information requirements include 
    reporting, recordkeeping, notification, and other, similar 
    requirements.
        This proposal contains new collection-of-information requirements 
    in the following sections: Sec. 154.310, [[Page 10049]] Sec. 154.710 
    and Sec. 154.560. The following particulars apply:
        DOT No: 2115.
        OMB Control No.: 2115-0078.
        Administration: U.S. Coast Guard.
        Title: Changes to regulations covering Facilities Transferring Oil 
    or Hazardous Materials in Bulk.
        Need for information: It is proposed that information presently 
    kept separately, now be kept in the same location as the operations 
    manual by Sec. 154.740. However, little new information is required and 
    since it is proposed that the information be kept with the operations 
    manual, not in it, no additional review requirements are proposed. 
    Maintaining all records in one location where it is readily assessable 
    will encourage facility owners and operators to be better prepared and 
    thereby help to prevent spills and accidents resulting from improper 
    procedures. Also, consolidation of the information with the operations 
    manual will assist Coast Guard enforcement personnel in performing 
    their duties in an efficient and effective manner. Section 154.710 
    would require a facility to submit a training program for persons in 
    charge to the COTP for review and approval. Training programs are 
    necessary to ensure the competency of the personnel filling this 
    critical position. The proposal allows facility operators the 
    flexibility of designing a program that meets their needs.
        Proposed use of information: To determine regulatory compliance.
        Frequency of response: Occasional and annual.
        Burden estimate: 7,258.
        Respondents: 3,130 operators of bulk oil and hazardous material 
    transfer facilities.
        Form(s): Not applicable.
        Average burden hours per respondent: 1.9
        The Coast Guard has submitted the requirements to OMB for review 
    under section 3504(h) of the Paperwork Reduction Act. Persons 
    submitting comments on the requirements should submit their comments 
    both to OMB and to the Coast Guard where indicated under ADDRESSES.
    
    Federalism
    
        The Coast Guard has analyzed this proposal under the principles and 
    criteria contained in Executive Order 12612 and has determined that 
    this proposal does not have sufficient federalism implications to 
    warrant the preparation of a Federalism Assessment. The Coast Guard 
    intends to preempt State and local law only to the extent that 
    compliance with the State law would preclude compliance with these 
    proposed requirements.
    
    Environment
    
        The Coast Guard considered the environmental impact of this 
    proposal and concluded that preparation of an Environmental Impact 
    Statement is not necessary. An Environmental Assessment and a draft 
    Finding of No Significant Impact are available in the docket for 
    inspection or copying where indicated under ADDRESSES.
        The majority of the proposed changes are administrative in nature 
    and involve the maintenance of records and descriptions of procedures 
    to be retained in the operations manual. Other proposed revisions 
    involve changes in equipment or procedures that are designed to enhance 
    environmental protection by attempting to prevent spills of oil and 
    hazardous materials from bulk liquid facilities or minimize the effects 
    of such occurrences. Therefore, these revisions should have only a 
    positive affect upon the environment.
    
    List of Subjects
    
    33 CFR Part 154
    
        Fire prevention, Hazardous substances, Oil pollution, Reporting and 
    recordkeeping requirements.
    
    33 CFR Part 156
    
        Hazardous substances, Oil pollution, Reporting and recordkeeping 
    requirements, Water pollution control.
    
        For the reasons set out in the preamble, the Coast Guard proposes 
    to amend 33 CFR parts 154 and 156 as follows:
    
    PART 154--FACILITIES TRANSFERRING OIL OR HAZARDOUS MATERIALS IN 
    BULK
    
        1. The authority citation for part 154 continues to read as 
    follows:
    
        Authority: 33 U.S.C. 1231, 1321 (j)(1)(C), (j)(5), (j)(6) and 
    (m)(2); sec. 2, E.O. 12777, 56 FR 54757; 49 CFR 1.46. Subpart F is 
    also issued under 33 U.S.C. 2735.
    
    Subpart A--General
    
        2. In Sec. 154.100, paragraph (a) is revised and a new paragraph 
    (d) is added to read as follows:
    
    
    Sec. 154.100  Applicability.
    
        (a) This part applies to each facility that is capable of 
    transferring oil or hazardous material, in bulk, to or from a vessel, 
    where the vessel has a total capacity, from a combination of all bulk 
    products carried, of 250 barrels or more. This part does not apply to 
    the facility when it is in a caretaker status.
    * * * * *
        (d) The following sections of this part apply to mobile facilities:
        (1) Section 154.107 Alternatives.
        (2) Section 154.108 Exemptions.
        (3) Section 154.110 Letter of intent.
        (4) Section 154.120 Facility examinations.
        (5) Section 154.300 Operations manual: General.
        (6) Section 154.310 Operations manual: Contents. Paragraphs (a)(2) 
    through (a)(7), (a)(9), (a)(12), (a) (14) through (17), (a) (20) 
    through (24), (c), and (d).
        (7) Section 154.320 Operations manual: Amendment.
        (8) Section 154.325 Operations manual: Letter of adequacy.
        (9) Section 154.500 Hose assemblies. Paragraphs (a)(1), (b)(1), 
    (c), (d) (1) through (3), and (e) (1) through (4).
        (10) Section 154.530 Small discharge containment. Paragraphs (a) 
    (1) through (2), and (d).
        (11) Section 154.545 Discharge containment equipment.
        (12) Section 154.550 Emergency shutdown.
        (13) Section 154.560 Communications.
        (14) Section 154.570 (c) and (d) Lighting.
        (15) Section 154.700 General.
        (16) Section 154.710 Persons in charge: Designation and 
    qualification.
        (17) Section 154.730 Persons in charge: Evidence of designation.
        (18) Section 154.735 Safety requirements. Paragraphs (a) through 
    (d), (f) through (g), (i), (j) (1) through (2), (k) (1) through (2), 
    (l) through (m), (o) through (q), (r) (1) through (3), (s), and (u) 
    through (v).
        (19) Section 154.740 Records. Paragraphs (a) through (f).
        (20) Section 154.750 Compliance with operations manual.
        3. In Sec. 154.105, the following definition Caretaker status is 
    added in alphabetical order, and the definitions of Facility, and 
    Transfer are revised, to read as follows:
    
    
    Sec. 154.105  Definitions.
    
    * * * * *
        Caretaker status denotes a facility where all piping, storage 
    tanks, and related equipment is completely free of oil or hazardous 
    material; that has been certified as being gas free; where piping 
    terminating near any body of water has been blanked; and where the 
    letter of adequacy has been suspended by the COTP upon request of the 
    facility.
    * * * * * [[Page 10050]] 
        Facility means either an onshore or offshore facility and includes, 
    but is not limited to, structures, equipment, and appurtenances 
    thereto, used or capable of being used to transfer oil or hazardous 
    material to or from a vessel or public vessel. Also included are 
    facilities that tank clean or strip and any floating structure that is 
    an intricate part of the facility's operation. A facility includes 
    Federal, State, municipal, and private facilities.
    * * * * *
        Transfer means any movement of oil or hazardous material to, from, 
    or within a vessel by means of pumping, gravitation, or displacement. A 
    transfer is considered to begin when all connections are made so that 
    such movement is possible, regardless of when the actual movement 
    begins.
    * * * * *
        4. In Sec. 154.107, paragraph (b) is revised to read as follows:
    
    
    Sec. 154.107  Alternatives.
    
    * * * * *
        (b) The COTP takes final approval or disapproval action on the 
    request, submitted in accordance with paragraph (a) of this section, in 
    writing, within 60 days of receipt of the request.
        5. In Sec. 154.110, paragraph (b)(1) is revised to read as follows:
    
    
    Sec. 154.110  Letter of intent.
    
    * * * * *
        (b) * * *
        (1) The names, addresses, and telephone numbers of the facility 
    operator and the facility owner;
    * * * * *
    
    Subpart B--Operations Manual
    
        6. In Sec. 154.310, paragraphs (a)(2), (a)(5), (a)(7), (a)(16) and 
    (a)(22) are revised and paragraph (a)(23) is added to read as follows:
    
    
    Sec. 154.310  Operations manual: Contents.
    
        (a) * * *
        (2) A physical description of the facility including a map of the 
    facility, drawn to scale, showing the boundaries of the facility, 
    mooring areas, transfer locations, control stations, wharfs, the extent 
    and scope of piping subject to the tests required by Sec. 156.170(c)(4) 
    of this chapter, and the locations of safety equipment;
    * * * * *
        (5) A copy of the Material Safety Data Sheet for each product 
    transferred at the facility;
    * * * * *
        (7) The names and telephone numbers of the qualified individual 
    identified under Sec. 154.1026 and the Coast Guard, State, local, and 
    other personnel who may be called by the employees of the facility in 
    an emergency.
    * * * * *
        (16) The maximum allowable working pressure (MAWP) of each loading 
    arm, transfer pipe system, and hose assembly required to be tested by 
    Sec. 156.170 of this chapter, including the maximum relief valve 
    setting (or maximum system pressure when relief valves are not 
    provided) for each transfer system;
    * * * * *
        (22) Statements explaining that each hazardous materials transfer 
    hose is marked with either the name of each product which may be 
    transferred through the hose or with letters, numbers or other symbols 
    representing all such products and the location in the operations 
    manual where a chart or list of symbols used and a list of the 
    compatible products which may be transferred through the hose can be 
    found for consultation before each transfer; and
        (23) For facilities that tank clean or strip, a description of 
    their procedures.
    * * * * *
        7. In Sec. 154.320, paragraph (a)(1) is revised to read as follows:
    
    
    Sec. 154.320  Operations manual: Amendment.
    
        (a) * * *
        (1) The COTP will notify the facility operator in writing of any 
    inadequacies in the operations manual. The facility operator may submit 
    written information, views, and arguments regarding the inadequacies 
    identified, and proposals for amending the manual, within 45 days from 
    the date of the COTP notice. After considering all relevant material 
    presented, the COTP shall notify the facility operator of any amendment 
    required or adopted, or the COTP shall rescind the notice. The 
    amendment becomes effective 60 days after the facility operator 
    receives the notice, unless the facility operator petitions the 
    Commandant to review the COTP's notice, in which case its effective 
    date is delayed pending a decision by the Commandant. Petitions to the 
    Commandant must be submitted in writing via the COTP who issued the 
    requirement to amend the operations manual.
    * * * * *
    
    Subpart C--Equipment Requirements
    
        8. In Sec. 154.500, paragraphs (a) and (b) are revised to read as 
    follows:
    
    
    Sec. 154.500  Hose assemblies.
    
    * * * * *
        (a) The minimum design burst pressure for each hose assembly must 
    be at least four times the sum of the pressure of the relief valve 
    setting (or four times the maximum pump pressure when no relief valve 
    is installed) plus the static head pressure of the transfer system at 
    the point where the hose is installed.
        (b) The maximum allowable working pressure (MAWP) for each hose 
    assembly must be more than the sum of the pressure of the relief valve 
    setting (or the maximum pump pressure when no valve is installed) plus 
    the static head pressure of the transfer system at the point where the 
    hose is installed.
    * * * * *
        9. Section 154.520 is revised to read as follows:
    
    
    Sec. 154.520  Closure devices.
    
        (a) Except as provided in paragraph (b) of this section, each 
    facility to which this part applies must have enough butterfly valves, 
    wafer-type resilient seated valves, blank flanges, or other means 
    acceptable to the COTP to blank off the ends of each hose or loading 
    arm that is not connected for the transfer of oil or hazardous 
    material. Such hoses must be blanked off during the transfer of oil or 
    hazardous material.
        (b) New, unused hose, and hose that has been cleaned and is gas 
    free, is exempt from the requirements of paragraph (a) of this section.
        10. In Sec. 154.530, paragraph (a) is revised and paragraph (e) is 
    added to read as follows:
    
    
    Sec. 154.530  Small discharge containment.
    
        (a) Except as provided in paragraphs (c), (d) and (e) of this 
    section, each facility to which this part applies must have fixed 
    catchments, curbing, or other fixed means to contain oil or hazardous 
    material discharged in at least--
        (1) Each hose handling area (that area on the facility that is 
    within the area traversed by the free end of the hose or loading arm 
    when moved from its normal stowed or idle position into a position for 
    connection);
        (2) Each hose connection manifold area; and
        (3) Under each hose connection during coupling, uncoupling, and 
    transfer.
    * * * * *
        (e) Fixed or portable containment may be used to meet the 
    requirements of paragraph (a)(3) of this section.
        11. Section 154.540 is revised to read as follows:
    
    
    Sec. 154.540  Discharge removal.
    
        Each facility to which this part applies must have a means to 
    safely [[Page 10051]] remove discharged oil or hazardous material, 
    within one hour of its release, from the containment required by 
    Sec. 154.530 without discharging the oil or hazardous material into the 
    water.
        12. In Sec. 154.545, paragraph (e) is added to read as follows:
    
    
    Sec. 154.545  Discharge containment equipment.
    
    * * * * *
        (e) Equipment and procedures maintained to satisfy the provisions 
    of this chapter may be utilized in the planning requirements of subpart 
    F of this part.
        13. In Sec. 154.560, paragraph (e) is revised to read as follows:
    
    
    Sec. 154.560  Communications.
    
    * * * * *
        (e) Portable radio devices used to comply with paragraph (a) of 
    this section during the transfer of flammable or combustible liquids 
    must be marked as intrinsically safe by the manufacturer of the device 
    and certified as intrinsically safe by a national testing laboratory or 
    other certification organization approved by the Commandant.
    
    Subpart D--Facility Operations
    
        14. In Sec. 154.710, paragraphs (c) and (d), introductory text, 
    (d)(7) and (d)(8) are revised and paragraph (d)(9) is added to read as 
    follows:
    
    
    Sec. 154.710  Persons in charge: Designation and qualification.
    
    * * * * *
        (c) That person has completed a training program, established by 
    the facility operator and approved by the Captain of the Port in 
    accordance with Secs. 154.720(a)(23) and 154.325, that provides the 
    person with the knowledge and training necessary to properly operate 
    the transfer equipment at that facility, perform the duties described 
    in paragraph (d) of this section, follow the procedures required by 
    this part, and fulfill the duties required of a person in charge during 
    an emergency, except that for new facilities, the Captain of the Port 
    may authorize alternative experience and training requirements and;
        (d) The facility operator must certify that the person in charge 
    has the knowledge and skills necessary to--
    * * * * *
        (7) Follow local discharge reporting procedures;
        (8) Carry out the facility's response plan for discharge reporting 
    and containment; and
        (9) Visually observe transfers continuously throughout the transfer 
    operations to ensure compliance with the procedures required by this 
    part and be immediately available to the transfer personnel.
        15. In Sec. 154.735, the introductory text, paragraphs (l), and (s) 
    through (t) are revised and paragraphs (u) through (w) are added to 
    read as follows:
    
    
    Sec. 154.735  Safety requirements.
    
        Each operator of a facility to which this part applies shall ensure 
    that the following safety requirements are met at the facility:
    * * * * *
        (l) All welding or hot work conducted at the facility, or on any 
    vessel moored to the facility, is the responsibility of the facility 
    owner and operator.
    * * * * *
        (s) Tank cleaning or gas freeing operations conducted by the 
    facility on vessels carrying oil residues or mixtures shall be 
    conducted in accordance with sections 8.1, 8.2, 8.3, and 8.5 of the 
    International Safety Guide for Oil Tankers and Terminals (ISGOTT). 
    Except that--
        (1) Prohibitions in ISGOTT against the use of recirculated wash 
    water do not apply if the wash water is first processed to remove 
    product residues;
        (2) The provision in ISGOTT section 8.2.10 concerning flushing the 
    bottom of tanks after every discharge of leaded gasoline does not 
    apply;
        (3) The provision in ISGOTT section 8.2.11 concerning the removal 
    of sludge, scale, and sediment does not apply if personnel use 
    breathing apparatus which protect them from the tank atmosphere; and
        (4) Upon the request of the facility owner or operator in 
    accordance with Sec. 154.107, the COTP may allow the use of alternative 
    standards to ISGOTT if the COTP determines that the alternative 
    standards provide an equal level of protection to the ISGOTT standards.
        (t) Guards shall be stationed, or equivalent controls acceptable to 
    the COTP shall be used, to detect fires, report emergency conditions, 
    and ensure that access to the marine transfer area from the shoreside 
    and waterside is limited to--
        (1) Personnel who work at the facility including persons assigned 
    for transfer operations, vessel personnel, and delivery and service 
    personnel in the course of their business;
        (2) Coast Guard personnel;
        (3) Other Federal, State, or local governmental personnel; and
        (4) Other persons authorized by the operator.
        (u) Except for those specified in paragraphs (t)(1) and (2) of this 
    section, no person is to be allowed into the marine transfer area 
    unless that person is identified by a facility-issued identification 
    card or other identification card displaying his or her photograph, or 
    is an escorted visitor displaying an identifying badge.
        (v) Smoking shall be prohibited at the facility except that 
    facility owners or operators may authorize smoking in designated areas 
    if--
        (1) The designated smoking areas are in accordance with local 
    ordinances and regulations;
        (2) Signs are conspicuously posted marking such authorized smoking 
    areas; and
        (3) ``No Smoking'' signs are conspicuously posted elsewhere on the 
    facility.
        (w) Warning signs shall be displayed on the facility at the point 
    of transfer, without obstruction, at all times for fixed facilities and 
    for mobile facilities during the coupling, transfer operation, and 
    uncoupling. The warning signs shall conform to 46 CFR 151.45-2(e)(1) or 
    46 CFR 153.955.
        16. In Sec. 154.740, the introductory text and paragraph (b) are 
    revised to read as follows:
    
    
    Sec. 154.740  Records.
    
        Each facility operator shall maintain in the same location as the 
    operations manual and make available for examination by the COTP:
    * * * * *
        (b) The name of each person designated as a person in charge of 
    transfer operations at the facility and certification that the person 
    in charge has completed the training requirements of Sec. 154.710;
    * * * * *
    
    PART 156--OIL AND HAZARDOUS RING OIL OR HAZARDOUS MATERIALS IN BULK
    
        17. The authority citation for part 156 continues to read as 
    follows:
    
        Authority: 33 U.S.C. 1231, 1321(j)(1) (C) and (D); sec. 2, E.O. 
    11735, 38 FR 21243, 3 CFR, 1971-1975 Comp., p. 793; 49 CFR 1.46. 
    Subpart B also issued under 46 U.S.C. 3715(b).
    
    Subpart A--Oil and Hazardous Material Transfer Operations
    
        18. In Sec. 156.120, the introductory paragraph is revised to read 
    as follows:
    
    
    Sec. 156.120  Requirements for transfer.
    
        A transfer is considered to begin when a physical connection of any 
    transfer hose or loading arm is made and no person shall conduct an oil 
    transfer operation unless--
    * * * * * [[Page 10052]] 
        19. In Sec. 156.160, paragraph (c) is revised to read as follows:
    
    
    Sec. 156.160  Supervision by person in charge.
    
    * * * * *
        (c) No person shall transfer oil or hazardous material to or from a 
    vessel unless each person in charge can visually observe the transfer 
    operation continuously throughout the transfer and each person in 
    charge is immediately available to the transfer personnel.
        20. In Sec. 156.170, paragraphs (c)(1)(iv) and (f)(1) are revised, 
    paragraph (f)(2) is redesignated as (f)(3) and revised and new 
    paragraphs (f)(2) and (h) are added to read as follows:
    
    
    Sec. 156.170  Equipment tests and inspections.
    
    * * * * *
        (c) * * *
        (1) * * *
        (iv) Hoses not meeting the requirements of paragraph (c)(1)(i) of 
    this section, may be acceptable after a static liquid pressure test is 
    successfully completed in the presence of the COTP.
    * * * * *
        (f) The frequency of the tests and inspections required by this 
    section must be--
        (1) For active facilities, annually or within 30 days of the first 
    transfer conducted past one year from the date of the last tests and 
    inspections;
        (2) For a facility in caretaker status, within 30 days of the first 
    transfer after the facility is removed from caretaker status; and
        (3) For vessels, annually or as part of the biennial and mid-period 
    inspections.
    * * * * *
        (h) Upon the request of the owner or operator, the COTP may allow 
    alternative methods of compliance to the testing requirements of 
    paragraph (c) of this section if the COTP determines that the 
    alternative methods provide an equal level of protection.
    
        Dated: February 14, 1995.
    J.C. Card,
    Rear Admiral, U.S. Coast Guard, Chief, Office of Marine Safety, 
    Security and Environmental Protection.
    [FR Doc. 95-4405 Filed 2-22-95; 8:45 am]
    BILLING CODE 4910-14-P
    
    

Document Information

Published:
02/23/1995
Department:
Transportation Department
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
95-4405
Dates:
Comments must be received on or before May 24, 1995.
Pages:
10044-10052 (9 pages)
Docket Numbers:
CGD 93-056
RINs:
2115-AE59: Facilities Transferring Oil and Hazardous Material in Bulk (CGD 93-056)
RIN Links:
https://www.federalregister.gov/regulations/2115-AE59/facilities-transferring-oil-and-hazardous-material-in-bulk-cgd-93-056-
PDF File:
95-4405.pdf
CFR: (24)
33 CFR 154.320(a)(1)
33 CFR 154.560(a)
33 CFR 154.310(a)(7)
33 CFR 154.560(e)
33 CFR 154.100
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