Facilities Transferring Oil or Hazardous Materials in Bulk

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