Facilities Transferring Oil or Hazardous Materials in Bulk

SUMMARY: The Coast Guard is revising the regulations covering

facilities transferring oil or hazardous materials 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: This rule is effective on February 5, 1997. The Director of the

Federal Register approves as of February 5, 1997 the incorporation by

reference of certain publications listed in the regulations.

ADDRESSES: Unless otherwise indicated, documents referred to in this

preamble are available for inspection or copying at the office of the

Executive Secretary, Marine Safety Council (G-LRA/3406), U.S. Coast

Guard Headquarters, 2100 Second Street SW., room 3406, Washington, DC

20593-0001, between 8 a.m. and 3 p.m., Monday through Friday, except

Federal holidays. The telephone number is (202) 267-1477.

FOR FURTHER INFORMATION CONTACT:

Lieutenant Commander, John W. Farthing, Office of Compliance, (202)

267-0505.

SUPPLEMENTARY INFORMATION:

Regulatory History

On February 23, 1995, the Coast Guard published a notice of

proposed rulemaking (NPRM) entitled ``Facilities Transferring Oil or

Hazardous Materials in Bulk'' in the Federal Register (60 FR 10044).

The Coast Guard received 28 letters commenting on the proposal. One

public meeting was requested; however, due to budgetary constraints and

limitations imposed by organizational changes, none was held.

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 (CFR). 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 in part 154

(Facilities Transferring Oil or Hazardous Materials in Bulk) in a final

rule published on September 4, 1990 (55 FR 6252). Since that time,

numerous comments have been received from industry and Coast Guard

personnel about problems arising from implementation of part 154. The

NPRM addressed proposed changes to alleviate these problems.

These regulations have also been reviewed under the Coastal Zone

Management Act of 1972 (CZMA), (16 U.S.C. 1451 et seq.), as amended,

and its implementing regulations, 15 CFR Parts 921, 923, 925, 927, 928,

932 and 933 as promulgated by the National Oceanic and Atmospheric

Administration (NOAA). Among other things, the CZMA requires that an

applicant for a Federal license or permit to conduct any activity

``affecting any land or water use or natural resource of the coastal

zone'' must provide to the licensing or permitting agency a

certification that the proposed activity will comply with the approved

Coastal Zone Management Program of any affected State (16 U.S.C.

1456(c)(3)). The CZMA Federal consistency requirements further provide

that no Federal license or permit may be granted until the affected

State(s) have concurred with the applicant's certification, such

concurrence is presumed, or the Secretary of Commerce has found that

the activity either is consistent with the CZMA or in the interest of

national security (16 U.S.C. 1456(c)(3)(A)).

However, 16 U.S.C. 1456(f) exempts from Federal consistency

determinations any requirement imposed by or established pursuant to

the Federal Water Pollution Control Act (FWPCA), as amended (33 U.S.C.

1251 et seq.).

Similarly, 16 U.S.C. 1456(e)(1) provides that the CZMA does not

diminish Federal or state jurisdiction over the planning, development,

or control of water resources, submerged lands, or navigable waters,

among other things.

The regulations established in parts 154 and 156 of this rulemaking

could appear to implicate the CZMA and its Federal consistency

requirement because they require Coast Guard approval for bulk

transfers of oil or hazardous materials between facility's and vessels,

for approval of a facility's Operations Manual, and for any alternative

procedure or equipment used to comply with these regulations. These

activities appear to be the type that may affect land or water use or a

natural resource of a coastal zone.

These requirements are intended to protect the coastal environment.

The Coast Guard does not anticipate any conflict between these

regulations and a State's coastal zone management plan. However,

because these regulations are issued under the authority of the FWPCA,

as amended by the Water Quality Act of 1987 (Pub. L. 100-4, 101 Stat.

75) and the Oil Pollution Act of 1990 (Pub. L. 101-380, 104 Stat. 507

et seq.), the Coast Guard finds they are exempt from CZMA consistency

requirements under 16 U.S.C. 1456(f).

The FWPCA requires the issuance of regulations to prevent the

discharge of oil or hazardous materials from vessels and facilities, to

require installation and inspection of discharge removal equipment on

vessels, and to require monitoring, reporting, and recordkeeping

regarding discharges of oil or hazardous materials by facilities (33

U.S.C. 1321(j)(1) (C) and (D), (j)(6) and (m)(2)).

The Coast Guard notes that the existing part 154 and 156

regulations also cite the Ports and Waterways Safety Act (33 U.S.C.

1231) regarding ports and waterways regulations and 46 U.S.C. 3715

regarding lightering; however, those provisions do not address the core

purpose of this rulemaking, which is to regulate bulk oil and hazardous

materials transfers between facilities and vessels. In contrast, the

regulations being implemented today are promulgated under the mandate

of the FWPCA and are consequently exempt from the CZMA's Federal

consistency requirements (16 U.S.C. 1456(f)).

Discussion of Comments and Changes

The Coast Guard received 28 letters commenting on the NPRM entitled

``Facilities Transferring Oil or Hazardous Materials in Bulk''

published in the Federal Register on February 23, 1995 (60 FR 10044),

and has considered the comments in developing this final rule.

Weights and Measures

Coast Guard regulatory practice is that primary weights and

measures be specified in metric units. Therefore, this rule specifies

all weights and measures in metric units followed by English

equivalents. The conversion of weights and measures ensure that

equipment or procedures complying with the English values in the NPRM

will also comply with the metric values in this rule.

[[Page 41453]]

Therefore, the conversions should have no impact on compliance with

this rule.

Applicability

Four comments addressed the proposed changes to Sec. 154.100. Two

of these comments requested that the wording of this section be

clarified to state that these regulations do not apply to offshore

facilities regulated under the Department of Interior's (DOI's)

Minerals Management Service (MMS) regulations in 33 CFR 250. Under

Executive Order 12777, jurisdictional responsibility for offshore

facilities was delegated to MMS. On February 3, 1994, under the

Memorandum of Understanding (MOU) between DOI, the Environmental

Protection Agency (EPA) and the Department of Transportation (DOT),

spill prevention and control, contingency planning, and equipment

inspection activities associated with offshore facilities were assigned

to the DOI. Section 154.100 has been revised to clarify that this part

does not apply to offshore facilities operating under the jurisdiction

of the Secretary of the DOI.

A new paragraph is added to the applicability section which

specifies all of the requirements that are applicable to mobile

transfer facilities.

Definitions

The definitions of ``caretaker status'', ``marine transfer area'',

and ``onshore facility'' have been added, and the definitions of

``facility'', ``offshore facility'' and ``transfer'' have been revised.

The Coast Guard is adding a definition of ``caretaker status'' to

these regulations. ``Caretaker status'' is used to identify a facility

whose marine transfer equipment has been taken out of service. Two

comments discussed the proposed definition of ``caretaker status'' in

the NPRM. One of these comments stated that existing state requirements

for decommissioning criteria obviate the need for a new Federal

definition. One of these comments stated that the Coast Guard should

further justify the need to define the term ``caretaker status''. The

Coast Guard does not agree with these comments. The revised regulations

contain numerous references to facilities that are in a ``caretaker

status''. Without clear definition of this term, it would be difficult

for industry to comply with Coast Guard regulations. The proposed

definition has been clarified to state that it only applies to those

parts of a waterfront facility subject to Coast Guard jurisdiction.

The Coast Guard is also adding a definition for ``marine transfer

area'' to these regulations. This term is used several times in the

existing and revised regulations but has not been previously defined.

The new definition is similar to the one found in other Coast Guard

waterfront facility regulations and is intended to delineate those

areas of a waterfront facility subject to Coast Guard jurisdiction.

Two comments addressed the proposed definition of ``facility''. One

comment requested that a definition of ``onshore facility'' be added to

the regulations. The Coast Guard agrees with this comment and is adding

the definition of ``onshore facility'' as found in the Federal Water

Pollution Control Act (FWPCA) [33 U.S.C. Sec. 1321(a)(10)]. The

definition of ``facility'' has also been clarified to exclude offshore

facilities operating under the jurisdiction of the Secretary of the

DOI. Additionally, the definition of ``offshore facility'' has been

revised to conform with the definition in the authorizing legislation.

Eight comments addressed the proposed revision to the definition of

``transfer''. One comment supported the proposed definition as written.

Seven comments strongly objected to the proposed definition. The

majority of the dissenting comments stated that the proposed definition

would create a regulatory conflict with the requirements of 33 CFR

156.150 which specifies that a transfer may not take place until the

declaration of inspection and all necessary inspections have been

completed by the persons in charge. One comment also requested that the

definition be revised to indicate when a transfer is considered

complete. After review of industry comments, the Coast Guard is

revising the definition of ``transfer'' to state that a transfer begins

when the persons in charge meet to begin the process of completing the

declaration of inspection. This revised definition recognizes standard

industry practices and better focuses the intent of the regulations on

those actions that directly lead to the flow of products. The

definition of ``transfer'' is also being revised to state that a

transfer is considered complete when all the connections for the

transfer have been uncoupled and secured, and when the persons in

charge have completed the declaration of inspection to specify the date

and time the transfer was completed. The rule contains an amendment

that is consistent with the regulations in Sec. 156.150.

Alternatives

Three comments discussed the proposed changes to Sec. 154.107.

These comments generally objected to the extended time frame for review

of a request for alternative procedures, methods or equipment

standards, suggesting that industry could be subjected to hardship if a

facility operator had to wait 60 days for the Captain of the Port

(COTP) to complete the examination of a request for an alternative.

After further review, the Coast Guard is retaining the 30 day time

period for COTPs to review proposed alternatives.

Letter of Intent

One comment was received on the proposed changes to Sec. 154.110

citing that it would be more appropriate to change the requirement in

Sec. 154.1035 to include the requirement for the name of the facility

owner in the Facility Response Plan (FRP). The Coast Guard disagrees

with this comment. The Coast Guard recognizes that including this

information may be duplicative of the FRP requirements; however, FRP

requirements currently only apply to facilities transferring oil and

not to those facilities transferring hazardous materials. As stated in

the preamble to the NPRM, this additional information will be of great

assistance in determining and locating the responsible party during a

spill or other emergency.

Operations Manual: Contents

Seven comments discussed the proposed changes to Sec. 154.310. The

majority of the comments stated that the proposed facility map

requirement was redundant to the information required in the FRP. The

Coast Guard recognizes that this requirement may be duplicative for

some facilities; however, the FRP requirements currently only apply to

those facilities that transfer oil, not to those facilities

transferring hazardous materials. Several of these comments also

objected to the requirement for a single map of the facility, drawn to

scale, to be included in the Operations Manual. The majority of these

comments noted that, for large facilities, a single map of this type

would be impractical. The Coast Guard agrees with these comments and is

revising the proposed requirement to allow multiple maps, plans,

drawings, diagrams or aerial photographs that are considered acceptable

by the COTP in order to comply with this requirement.

Four comments addressed the proposal that Material Safety Data

Sheets (MSDS) be included in the Operations Manual rather than the

information currently required by paragraph 154.310(a)(5). The majority

of comments supported the use of the MSDS, but objected to the

requirements that they be included in the Operations

[[Page 41454]]

Manual. Several comments noted that as large facilities routinely

handle a high volume of products, the Operations Manual could increase

in size by more than a thousand pages. The Coast Guard agrees with

these comments. Noting that facilities are currently required to

maintain MSDSs under subpart F of this part, and under other Federal,

State or local regulations, the Coast Guard is retaining the current

product information requirements in Sec. 154.310(a)(5).

Eight comments discussed the proposal to add the names and

telephone numbers of state and local officials to the list of names and

addresses currently required under paragraph 154.310(a)(7). The

majority of the comments stated that the inclusion of this information

was redundant to the information required by the FRP. The Coast Guard

recognizes this information may be duplicative for some facilities;

however, the Coast Guard emphasizes the importance of this information

and the necessity that it be readily available to transfer personnel.

Several comments requested that the requirement be reworded to allow

the title and position of the appropriate Federal, State and/or local

officials' name to be listed, because of the frequency in personnel

changes. The Coast Guard agrees with these comments and has revised the

regulations to require that the title and/or position instead of the

name be included.

Two comments discussed the proposed requirement that the maximum

allowable working pressure (MAWP) be recorded in the Operations Manual.

Both comments supported the inclusion of this information; therefore,

the proposed language is retained. An editorial correction is also made

to paragraph 154.310(a)(15) to correct the reference.

Four comments addressed the proposed extension of the response

period from 14 to 45 days under paragraph 154.320(a)(1), which amends

the Operations Manual after examination by the COTP. All of these

comments supported the extension of the facility response time in order

to better identify any inadequacies found by the COTP. The proposed

language is retained. Also, an editorial correction is made to

paragraph 154.320(d) to correct the reference.

Operations Manual: Procedures for Examination

The Coast Guard is revising its procedures for reviewing and

approving Operations Manuals in paragraphs 154.300 and 154.325. Rather

than issue a Letter of Adequacy each time an Operations Manual is

reviewed and/or amended, COTPs will now examine the manual to verify it

meets the requirements of this chapter. Facility operators will now

submit two copies of their Operations Manual, or any changes, to the

COTP for review. If the manual, as submitted, meets the requirements of

this chapter, the COTP will return one copy to the facility operator

marked ``Examined by the Coast Guard''. This change will alleviate some

of the paperwork burden on COTPs and on the industry, and conform the

Operations Manual regulations in this chapter to other U.S. Coast Guard

waterfront facility regulations.

Hose Assemblies

Five comments discussed the proposed changes to Sec. 154.500. One

comment supported the proposed language as written. Another comment

stated that some arrangement must be made to ensure that vessels

pumping ashore to the receiving facility do not exceed the facility's

MAWP. The Coast Guard agrees with this comment, and an amendment that

conforms to Sec. 156.120 is being included to ensure that as part of

the process of completing the declaration of inspection, the persons in

charge shall ensure that the transfer pressure does not exceed the

facility's MAWP. Two comments objected to the proposed change, stating

that the current requirements have become industry standards and

changing them would be counterproductive to the intent of the proposed

rule. The Coast Guard does not agree with these comments. As stated in

the NPRM, it is more reasonable for the MAWP to be based on the actual

operational pressure of the transfer system, rather than a pre-

specified number. When the MAWP is based on the actual operational

pressure, industry can develop tests and inspection criteria based on

the needs of the system, avoiding unnecessary expense by testing to a

level far higher than that of their systems' operational pressure.

Closure Devices

Two comments agreed with the proposed changes to Sec. 154.520. One

of these comments requested that language be included stating that a

gasket or other suitable material be installed along with a closure

device. The Coast Guard agrees with this comment and has added language

similar to the requirement in Sec. 156.130 for closure devices.

Small Discharge Containment

Thirteen comments addressed the proposed changes to Sec. 154.530.

All of these comments objected to adding the proposed requirement that

fixed or portable containment be placed under each hose connection

during coupling, uncoupling, and transfer. The majority of the comments

noted that hoses used for transfer operations are normally comprised of

several lengths of hoses flanged together with permanent connections

and it would be infeasible to provide containment under every

connection as they are often located over water or in a vertical

alignment where it is impossible to place containment. Noting that

paragraph 156.120(p) requires the persons in charge to ensure that all

connections in the transfer system are leak free prior to transfer and

that paragraph 156.130 allows for permanently connected flanges, the

Coast Guard has clarified Sec. 154.530 to state that containment is

required under each hose connection that will be coupled or uncoupled

as part of the transfer operation during coupling, uncoupling and

transfer.

Discharge Removal

Ten comments discussed proposed changes to Sec. 154.540. All of

these comments objected to the proposed 1 hour time requirement for

removal of any discharge into the containment. These comments opposed

the new requirement as too restrictive and requested that the

flexibility of the existing language be retained. Noting the

requirement in paragraph 156.120(n) and that the discharge containment

should be periodically drained to provide the required capacity, the

Coast Guard is revising the proposed language to require that any

discharged product by removed from the containment within 1 hour of

completion of the transfer.

The NPRM proposed 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. No comments were received on this recommendation

and the proposed language is retained.

Communications

Four comments discussed the proposed changes to Sec. 154.560. Two

comments agreed with the proposed changes. One comment noted that

labels tend to wear off over time or become unreadable and, as an

alternative, suggested that each facility should be allowed to maintain

documentation on

[[Page 41455]]

the premises certifying that the equipment in use is intrinsically

safe. The Coast Guard agrees with this comment and has revised the

proposed language to allow facility operators the option of maintaining

documentation at the facility, which shows that the equipment in use

meets the requirements of this part. An amendment which conforms to

Sec. 154.740 is also included in the requirement to have these records

available for inspection by the COTP.

Persons in Charge: Designation and Qualification

Fifteen comments discussed the proposed changes to Sec. 154.710.

Some confusion resulted from a misprint in the NPRM that listed

Sec. 154.720(a)(23) as a reference. The correct reference should have

read Sec. 154.310(a)(21), which requires a description of the training

program for persons in charge to be included in the Operations Manual.

The majority of the comments objected to a separate approval of the

facility's training program by the COTP, as this could lead to vast

disparity among the different COTPs as to what training is required.

The majority of the comments also noted that by examining the

Operations Manual, the COTP is already examining the training program

since it is described there in accordance with Sec. 154.310(a)(21). The

Coast Guard agrees with these comments and is removing the requirement

for the COTP to separately approve the facility's training program.

Seven comments addressed the proposal that the person in charge

(PIC) should be in visual sight of the transfer system from the time a

hose connection is completed, until the time the connection is broken.

All of these comments objected to this requirement as unreasonable and

impractical. Several of these comments also noted the requirements in

paragraphs 156.160 (a) and (c) where each PIC must directly supervise

certain critical operations and must be in the immediate vicinity,

immediately available to the transfer personnel. Upon further review,

the Coast Guard is removing this proposal.

The Coast Guard wishes to clarify that the requirements for

designation and qualification as a PIC in this rule apply only to

waterfront facility personnel. The requirements for designation and

qualification as a PIC on vessels are contained in a separate

rulemaking entitled ``Qualifications for Tankermen, and for Persons in

Charge of Transfers of Dangerous Liquids and Liquefied Gases'' (61 FR

17134; April 4, 1995).

New paragraph (e) is being added to Sec. 154.710 to state that

training to meet other regulatory requirements can be used to meet the

requirements of this section as long as that training addresses the

requirements of this section.

Safety Requirements

Twelve comments discussed the proposed changes to Sec. 154.735. Two

of these comments supported the continuation of the hot work permit

program. Several comments supported doing away with the hot work

permit, but objected to the responsibility for the safety of all hot

work on vessels moored to the facility being placed on the facility's

owner and operator. These comments noted the difficulty a facility

would have in providing oversight and subsequent liability concerns.

The Coast Guard agrees with these comments and has removed the language

concerning hot work on vessels, noting that hot work on tankships and

tank barges is already regulated under 46 CFR

35.01-1.

Three comments addressed the proposed changes to Sec. 154.735(s)

providing that tank cleaning or gas freeing operations conducted by the

facility on vessels carrying oil residues or mixtures be conducted in

accordance with specified sections of the International Safety Guide

for Oil Tankers and Terminals (ISGOTT). The provision to allow facility

owners or operators to request the COTP to approve, in accordance with

Sec. 154.107, alternative methods of compliance based on sound industry

practices satisfied these comments. One comment stated that the ISGOTT

manual was being revised in the near future and that the referenced

sections would have to be updated. The Coast Guard has reviewed the new

version of the ISGOTT manual and revised this section accordingly.

Seven comments addressed the proposed security requirements for

waterfront facilities. All of these comments objected to the proposed

requirements. These comments outlined the existing procedures currently

used by facilities for controlling access to marine transfer areas such

as fencing, gates, and video surveillance. The revised rule has been

reworded in a manner similar to the existing text to allow facilities

more flexibility in their security arrangements based on existing

procedures and local conditions. The proposed requirement that

personnel have facility-issued identification cards has been removed.

No comments were received on the proposal to prohibit smoking at

waterfront facilities except in designated areas; therefore, the

proposed language is retained.

Five comments discussed the proposal 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 operations, and uncoupling on a mobile facility. Two of these

comments supported the proposal as written. One comment requested that,

since the requirements for tank vessels and tank barges already cover

the requirements for warning signs at the point of transfer, the

location of the warning signs should be at each shoreside entrance to

the dock or berth for fixed facilities. The Coast Guard agrees with

this comment and has revised the final rule accordingly. One of these

comments requested that facilities with non-exclusive use of dock space

be allowed to use portable signs posted only during transfer

operations. While the Coast Guard agrees with this comment, it believes

this method does not need to be a regulatory requirement, but rather an

alternative that the COTP can approve on a case by case basis.

Records

Seven comments discussed the proposed changes to Sec. 154.740. The

majority of these comments supported the maintaining of records in a

central location. However, all of the comments objected to the

requirement that these records be maintained in the same location as

the Operations Manual. The majority of these comments noted that,

particularly at large facilities, there are multiple copies of the

Operations Manual scattered throughout the facility; however, requiring

these records at each location would create a heavy paperwork burden on

the industry. The majority of these comments requested that the

facility be allowed to designate a centralized location for these

records, since many of them are already computerized. The Coast Guard

agrees with these comments and has revised the final rule to allow

facilities flexibility in designating a centralized location where the

records will be kept.

Conforming changes to certain sections of 33 CFR part 156 have been

made to ensure consistency with the changes made to part 154.

Requirements for Transfer

In 33 CFR 156.120 the definition of ``transfer'' has been revised

to conform to the definition in Sec. 154.105. As previously discussed,

other amendments have been revised to conform to Sec. 156.120(w)(5) to

ensure that transfer pressures do not exceed a

[[Page 41456]]

facility's maximum allowable working pressure (MAWP). A new paragraph

(dd) has been added to Sec. 156.120 to clarify that welding, hot work

and smoking will not be permitted on vessels during transfer

operations. The Coast Guard recognizes that smoking on tank barges or

tank vessels is currently regulated under 46 CFR 35.30-5. However,

numerous problems have developed because vessel personnel have been

discovered smoking during the bunkering of freight vessels which are

not currently covered under the regulations. An editorial correction is

made to Sec. 156.120(f) to correct the reference.

Supervision by Person in Charge

Eight comments addressed the proposed changes to Sec. 156.160. All

of these comments objected to the proposed requirement as impractical

and infeasible due to the length of time that transfers take, and the

need to occasionally stop a transfer for weather, other facility

operations, equipment checks, or crew rest breaks. The Coast Guard

agrees with these comments and has retained the original text of the

regulations.

Equipment Tests and Inspections

Five comments addressed the proposed changes to Sec. 156.170. One

comment requested that, as stated in the preamble, language in the

final rule include a provision stating that the test medium does not

have to be water. The Coast Guard agrees with this comment and has

revised the final rule accordingly. However, facility operators are

cautioned against using oil or hazardous material as a test medium.

Because leaks are an expected result of any test, a discharge of oil or

hazardous material resulting from a test could be considered a willful

discharge. An editorial correction is made to Sec. 156.170(c)(1)(i) to

correct the reference.

One comment requested that components that have been gas-freed and

blanked-off be exempted from the testing requirements. This comment

stated that industry frequently takes some components out of service

for extended periods of time; therefore, these components should not be

required to be tested unless they are returned to service. The

revisions to the proposed text allow this option as the Coast Guard has

removed the word ``active'' from the proposed Sec. 156.170(f)(1) so

that facilities that are not in a caretaker status will be required to

conduct their tests either annually, or not less than 30 days prior to

the first transfer past the one year inspection date. For example, if a

facility had previously tested its components, and then had removed

these components from service for the previous 15 months, this facility

would be required to test the components that had been removed from

service not less than 30 days prior to the first transfer using the

components.

Two comments supported the proposal to give the COTP the authority

to approve alternative methods of compliance to the testing

requirements in this section. Therefore, the proposed language is

retained.

Exemptions

Editorial corrections are being made to Sec. 154.108 and

Sec. 156.110 to reflect the change in the office title from Chief,

Office of Marine Safety, Security and Environmental Protection to the

Chief, Marine Safety and Environmental Protection. This change is a

result of recent Coast Guard streamlining initiatives.

Incorporation by Reference

The Director of the Federal Register has approved the material in

Sec. 154.106 for incorporation by reference under 5 U.S.C. 552 and 1

CFR part 51. The material is available as indicated in that section.

Regulatory Evaluation

This 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 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 2,591 fixed and 539 mobile marine

transportation related facilities will be affected by these

regulations. Many of the revisions are clarifying changes that will

impose no additional costs on facilities presently in compliance with

the regulations. For example, information previously kept separately is

now required to be kept in the same location. Since this information is

not required to be included in the operations manual, no additional

cost is incurred for the review by the Coast Guard or the facility.

There are some new requirements associated with this Final Rule.

These requirements include the following: a map or maps, drawings, or

other diagrams acceptable to the COTP showing the boundaries of the

Coast Guard's jurisdiction (Sec. 154.310(a)(2)); additional

requirements for mobile transfer facilities including sufficient fire

extinguishers, protective equipment, three-way warning signs,

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)); and three-way warning signs

(Sec. 154.735(v)).

However, other revisions lessen the burden on industry. Examples of

the reduction in burden are the deletion of the requirement that

transfer hoses have a maximum allowable working pressure of at least

150 psi (Sec. 154.500(b)) and deletion of the requirement for a

facility to obtain a hot work permit (Sec. 154.735(1)).

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 $5,448,235, when capital costs are incurred over a 5 year period.

The overriding benefit of the regulations to industry and the Coast

Guard would be the establishment of rules that are easier to understand

and that would 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

regulations are designed to achieve an overall reduction of oil and

hazardous materials spilled into the water by 20%. The weighted average

of the annual volume of bulk oil and hazardous material spilled from

1986 to 1995 from facilities was 4,124,430 gallons. The estimated costs

of spill cleanup, third party damages, and natural resource damages

resulting from this volume total $82,488,600. a 20% reduction will give

an annual benefit of $16,497,720.

Comparing the monetary benefits of the provisions against the

compliance cost to industry, the annual benefit of the regulations is

estimated to be $11,049,485.

Small Entities

Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) and

1996 amendments (enacted as Chapter 8 of Title 5, U.S. Code) the Coast

Guard must consider whether this rule, if adopted, will have a

significant economic impact on a substantial number of small

[[Page 41457]]

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 established by this rule, 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 rule, as adopted, will not have a significant economic impact on a

substantial number of small entities.

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 rule contains new collection-of-information requirements in

the following sections: Sec. 154.310 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 required that information, presently

kept separately, now be kept in a centralized location. However, little

new information is required. Maintaining all records in one location

where they are readily accessible will encourage facility owners and

operators to be better prepared and thereby help to prevent spills and

accidents resulting from improper procedures.

Proposed Use of Information: To determine regulatory compliance.

Frequency of Response: On occasion.

Burden Estimate: 22,632 hours per year.

Respondents: 3,130 operators of bulk oil and hazardous materials

transfer facilities.

Form(s): Not applicable.

Average Burden Hours per Respondent: 15.8 hours to prepare and

submit an amendment to an existing Operations Manual and 88 hours to

prepare and submit a new Operations Manual.

Persons are not required to respond to a collection of information

unless it displays a currently valid OMB control number. This final

rule contains information collection requirements which have been

approved under OMB no. 2115-0078 and which expires on July 31, 1996.

The Coast Guard has submitted the requirements to OMB for review and

renewal under section 3504(h) of the Paperwork Reduction Act.

The U.S. Coast Guard will publish a notice in the Federal Register

prior to the effective date of this final rule of OMB's decision to

approve, modify or disapprove the information collection requirements.

Individuals and organizations may submit comments on the information

collection requirements by October 7, 1996, and should direct them to

the Executive Secretary, Marine Safety Council (address above) and to

the Office of Information and Regulatory Affairs, OMB, New Executive

Office Bldg., rm 10235, 725 17th St. NW., Washington, DC 20503,

Attention: Desk Officer for DOT.

Federalism

The Coast Guard has analyzed this rule 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.

Environment

The Coast Guard considered the environmental impact of this final

rule and concluded that, under paragraph 2.B.2.e(34)(A), (D), and (E)

of Commandant Instruction M16475.1B, this rulemaking is categorically

excluded from further environmental documentation.

This rulemaking will have no direct environmental impact. This

rulemaking will revise the regulations covering facilities transferring

oil or hazardous material in bulk. these revisions will clarify and

consolidate the present rules, as well as adding a number of new

operational requirements. A ``Categorical Exclusion Determination'' is

available in the docket for inspection or copying where indicated under

``ADDRESSES''.

List of Subjects

33 CFR Part 154

Fire prevention, Hazardous substances, Oil pollution, Reporting and

recordkeeping requirements, Incorporation by reference.

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 is

amending 33 CFR parts 154 and 156 as follows:

PART 154--FACILITIES TRANSFERRING OIL OR HAZARDOUS MATERIAL 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 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 materials, in bulk, to or from a vessel,

where the vessel has a total capacity, from a combination of all bulk

products carried, of 39.75 cubic meters (250 barrels) or more. This

part does not apply to the facility when it is in a caretaker status.

This part does not apply to any offshore facility operating under the

jurisdiction of the Secretary of the Department of Interior.

* * * * *

(d) The following sections of this part apply to mobile facilities:

(1) Section 154.105 Definitions.

(2) Section 154.107 Alternatives.

(3) Section 154.108 Exemptions.

(4) Section 154.110 Letter of Intent.

(5) Section 154.120 Facility examinations.

(6) Section 154.300 Operations Manual: General.

(7) Section 154.310 Operations Manual: Contents. Paragraphs (a)(2),

(a)(3), (a)(5) through (a)(7), (a)(9), (a)(12), (a)(14), (a)(16),

(a)(17)(ii) through (a)(17)(iv), (a)(18), (a)(20) through (23), (c) and

(d).

(8) Section 154.320 Operations Manual: Amendment.

(9) Section 154.325 Operations Manual: Procedures for examination.

(10) Section 154.500 Hose assemblies. Paragraphs (a), (b), (c),

(d)(1) through (3) and (e)(1) through (3).

(11) Section 154.520 Closure devices.

(12) Section 154.530 Small discharge containment. Paragraphs (a)(1)

through (3) and (d).

(13) Section 154.545 Discharge containment equipment.

(14) Section 154.550 Emergency shutdown.

[[Page 41458]]

(15) Section 154.560 Communications.

(16) Section 154.570 Lighting. Paragraphs (c) and (d).

(17) Section 154.700 General.

(18) Section 154.710 Persons in charge: Designation and

qualification. Paragraphs (a) through (c), (d)(1) through (3), (d)(7)

and (e).

(19) Section 154.730 Persons in charge: Evidence of designation.

(20) Section 154.735 Safety requirements. Paragraphs (d), (f), (g),

(j)(1) through (2), (k)(1) through (2), (m), (o) through (q), (r)(1)

through (3), (s) and (v).

(21) Section 154.740 Records. Paragraphs (a) through (f) and (j).

(22) Section 154.750 Compliance with Operations Manual.

3. In Sec. 154.105, the following definitions of ``Caretaker

Status'', ``Marine Transfer Area'', and ``Onshore Facility'' are added

in alphabetical order and the definitions of ``Facility'', ``Offshore

Facility'' and ``Transfer'' are revised to read as follows:

Sec. 154.105 Definitions.

* * * * *

Caretaker Status denotes a facility where all piping, hoses,

loading arms, storage tanks, and related equipment in the marine

transfer area are completely free of oil or hazardous materials, where

these components have been certified as being gas free, where piping,

hoses, and loading arms terminating near any body of water have been

blanked, and where the facility operator has notified the COTP that the

facility will be in caretaker status.

* * * * *

Facility means either an onshore or offshore facility, except for

an offshore facility operating under the jurisdiction of the Secretary

of the Department of Interior, and includes, but is not limited to,

structure, equipment, and appurtenances thereto, used or capable of

being used to transfer oil or hazardous materials to or from a vessel

or public vessel. Also included are facilities that tank clean or strip

and any floating structure that is used to support an integral part of

the facility's operation. A facility includes federal, state,

municipal, and private facilities.

* * * * *

Marine transfer area means that part of a waterfront facility

handling oil or hazardous materials in bulk between the vessel, or

where the vessel moors, and the first manifold or shutoff valve on the

pipeline encountered after the pipeline enters the secondary

containment around the bulk storage tank required under 40 CFR 112.7

inland of the terminal manifold or loading arm, or, in the absence of

secondary containment, to the valve or manifold adjacent to the bulk

storage tank, including the entire pier or wharf to which a vessel

transferring oil or hazardous materials is moored.

* * * * *

Offshore facility means any facility of any kind located in, on, or

under, any of the navigable waters of the United States, and any

facility of any kind which is subject to the jurisdiction of the United

States and is located in, on, or under any other waters, other than a

vessel or a public vessel.

* * * * *

Onshore facility means any facility (including, but not limited to,

motor vehicles and rolling stock) of any kind located in, on, or under

any land within the United States other than submerged land.

* * * * *

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 the person in charge on the

transferring vessel or facility and the person in charge on the

receiving facility or vessel first meet to begin completing the

declaration of inspection as required by Sec. 156.150 of this chapter.

A transfer is considered to be complete when all the connections for

the transfer have been uncoupled and secured with blanks or other

closure devices and both of the persons in charge have completed the

declaration of inspection to include the date and time the transfer was

complete.

* * * * *

4. In Sec. 154.106, paragraphs (a) and (b) and the entries for

``National Fire Protection Association (NFPA)'' and ``Oil Companies

International Marine Forum (OCIMF)'' are revised to read as follows:

Sec. 154.106 Incorporation by reference.

(a) Certain material is incorporated by reference into this part

with the approval of the Director of the Federal Register in accordance

with 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other

than that specified in paragraph (b) of this section, the Coast Guard

must publish notice of change in the Federal Register and make the

material available to the public. All approved material is on file at

the Office of the Federal Register, 800 North Capitol Street NW., suite

700, Washington, DC and at the U.S. Coast Guard, Office of the

Compliance (G-MOC), Room 1116, 2100 Second Street SW., Washington, DC

20593-0001, and is available from the sources indicated in paragraph

(b) of this section.

(b) The material approved for incorporation by reference in this

part and the sections affected are:

* * * * *

National Fire Protection Association (MFPA), 1 Batterymarch Park,

Quincy, MA 02269-9101

NFPA 51B, Standard for Fire Prevention in Use of Cutting and

Welding Processes, 1994.........................................154.735

* * * * *

Oil Companies International Marine Forum (OCIMF), 96 Victoria Street,

15th Floor, London SW1E 5JW, England

International Safety Guide for Oil Tankers and Terminals, Section

6.10, Fourth Ed., 1996..........................................154.810

International Safety Guide for Oil Tankers and Terminals,

Sections 9.1, 9.2, 9.3 and 9.5, Fourth Ed., 1996................154.735

5. Section 154.107 is amended by revising paragraph (b) to read as

follows:

Sec. 154.107 Alternative.

* * * * *

(b) The COTP takes final approval or disapproval action on the

request, submitted in accordance with paragraph (a) of this section, in

writing within 30 days of receipt of the request.

6. Section 154.108 is amended by revising paragraphs (a)

introductory text and (d) to read as follows:

Sec. 154.108 Exemptions.

(a) The Chief, Marine Safety and Environmental Protection, acting

for the Commandant, grants an exemption or partial exemption from

compliance with any requirement in this part if:

* * * * *

(d) An exemption is granted or denied in writing. The decision of

the Chief, Marine Safety and Environmental Protection is a final agency

action.

7. 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

8. In Sec. 154.300, paragraphs (a) introductory text, (c), (e) and

(f) are revised to read as follows (the note following paragraph (b) is

unchanged):

Sec. 154.300 Operations Manual: General.

(a) The facility operator of each facility to which this part

applies shall

[[Page 41459]]

submit, with the letter of intent, two copies of an Operations Manual

that:

* * * * *

(c) The COTP shall examine the Operations Manual when submitted,

after any substantial amendment, and as otherwise required by the COTP.

* * * * *

(e) If the manual meets the requirements of this part and part 156

of this chapter, the COTP will return one copy of the manual marked

``Examined by the Coast Guard'' as described in Sec. 154.325.

(f) The facility operator shall ensure that a sufficient number of

copies of the examined Operations Manual, including a sufficient number

of the translations required by paragraph (a)(3) of this section, are

readily available for each facility person in charge while conducting a

transfer operation.

* * * * *

9. In Sec. 154.310, paragraphs (a)(2), (a)(7), (a)(15), (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 plan and/or

plans, maps, drawings, aerial photographs or diagrams, showing the

boundaries of the facility subject to Coast Guard jurisdiction, mooring

areas, transfer locations, control stations, wharfs, the extent and

scope of the piping subject to the tests required by Sec. 156.170(c)(4)

of this chapter, and the locations of safety equipment. For mobile

facilities, a physical description of the facility;

* * * * *

(7) The name and telephone number of the qualified individual

identified under Sec. 154.1026 of this part and the title and/or

position and telephone number of the Coast Guard, State, local, and

other personnel who may be called by the employees of the facility in

an emergency;

* * * * *

(15) Quantity, type, location, and instructions for use of fire

extinguishing equipment required by Sec. 154.735(d) of this part;

(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, symbols, color

codes or other system acceptable to the COTP representing all such

products and the location in the Operations Manual where a chart or

list of symbols utilized is located 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 conduct tank cleaning or stripping

operations, a description of their procedures.

* * * * *

10. In Sec. 154.320, paragraphs (a)(1) and (d) are 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.

* * * * *

(d) Amendments to personnel and telephone number lists required by

Sec. 154.310(a)(7) of this part do not require examination by the COTP,

but the COTP must be advised of such amendments as they occur.

11. Section 154.325 is revised to read as follows:

Sec. 154.325 Operations Manual: Procedures for examination.

(a) The operator of a facility shall submit two copies of the

Operations Manual to the Captain of the Port of the zone in which the

facility is located.

(b) Not less than 60 days prior to any transfer operation, the

operator of a new facility shall submit, with the letter of intent, two

copies of the Operations Manual to the Captain of the Port of the zone

in which the facility is located.

(c) After a facility is removed from caretaker status, not less

than 30 days prior to any transfer operation the operator of that

facility shall submit two copies of the Operations Manual to the COTP

of the zone in which the facility is located unless the manual has been

previously examined and no changes have been made since the

examination.

(d) If the COTP finds that the Operations Manual meets the

requirements of this part and part 156 of this chapter, the COTP will

return one copy of the manual to the operator marked ``Examined by the

Coast Guard''.

(e) If the COTP finds that the Operations Manual does not meet the

requirements of this part and/or part 156 of this chapter, the COTP

will return the manuals with an explanation of why it does not meet the

requirements of this chapter.

(f) No person may use any Operations Manual for transfer operations

as required by this chapter unless the Operations Manual has been

examined by the COTP.

(g) The Operations Manual is voided if the facility operator--

(1) Amends the Operations Manual without following the procedures

in Sec. 154.320 of this part;

(2) Fails to amend the Operations Manual when required by the COTP;

or

(3) Notifies the COTP in writing that the facility will be placed

in caretaker status.

Subpart C--Equipment Requirements

12. 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 relief valve is

installed) plus the static head pressure of the transfer system, at the

point where the hose is installed.

* * * * *

13. 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

[[Page 41460]]

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

and/or loading arms must be blanked off during the transfer of oil or

hazardous material. A suitable material in the joints and couplings

shall be installed on each end of the hose assembly or loading arm not

being used for transfer to ensure a leak-free seal.

(b) A new, unused hose, and a hose that has been cleaned and is gas

free, is exempt from the requirements of paragraph (a) of this section.

14. 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 and loading arm 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 that will be coupled or uncoupled as

part of the transfer operation during coupling, uncoupling, and

transfer.

* * * * *

(e) Fixed or portable containment may be used to meet the

requirements of paragraph (a)(3) of this section.

15. 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 remove discharged oil or hazardous material, within one hour of

completion of the transfer, from the containment required by

Sec. 154.530 of this part without discharging the oil or hazardous

material into the water.

16. 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.

17. 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 as defined

in 46 CFR 111.105-11. As an alternative to the marking requirement,

facility operators may maintain documentation at the facility

certifying that the portable radio devices in use at the facility are

in compliance with this section. Subpart D--Facility Operations.

18. In Sec. 154.710, paragraphs (b), (c), (d) introductory text,

(d)(7) and (d)(8) are revised and paragraph (e) is added to read as

follows:

Sec. 154.710 Persons in charge: Designation and qualification.

* * * * *

(b) The person has had at least 48 hours of experience in transfer

operations at a facility in operations to which this part applies. The

person also has enough experience at the facility for which

qualification is desired to enable the facility operator to determine

that the person's experience is adequate;

(c) The person has completed a training and qualification program

established by the facility operator and described in the Operations

Manual in accordance with Sec. 154.310(a)(21), that provides the person

with the knowledge and training necessary to properly operate the

transfer equipment at the 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 the COTP may approve alternative experience and

training requirements for new facilities; and

(d) The facility operator must certify that each person in charge

has the knowledge of, and skills necessary to--

* * * * *

(7) Follow local discharge reporting procedures; and

(8) Carry out the facility's response plan for discharge reporting

and containment.

(e) Training conducted to comply with the hazard communication

programs required by the Occupational Safety and Health Administration

(OSHA) of the Department of Labor (DOL) (29 CFR 1910.1200) or the

Environmental Protection Agency (EPA) (40 CFR 311.1), or to meet the

requirements of subpart F of this part may be used to satisfy the

requirements in paragraphs (c) and (d) of this section, as long as the

training addresses the requirements in paragraphs (c) and (d) of this

section.

19. In Sec. 154.735, the introductory text, paragraphs (l) and (s)

through (t) are revised and paragraphs (u) through (v) 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 on or at the facility is the

responsibility of the facility operator. The COTP may require that the

operator of the facility notify the COTP before any welding or hot work

operations are conducted. Any welding or hot work operations conducted

on or at the facility must be conducted in accordance with NFPA 51B.

The facility operator shall ensure that the following additional

conditions or criteria are met:

(1) Welding or hot work is prohibited during gas freeing

operations, within 30.5 meters (100 feet) of bulk cargo operations

involving flammable or combustible materials, within 30.5 meters (100

feet) of fueling operations, or within 30.5 meters (100 feet) of

explosives or 15.25 meters (50 feet) of other hazardous materials.

(2) If the welding or hot work is on the boundary of a compartment

(i.e., bulkhead, wall or deck) an additional fire watch shall be

stationed in the adjoining compartment.

(3) Personnel on fire watch shall have no other duties except to

watch for the presence of fire and to prevent the development of

hazardous conditions.

(4) Flammable vapors, liquids or solids must first be completely

removed from any container, pipe or transfer line subject to welding or

hot work.

(5) Tanks used for storage of flammable or combustible substances

must be tested and certified gas free prior to starting hot work.

(6) Proper safety precautions in relation to purging, inserting, or

venting shall be followed for hot work on containers;

(7) All local laws and ordinances shall be observed;

(8) In case of fire or other hazard, all cutting, welding or other

hot work equipment shall be completely secured.

* * * * *

(s) Tank cleaning or gas freeing operations conducted by the

facility on vessels carrying oil residues or mixtures shall be

conducted in accordance with

[[Page 41461]]

sections 9.1, 9.2, 9.3, and 9.5 of the OCIMF 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 9.2.10 concerning flushing the

bottom of tanks after every discharge of leaded gasoline does not

apply;

(3) The provision in ISGOTT section 9.2.11 concerning that 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 approve 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 are stationed, or equivalent controls acceptable to the

COTP are used to detect fires, report emergency conditions, and ensure

that access to the marine transfer area 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 officials; and

(4) Other persons authorized by the operator.

(u) Smoking shall be prohibited at the facility except that

facility owners or operators may authorize smoking in designated areas

if--

(1) Smoking areas are designated 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.

(v) Warning signs shall be displayed on the facility at each

shoreside entry to the dock or berth, without obstruction, at all times

for fixed facilities and for mobile facilities during coupling,

transfer operation, and uncoupling. The warning signs shall conform to

46 CFR 151.45-2(e)(1) or 46 CFR 153.955.

20. In Sec. 154.740, the introductory text and paragraph (b) are

revised and paragraph (j) is added to read as follows:

Sec. 154.740 Records.

Each facility operator shall maintain at the facility 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 each person

in charge has completed the training requirements of Sec. 154.710 of

this part;

* * * * *

(j) If they are not marked as such, documentation that the portable

radio devices in use at the facility under Sec. 154.560 of this part

are intrinsically safe.

PART 156--OIL AND HAZARDOUS MATERIAL TRANSFER OPERATIONS

21. The authority citation for part 156 continues to read as

follows:

Authority: 33 U.S.C. 1231, 1321(j)(1) (C) and (D); 46 U.S.C.

3715; E.O. 12777, 56 FR 54757, 3 CFR, 1991 Comp., p. 351, 49 CFR

1.46. Section 156.120(bb) is issued under the authority of section

4110, Pub. L. 101-380, 104 Stat. 515.

Subpart A--Oil and Hazardous Materials Transfer Operations

22. Section 156.110 is amended by revising paragraphs (a)

introductory text and (d) to read as follows:

Sec. 156.110 Exemptions.

(a) The Chief, Marine Safety and Environmental Protection, acting

for the Commandant, may grant an exemption or partial exemption from

compliance with any requirement in this part, and the District

Commander may grant an exemption or partial exemption from compliance

with any operating condition or requirement in subpart C of this part,

if:

* * * * *

(d) An exemption is granted or denied in writing. The decision of

the Chief, Marine Safety and Environmental Protection is a final agency

action.

23. In Sec. 156.120, the introductory text and paragraphs (f) and

(w)(5) are revised and paragraphs (cc) and (dd) are added to read as

follows:

Sec. 156.120 Requirements for transfer.

A transfer is considered to begin when the person in charge on the

transferring vessel or facility and the person in charge on the

receiving facility or vessel first meet to begin completing the

declaration of inspection, as required by Sec. 156.150 of this part. No

person shall conduct an oil or hazardous material transfer operation

unless:

* * * * *

(f) The end of each hose and loading arm that is not connected for

the transfer of oil or hazardous material is blanked off using the

closure devices required by Secs. 154.520 and 155.805 of this chapter;

* * * * *

(w) * * *

(5) Details of the transferring and receiving systems including

procedures to ensure that the transfer pressure does not exceed the

maximum allowable working pressure (MAWP) for each hose assembly,

loading arm and/or transfer pipe system;

* * * * *

(cc) Smoking is not permitted in the facilities marine transfer

area except in designated smoking areas.

(dd) Welding, hot work operations and smoking are prohibited on

vessels during the transfer of flammable or combustible materials,

except that smoking may be permitted in accommodation areas designated

by the master.

24. In Sec. 156.150, paragraphs (c)(3) and (c)(5) are revised and

paragraph (c)(6) is added to read as follows:

Sec. 156.150 Declaration of inspection.

* * * * *

(c) * * *

(3) The date and time the transfer operation is started;

* * * * *

(5) A space for the date, time of signing, signature, and title of

each person in charge during transfer operations on the transferring

vessel or facility and a space for the date, time of signing,

signature, and title of each person in charge during transfer

operations on the receiving facility or vessel certifying that all

tests and inspections have been completed and that they are both ready

to begin transferring product; and

(6) The date and time the transfer operation is completed.

* * * * *

25. In Sec. 156.170, paragraphs (c)(1)(i), (c)(1)(iv) and (f)(1)

are revised, paragraph (f)(2) is revised and redesignated as (f)(3) and

paragraphs (f)(2) and (h) are added to read as follows:

Sec. 156.170 Equipment tests and inspections.

* * * * *

(c) * * *

(1) * * *

(i) Have no unrepaired loose covers, kinks, bulges, soft spots or

any other defect which would permit the discharge of oil or hazardous

material through the hose material, and no

[[Page 41462]]

gouges, cuts or slashes that penetrate the first layer of hose

reinforcement as defined in Sec. 156.120(i).

* * * * *

(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. The test medium is

not required to be water.

* * * * *

(f) * * *

(1) For facilities, annually or not less than 30 days prior to the

first transfer conducted past one year from the date of the last tests

and inspections;

(2) For a facility in caretaker status, not less than 30 days prior

to 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 approve

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: July 30, 1996.

J.C. Card,

U.S. Coast Guard, Chief, Marine Safety and Environmental Protection.

[FR Doc. 96-20020 Filed 8-7-96; 8:45 am]

BILLING CODE 4910-14-M