[Federal Register Volume 60, Number 36 (Thursday, February 23, 1995)]
[Proposed Rules]
[Pages 10044-10052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4405]



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DEPARTMENT OF TRANSPORTATION
33 CFR Parts 154 and 156

[CGD 93-056]
RIN 2115-AE59


Facilities Transferring Oil or Hazardous Materials in Bulk

AGENCY: Coast Guard, DOT.

[[Page 10045]] ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to revise the regulations covering 
facilities transferring oil or hazardous material in bulk. These 
revisions are intended to update and clarify the current regulations. 
The revisions should result in regulations that are more effective in 
providing a high level of safety and environmental protection.

DATES: Comments must be received on or before May 24, 1995.

ADDRESSES: Comments may be mailed to the Executive Secretary, Marine 
Safety Council (G-LRA/3406) (CGD 93-056), U.S. Coast Guard 
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may 
be delivered to room 3406 at the same address between 8 a.m. and 3 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is (202) 267-1477. Comments on collection-of-information 
requirements must be mailed also to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, 725 17th Street 
NW, Washington, DC 20503, ATTN: Desk Officer, U.S. Coast Guard.
    The Executive Secretary maintains the public docket for this 
rulemaking. Comments will become part of this docket and will be 
available for inspection or copying at room 3406, U.S. Coast Guard 
Headquarters, between 8 a.m. and 3 p.m., Monday through Friday, except 
Federal holidays.

FOR FURTHER INFORMATION CONTACT: Lieutenant Jonathan C. Burton, Marine 
Environmental Protection Division, (202) 267-6714.

SUPPLEMENTARY INFORMATION:

Request for Comments

    The Coast Guard encourages interested persons to participate in 
this rulemaking by submitting written data, views, or arguments. 
Persons submitting comments should include their names and addresses, 
identify this rulemaking (CGD 93-056) and the specific section of this 
proposal to which each comment applies, and give the reason for each 
comment. Please submit two copies of all comments and attachments in an 
unbound format, no larger than 8 by 11 inches, suitable for copying and 
electronic filing. Persons wanting acknowledgment of receipt of 
comments should enclose stamped, self-addressed postcards or envelopes.
    The Coast Guard will consider all comments received during the 
comment period. It may change this proposal in view of the comments.
    The Coast Guard plans no public hearing. Persons may request a 
public hearing by writing to the Marine Safety Council at the address 
under ADDRESSES. The request should include the reasons why a hearing 
would be beneficial. If it determines that the opportunity for oral 
presentations will aid this rulemaking, the Coast Guard will hold a 
public hearing at a time and place announced by a later notice in the 
Federal Register.

Drafting Information

    The principal persons involved in drafting this document are 
Lieutenant Jonathan C. Burton, Project Manager, Marine Environmental 
Protection Division and Ms. Helen Boutrous, Project Counsel, Office of 
Chief Counsel.

Background and Purpose

    Until 1990, the regulations covering the transfer of products 
between vessels and facilities capable of transferring oil or hazardous 
materials in bulk to or from a vessel with a capacity of 250 barrels or 
more were contained in two different parts of the Code of Federal 
Regulations. Facilities transferring oil in bulk were covered by 33 CFR 
part 154, while those transferring hazardous materials in bulk were 
covered by 33 CFR part 126 (Handling of Explosives or Other Dangerous 
Cargoes Within or Contiguous to Waterfront Facilities). The Coast Guard 
consolidated and revised the provisions into part 154 (Facilities 
Transferring Oil or Hazardous Material in Bulk) in a final rule 
published on September 4, 1990 (55 FR 36252). Since that time, numerous 
comments have been received from Coast Guard personnel and industry 
about problems in working with part 154. Coast Guard personnel and 
industry advisory groups have provided numerous suggestions for 
improving part 154. In 1992, a Coast Guard task force, chartered as the 
result of a General Accounting Office report on the Coast Guard's 
facility inspection program, recommended a number of changes to 33 CFR 
part 154. Based on the task force's recommendations, the Coast Guard 
decided to initiate a rulemaking project to review all of 33 CFR part 
154. A solicitation was sent to all Coast Guard Marine Safety Officers 
and Captains of the Ports asking for assistance in identifying problem 
areas. Every unit solicited responded with comments identifying changes 
to provisions that, if adopted, would greatly improve their facility 
oversight and enforcement operations, and thereby enhance industry's 
ability to comply with the regulations.

Discussion of Proposed Changes

Section 154.100  Applicability

    There has been confusion regarding the applicability of the 
regulations in 33 CFR part 154. Particularly, there has been confusion 
over whether applicability is determined by the capacity of the 
facility or the capacity of the vessel. The proposed rule seeks to 
clarify that the total capacity of the vessel is the determining 
factor. Part 154 applies to facilities transferring oil or hazardous 
materials to vessels capable of carrying 250 barrels or more of oil or 
hazardous materials, or a combination of oil types, or hazardous 
materials, or both.
    Also, a new paragraph is proposed to be added to the applicability 
section which would specify all of the requirements that are applicable 
to mobile transfer facilities. Both industry and Coast Guard personnel 
have indicated that such a provision would be helpful. Inclusion of 
this paragraph should eliminate confusion in determining which 
requirements are applicable to mobile facilities.
    Included in the proposed list of requirements that would apply to 
mobile facilities are certain safety requirements found in Sec. 154.735 
that do not currently apply to mobile facilities. These include 
standards for access to the mobile facility by firefighting personnel, 
proper storage of hazardous material, sufficient fire extinguishers, 
rubbish containment, protective equipment, heating equipment placement, 
electrical wiring and three way warning signs. Additionally, this NPRM 
proposes to subject mobile facilities to the ``person in charge 
requirements'' of 33 CFR 154.710. Comments on the cost of applying 
these regulations to mobile facilities are requested.

Section 154.105  Definitions

    A definition for ``caretaker status'', and revisions to the 
definitions of ``facility'', and ``transfer'' are proposed.
    ``Caretaker status'' is proposed to be defined as a facility that 
is free of oil or hazardous material, certified as gas free and where 
specified piping has been blanked off and the letter of adequacy has 
been suspended by the COTP.
    The proposed revisions to the definition of ``facility'' clarify 
that tank cleaning and stripping facilities, and floating docks or 
barges used as part of the transfer platform, are considered to be 
within the definition of facility. The proposed rule also makes it 
clear that barges and other floating structures used to support an 
intricate part of the facility's operation, such as piping for 
[[Page 10046]] the facility, are to be considered part of the facility.
    Finally, the proposed revision to the definition of ``transfer'' 
would specify that a transfer begins once the transfer hose is 
connected, thereby requiring owners and operators to comply with the 
safety requirements pertaining to the transfer of oil or hazardous 
material at an early stage of the process. Safety measures at this 
stage are crucial because as soon as a transfer hose is connected, 
there is a risk of oil or hazardous material being inadvertently 
transferred, resulting in a spill. Therefore, hose connections should 
be made only while complying with the supervisory and other 
requirements specified in part 154.

Section 154.107  Alternatives

    This section is proposed to be revised to provide that the Captain 
of the Port (COTP) will take final approval or disapproval action 
within 60 days, rather than 30 days, of a request from a facility 
operator to use alternate methods, procedures or equipment standards 
from those required by part 154. The additional 30 days will allow more 
time for the COTP to thoroughly evaluate requests. Every effort will be 
made to respond to requests in less than 60 days if possible.

Section 154.110  Letter of Intent

    This NPRM proposes to require that the facility owner's name, 
address, and telephone number be included in the letter of intent 
required by Sec. 154.110. Currently, this information is required of 
the facility operator only. This additional information will be of 
great assistance in determining and locating the responsible party 
during a spill or other emergency.

Section 154.310  Operations Manual: Contents

    This NPRM proposes to require that a map of the facility, drawn to 
scale, be included in the operations manual. In the past there has been 
confusion among industry and enforcement personnel over the boundaries 
of various facilities subject to regulation. The required map would 
depict the physical boundaries of the facility and include all 
structures, such as wharfs, and would indicate which piping in the 
facility is subject to the testing requirements of 33 CFR 
156.170(c)(4). This revision would assist Coast Guard and industry 
personnel in more readily determining which pipes are subject to Coast 
Guard inspection as opposed to those regulated by the Environmental 
Protection Agency. The accuracy of the facility operator's 
determinations as to which pipes are subject to Coast Guard inspection 
under Sec. 156.170 would be reviewed by the COTP when the operations 
manual is submitted to the COTP for a review of adequacy under 
Sec. 154.300. This revision would help the Coast Guard and facility 
owners and operators ensure that all piping subject to the regulations 
is properly tested.
    The proposed rule seeks to simplify for industry the information 
retention requirements of part 154. Currently, Sec. 154.310(a)(5) 
requires facility operators to retain specified information about the 
products handled by the facility. This NPRM proposes that Material 
Safety Data Sheets be retained rather than the information currently 
required by Sec. 154.310(a)(5). This revision would provide the Coast 
Guard access to information of equivalent value, while providing an 
easier method of recordkeeping for facility operators.
    In the past there has been confusion regarding the appropriate 
state and local personnel to contact in the event of a spill or other 
emergency. Therefore, this NPRM proposes to add a requirement that the 
names and telephone numbers of state and local officials be included in 
the list of names and addresses currently required under 
Sec. 154.310(a)(7). This would require the facility owners to determine 
who the appropriate state and local officials to contact are in 
advance, so that time will not be wasted in the event of an emergency. 
Also, this NPRM proposes to require that the name and telephone number 
of the ``qualified individual'' listed in the facility response plan 
required by 33 CFR 154.1026 be included. This is also vital information 
in the event of an emergency.
    Currently, Sec. 154.310(a)(16) requires that the operations manual 
include the maximum relief valve setting for each transfer system. This 
rule proposes that the Maximum Allowable Working Pressure (MAWP) also 
be recorded. This revision is necessary because of proposed changes to 
Sec. 154.500 which would no longer require that each hose assembly have 
a MAWP of 150 pounds per square inch. Recording of the MAWP will ensure 
that tests conducted under 33 CFR 156.170 are conducted using the 
correct MAWP for the transfer piping system being tested.

Section 154.320  Operations Manual: Amendment

    Currently, under Sec. 154.320(a)(1), facility operators have 14 
days to respond to a notice from the COTP regarding any inadequacies in 
the operations manual. Industry has indicated that 14 days is an 
insufficient amount of time to respond to a COTP's request for 
amendments to the operations manual. This NPRM proposes a 45 day 
response period starting from the date of the COTP's notice. Also, 
Sec. 154.320(a)(1) provides that the COTP shall notify the facility 
operator of any amendment required or adopted, and that such amendment 
becomes effective 30 days after the facility operator receives notice. 
This NPRM proposes to delay the effective date of such amendments until 
60 days after notification of the facility operator.

Section 154.500  Hose Assemblies

    In the past there has been confusion regarding the maximum 
allowable working pressure (MAWP) to be used for the testing 
requirements in 33 CFR 156.170. Part of this confusion was caused by 
the fact that a minimum (MAWP) was specified for hose assemblies. This 
forced industry to test their hose assemblies, and usually their piping 
systems, at a minimum of 225 pounds per square inch. It is more 
reasonable for the MAWP to be based on the actual design of the 
transfer system, rather than a pre-specified number. The proposed 
changes to this section would eliminate a minimum burst pressure and 
MAWP for hose assemblies. With this revision, industry could develop 
their tests and inspection criteria based on the actual needs of their 
systems, and avoid unnecessary expense testing to a level higher than 
that of their systems' designs.

Section 154.520  Closure Devices

    Under the current regulations, industry must have enough valves to 
blank off a transfer hose, even when it is stored, unless it is new and 
unused. The proposed change would clarify that such hoses must be 
blanked off during transfer. Also, the revisions would allow for 
treating a hose that is cleaned of product in the same manner as a new, 
unused hose.

Section 154.530  Small Discharge Containment

    Experience reveals that many small spills occur during the coupling 
and uncoupling of transfer hoses, and from coupled joints. Present 
regulations require containment around manifold areas, but do not 
specifically require containment around those areas where coupled hoses 
may cross or are uncoupled or coupled. Therefore, a paragraph is 
proposed to be added to Sec. 154.530 that would require that fixed or 
portable containment be placed under each hose connection during 
coupling, uncoupling, and transfer. Comments on the viability and costs 
of this proposed revision are solicited. [[Page 10047]] 

Section 154.540  Discharge Removal

    The current regulations require that facilities have a means to 
safely and quickly remove oil and hazardous material from the 
containment required by Sec. 154.530. To provide greater specificity, 
this NPRM proposes that facilities must have a means to remove 
discharged oil or hazardous material from the containment within one 
hour.

Section 154.545  Discharge Containment Equipment

    This NPRM proposes to add a paragraph to Sec. 154.545 that would 
specify that equipment required to be retained under this section may 
be used in the planning requirements of the facility response plan 
required by subpart F.

Section 154.560  Communications

    This NPRM proposes to revise Sec. 154.560 to require that only 
intrinsically safe radios that have been marked accordingly by the 
manufacturer of the radio may be used to meet the requirements of 
Sec. 154.560(a). This requirement would help to ensure that appropriate 
communications equipment is used. Also, the references included in 
Sec. 154.560(e) regarding the definition of ``intrinsically safe'' are 
incorrect. Instead of the current references, the NPRM requires that a 
qualified testing laboratory, such as Underwriters Laboratories, 
certify that a radio is intrinsically safe and is marked accordingly. 
In most cases, radios used by facilities already meet the requirements 
of this proposed regulation.

Section 154.710  Persons in Charge: Designation and Qualification

    Numerous spills have been caused by the inattention or poor 
training of the person in charge at some facilities. Therefore, it is 
proposed that the facility operator must certify that the person in 
charge has completed a training program that has been approved by the 
Captain of the Port, in accordance with revised Sec. 154.710(c) and 
(d). This revision is intended to ensure that the person in charge has 
received the basic training necessary to properly operate transfer 
equipment and has a thorough understanding of the hazards involved in a 
transfer of oil or hazardous materials, and what his duties are 
relative to that operation in the event of emergency. The proposed 
requirement would, however, allow facility operators the flexibility to 
develop their own training program, appropriate to the needs and 
operation of their facility. The list of those persons certified would 
be kept with the operations manual.
    Comments are solicited from industry on what specific basic 
training requirements should be required for the person in charge, what 
established industry training already exists to ensure their 
competence, and the cost of such training.
    Additionally, there has been confusion as to where the person in 
charge is to be during the transfer, as required by 33 CFR 
156.120(t)(1). This NPRM adds the requirement that the person in charge 
is to be in visual sight of the transfer system from the time a hose 
connection is completed, until the time when the connection is broken.
    Given the importance of the person in charge, it is also proposed 
that this section apply to mobile transfer facilities.

Section 154.735  Safety Requirements

    This NPRM proposes that Sec. 154.735 be revised to abolish the 
current ``hot work permit'' program which is cumbersome and obsolete. 
Under the current program a permit must be obtained from the Captain of 
the Port, prior to conducting welding or hot work at a facility. A new 
provision is proposed to be added which would place responsibility for 
the safety of all hot work at the facility, and the vessels moored to 
it, on the facility's owner and operator.
    Currently, Sec. 154.735(s) provides that tank cleaning or gas 
freeing operations conducted by the facility on vessels carrying oil 
residues or mixtures must be conducted in accordance with specified 
sections of the International Safety Guide for Oil Tankers and 
Terminal(s) (ISGOTT). Experience with use of the ISGOTT standards has 
revealed that, particularly in reference to barges, some of the ISGOTT 
provisions are problematic. A provision would be added to allow 
facility owners or operators to request authorization from the COTP, in 
accordance with Sec. 154.107, to follow an alternative method of 
compliance based on sound industry practices. An example of guidelines 
that could be approved for use by the COTP are the ``Safety Guidelines 
for Tank Vessel Cleaning Facilities'', First Ed., 1992, developed by 
the American Waterways Shipyard Conference. Copies of these guidelines 
may be obtained from American Waterways Shipyard Conference, 1600 
Wilson Blvd., Suite 1000, Arlington, VA 22209.
    The current regulations are vague regarding security at a facility. 
The proposed rule would require that access to the marine transfer area 
from the shoreside or waterside is limited to facility personnel, 
delivery and service personnel, Coast Guard personnel, and other 
authorized persons. It further proposes that these personnel have 
identification. These parameters are similar to those found in 33 CFR 
127.703 and therefore should be better understood by both industry and 
inspection personnel.
    Currently part 154 does not prohibit smoking. This NPRM would 
propose to limit smoking in the same manner as the provisions of 33 CFR 
126.15(b). Most facilities already follow this standard.
    This NPRM proposes to require that three way warning signs, similar 
to those required under 33 CFR 126.15(o)(2)(i), be displayed on the 
facility at the point of transfer, without obstruction, at all times on 
a fixed facility and during coupling, transfer operation, and 
uncoupling on a mobile facility. Many of the facilities previously 
covered by part 126 still have these warning signs. Both industry and 
Coast Guard personnel have suggested that these signs would be valuable 
for all facilities covered by 33 CFR part 154.

Section 154.740  Records

    One of the primary goals of this rulemaking is to consolidate 
documents and descriptions of procedures and tests required by part 154 
into one centralized location that would greatly facilitate inspections 
and ensure that this information is immediately available in the event 
of a spill or other emergency. Therefore, this NPRM proposes that the 
records required by this section, such as the Letter of Intent, Letter 
of Adequacy, person-in-charge qualifications, and the piping and hose 
tests be maintained in the same location as the operations manual but 
not as a part of the operations manual.

33 CFR Part 156

    Conforming changes to certain sections of 33 CFR part 156 have been 
proposed as discussed below to ensure consistency with the changes 
proposed for part 154.

Section 156.120  Requirements for Transfer

    This section is proposed to be revised to explicitly state that a 
transfer begins when a connection of any transfer hose or loading arm 
is made. At that point, all elements required to conduct a transfer 
must be in place. This revision is consistent with the proposed 
definition of ``transfer'' in Sec. 154.105 and is intended to prevent 
an accidental spill from the transfer of oil or hazardous material 
before all protections required during a transfer are in place. 
[[Page 10048]] 

Section 156.160  Supervision by Person in Charge

    To conform with the training requirements set forth in 
Sec. 154.710, a provision is proposed to be added to Sec. 156.160 to 
clarify that the person in charge must visually monitor the transfer, 
throughout the transfer.

Section 156.170  Equipment Tests and Inspections

    Revisions are proposed to this section to complement the testing 
records required to be kept with the operations manual by Sec. 154.720.
    The revisions clarify that a static liquid pressure test is 
acceptable, and the test medium for transfer hoses is not required to 
be water. Those facilities in a caretaker status or that only transfer 
infrequently will now be required to test 30 days before their first 
transfer occurring more than one year from their last tests and 
inspections. This inspection schedule will allow a reduction in costs 
for facilities that transfer infrequently while still providing an 
appropriate level of environmental protection.
    It would also be made clear that the COTP has the authority to 
allow alternative methods of compliance to the testing requirements in 
this section.

Regulatory Evaluation

    This proposal is not a significant regulatory action under section 
3(f) of Executive Order 12866 and does not require an assessment of 
potential costs and benefits under section 6(a)(3) of that order. It 
has not been reviewed by the Office of Management and Budget under that 
order. It is not significant under the regulatory policies and 
procedures of the Department of Transportation (DOT) (44 FR 11040; 
February 26, 1979). A draft Regulatory Evaluation under paragraph 10e 
of the regulatory policies and procedures of DOT has been prepared and 
is available in the docket for inspection or copying where indicated 
under ADDRESSES. The Evaluation is summarized as follows.
    It is estimated that 2591 fixed and 539 mobile marine 
transportation related facilities will be affected by these 
regulations. Many of the proposed revisions are clarifying changes that 
will pose no additional costs on facilities presently in compliance 
with the regulations. For example, certain information previously kept 
separately would now be required to be kept in the same location as the 
operations manual but requires little additional information not 
already prescribed by some other regulation. Since this information is 
not required to be included in the operations manual no additional cost 
is incurred for review by the Coast Guard or the facility.
    There are some new requirements associated with this NPRM. These 
requirements include a map showing the boundaries of the Coast Guard's 
jurisdiction (Sec. 154.310(a)(2)); additional requirements for mobile 
transfer facilities including standards for access by firefighting 
personnel, proper storage of hazardous material, sufficient fire 
extinguishers, rubbish containment, protective equipment, heating 
equipment placement, three way warning sign, electrical wiring and the 
``person in charge requirements'' (Sec. 154.100(d)); a more extensive 
training and qualification program for persons in charge 
(Sec. 154.710(c)); containment under each hose connection during 
coupling, uncoupling, and transfer (Sec. 154.530(a)(3)); and three way 
warning signs (Sec. 154.735(v)).
    However, other proposed revisions lessen the burden on industry in 
such areas as the use of the material safety data sheets rather than 
maintaining this information separately (Sec. 154.310(a)(5)); deletion 
of the requirement that transfer hoses have a minimum maximum allowable 
working pressure of 150 psi (Sec. 154.500(b)); and the deletion of the 
requirement for a facility to obtain a hot work permit 
(Sec. 154.735(l)).
    Comments are requested on the cost of the small discharge 
containment proposed by Sec. 154.530(a)(3); the additional requirements 
for mobile facilities proposed by Sec. 154.100(d); and the training and 
qualification program for persons in charge proposed by Sec. 154.710(c) 
and the overall cost of all of the proposed regulations to consumers. 
Comments are also solicited on the cost saving from deleting the 
requirement that transfer hoses have a minimum, maximum allowable 
working pressure of 150 psi (Sec. 154.500(b)).
    In consideration of the additions and deletions to part 154 and 156 
it is estimated that the annual net cost to all facilities, would be 
$7,665,971, where captial costs are incurred over a five year period.
    The overriding benefit to industry and the Coast Guard of the 
proposed rules would be the establishment of rules that are easier to 
understand and that would therefore facilitate and foster industry 
compliance, leading to a higher level of environmental protection.
    The direct monetary benefit of increased protection would come from 
the reduction of spills resulting from facility operations. These 
proposed regulations are designed to achieve an overall reduction of 
oil and hazardous materials spilled into the water from facilities by 
20%. The weighted average of the annual volume of bulk oil and 
hazardous material spilled from 1987-1991 from facilities was 436,147 
gallons. The estimated costs of spill cleanup, third party damages, and 
natural resource damages resulting from this volume totals $8,722,940. 
A 20% reduction will give an annual benefit of $1,744,588.
    Comparing the monetary benefits of the proposed provisions against 
the compliance cost to industry, the annual cost of the regulations is 
estimated to be $5,921,383.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the 
Coast Guard must consider whether this proposal, if adopted, will have 
a significant economic impact on a substantial number of small 
entities. ``Small entities'' may include (1) small businesses and not-
for-profit organizations that are independently owned and operated and 
are not dominant in their fields and (2) governmental jurisdictions 
with populations of less than 50,000.
    The majority of facilities are owned by large corporations. The new 
requirements proposed by this NPRM, measured against the proposed 
relief from other requirements currently in effect, will result in a 
negligible cost increase for facilities that presently comply with part 
154.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this proposal, if adopted, will not have a significant economic impact 
on a substantial number of small entities. If, however, you think that 
your business or organization qualifies as a small entity and that this 
proposal will have a significant economic impact on your business or 
organization, please submit a comment (see ADDRESSES) explaining why 
you think it qualifies and in what way and to what degree this proposal 
will economically affect it.

Collection of Information

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the 
Office of Management and Budget (OMB) reviews each proposed rule that 
contains a collection-of-information requirement to determine whether 
the practical value of the information is worth the burden imposed by 
its collection. Collection-of-information requirements include 
reporting, recordkeeping, notification, and other, similar 
requirements.
    This proposal contains new collection-of-information requirements 
in the following sections: Sec. 154.310, [[Page 10049]] Sec. 154.710 
and Sec. 154.560. The following particulars apply:
    DOT No: 2115.
    OMB Control No.: 2115-0078.
    Administration: U.S. Coast Guard.
    Title: Changes to regulations covering Facilities Transferring Oil 
or Hazardous Materials in Bulk.
    Need for information: It is proposed that information presently 
kept separately, now be kept in the same location as the operations 
manual by Sec. 154.740. However, little new information is required and 
since it is proposed that the information be kept with the operations 
manual, not in it, no additional review requirements are proposed. 
Maintaining all records in one location where it is readily assessable 
will encourage facility owners and operators to be better prepared and 
thereby help to prevent spills and accidents resulting from improper 
procedures. Also, consolidation of the information with the operations 
manual will assist Coast Guard enforcement personnel in performing 
their duties in an efficient and effective manner. Section 154.710 
would require a facility to submit a training program for persons in 
charge to the COTP for review and approval. Training programs are 
necessary to ensure the competency of the personnel filling this 
critical position. The proposal allows facility operators the 
flexibility of designing a program that meets their needs.
    Proposed use of information: To determine regulatory compliance.
    Frequency of response: Occasional and annual.
    Burden estimate: 7,258.
    Respondents: 3,130 operators of bulk oil and hazardous material 
transfer facilities.
    Form(s): Not applicable.
    Average burden hours per respondent: 1.9
    The Coast Guard has submitted the requirements to OMB for review 
under section 3504(h) of the Paperwork Reduction Act. Persons 
submitting comments on the requirements should submit their comments 
both to OMB and to the Coast Guard where indicated under ADDRESSES.

Federalism

    The Coast Guard has analyzed this proposal under the principles and 
criteria contained in Executive Order 12612 and has determined that 
this proposal does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The Coast Guard 
intends to preempt State and local law only to the extent that 
compliance with the State law would preclude compliance with these 
proposed requirements.

Environment

    The Coast Guard considered the environmental impact of this 
proposal and concluded that preparation of an Environmental Impact 
Statement is not necessary. An Environmental Assessment and a draft 
Finding of No Significant Impact are available in the docket for 
inspection or copying where indicated under ADDRESSES.
    The majority of the proposed changes are administrative in nature 
and involve the maintenance of records and descriptions of procedures 
to be retained in the operations manual. Other proposed revisions 
involve changes in equipment or procedures that are designed to enhance 
environmental protection by attempting to prevent spills of oil and 
hazardous materials from bulk liquid facilities or minimize the effects 
of such occurrences. Therefore, these revisions should have only a 
positive affect upon the environment.

List of Subjects

33 CFR Part 154

    Fire prevention, Hazardous substances, Oil pollution, Reporting and 
recordkeeping requirements.

33 CFR Part 156

    Hazardous substances, Oil pollution, Reporting and recordkeeping 
requirements, Water pollution control.

    For the reasons set out in the preamble, the Coast Guard proposes 
to amend 33 CFR parts 154 and 156 as follows:

PART 154--FACILITIES TRANSFERRING OIL OR HAZARDOUS MATERIALS IN 
BULK

    1. The authority citation for part 154 continues to read as 
follows:

    Authority: 33 U.S.C. 1231, 1321 (j)(1)(C), (j)(5), (j)(6) and 
(m)(2); sec. 2, E.O. 12777, 56 FR 54757; 49 CFR 1.46. Subpart F is 
also issued under 33 U.S.C. 2735.

Subpart A--General

    2. In Sec. 154.100, paragraph (a) is revised and a new paragraph 
(d) is added to read as follows:


Sec. 154.100  Applicability.

    (a) This part applies to each facility that is capable of 
transferring oil or hazardous material, in bulk, to or from a vessel, 
where the vessel has a total capacity, from a combination of all bulk 
products carried, of 250 barrels or more. This part does not apply to 
the facility when it is in a caretaker status.
* * * * *
    (d) The following sections of this part apply to mobile facilities:
    (1) Section 154.107 Alternatives.
    (2) Section 154.108 Exemptions.
    (3) Section 154.110 Letter of intent.
    (4) Section 154.120 Facility examinations.
    (5) Section 154.300 Operations manual: General.
    (6) Section 154.310 Operations manual: Contents. Paragraphs (a)(2) 
through (a)(7), (a)(9), (a)(12), (a) (14) through (17), (a) (20) 
through (24), (c), and (d).
    (7) Section 154.320 Operations manual: Amendment.
    (8) Section 154.325 Operations manual: Letter of adequacy.
    (9) Section 154.500 Hose assemblies. Paragraphs (a)(1), (b)(1), 
(c), (d) (1) through (3), and (e) (1) through (4).
    (10) Section 154.530 Small discharge containment. Paragraphs (a) 
(1) through (2), and (d).
    (11) Section 154.545 Discharge containment equipment.
    (12) Section 154.550 Emergency shutdown.
    (13) Section 154.560 Communications.
    (14) Section 154.570 (c) and (d) Lighting.
    (15) Section 154.700 General.
    (16) Section 154.710 Persons in charge: Designation and 
qualification.
    (17) Section 154.730 Persons in charge: Evidence of designation.
    (18) Section 154.735 Safety requirements. Paragraphs (a) through 
(d), (f) through (g), (i), (j) (1) through (2), (k) (1) through (2), 
(l) through (m), (o) through (q), (r) (1) through (3), (s), and (u) 
through (v).
    (19) Section 154.740 Records. Paragraphs (a) through (f).
    (20) Section 154.750 Compliance with operations manual.
    3. In Sec. 154.105, the following definition Caretaker status is 
added in alphabetical order, and the definitions of Facility, and 
Transfer are revised, to read as follows:


Sec. 154.105  Definitions.

* * * * *
    Caretaker status denotes a facility where all piping, storage 
tanks, and related equipment is completely free of oil or hazardous 
material; that has been certified as being gas free; where piping 
terminating near any body of water has been blanked; and where the 
letter of adequacy has been suspended by the COTP upon request of the 
facility.
* * * * * [[Page 10050]] 
    Facility means either an onshore or offshore facility and includes, 
but is not limited to, structures, equipment, and appurtenances 
thereto, used or capable of being used to transfer oil or hazardous 
material to or from a vessel or public vessel. Also included are 
facilities that tank clean or strip and any floating structure that is 
an intricate part of the facility's operation. A facility includes 
Federal, State, municipal, and private facilities.
* * * * *
    Transfer means any movement of oil or hazardous material to, from, 
or within a vessel by means of pumping, gravitation, or displacement. A 
transfer is considered to begin when all connections are made so that 
such movement is possible, regardless of when the actual movement 
begins.
* * * * *
    4. In Sec. 154.107, paragraph (b) is revised to read as follows:


Sec. 154.107  Alternatives.

* * * * *
    (b) The COTP takes final approval or disapproval action on the 
request, submitted in accordance with paragraph (a) of this section, in 
writing, within 60 days of receipt of the request.
    5. In Sec. 154.110, paragraph (b)(1) is revised to read as follows:


Sec. 154.110  Letter of intent.

* * * * *
    (b) * * *
    (1) The names, addresses, and telephone numbers of the facility 
operator and the facility owner;
* * * * *

Subpart B--Operations Manual

    6. In Sec. 154.310, paragraphs (a)(2), (a)(5), (a)(7), (a)(16) and 
(a)(22) are revised and paragraph (a)(23) is added to read as follows:


Sec. 154.310  Operations manual: Contents.

    (a) * * *
    (2) A physical description of the facility including a map of the 
facility, drawn to scale, showing the boundaries of the facility, 
mooring areas, transfer locations, control stations, wharfs, the extent 
and scope of piping subject to the tests required by Sec. 156.170(c)(4) 
of this chapter, and the locations of safety equipment;
* * * * *
    (5) A copy of the Material Safety Data Sheet for each product 
transferred at the facility;
* * * * *
    (7) The names and telephone numbers of the qualified individual 
identified under Sec. 154.1026 and the Coast Guard, State, local, and 
other personnel who may be called by the employees of the facility in 
an emergency.
* * * * *
    (16) The maximum allowable working pressure (MAWP) of each loading 
arm, transfer pipe system, and hose assembly required to be tested by 
Sec. 156.170 of this chapter, including the maximum relief valve 
setting (or maximum system pressure when relief valves are not 
provided) for each transfer system;
* * * * *
    (22) Statements explaining that each hazardous materials transfer 
hose is marked with either the name of each product which may be 
transferred through the hose or with letters, numbers or other symbols 
representing all such products and the location in the operations 
manual where a chart or list of symbols used and a list of the 
compatible products which may be transferred through the hose can be 
found for consultation before each transfer; and
    (23) For facilities that tank clean or strip, a description of 
their procedures.
* * * * *
    7. In Sec. 154.320, paragraph (a)(1) is revised to read as follows:


Sec. 154.320  Operations manual: Amendment.

    (a) * * *
    (1) The COTP will notify the facility operator in writing of any 
inadequacies in the operations manual. The facility operator may submit 
written information, views, and arguments regarding the inadequacies 
identified, and proposals for amending the manual, within 45 days from 
the date of the COTP notice. After considering all relevant material 
presented, the COTP shall notify the facility operator of any amendment 
required or adopted, or the COTP shall rescind the notice. The 
amendment becomes effective 60 days after the facility operator 
receives the notice, unless the facility operator petitions the 
Commandant to review the COTP's notice, in which case its effective 
date is delayed pending a decision by the Commandant. Petitions to the 
Commandant must be submitted in writing via the COTP who issued the 
requirement to amend the operations manual.
* * * * *

Subpart C--Equipment Requirements

    8. In Sec. 154.500, paragraphs (a) and (b) are revised to read as 
follows:


Sec. 154.500  Hose assemblies.

* * * * *
    (a) The minimum design burst pressure for each hose assembly must 
be at least four times the sum of the pressure of the relief valve 
setting (or four times the maximum pump pressure when no relief valve 
is installed) plus the static head pressure of the transfer system at 
the point where the hose is installed.
    (b) The maximum allowable working pressure (MAWP) for each hose 
assembly must be more than the sum of the pressure of the relief valve 
setting (or the maximum pump pressure when no valve is installed) plus 
the static head pressure of the transfer system at the point where the 
hose is installed.
* * * * *
    9. Section 154.520 is revised to read as follows:


Sec. 154.520  Closure devices.

    (a) Except as provided in paragraph (b) of this section, each 
facility to which this part applies must have enough butterfly valves, 
wafer-type resilient seated valves, blank flanges, or other means 
acceptable to the COTP to blank off the ends of each hose or loading 
arm that is not connected for the transfer of oil or hazardous 
material. Such hoses must be blanked off during the transfer of oil or 
hazardous material.
    (b) New, unused hose, and hose that has been cleaned and is gas 
free, is exempt from the requirements of paragraph (a) of this section.
    10. In Sec. 154.530, paragraph (a) is revised and paragraph (e) is 
added to read as follows:


Sec. 154.530  Small discharge containment.

    (a) Except as provided in paragraphs (c), (d) and (e) of this 
section, each facility to which this part applies must have fixed 
catchments, curbing, or other fixed means to contain oil or hazardous 
material discharged in at least--
    (1) Each hose handling area (that area on the facility that is 
within the area traversed by the free end of the hose or loading arm 
when moved from its normal stowed or idle position into a position for 
connection);
    (2) Each hose connection manifold area; and
    (3) Under each hose connection during coupling, uncoupling, and 
transfer.
* * * * *
    (e) Fixed or portable containment may be used to meet the 
requirements of paragraph (a)(3) of this section.
    11. Section 154.540 is revised to read as follows:


Sec. 154.540  Discharge removal.

    Each facility to which this part applies must have a means to 
safely [[Page 10051]] remove discharged oil or hazardous material, 
within one hour of its release, from the containment required by 
Sec. 154.530 without discharging the oil or hazardous material into the 
water.
    12. In Sec. 154.545, paragraph (e) is added to read as follows:


Sec. 154.545  Discharge containment equipment.

* * * * *
    (e) Equipment and procedures maintained to satisfy the provisions 
of this chapter may be utilized in the planning requirements of subpart 
F of this part.
    13. In Sec. 154.560, paragraph (e) is revised to read as follows:


Sec. 154.560  Communications.

* * * * *
    (e) Portable radio devices used to comply with paragraph (a) of 
this section during the transfer of flammable or combustible liquids 
must be marked as intrinsically safe by the manufacturer of the device 
and certified as intrinsically safe by a national testing laboratory or 
other certification organization approved by the Commandant.

Subpart D--Facility Operations

    14. In Sec. 154.710, paragraphs (c) and (d), introductory text, 
(d)(7) and (d)(8) are revised and paragraph (d)(9) is added to read as 
follows:


Sec. 154.710  Persons in charge: Designation and qualification.

* * * * *
    (c) That person has completed a training program, established by 
the facility operator and approved by the Captain of the Port in 
accordance with Secs. 154.720(a)(23) and 154.325, that provides the 
person with the knowledge and training necessary to properly operate 
the transfer equipment at that facility, perform the duties described 
in paragraph (d) of this section, follow the procedures required by 
this part, and fulfill the duties required of a person in charge during 
an emergency, except that for new facilities, the Captain of the Port 
may authorize alternative experience and training requirements and;
    (d) The facility operator must certify that the person in charge 
has the knowledge and skills necessary to--
* * * * *
    (7) Follow local discharge reporting procedures;
    (8) Carry out the facility's response plan for discharge reporting 
and containment; and
    (9) Visually observe transfers continuously throughout the transfer 
operations to ensure compliance with the procedures required by this 
part and be immediately available to the transfer personnel.
    15. In Sec. 154.735, the introductory text, paragraphs (l), and (s) 
through (t) are revised and paragraphs (u) through (w) are added to 
read as follows:


Sec. 154.735  Safety requirements.

    Each operator of a facility to which this part applies shall ensure 
that the following safety requirements are met at the facility:
* * * * *
    (l) All welding or hot work conducted at the facility, or on any 
vessel moored to the facility, is the responsibility of the facility 
owner and operator.
* * * * *
    (s) Tank cleaning or gas freeing operations conducted by the 
facility on vessels carrying oil residues or mixtures shall be 
conducted in accordance with sections 8.1, 8.2, 8.3, and 8.5 of the 
International Safety Guide for Oil Tankers and Terminals (ISGOTT). 
Except that--
    (1) Prohibitions in ISGOTT against the use of recirculated wash 
water do not apply if the wash water is first processed to remove 
product residues;
    (2) The provision in ISGOTT section 8.2.10 concerning flushing the 
bottom of tanks after every discharge of leaded gasoline does not 
apply;
    (3) The provision in ISGOTT section 8.2.11 concerning the removal 
of sludge, scale, and sediment does not apply if personnel use 
breathing apparatus which protect them from the tank atmosphere; and
    (4) Upon the request of the facility owner or operator in 
accordance with Sec. 154.107, the COTP may allow the use of alternative 
standards to ISGOTT if the COTP determines that the alternative 
standards provide an equal level of protection to the ISGOTT standards.
    (t) Guards shall be stationed, or equivalent controls acceptable to 
the COTP shall be used, to detect fires, report emergency conditions, 
and ensure that access to the marine transfer area from the shoreside 
and waterside is limited to--
    (1) Personnel who work at the facility including persons assigned 
for transfer operations, vessel personnel, and delivery and service 
personnel in the course of their business;
    (2) Coast Guard personnel;
    (3) Other Federal, State, or local governmental personnel; and
    (4) Other persons authorized by the operator.
    (u) Except for those specified in paragraphs (t)(1) and (2) of this 
section, no person is to be allowed into the marine transfer area 
unless that person is identified by a facility-issued identification 
card or other identification card displaying his or her photograph, or 
is an escorted visitor displaying an identifying badge.
    (v) Smoking shall be prohibited at the facility except that 
facility owners or operators may authorize smoking in designated areas 
if--
    (1) The designated smoking areas are in accordance with local 
ordinances and regulations;
    (2) Signs are conspicuously posted marking such authorized smoking 
areas; and
    (3) ``No Smoking'' signs are conspicuously posted elsewhere on the 
facility.
    (w) Warning signs shall be displayed on the facility at the point 
of transfer, without obstruction, at all times for fixed facilities and 
for mobile facilities during the coupling, transfer operation, and 
uncoupling. The warning signs shall conform to 46 CFR 151.45-2(e)(1) or 
46 CFR 153.955.
    16. In Sec. 154.740, the introductory text and paragraph (b) are 
revised to read as follows:


Sec. 154.740  Records.

    Each facility operator shall maintain in the same location as the 
operations manual and make available for examination by the COTP:
* * * * *
    (b) The name of each person designated as a person in charge of 
transfer operations at the facility and certification that the person 
in charge has completed the training requirements of Sec. 154.710;
* * * * *

PART 156--OIL AND HAZARDOUS RING OIL OR HAZARDOUS MATERIALS IN BULK

    17. The authority citation for part 156 continues to read as 
follows:

    Authority: 33 U.S.C. 1231, 1321(j)(1) (C) and (D); sec. 2, E.O. 
11735, 38 FR 21243, 3 CFR, 1971-1975 Comp., p. 793; 49 CFR 1.46. 
Subpart B also issued under 46 U.S.C. 3715(b).

Subpart A--Oil and Hazardous Material Transfer Operations

    18. In Sec. 156.120, the introductory paragraph is revised to read 
as follows:


Sec. 156.120  Requirements for transfer.

    A transfer is considered to begin when a physical connection of any 
transfer hose or loading arm is made and no person shall conduct an oil 
transfer operation unless--
* * * * * [[Page 10052]] 
    19. In Sec. 156.160, paragraph (c) is revised to read as follows:


Sec. 156.160  Supervision by person in charge.

* * * * *
    (c) No person shall transfer oil or hazardous material to or from a 
vessel unless each person in charge can visually observe the transfer 
operation continuously throughout the transfer and each person in 
charge is immediately available to the transfer personnel.
    20. In Sec. 156.170, paragraphs (c)(1)(iv) and (f)(1) are revised, 
paragraph (f)(2) is redesignated as (f)(3) and revised and new 
paragraphs (f)(2) and (h) are added to read as follows:


Sec. 156.170  Equipment tests and inspections.

* * * * *
    (c) * * *
    (1) * * *
    (iv) Hoses not meeting the requirements of paragraph (c)(1)(i) of 
this section, may be acceptable after a static liquid pressure test is 
successfully completed in the presence of the COTP.
* * * * *
    (f) The frequency of the tests and inspections required by this 
section must be--
    (1) For active facilities, annually or within 30 days of the first 
transfer conducted past one year from the date of the last tests and 
inspections;
    (2) For a facility in caretaker status, within 30 days of the first 
transfer after the facility is removed from caretaker status; and
    (3) For vessels, annually or as part of the biennial and mid-period 
inspections.
* * * * *
    (h) Upon the request of the owner or operator, the COTP may allow 
alternative methods of compliance to the testing requirements of 
paragraph (c) of this section if the COTP determines that the 
alternative methods provide an equal level of protection.

    Dated: February 14, 1995.
J.C. Card,
Rear Admiral, U.S. Coast Guard, Chief, Office of Marine Safety, 
Security and Environmental Protection.
[FR Doc. 95-4405 Filed 2-22-95; 8:45 am]
BILLING CODE 4910-14-P