[Federal Register Volume 60, Number 149 (Thursday, August 3, 1995)]
[Rules and Regulations]
[Pages 39788-39802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18762]




[[Page 39787]]

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Part III





Department of Transportation





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Coast Guard



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33 CFR Parts 126 and 127



Waterfront Facilities Handling Liquefied Hazardous Gas; Final Rule

  Federal Register / Vol. 60, No. 149 / Thursday, August 3, 1995 / 
Rules and Regulations  

[[Page 39788]]


DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Parts 126 and 127

[CGD 88-049]
RIN 2115-AD06


Waterfront Facilities Handling Liquefied Hazardous Gas

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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SUMMARY: The Coast Guard is amending its regulations for waterfront 
facilities capable of transferring liquefied hazardous gas, or ``LHG'', 
in bulk, to or from vessels. The transfer of LHG prevents hazards 
similar to those from the transfer of liquefied natural gas, or 
``LNG'', yet facilities capable of transferring LNG in bulk are subject 
to much more stringent requirements. The amended regulations will 
strengthen the requirements for the transfer of LHG and move those 
requirements from part 126 to part 127.

DATES: This rule is effective on January 30, 1996. The Director of the 
Federal Register approves as of January 30, 1996 the incorporation by 
reference of certain publications listed in this rule.

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) [CGD 88-049], 
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:
Mr. Gary W. Chappell, Port Safety and Security Division (G-MPS-3), by 
telephone (202) 267-0491 or fax (202) 267-0506.

SUPPLEMENTARY INFORMATION:

Drafting Information

    The principal persons involved in drafting this document are Mr. 
Gary W. Chappell, Project Manager, and Mr. Patrick J. Murray, Project 
Counsel, Office of Chief Counsel.

Regulatory History

    On October 5, 1993, the Coast Guard published a notice of proposed 
rulemaking entitled ``Waterfront Facilities Handling Liquefied 
Hazardous Gas'' in the Federal Register (58 FR 51906). The Coast Guard 
received 26 Letters commenting on the proposal. No public meeting was 
requested, and none was held.
Background and Purpose

    The Coast Guard has determined that it needs to regulate transfers 
of LHG, in bulk, to and from vessels at waterfront facilities. Data 
collected over the last 10 years on deaths, injuries, and property 
damage resulting from accidents during these transfers indicate that 
restrictions on equipment and on operating procedures will prevent and 
mitigate damage and personal injuries. Although the transfer of LHG 
falls under the existing requirements in 33 CFR part 126, the available 
data indicate that these requirements are not adequate. LHG presents 
hazards similar to those of LNG, when transferred in bulk, yet 
facilities that transfer LNG fall under much stricter regulatory 
requirements than those that transfer LHG. The Coast Guard is 
establishing new regulations for waterfront facilities handling LHG in 
33 CFR part 127 that expand upon the regulations in part 126 and 
include requirements similar to those for LNG facilities already in 
part 127.
    This rule is being implemented under the authority of the Ports and 
Waterways Safety Act (PWSA), as amended (33 U.S.C. 1221 et seq.) There, 
Congress declared that the safety of vessels and protection of the 
marine environment are matters of major national concern and that 
increased supervision of activities in ports is necessary. The PWSA 
authorized the Secretary of Transportation to take whatever measures 
are necessary to protect structures or areas of land in or adjacent to 
the navigable waters of the United States, including measures for the 
loading, movement, unloading, storage, and other handling of hazardous 
materials on waterfront facilities. The Coast Guard maintains that the 
hazards presented by these materials justify the measures in this rule 
for the handling of LHG.

Discussion of the Comments on and Changes to the NPRM

    The Coast Guard received 26 letters commenting on the notice of 
proposed rulemaking (NPRM) entitled ``Waterfront Facilities Handling 
Liquefied Hazardous Gas'' published in the Federal Register on October 
5, 1993. It considered those comments in developing this final rule.
    1. Two comments stated that the regulations duplicate the 
requirements of both the Occupational Safety and Health Administration 
(OSHA) and the Environmental Protection Agency (EPA). The comments 
suggested that the Coast Guard work with these two agencies to avoid 
duplicative requirements and, thereby, reduce the regulatory burden on 
the industry. The Coast Guard concurs in part. So far as OSHA, EPA, or 
other agencies of the Federal government have established similar 
requirements, this rule permits the use of documents, procedures, or 
training established under those requirements to satisfy requirements 
of the Coast Guard. For example, this rule allows the substitution of 
requirements of OSHA (29 CFR 1910.120) and EPA (40 CFR 311.1), on 
training in hazardous-waste operations and emergency response, to meet 
the requirements in Sec. 127.1302, so far as such training addresses 
these requirements.
    Representatives of the Coast Guard and OSHA met to resolve 
potential duplicate requirements, however, and found that they do not 
exist to the extent suggested by the commenters. Under 29 CFR 
1910.5(b), the requirements in 29 CFR part 1910 do not apply within the 
``marine transfer area for LHG'' because the Coast Guard has elected to 
regulate this area. Requirements of OSHA do apply where the Coast Guard 
has not established comparable requirements within the marine transfer 
area. In spite of attempts to harmonize these requirements with those 
of other agencies, some differences persist because these address the 
hazards of operations on waterfront facilities transferring LHG in bulk 
more specifically than do the general standards for industry at large 
developed by OSHA and EPA. But these are matters of particularity, not 
outright conflict.
    2. Coast Guard regulatory standards now require the primary weights 
and measures to be specified in metric units. Therefore, though no 
comment raised this issue, this rule specifies all weights and measures 
in metric units followed by English equivalents. The conversions 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. So the conversions should have no impact on compliance 
with this rule.
    3. One comment recommended that the most current edition of the 
materials incorporated by reference be cited in this rule. The Coast 
Guard concurs, since the most current edition represents the latest 
thought and since it is difficult for industry to obtain copies of 
outdated standards anyway. Section 127.003 of this rule reflects the 
latest edition of each publication. Because the NPRM cited what are 
still the latest editions of (1) ANSI S12.13, 

[[Page 39789]]
Part 1, Performance Requirements, Combustible Gas Detectors, (2) API RP 
2003, Protection Against Ignitions Arising Out of Static, Lighting and 
Stray Currents, and (3) ASTM F-1121, International Shore Connections 
for Marine Applications, this rule cites the same editions. Because 
ANSI B16.5, Pipe Flanges and Flanged Fittings, has subsumed its 
standard, ANSI B16.31, Non-Ferrous Pipe Flanges, has dropped from the 
list of material incorporated by reference.
    The Coast Guard compared the older editions of the standards listed 
in the NPRM that apply to LHG with the latest editions listed in this 
rule and found no significant changes between them. It did the same 
with editions that apply to LNG facilities and likewise found no 
significant changes between them. Consequently, the updating of 
standards incorporated by reference will have no impact on existing LNG 
facilities.
    4. Three comments asked that existing LHG facilities be 
grandfathered out of the standards incorporated by reference in 
Sec. 127.003. The Coast Guard does not concur. These standards are 
widely accepted and used by industry. They are minimal. To accept less 
would not achieve the desired level of safety. However, the COTPs may 
approve alternatives for existing facilities built to different 
standards if the alternatives yield an equivalent level of safety.
    5. Seven comments sought clarification of the definition of the 
``marine transfer area for LHG'' in Sec. 127.005. The Coast Guard 
believes that it has adequately defined this area. The area encompasses 
the pier or wharf in its entirety, including the cargo manifold, as 
well as that part of piping cargo and vapor inland from the pier to the 
first shutoff valve. Here, ``inland'' refers to the direction along the 
piping away from the vessel. Some of the confusion on this issue 
resulted from a misprint in the NPRM that replaced ``LNG'' with ``LHG'' 
in the definition of ``Marine Transfer Area for LNG''. This error has 
been corrected in this rule. Any facility operator uncertain where the 
area ends should reach a written understanding with the COTP on where 
the COTP will enforce this rule.
    6. Three comments stated that it would be difficult to provide 
specific vessel-arrival and cargo data in the ``Letter of Intent,'' as 
required by Sec. 127.007(d)(5). The comments asserted that LHG 
facilities rarely know in advance the type of vessel or frequency of 
arrivals. Section 127.007(d)(5) does not require facilities to list 
specific vessel-arrival or cargo data. The purpose of the ``Letter of 
Intent'' is to give the COTP general notice of both the type and 
estimated number of LHG vessels that may call at the facility and the 
size of shipments. This information can easily be obtained from the 
facility-design specifications.
    7. Two comments requested a 60-day phase-in period to allow time to 
prepare the letter of intent required under Sec. 127.007 and a 6-month 
phase-in period to allow time to prepare the manuals required under 
Sec. 127.019. The effective date of this rule will occur 180 days after 
publication of this rule in the Federal Register. This delay should 
provide enough time to comply with the requirements of this rule, 
including submitting, and if necessary amending, the letter of intent 
and all manuals.
    8. Four comments requested clarification of the length of cargo 
piping that must be cleared of LHG before a vessel may disconnect. 
According to the comments, Sec. 127.1101(c) requires the entire length 
of the piping from the dock to the storage tank to be cleared of LHG. 
This length of piping can run several hundred feet and take up to four 
hours to clear, with no significant improvement in safety. Section 
127.1101(c) states that hoses and loading arms must be cleared. It does 
not refer to the piping. This rule does not require any part of the 
piping to be cleared of LHG before the disconnecting of the vessel.
    9. Two comments alleged a conflict between Secs. 127.1101 and 
127.1321. Section 127.1101(c) requires bleeds and vents to allow LHG or 
its vapor to discharge to a safe area, while Sec. 127.1321 bans the 
intentional release of LHG into the environment. This rule defines 
``release,'' in Sec. 127.005, to clarify this term. It allows a minor 
release of LHG or its vapor under certain conditions. But it in no way 
authorizes releases prohibited by other law. Section 127.110(c) 
clarifies the term ``safe area'' by adding the phrase ``such as a tank 
or flare'' to the end of the last sentence.
    10. Two comments recommended limiting the applicability of 
Sec. 127.1102(a) to ``each hose used in the marine transfer of LHG or 
its vapors.'' These requirements are to govern hoses used to transfer 
LHG or its vapors to or from vessels within the marine transfer area. 
In some cases hoses not used for the transfer of LHG or its vapors to 
or from vessels may be in the area, or hoses used for it may be outside 
the area. To clarify this point this rule revises Sec. 127.1102(a).
    11. Three comments asked that continuously manned docks be 
acceptable as a substitute for alarms on loading arms under 
Sec. 127.1102(b)(4). While an alarm is the preferred method of alerting 
personnel that the loading arm is approaching the limits of its 
extension, personnel carefully watching the arm's extension can perform 
it, too. This rule amends Sec. 127.1102(b)(4) to allow a personnel 
watch to substitute for an alarm if the operations manual establishes 
such a watch.
    12. Two comments requested clarification of the term ``new 
construction'' in Sec. 127.1103(a). The term ``new'' is defined in 
Sec. 127.005. The term ``new construction'' means any piers, wharves, 
buildings, or pipelines constructed after the effective date of this 
rule. It also covers replacement of any existing piers, wharves, 
buildings, or pipelines. But it does not cover minor repairs or repairs 
made in kind to these.
    Similarly, this rule modifies Sec. 127.1105 to clarify that it 
applies only to new waterfront facilities handling LHG, and to all new 
construction in the marine transfer area for LHG of existing 
facilities. An introductory text, new paragraph (a) of Sec. 127.1105, 
clarifies this point.
    13. Five comments requested clarification of the requirements in 
Sec. 127.1103. They wanted to know whether the substructure at an 
existing LHG facility has to comply with the fire-endurance 
requirements. Because industry standards generally grandfather existing 
construction, Sec. 127.1103(b) is intended to apply only to new 
facilities and new construction as defined in Sec. 127.005. To clarify 
this point, this rule revises Sec. 127.1103(b) to read: ``Each 
substructure on a new waterfront facility handling LHG, and all new 
construction in the marine transfer area for LHG of each existing 
facility, * * *.''
    14. One comment sought amendment of Sec. 127.1107 to allow the use 
of equipment approved by organizations other than Underwriters 
Laboratories, Inc., and Factory Mutual Research Corporation, which are 
the only organizations whose approval NFPA 70 recognizes. While the 
Coast Guard has reserved the authority to allow approvals by other 
organizations acceptable to the Commandant in regulating vessels, it 
will not reserve as much in regulating waterfront facilities. Unlike 
vessels, waterfront facilities are subject to State and local 
authorities, who generally apply NFPA standards. If the Coast Guard 
applied standards different from those applied by State and local 
authorities, facility operators would have a harder time determining 
what equipment they could use. Consequently, Sec. 127.1107 remains 
unchanged. Requests to recognize 

[[Page 39790]]
approvals by other organizations should go to the appropriate NFPA 
committee.
    15. Two comments requested clarification of Sec. 127.1109 to 
indicate what surface would be the reference point for measuring 
illumination and where the requirement of 11-lux illumination applies. 
This rule revises Sec. 127.1109 to indicate that illumination should be 
measured 1 meter (3.3 feet) above the walking surface and that the 
requirement of 11-lux illumination applies to the ``remainder of the 
marine transfer area for LHG''.
    16. Two comments asked that Sec. 127.1203 allow the use of fixed 
gas-detectors. The Coast Guard concurs, and Sec. 127.1203 of this rule 
allows the use of fixed as well as portable gas-detectors.
    17. Four comments recommended that Sec. 127.1203(b) exempt 
facilities handling anhydrous ammonia from its requirement of gas-
detectors. The comments asserted that anhydrous ammonia is detectable 
by smell at 1-2 parts per million (ppm) and is very offensive at 15-20 
ppm, both amounts falling well below the Permissible Exposure Limit 
(PEL) of OSHA. Smell can indeed determine the presence of ammonia, 
although it cannot determine the concentration. That section does 
exempt facilities that handle anhydrous ammonia from its requirement of 
gas detectors. However, such facilities must assume that the PEL of 
OSHA had been exceeded whenever smell determines the presence of 
ammonia, unless a gas-detector determines a lower concentration.
    18. One comment suggested that gas-detectors are of little value 
because products such as butane, propane, and propylene quickly 
evaporate when released. The Coast Guard does not concur. Although LHGs 
quickly evaporate when exposed to atmospheric temperature and pressure, 
many LHG vapors are heavier than air. Their vapors may remain at ground 
level, possibly in explosive concentrations, or may accumulate in sumps 
or nearby buildings, possible presenting hazardous conditions.
    19. Six comments requested clarification of whether pumps or 
compressors not used in the transfer of LHG from a vessel to the 
facility or vice versa--for example, those used in the transfer of LHG 
to rail cars--are subject to the emergency-shutdown requirements in 
Sec. 127.1205(c). The comments contend that for safety reasons 
facilities must be free to transfer LHG within the facility. Section 
127.1205(c) applies only to those pumps and compressors that transfer 
LHG, or its vapors, to or from the vessel. It does not apply to other 
pumps or compressors within the facility. This rule now indicates that, 
when activated, the actuator must automatically shut down ``any 
terminal pumps or compressors used to transfer LHG, or its vapors, to 
or from the vessel.''
    20. Eight comments recommended that the warning alarm proposed by 
Sec. 127.1207 consist in either a light or a siren, not in both. The 
alarm required by this rule, like that proposed, consists in both a 
light capable of being seen, and a siren capable of being heard, at one 
mile. Three stated that the audibility of a siren may be diminished by 
engine-room noise aboard approaching vessels. Two stated that the 
visibility of a light may be limited by hilly terrain, river bends, and 
other obstructions. One stated that the alarm would cause confusion 
because without prior notice the public would not understand its 
significance.
    The purpose of the alarms is to warn both persons at the facility 
and the general public, including passing marine traffic, of a hazard 
at the facility. The Coast Guard believes that the prescribed alarms, 
together, are the best means to warn everyone intended. It agrees that 
under certain circumstances one of the alarms may not be effective, but 
believes that this fact further validates the need for both alarms, 
rather than for either. A facility can always ask the COTP for approval 
of an alternative arrangement under Sec. 127.017. Although alarms are 
more effective if a community knows what to expect, the Coast Guard 
believes that the facility operator should determine how to educate the 
community. Therefore, it has kept Sec. 127.1207 as it proposed it.
    21. Seven comments suggested that no facility handling toxic LHGs 
be responsible for providing respiratory protection under Sec. 127.1209 
to personnel other than its own (personnel servicing, delivering to, or 
belonging to the vessel, or servicing or delivering to the facility) 
who may have reason to be in the marine transfer area. A facility may 
not always know who these personnel are or how many of them would be in 
the area at any given time. One comment recommended that the 
respiratory protection be required only during transfers. the Coast 
Guard agrees that it may be difficult and impracticable for a facility 
to provide a sufficient number of respirators for everyone who may pass 
through the area. Accordingly, Sec. 127.1209 requires facility 
operators to provide respiratory protection only for their employees 
since only those employees are likely to be in the area for any 
significant amount of time during transfers. That section also 
clarifies that the respiratory protection needs to be provided only 
during transfers.
    22. Five comments recommended that the Coast Guard delete certain 
training requirements in Sec. 127.1302 when a facility has fire or 
medical department of the facility or when such services are readily 
available from local governmental agencies. The Coast Guard does not 
concur. In many emergencies, properly trained transfer personnel will 
be the most effective resource to take immediate corrective action and 
thereby prevent minor incidents from becoming catastrophes. In some, 
even fire and medical departments located on the facility, but away 
from the marine transfer area, may not be able to arrive on scene in 
time. In others, it may be more effective for the facility to evacuate 
its transfer personnel and allow others to respond. In any event, 
properly trained transfer personnel afford the facility greater 
flexibility in determining how to respond.
    To avoid unnecessary duplication, Sec. 127.1302(d) accepts training 
performed to meet requirements of OSHA (29 CFR 1910.120) and EPA (40 
CFR 311.1) on hazardous-waste operations and emergency response, to the 
extent that this training addresses the subjects in Sec. 127.1302(a).
    23. Two comments recommended that training in the ``configuration 
and limitations of LHG vessel cargo systems'', required by proposed 
Sec. 127.1302(a)(7), be deleted. The comments stated that it is 
difficult for a facility to forecast the types of LHG vessels that will 
arrive at the terminal. Moreover, personnel of a facility do not board 
the vessels. This requirement does not mandate training in cargo 
systems of specific LHG vessels. Rather, it requires transfer personnel 
to be knowledgeable in the ``configuration and limitations'' of cargo 
systems of LHG vessels that may call at the facility. This knowledge is 
necessary so that these personnel understand the impact that their acts 
can have upon the vessel. Although changed editorially and renumbered 
as Sec. 127.1302(a)(6), proposed Sec. 127.1302(a)(7) remains unchanged 
in substance.
    24. Four comments recommended that the requirements in 
Sec. 127.1311 on movement and control of vehicles not apply to an LHG 
facility that handles only toxic cargoes since these cargoes do not 
present a fire hazard. One comment stated that this requirement would 
leave a large part of the facility inaccessible to vehicular traffic 
with no appreciable increase in safety.
    The Coast Guard does not concur. Approaches to the marine transfer 
area, as much as the area itself, must stay 

[[Page 39791]]
clear of vehicles to allow adequate escape routes and allow access for 
emergency vehicles in cases of injury as well as fire. Even if the LHG 
is not flammable, the pier, its equipment, or the vessel can catch fire 
and necessitate this access. Furthermore, similar requirements in 33 
CFR part 126 already apply to existing LHG facilities. However, for 
consistency with the requirements for LHG facilities, the distance from 
storage containers, manifolds, loading arms, or independent mating 
flanges containing a flammable liquid or vapor has dropped from 30 to 
15 meters.
    25. Two comments suggested that Sec. 127.1313 not apply to 
facilities that handle toxic LHGs. The Coast Guard does not concur. It 
is essential that the amount of hazardous material stored in the marine 
transfer area be restricted, to limit the risk of catastrophe. This 
material may still be stored nearby, outside the area.
    26. Two comments stated that Sec. 127.1313 prohibits the storage of 
fuel oil for such equipment as an emergency generator. The Coast Guard 
does not intend to preclude facilities from storing reasonable amounts 
of fuel oil for such equipment. Accordingly, Sec. 127.1313(a)(2) of 
this rule allows facilities to store, in the marine transfer area, fuel 
``required by * * * emergency equipment'' in the area. The term 
``required by'' should limit the amount of fuel stored to the amount 
necessary in an emergency.
    27. Four comments recommended that the Coast Guard delete the 
requirements in Sec. 127.1315(i) for tests of the emergency shutdown 
and of the warning alarm before each transfer. The comments asserted 
that these tests would disrupt facilities with frequent transfers and 
that repeated tests of the alarm might cause a local community to 
disregard it altogether. One comment recommended tests of these items 
every month, two recommended tests of them every two months, and one 
recommended tests of them every year. The Coast Guard concurs that 
tests before each transfer would be an excessive burden for some 
facilities. OSHA (29 CFR 1910.165(d)(2)) requires tests every two 
months. For the emergency shutdown, tests every two months should be 
adequate. But, for the warning alarms required under this rule, which 
can upset a local community, tests every six months would be more 
appropriate. These tests could be easier to conduct in conjunction with 
a community-education campaign to increase awareness of their meaning. 
Sections 127.1315(i) (3) and (4) have been deleted from the final rule. 
Sections 127.1407 (e) and (f), requiring tests of the emergency 
shutdown every two months and of the warning alarm every six months, 
have been added to the final rule. If transfers of LHG occur less often 
than the designated intervals, these tests may be conducted before each 
transfer instead of at the designated interval.
    28. Nine comments stated that the requirement in Sec. 127.1319(a), 
that the facility notify the COTP 24 hours before a transfer of LHG, is 
unrealistic and perhaps unattainable because a facility rarely knows 
that far in advance the time a vessel will arrive. Frequent changes in 
the time, due to weather, tides, schedule changes, or other operational 
constraints, do occur. Two comments suggested that the COTP and the 
facility should agree on how far in advance the facility should notify 
the COTP. Three comments recommended a requirement that the facility 
notify the COTP 4 hours before a transfer. The purpose of any such 
requirement is to notify the Coast Guard of transfers early enough that 
its personnel can periodically witness the transfers. Otherwise, the 
Coast Guard cannot effectively enforce its rules. 33 CFR 126.27 now 
requires ``prior notification'' without specifying the amount. The 
Coast Guard believes that reducing the notice from 24 to 4 hours is 
reasonable and has modified Sec. 127.1319(a) of this rule accordingly. 
(The Coast Guard nonetheless encourages facilities to give as much 
notice as they can so the Coast Guard can deploy its resources as 
efficiently as it can.)
    29. Three comments complained that Sec. 127.1319 does not clearly 
indicate whether the person in charge (PIC) may supervise more than one 
transfer at one time. Section 127.1319(b)(1) insists that the PIC have 
``no other assigned duties during the transfer.'' Supervising an 
additional transfer would constitute having another assigned duty. 
Generally, it is not safe for a single PIC to supervise more than one 
transfer at one time. However, supervising multiple transfers may be 
safe because of other trained personnel involved in the transfers or it 
may become necessary because of an emergency. To clarify this issue, a 
new Sec. 127.1319(b)(2) indicates that the PIC may not supervise 
transfers to or from more than one vessel at a time unless authorized 
by the COTP. Proposed paragraphs (2) and (3) have become (3) and (4) 
respectively.
    30. One comment was concerned that Sec. 127.1319(c)(3)(i) requires 
a facility to discontinue the transfer of LHG that is not flammable 
when an electrical storm approaches. Another was concerned that 
Sec. 127.1319(c)(3)(ii) requires the facility to discontinue the 
transfer in cases of routine operational releases. The Coast Guard 
concurs and has amended Sec. 127.1319(c)(3) to clarify both issues.
    31. One comment stated that the rule does not clearly require cargo 
hoses and loading arms to be drained and depressurized before being 
disconnected from a vessel. Section 127.1101 requires ``an isolation 
valve with a bleed connection, such that transfer hoses and loading 
arms can be blocked off, drained or pumped out, and depressurized 
before disconnecting''; however, nothing requires any act. To clarify 
this point a new Sec. 127.1319(d) requires that hoses and loading arms 
be drained and depressurized before being disconnected from a vessel. 
(Two major casualties on waterfront facilities resulted from not 
carrying out this procedure.)
    32. Twelve comments asked that the Coast Guard define ``release'' 
as used in Sec. 127.1321. The NPRM would have required that, upon 
``release'' of LHG or its vapor, a facility stop the transfer, notify 
the COTP, and not resume the transfer until authorized by the COTP. 
Because it specified no amount of ``release'', it would have required 
these measures even if the amount would not cause harm to human health 
or the environment. The commenters expressed concern that, as a rule, 
it would disrupt operations for minor releases that typically accompany 
connections and disconnections of hoses, tank gauging, sampling, and 
other routine operations. For example, it could prohibit the use of 
slip tubes (devices for gauging) because using a slip tube releases 
minor amounts of vapor.
    The Coast Guard agrees that a definition of ``release'' is 
necessary to determine when a transfer should stop. The Coast Guard has 
never intended to prohibit minor, routine releases unless they cause 
harm to human health or the environment. It has defined ``release'' in 
Sec. 127.005 of this rule to clarify for which releases the transfers 
must stop and be reported to the COTP. For the purposes of this part a 
``release'' is any spilling, leaking, pumping, pouring, emitting, 
emptying, discharging, injecting, escaping, leaching, dumping, or 
disposing into the environment, except a minor release of LHG, or its 
vapor, that may occur during the routine handling of LHG. No release is 
minor if it creates an atmosphere that exceeds the Lower Flammable 
Limit (LFL) for a flammable product or any PEL listed in 29 CFR part 
1910.1000, Table Z-1 or Z-2, for a toxic product. This definition of 
``release'' is similar to that of 

[[Page 39792]]
``discharge'' in the National Response Plan (40 CFR 300.5) except that 
it also looks to flammability and exposure. Flammability and exposure 
make sense as criteria because releases of some LHGs will meet them 
long before the releases amount to a ``reportable quantity'' under 40 
CFR part 302, and it is difficult to verify the size of a release of 
liquefied gas after it vaporizes.
    To further reduce the potential for frequent activation of the 
warning alarms, Sec. 127.1321(a)(2) now requires their activation only 
for releases that ``threaten vessels or persons outside the immediate 
transfer area.'' This should eliminate the need to activate the warning 
alarms for releases that, while more than minor, are small in that they 
do not threaten persons outside the area. Generally, other means will 
notify persons inside the area.
    33. Three comments disliked the requirement in Sec. 127.1325(c) to 
provide security guards. They argued that facilities cannot identify 
personnel, check ID cards, escort personnel, or perform other 
activities normally done by the guards. One suggested that facilities 
using public docks be exempt because they control neither the docks nor 
the persons who use them. Two recommended that Sec. 127.1325 apply only 
during transfers.
    The Coast Guard does not concur. Access to the transfer area must 
be limited to reduce the risk of fire, explosion, or other calamities 
resulting from vandalism or sabotage. Unless the piping and storage 
tanks on the facility contain no LHG, and no LHG vapors, the potential 
for a hazardous release exists even when no transfer is in progress. In 
many cases, access to critical parts of the area may be effectively 
restricted by means other than guards. (Unfortunately, these means and 
where they will be acceptable are too numerous to list within this 
rulemaking. Section 127.1325(c) lets the COTP approve alternative means 
such as electronic monitoring or random patrols where the stationing of 
guards is impracticable.)
    34. One comment claimed that, because of the manpower entailed, it 
was not reasonable to escort each person entering a facility. The Coast 
Guard acknowledges that there are other good ways to prevent sabotage 
and vandalism. Ensuring that persons entering the facility have 
legitimate business on the facility, and display visitors' badges to 
show they have been identified, should suffice. Badges will help 
employees distinguish between authorized and unauthorized personnel. 
Section 127.1325(b) reflects this change.
    35. Six comments objected to conducting static liquid-pressure 
(hydrostatic) tests of the piping, hoses, and loading arms of the LHG-
transfer system, as required by Sec. 127.1407(a). Instead, they 
suggested using alternatives such as pneumatic tests.
    Hydrostatic tests of cargo piping and hoses are already the rule of 
33 CFR 126.15(o)(7)(iv). No comments indicated that this rule has 
disrupted facilities. The Coast Guard believes that these tests provide 
the safest and most effective means of determining the integrity of 
piping and hoses. Nevertheless, the COTP may allow alternatives under 
Sec. 127.017, if they provide the same degree of safety. (Authorities 
have granted waivers for some existing facilities under 33 CFR 126.11, 
and those waivers should continue.) To ease compliance, 
Sec. 127.1407(b) reduces the pressure for the test from 1.5 times the 
maximum allowable working pressure (MAWP) to 1.1 times the MAWP because 
some LHGs are normally transferred at low working pressures.
    36. One comment suggested recasting Sec. 127.1407(a) to clarify 
which components of the cargo system need tests. Section 127.1407(a) 
applies only to that part of the system located in the marine transfer 
area. The section now says as much.
    37. Four comments recommended that the firefighting requirements in 
Secs. 127.1501 through 127.1511 not apply to facilities that handle 
only toxic LHGs. Six comments suggested that the water-systems 
requirements in Sec. 127.1507 not apply to these facilities. Four 
comments recommended that the requirements of an international shore-
connection in Sec. 127.1511 not apply to these facilities. The Coast 
Guard concurs with these comments in part.
    Section 127.1501 requires a facility to determine the number, kind, 
and site of equipment for fire detection, protection, control, and 
extinguishment on the basis of local conditions and hazards within the 
facility. This lets the facility determine the number, kind, and site 
of equipment for these purposes on the basis of its design and 
anticipated risks.
    A facility that handles only toxic LHGs must determine whether its 
design and anticipated risks call for the equipment specified in 
Sec. 127.1507. Although no water may be needed for fighting fire in LHG 
when a facility does not handle flammable LHG, it is a prime component 
of a facility's overall fire-control efforts. It may be necessary to 
protect the pier, the buildings, or vessels even if not to fight a fire 
involving LHG. It is an excellent cooling agent; it effectively 
protects personnel from fire and protects sprayed areas from radiated 
heat. It can also remove some toxic gases from the air after a release 
of toxic LHG. Therefore, it is usually essential in mitigating death, 
injury, damage to equipment, and further spreading of a fire, even if 
the LHG is not flammable.
    The international shore-connection is to protect vessels, not the 
facility. Therefore, the design and capability of vessels are more 
important than area features of the facility for one determining 
whether this equipment is necessary.
    If, after careful consideration of its own design and of the 
anticipated risks, a facility that handles toxic LHGs decides it does 
not need the water supply required by Sec. 127.1507, then it must 
justify this decision in the plan required by Sec. 127.1501. The plan 
must consider pier and vessel fires in addition to cargo fires. 
Existing facilities may certify their own plans. New facilities, and 
facilities with any new construction, must have their plans reviewed 
and approved by the COTP.
    An international shore-connection makes it possible for fittings 
with incompatible threads to connect. One is required on the facility 
so that vessels moored to the facility have a source of water for 
firefighting in case an onboard source of firefighting water is 
nonexistent or inadequate. Incompatible threads generally are not a 
problem for U.S.-flag vessels, and some facilities do not receive 
foreign-flag vessels. To account for this, Sec. 127.1511 now requires 
an international shore-connection only for those facilities that 
receive foreign-flag vessels.
    38. Five comments recommended that a facility with an on-site fire 
department or with access to a local department be exempt from the 
requirement in Sec. 127.1505 to provide emergency outfits. The intent 
of this requirement is to enable rapid response for injured or trapped 
personnel. An on-site department with appropriate outfits will meet the 
requirement since the outfits have never had to be located within the 
marine transfer area. The Coast Guard agrees that in some cases an off-
site response unit, if trained and if located close enough to the area, 
may be able to provide an effective response. To confer greater 
flexibility, Sec. 127.1505, renamed ``Emergency response and rescue'', 
allows the use of either on-site or off-site response to emergencies. 
An on-site response unit must furnish the appropriate training and 
equipment, including outfits. Training and equipment that satisfy OSHA 
[29 CFR 1910.120] will satisfy the Coast Guard. An off-site response 
unit must enter a written agreement with the facility 

[[Page 39793]]
indicating the services it will perform and the time within which it 
will perform them to personnel in the area.

Incorporation by Reference

    The Director of the Federal Register has approved the material in 
Sec. 127.003 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 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 
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. A summary 
follows.
    This rule may produce discounted costs of about $17.3 million over 
the next 25 years. Most of these costs will be borne by the waterfront 
facilities regulated, with the remainder borne by the Coast Guard. This 
rule will affect about 137 waterfront facilities. Over half of those 
facilities also handle products subject to the pollution-prevention 
regulations in 33 CFR parts 154 and 156, which contain similar 
requirements. Costs to industry will arise primarily from purchase, 
replacement, and maintenance of equipment, and secondarily from 
training personnel and from collecting information. This rule should 
produce benefits of about $4.8 million in discounted property damages 
prevented, of 6 deaths prevented, and of 147 injuries prevented over 
the next 25 years. The cost of achieving these benefits is less than 
the value of life based on willingness to pay, assumed by most 
economists; therefore, this rule is cost-beneficial. It may also 
produce environmental benefits by preventing the release of LHGs into 
the environment, although those benefits might be slight, over the same 
span. Further details on the costs and benefits of this rule appear in 
the Regulatory Evaluation.
    No comments concerned this section or the draft Regulatory 
Evaluation. The changes made in this rule will slightly reduce the 
economic impact, but should not significantly reduce the benefits, of 
this rule. The most significant changes are: exempting existing 
facilities from certain design requirements, allowing an alternative to 
providing emergency outfits, allowing an alternative to having an alarm 
on a loading arm, clarifying when transfers must be shut down, 
shortening the time before transfers for notifying the Coast Guard, 
extending the frequency of certain tests, allowing fixed gas-detection 
systems to be used in lieu of portable gas-detectors, and exempting 
ammonia facilities from gas-detectors entirely.

Small Entities

    Under the Regulatory Flexibility Act [5 U.S.C. 601 et seq.], the 
Coast Guard must consider whether this rule 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.
    This rule is not expected to affect any waterfront facilities owned 
or operated by a small entity. A recent review of the ownership and 
operation of waterfront facilities handling LHG in bulk did not reveal 
any owned by small entities as defined under the Regulatory Flexibility 
Act. No comments concerning small entities were received in response to 
the NPRM. An entity large or small, could avoid the impact of this rule 
by originating and receiving shipments of LHG in portable tanks, tank 
trucks, or rail cars rather than transferring in bulk from a vessel. 
Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that this 
rule will not have a significant economic impact on a substantial 
number of small entities.

Collection of Information

    This rule contains collection-of-information requirements. The 
Coast Guard has submitted the requirements to the Office of Management 
and Budget (OMB) for review under section 3504(h) of the Paperwork 
Reduction Act [44 U.S.C. 3501 et seq.], and OMB has approved them. The 
section numbers and control numbers from OMB are as follows:

------------------------------------------------------------------------
              Section                               Topic               
------------------------------------------------------------------------
127.007............................  Letter of intent.                  
127.015............................  Appeals.                           
127.017............................  Alternatives                       
127.019, 127.305, 127.1305.........  Operations Manual.                 
127.019, 127.307, 127.1307.........  Emergency Manual.                  
127.301, 127.1301..................  [Certification of PIC].            
127.317, 127.1317..................  Decelaration of Inspection.        
127.409, 127.1409..................  Records [of maintenance].          
127.617, 127.1603..................  Hotwork [permits].                 
------------------------------------------------------------------------

    The estimated annual burden is significantly different from that 
estimated in the NPRM. That did not reflect the significantly reduced 
burden in subsequent years after the one-time initial burden of 
developing manuals. The following particulars apply:
    DOT No: 2115.
    (1) OMB Control No.: 0052.
    Administration: U.S. Coast Guard.
    Title: Waterfront Facilities Handling Liquefied Natural Gas and 
Liquefied Hazardous Gas (known to OMB as: Liquefied Natural Gas and 
Liquefied Hazardous Gas Waterfront Facilities)
    Need for Information: To prevent, or mitigate the results of, 
release of liquefied natural gas and liquefied hazardous gases at 
waterfront facilities.
    Proposed use of Information: To verify compliance with safety 
regulations and for program management, planning, and evaluation.
    Frequency of Response: On occasion.
    Burden Estimate: 3,531 hours per year.
    Respondents: 137.
    Forms: None.
    Average Burden Hours Per Respondent: 3.1 hours per year.
    (2) OMB Control No.: 0013.
    Administration: U.S. Coast Guard.
    Title: Welding and Hot-Work Permit
    Need for Information: To restrict welding and other hot work on 
certain waterfront facilities to prevent fires and explosions.
    Proposed use of Information: To ensure compliance with safety 
regulations.
    Frequency of Response: On occasion.
    Burden Estimate: 2,190 hours per year.
    Respondents: 730.
    Forms: None.
    Average Burden Hours per Respondent: 2.5 hours per year.

Federalism

    The Coast Guard has analyzed this rule in accordance with the 
principles and criteria contained in Executive Order 12612, and has 
determined that this proposal does not have sufficient implications for 
federalism to warrant the preparation of a Federalism Assessment. This 
rule sets minimal safety standards for the operation of waterfront 
facilities transferring LHG to or from vessels in bulk. Since these are 
minimal standards, State and local governments are free to set higher 
standards where necessary for local 

[[Page 39794]]
conditions. Therefore, this rule preempts State action to set lower 
safety standards, but does not preempt State action to set higher 
safety standards, for waterfront facilities transferring LHG.

Environment

    The Coast Guard has considered the environmental impact of this 
rule and concluded that, under section 2.B.2 of Commandant Instruction 
M16475.1B, this rule is categorically excluded from further 
environmental documentation. This rule will prevent or mitigate 
releases of LHG and will have no adverse impact on the environment. A 
Determination of Categorical Exclusion is available in the docket for 
inspection or copying at the address under ADDRESS.

List of Subjects

33 CFR Part 126

    Explosives, Harbors, Hazardous substances, Reporting and 
recordkeeping requirements.

33 CFR Part 127

    Harbors, Hazardous substances, Incorporation by reference, Natural 
gas, Security measures, Vessels, Reporting and recordkeeping 
requirements.

    For the reasons set out in the preamble, the Coast Guard amends 33 
CFR parts 126 and 127 as follows:

PART 126--[AMENDED]

    1. The authority citation for part 126 continues to read as 
follows:

    Authority: 33 U.S.C. 1231; 49 CFR 1.46(n)(4).


Sec. 126.05  [Amended]

    2. Section 126.05(a) is amended by removing the words ``other than 
the cargoes listed in Sec. 126.10(d)''.


Sec. 126.10  [Amended]

    3. Section 126.10 is amended by removing paragraph (d).


Sec. 126.15  [Amended]

    4. Section 126.15 is amended by removing paragraph (o).

PART 127--[AMENDED]
    5. The authority citation for part 127 continues to read as 
follows:

    Authority: 33 U.S.C. 1231; 49 CFR 1.46(n)(4).

    6. The heading of part 127 is revised to read as follows:

PART 127--WATERFRONT FACILITIES HANDLING LIQUEFIED NATURAL GAS AND 
LIQUEFIED HAZARDOUS GAS

    7. Section 127.001 is revised to read as follows:


Sec. 127.001  Applicability.

    (a) Subparts A and B of this part apply to the marine transfer area 
for LNG of each new waterfront facility handling LNG and to new 
construction in the marine transfer area for LNG of each existing 
waterfront facility handling LNG.
    (b) Subpart A of this part and Secs. 127.301 through 127.617 apply 
to the marine transfer area for LNG of each active existing waterfront 
facility handling LNG.
    (c) Sections 127.007 (c), (d), and (e); 127.019(b); and 127.701 of 
subparts A and B of this part apply to the marine transfer area for LNG 
of each inactive existing facility.
    (d) Subparts A and C of this part apply to the marine transfer area 
for LHG of each active waterfront facility handling LHG.
    (e) Sections 127.007 (c), (d), and (e); 127.019(b); and 127.1325(c) 
of subparts A and C of this part apply to the marine transfer area for 
LHG of each inactive facility.
    8. Section 127.003 is revised to read as follows:


Sec. 127.003  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, Room 700, 800 North Capitol Street 
NW., Washington, DC 20408, and at the U.S. Coast Guard, (G-MPS), Room 
1108, 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:


            The American National Standards Institute (ANSI)            
                                                                        
1430 Broadway, New York, NY 10018:                                      
    ANSI B16.5, Pipe Flanges and Flanged Fittings 1988,                 
     including 1992 Addenda and Errata..................        127.1102
    ANSI S12.13, Part 1, Performance Requirements,                      
     Combustible Gas Detectors, 1986....................        127.1203
                                                                        
                   American Petroleum Institute (API)                   
                                                                        
1220 L Street NW., Washington, DC 20005:                                
    API RP 2003, Protection Against Ignitions Arising                   
     Out of Static, Lightning and Stray Currents, 1991..        127.1101
                                                                        
             American Society of Mechanical Engineers (ASME)            
                                                                        
345 East 47th Street, New York, NY 10017:                               
    ASME B31.3, Chemical Plant and Petroleum Refinery                   
     Piping, 1993.......................................        127.1101
                                                                        
            American Society for Testing and Materials (ASTM)           
                                                                        
1916 Race Street, Philadelphia, PA 19103:                               
ASTM F-1121, International Shore Connections for Marine                 
 Applications, 1987 (reapproved 1993)                           127.1511
                                                                        
               National Fire Protection Association (NFPA)              
                                                                        
Batterymarch Park, Quincy, MA 02269:                                    
    NFPA 10, Portland Fire Extinguishers, 1994..........        127.603;
                                                                127.1503
    NFPA 30, Flammable and Combustible Liquids Code,                    
     1993...............................................        127.313;
                                                                127.1313
    NFPA 51B, Fire Prevention in Use of Cutting and                     
     Welding Processes, 1994............................        127.405;
                                                                127.1405
    NFPA 59A, Production, Storage, and Handling of                      
     Liquefied Natural Gas (LNG), 1994..................        127.101;
                                                                127.201;
                                                                127.405;
                                                                 127.603

[[Page 39795]]
                                                                        
    NFPA 70, National Electrical Code, 1993.............        127.107;
                                                                127.201;
                                                                127.1107
    NFPA 251, Fire Tests of Building Construction and                   
     Materials, 1990....................................         127.005
                                                                        


    9. Sec. 127.005 is amended by revising the definitions for the 
terms ``active'', ``existing'', ``impounding space'', ``LNG vessel'', 
and ``new''; by removing the definitions for the terms ``LNG waterfront 
facility'' and ``marine transfer area''; and by adding definitions for 
the terms ``facility'', ``flammable product'', ``LHG'', ``LHG vessel'', 
``liquefied hazardous gas'', ``LNG'', ``marine transfer area for LHG'', 
``marine transfer area for LNG'', ``mating flange'', ``MAWP'', 
``release'', ``toxic product'', ``waterfront facility handling LHG'', 
and ``waterfront facility handling LNG'', in alphabetical order, to 
read as follows:


Sec. 127.005  Definitions.

* * * * *
    Active means accomplishing the transfer of LHG or LNG, or 
scheduling one to occur, within 12 months of the current date.
* * * * *
    Existing as applied to a waterfront facility means a facility 
handling LNG constructed or being constructed under a contract awarded 
before June 2, 1988, or a facility handling LHG constructed or being 
constructed under a contract awarded before January 30, 1996.
    Facility means either a waterfront facility handling LHG or a 
waterfront facility handling LNG.
* * * * *
    Flammable product means a product indicated by the letter ``F'' or 
by the letters ``F + T'' in Table 1 to this part.
* * * * *
    Impounding space means a space formed by dikes and floors that 
confines a spill of LHG or LNG.
    LHG means liquefied hazardous gas.
    LHG vessel means a vessel constructed or converted to carry LHG, in 
bulk.
    Liquefied hazardous gas (LHG) means a liquid containing one or more 
of the products listed in Table 1 to this part.
* * * * *
    LNG means liquefied natural gas.
    LNG vessel means a vessel constructed or converted to carry LNG, in 
bulk.
* * * * *
    Marine transfer area for LHG means that part of a waterfront 
facility handling LHG between the vessel, or where the vessel moors, 
and the first shutoff valve on the pipeline immediately inland of the 
terminal manifold or loading arm, including the entire part of a pier 
or wharf used to serve LHG vessels.
    Marine transfer area for LNG means that part of a waterfront 
facility handling LNG between the vessel, or where the vessel moors, 
and the last manifold or valve immediately before the receiving tanks.
    Mating flange means that flange in the product-transfer pipeline on 
a waterfront facility handling LHG or a waterfront facility handling 
LNG that connects this pipeline to the pipeline or transfer hose of the 
vessel.
* * * * *
    MAWP means maximum allowable working pressure.
    New as applied to a waterfront facility means a facility handling 
LNG constructed or being constructed under a contract awarded on or 
after June 2, 1988, or a facility handling LHG constructed or being 
constructed under a contract awarded on or after January 30, 1996.
* * * * *
    Release means any spilling, leaking, pumping, pouring, emitting, 
emptying, discharging, injecting, escaping, leaching, dumping, or 
disposing into the environment, except a minor release of LHG or its 
vapor, that may occur during the routine handling of LHG. No release is 
minor if it creates an atmosphere that exceeds the Lower Flammable 
Limit (LFL) for a flammable product or any Permissible Exposure Limit 
(PEL) listed in 29 CFR 1910.1000, Table Z-1 or Z-2, for a toxic 
product.
    Toxic product means a product indicated by the letter ``T'' or by 
the letters ``F+T'' in Table 1 to this part.
    Waterfront facility handling LHG means any structure on, in, or 
under the navigable waters of the United States, or any structure on 
land or any area on shore immediately adjacent to such waters, used or 
capable of being used to transfer liquefied hazardous gas, in bulk, to 
or from a vessel.
    Waterfront facility handling LNG means any structure on, in, or 
under the navigable waters of the United States, or any structure on 
land or any area on shore immediately adjacent to such waters, used or 
capable of being used to transfer liquefied natural gas, in bulk, to or 
from a vessel.


Sec. 127.007  [Amended]


Sec. 127.009  [Amended]


Sec. 127.013  [Amended]


Sec. 127.019  [Amended]


Secs. 127.007, 127.009, 127.013, 127.019  [Amended]

    10. Part 127 is amended by adding the phrase ``LHG or'' before the 
term ``LNG'' wherever the latter appears in the following:
    a. Sec. 127.007(c).
    b. Sec. 127.007(d)(5).
    c. Sec. 127.007(d)(6).
    d. Sec. 127.007(e)(2).
    e. The introductory text of Sec. 127.009.
    f. The introductory text of Sec. 127.013(a).
    g. Sec. 127.019(b).


Sec. 127.011  [Amended]

    11. Sec. 127.011 is amended by revising the heading to read 
``Inspections of Waterfront Facilities.''


Sec. 127.019  [Amended]

    12. Sec. 127.019(c) is amended by removing the words ``Sec. 127.305 
and the Emergency Manual meets Sec. 127.307'' and adding in their place 
the words ``Sec. 127.305 or Sec. 127.1305 and that the Emergency Manual 
meets Sec. 127.307 or Sec. 127.1307''.

Subparts B, C, D, E, F, G, and H--[Amended]

    13. Subparts C, D, E, F, G, and H of this part are amended by 
removing their headings and leaving those headings as undesignated text 
headings, by removing the undesignated text heading ``Fire Equipment'' 
before Sec. 127.601, and by removing the undesignated text heading 
``Fire Protection'' before Sec. 127.613; and Subpart B is amended by 
revising its heading to read as follows:

Subpart B--Waterfront Facilities Handling Liquefied Natural Gas


Secs. 127.101, 127.109, 127.111, 127.113, 127.203, 127.207, 127.305, 
127.313, 127.315, 127.319, 127.607, 127.609, 127.611, 127.613, 127.615, 
127.701, 127.703, 127.705, and 127.711  [Amended]

    14. Part 127 is amended by replacing the words ``marine transfer 
area'' wherever they appear with the words ``marine transfer area for 
LNG'' in the following:
    a. The introductory text of Sec. 127.101.
    b. Sec. 127.109(a).
    c. Sec. 127.111(a).

[[Page 39796]]

    d. Sec. 127.113(a), introductory text.
    e. Sec. 127.203.
    f. Secs. 127.207 (a) and (b).
    g. Secs. 127.305 (d) and (e).
    h. Sec. 127.313(a) introductory text.
    i. Sec. 127.315(g).
    j. Secs. 127.319 (a)(1) and (b)(3)(i).
    k. The introductory text of Sec. 127.603.
    l. Sec. 127.607(a).
    m. Sec. 127.609(a).
    n. Sec. 127.611.
    o. Sec. 127.613.
    p. Sec. 127.615.
    q. The heading of Sec. 127.703.
    r. Sec. 127.703(a), introductory text, and (b).
    s. The introductory text of Sec. 127.705.
    t. Sec. 127.711.


Sec. 127.105  [Amended]

    15. Sec. 127.105 is amended by revising the heading to read 
``Layout and spacing of marine transfer area for LNG.''


Secs. 127.103, 127.105, 127.301, 127.303, 127.305, 127.307, 127.309, 
127.317, 127.319, 127.321, 127.401, 127.703, and 127.711  [Amended]

    16. Part 127 is further amended by replacing the word ``facility'' 
with the phrase ``waterfront facility handling LNG'' wherever it 
appears in the following:
    a. Sec. 127.103(a).
    b. Sec. 127.105(a).
    c. Secs. 127.301(a) introductory text, and (b).
    d. Sec. 127.303.
    e. Sec. 127.305(d).
    f. Sec. 127.307(f).
    g. Sec. 127.309(a).
    h. Secs. 127.317 (b) and (c)(1).
    i. Sec. 127.319(a) introductory text.
    j. Sec. 127.321(a) introductory text.
    k. Sec. 127.401.
    l. Secs. 127.703 (a)(1) and (b).
    m. Sec. 127.711.


Sec. 127.405  [Amended]

    17. Sec. 127.405(a)(1) is amended by replacing the words ``subparts 
B, C, G, and H of this part'' with the words ``this subpart''.
    18. A new subpart C, consisting of Secs. 127.1101 through 127.1605, 
is added to read as follows:
Subpart C--Waterfront Facilities Handling Liquefied Hazardous Gas
Sec.

Design and Construction

127.1101  Piping systems.
127.1102  Transfer hoses and loading arms.
127.1103  Piers and wharves.
127.1105  Layout and spacing of marine transfer area for LHG.
127.1107  Electrical systems.
127.1109  Lighting systems.
127.1111  Communication systems.
127.1113  Warning signs.

Equipment

127.1203  Gas detection.
127.1205  Emergency shutdown.
127.1207  Warning alarms.
127.1209  Respiratory protection.

Operations

127.1301  Persons in charge of transfers for the facility: 
Qualifications and certification.
127.1302  Training.
127.1303  Compliance with suspension order.
127.1305  Operations Manual.
127.1307  Emergency Manual.
127.1309  Operations Manual and Emergency Manual: Use.
127.1311  Motor vehicles.
127.1313  Storage of hazardous materials.
127.1315  Preliminary transfer inspection.
127.1317  Declaration of Inspection.
127.1319  Transfer of LHG.
127.1321  Release of LHG.
127.1325  Access to marine transfer area for LHG.

Maintenance

127.1401  General.
127.1403  Inspections.
127.1405  Repairs.
127.1407  Tests.
127.1409  Records.

Firefighting Equipment

127.1501  General.
127.1503  Portable fire extinguishers.
127.1505  Emergency response and rescue.
127.1507  Water systems for fire protection.
127.1509  Equipment for controlling and extinguishing fires.
127.1511  International shore connection.

Fire Protection

127.1601  Smoking.
127.1603  Hotwork.
127.1605  Other sources of ignition.

Design and Construction


Sec. 127.1101  Piping systems.

    Each piping system within the marine transfer area for LHG used for 
the transfer of LHG must meet the following criteria:
    (a) Each system must be designed and constructed in accordance with 
ASME B31.3.
    (b) Each pipeline on a pier or wharf must be located so that it is 
not exposed to physical damage from vehicular traffic or cargo-handling 
equipment. Each pipeline under navigable waters must be covered or 
protected to meet 49 CFR 195.248.
    (c) The transfer manifold of each liquid transfer line and of each 
vapor return line must have an isolation valve with a bleed connection, 
such that transfer hoses and loading arms can be blocked off, drained 
or pumped out, and depressurized before disconnecting. Bleeds or vents 
must discharge to a safe area such as a tank or flare.
    (d) In addition to the isolation valve at the transfer manifold, 
each liquid-transfer line and each vapor return line must have a 
readily accessible isolation valve located near the edge of the marine 
transfer area for LHG.
    (e) Each power-operated isolation valve must be timed to close so 
that it will not produce a hydraulic shock capable of causing failure 
of the line or equipment. Unless the layout of the piping allows the 
isolation valve at the transfer manifold to close within 30 seconds 
without creating excessive stresses on the system, the layout must be 
reconfigured to reduce the stresses to a safe level.
    (f) Each waterfront facility handling LHG that transfers to or from 
a vessel requiring vapor return during transfer must be equipped with a 
vapor return line designed to attach to the vessel's vapor connection.
    (g) Where two or more LHGs are loaded or unloaded at the same 
facility, each manifold must be identified or marked to indicate each 
LHG it handles.
    (h) Each pipeline used to transfer flammable liquids or vapors must 
be provided with precautions against static, lightning, and stray 
current in accordance with API RP 2003.


Sec. 127.1102  Transfer hoses and loading arms.

    (a) Each hose within the marine transfer area for LHG used for the 
transfer of LHG or its vapors to or from a vessel must--
    (1) Be made of materials resistant to each LHG transferred, in both 
the liquid and vapor state (if wire braid is used for reinforcement, 
the wire must be of corrosion-resistant material, such as stainless 
steel);
    (2) Be constructed to withstand the temperature and pressure 
foreseeable during transfer, with a MAWP not less than the maximum 
pressure to which it may be subjected and at least 1030 kPa gauge 
(149.4 psig);
    (3) Be designed for a minimum bursting pressure of a least five 
times the MAWP;
    (4) Have--
    (i) Full-threaded connections;
    (ii) Flanges that meet ANSI B16.5; or
    (iii) Quick connect couplings that are acceptable to the 
Commandant;
    (5) Be adequately supported against the weight of its constituent 
parts, the LHG, and any ice formed on it;
    (6) Have no kinks, bulges, soft spots, or other defects that will 
let it leak or burst under normal working pressure; and
    (7) Have a permanently attached nameplate that indicates, or 
otherwise be permanently marked to indicate--

[[Page 39797]]

    (i) Each LHG for which it is suitable;
    (ii) Its MAWP at the corresponding service temperature; and
    (iii) If used for service at other than ambient temperature, its 
minimum service temperature.
    (b) Each loading arm used for the transfer of LHG or its vapor 
must--
    (1) Be made of materials resistant to each LHG transferred, in both 
the liquid and vapor state;
    (2) Be constructed to withstand the temperature and pressure 
foreseeable during transfer;
    (3) Be adequately supported against the weight of its constituent 
parts, the LHG, and any ice formed on it;
    (4) Be provided with an alarm to indicate when it is approaching 
the limits of its extension, unless the examined Operations Manual 
requires a person to perform the same function; and
    (5) Have a permanently attached nameplate that indicates, or 
otherwise be permanently marked to indicate--
    (i) Each LHG it may handle;
    (ii) Its MAWP at the corresponding service temperature; and,
    (iii) If it is used for service at other than ambient temperature, 
its minimum service temperature.


Sec. 127.1103  Piers and wharves.

    (a) Each new waterfront facility handling LHG, and all new 
construction in the marine transfer area for LHG of each existing 
facility, must comply with the standards for seismic design and 
construction in 49 CFR part 41.
    (b) Each substructure on a new waterfront facility handling LHG, 
and all new construction in the marine transfer area for LHG of each 
existing facility, except moorings and breasting dolphins, that 
supports or is within 4.5 meters (14.8 feet) of any pipe or equipment 
containing a flammable LHG, or that is within 15 meters (49.2 feet) of 
a loading flange used to transfer a flammable LHG, must have a fire-
endurance rating of not less than two hours.


Sec. 127.1105  Layout and spacing of marine transfer area for LHG.

    Each new waterfront facility handling LHG, and all new construction 
in the marine transfer area for LHG of each existing facility, must 
comply with the following:
    (a) Each building, shed, and other structure within each marine 
transfer area for LHG must be located, constructed, or ventilated to 
prevent the accumulation of flammable or toxic gases within the 
structure.
    (b) Each impounding space for flammable LHGs located within the 
area must be designed and located so that the heat flux from a fire 
over the impounding space does not cause, to a vessel, damage that 
could prevent the vessel's movement.
    (c) Each manifold, loading arm, or independent mating flange must 
be located at least 60 meters (197 feet) from each of the following 
structures, if that structure is intended primarily for the use of the 
general public or of railways:
    (1) A bridge crossing a navigable waterway.
    (2) The entrance to, or the superstructure of, a tunnel under a 
navigable waterway.
    (d) Each manifold, loading arm, or independent mating flange must 
be located at least 30 meters (98.5 feet) from each public roadway or 
railway.


Sec. 127.1107  Electrical systems.

    Electrical equipment and wiring must be of the kind specified by, 
and must be installed in accordance with, NFPA 70.


Sec. 127.1109  Lighting systems.

    (a) Each waterfront facility handling LHG, at which transfers of 
LHG take place between sunset and sunrise, must have outdoor lighting 
that illuminates the marine transfer area for LHG.
    (b) All outdoor lighting must be located or shielded so that it 
cannot be mistaken for any aids to navigation and does not interfere 
with navigation on the adjacent waterways.
    (c) The outdoor lighting must provide a minimum average 
illumination on a horizontal plane 1 meter (3.3 feet) above the walking 
surface of the marine transfer area that is--
    (1) 54 lux (5 foot-candles) at any loading flange; and
    (2) 11 lux (1 foot-candle) for the remainder of the marine transfer 
area for LHG.


Sec. 127.1111  Communication systems.

    (a) The marine transfer area for LHG must possess a communication 
system that enables continuous two way voice communication between the 
person in charge of transfer aboard the vessel and the person in charge 
of transfer for the facility.
    (b) The communication system required by paragraph (a) of this 
section may consist either of fixed or portable telephones or of 
portable radios. The system must be usable and effective in all phases 
of the transfer and all weather at the facility.
    (c) Devices used to comply with paragraph (a) of this section 
during the transfer of a flammable LHG must be listed as intrinsically 
safe by Underwriters Laboratories, Inc., Factory Mutual Research 
Corporation, or other independent laboratory recognized by NFPA, for 
use in the hazardous location in which it is used.


Sec. 127.113  Warning signs.

    (a) The marine transfer area for LHG must have warning signs that--
    (1) Meet paragraph (b) of this section;
    (2) Can be seen from the shore and the water; and,
    (3) Except as provided in paragraph (c) of this section, bear the 
following text:

Warning
Dangerous Cargo
No visitors
No Smoking
No Open Lights

    (b) Each letter on the sign must be--
    (1) In block style;
    (2) Black on a white background; and
    (3) At least 7.6 centimeters (3 inches) high.
    (c) The words ``No Smoking'' and ``No Open Lights'' may be omitted 
when the product being transferred is not flammable.

Equipment


Sec. 127.1203  Gas detection.

    (a) Each waterfront facility handling LHG that transfers a 
flammable LHG must have at least two portable gas detectors, or a fixed 
gas detector, in the marine transfer area for LHG. Each detector must 
be capable of indicating whether the concentration of flammable vapors 
exceeds 30% of the Lower Flammable Limit for each flammable product 
being transferred and must meet ANSI S12.13, Part 1.
    (b) Each waterfront facility handling LHG that transfers a toxic 
LHG, other than anhydrous ammonia, must have at least two portable gas 
detectors, or a fixed gas detector, available in the area. The 
detectors must be capable of showing whether the concentration of each 
toxic LHG being transferred is above, at, or below any Permissible 
Exposure Limit listed in 29 CFR 1910.1000, Table Z-1 or Z-2.
    (c) Each gas detector required by paragraph (a) or (b) of this 
section must serve to detect leaks, check structures for gas 
accumulations, and indicate workers' exposure to toxic gases in the 
area.


Sec. 127.1205  Emergency shutdown.

    (a) Each piping system used to transfer LHG or its vapors to or 
from a vessel must have a quick-closing shutoff valve to stop the flow 
of liquid and vapor from the waterfront facility handling LHG if a 
transfer hose or loading arm fails. This valve may be the isolation 
valve with a bleed connection required by Sec. 127.1101(c).

[[Page 39798]]

    (b) The valve required by paragraph (a) of this section must be 
located as near as practicable to the terminal manifold or loading-arm 
connection and must--
    (1) Close on loss of power;
    (2) Close from the time of activation in 30 seconds or less;
    (3) Be capable of local manual closing and remotely controlled 
closing; and,
    (4) If the piping system is used to transfer a flammable LHG, 
either have fusible elements that melt at less than 105 deg. (C 
221 deg.F) and activate the emergency shutdown, or have a sensor that 
performs the same function.
    (c) A remote actuator for each valve must be located in a place 
accessible in an emergency, at least 15 meters (49.2 feet) from the 
terminal manifold or loading arm, and conspicuously marked with its 
designated function. When activated, the actuator must also 
automatically shut down any terminal pumps or compressors used to 
transfer LHG, or its vapors, to or from the vessel.


Sec. 127.1207  Warning alarms.

    (a) Each marine transfer area for LHG must have a rotating or 
flashing amber light that is visible for at least 1,600 meters (1 mile) 
from the transfer connection in all directions.
    (b) Each marine transfer are for LHG must also have a siren that is 
audible for at least 1,600 meters (1 mile) from the transfer connection 
in all directions.
    (c) Each light and siren required by this section must be located 
so as to minimize obstructions. If any obstruction will prevent any of 
these alarms from meeting paragraph (a) or (b) of this section, the 
operator of the waterfront facility handling LHG shall propose for 
approval by the local COTP additional or alternative warning devices 
that provide an equivalent level of safety.


Sec. 127.1209  Respiratory protection.

    Each waterfront facility handling LHG must provide equipment for 
respiratory protection for each employee of the facility in the marine 
transfer area for LHG during the transfer of one or more of the 
following toxic LHGs; anhydrous ammonia, chlorine, dimethylamine, 
ethylene oxide, methyl bromide, sulphur dioxide, or vinyl chloride. The 
equipment must protect the wearer from the LHG's vapor for at least 5 
minutes.

Operations


Sec. 127.1301  Persons in charge of transfers for the facility: 
Qualifications and certification.

    (a) No person may serve, or use the services of any person, as a 
person in charge of transfers for the facility regulated under this 
subpart, unless that person--
    (1) Has at least 48 hours' transfer experience with each LHG being 
transferred;
    (2) Knowing the hazards of each LHG being transferred;
    (3) Knows the rules of this subpart; and
    (4) Knows the procedures in the examined Operations Manual and the 
examined Emergency Manual.
    (b) Before a person in charge of transfers for a waterfront 
facility handling LHG supervises a transfer of LHG, the operator of the 
facility shall certify in writing that that person has met the 
requirements in paragraph (a) of this section. The operator shall 
ensure that a copy of each current certification is available for 
inspection at the facility.


Sec. 127.1302  Training.

    (a) Each operator of a waterfront facility handling LHG shall 
ensure that each person assigned to act as a person in charge of 
transfers for the facility has training in the following subjects:
    (1) Properties and hazards of each LHG being transferred to or from 
the facility.
    (2) Use of the gas detectors required by Sec. 127.1203.
    (3) Use of the equipment for respiratory protection required by 
Sec. 127.1209.
    (4) Basic firefighting procedures, including the use of the 
portable fire extinguishers required by Sec. 127.1503.
    (5) Content and use of the examined Operations Manual and examined 
Emergency Manual.
    (6) The configuration and limitations of cargo systems of LHG 
vessels.
    (7) Procedures for transferring LHG to and from LHG vessels.
    (8) Procedures for response to a release of the LHG handled by the 
facility.
    (9) First aid for persons--
    (i) With burns;
    (ii) Needing cardio-pulmonary resuscitation;
    (iii) Exposed to toxic liquid or toxic vapors (if a toxic LHG is 
handled by the facility); and
    (iv) Needing transport to a medical facility.
    (10) Restrictions on access to the marine transfer area for LHG.
    (b) Each person that receives training under paragraph (a) of this 
section shall receive refresher training in the same subjects at least 
once every 5 years.
    (c) The operator shall maintain, for each person trained, a record 
of all training provided under paragraphs (a) and (b) of this section. 
The operator shall retain these records for the duration of the 
person's employment on the waterfront facility plus 12 months.
    (d) Training conducted to comply with the hazard communication 
programs required by the Occupational Safety and Health Administration 
(OSHA) of the Department of Labor [29 CFR 1910.120] or the 
Environmental Protection Agency (EPA) [40 CFR 311.1] may be used to 
satisfy the requirements in paragraph (a) of this section, so far as 
the training addresses the requirements in paragraph (a) of this 
section.


Sec. 127.1303  Compliance with suspension order.

    If the COTP issues to the owner or operator of a waterfront 
facility handling LHG an order to suspend a transfer, no transfer may 
take place at the facility until the COTP withdraws the order.


Sec. 127.1305  Operations Manual.

    Each Operations Manual must contain--
    (a) A description of each liquid-transfer system and vapor transfer 
system, including each mooring area, transfer connection, and (where 
installed) control room, and a diagram of the piping and electrical 
systems;
    (b) The duties of each person assigned to transfers;
    (c) The maximum relief-valve setting or MAWP of the transfer 
system;
    (d) The telephone numbers of supervisors, persons in charge of 
transfers for the facility, persons on watch in the marine transfer 
area for LHG, and security personnel of the facility;
    (e) A description for each security system provided for the 
transfer area;
    (f) A description of the training programs established under 
Sec. 127.1302;
    (g) The procedures to follow for security violations; and
    (h) For each LHG handled, the procedures for transfer that 
include--
    (1) Requirements for each aspect of the transfer (start-up, 
gauging, cooldown, pumping, venting, and shutdown);
    (2) The maximum transfer rate;
    (3) The minimum transfer temperature;
    (4) Requirements for firefighting equipment; and
    (5) Communication procedures.


Sec. 127.1307  Emergency Manual.

    (a) Each Emergency Manual must contain--
    (1) For each LHG handled--
    (i) A physical description of the LHG;
    (ii) A description of the hazards of the LHG;
    (iii) First-aid procedures for persons exposed to the LHG or its 
vapors;

[[Page 39799]]

    (iv) The procedures for response to a release of the LHG; and,
    (v) If the LHG is flammable, the procedures for fighting a fire 
involving the LHG or its vapors;
    (2) A description of the emergency shutdown required by 
Sec. 127.1205;
    (3) The procedures for emergency shutdown;
    (4) A description of the number, kind, place, and use of the fire 
equipment required by Sec. 127.1501(a) and of the portable fire 
extinguishers required by Sec. 127.1503;
    (5) The telephone numbers of local Coast Guard units, hospitals, 
fire departments, police departments, and other emergency-response 
organizations;
    (6) If the facility has personnel shelters, the place of and 
provisions in each shelter;
    (7) If the facility has first-aid stations, the location of each 
station;
    (8) Emergency procedures for mooring and unmooring a vessel; and,
    (9) If an off-site organization is to furnish emergency response, a 
copy of the written agreement required by Sec. 127.1505(a)(2).
    (b) The employee-emergency plan and fire-prevention required by 
OSHA in 29 CFR 1910.38 may be used to comply with this section to the 
extent that they address the requirements specified in paragraphs (a) 
(1) through (9) of this section.


Sec. 127.1309  Operations Manual and Emergency Manual: Use.

    Each operator of a waterfront facility handling LHG shall ensure 
that--
    (a) No transfer is conducted unless the facility has an examined 
Operations Manual and an examined Emergency Manual;
    (b) Each transfer is conducted in accordance with the examined 
Operations Manual; and
    (c) Each emergency response is conducted in accordance with the 
examined Emergency Manual.


Sec. 127.1311  Motor vehicles.

    (a) When LHG is being transferred or stored in the marine transfer 
area of a waterfront facility handling LHG, the operator shall ensure 
that no person--
    (1) Stops or parks a motor vehicle in a space other than a 
designated parking space;
    (2) Refuels a motor vehicle within the area; or
    (3) Operates a vehicle or other mobile equipment that constitutes a 
potential source of ignition within 15 meters (49.2 feet) of any 
storage container, manifold, loading arm, or independent mating flange 
containing a flammable liquid or vapor.
    (b) If motor vehicles are permitted to stop in the marine transfer 
area for LHG, the operator shall designate and mark parking spaces 
that--
    (1) Do not block fire lanes;
    (2) Do not impede any entrances or exits; and
    (3) Are not located within 15 meters (49.2 feet) of any storage 
container, manifold, loading arm, or independent mating flange 
containing a flammable liquid or vapor.
Sec. 127.1313  Storage of hazardous materials.

    (a) Each operator of a waterfront facility handling LHG shall 
ensure that no materials listed in the table of hazardous materials 
under 49 CFR 172.101, except for the following, are stored in the 
marine transfer area for LHG:
    (1) The LHG being transferred.
    (2) Fuel required by the vessel, or by emergency equipment in the 
area.
    (3) Oily wastes received from vessels.
    (4) Solvents, lubricants, paints and similar materials in the 
amount required for one day's operations and maintenance.
    (b) The operator shall ensure that flammable liquids not stored in 
bulk are stored in accordance with Chapter 4 of NFPA 30.


Sec. 127.1315  Preliminary transfer inspection.

    Before each transfer, the person in charge of transfer for the 
facility shall--
    (a) Inspect piping and equipment within the marine transfer area 
for LHG to be used for transfer and ensure that it meets the 
requirements in this part;
    (b) Determine the contents, pressure, temperature, and capacity of 
each storage tank to or from which LHG will be transferred, to ensure 
that it is safe for transfer;
    (c) Confer with the person in charge of transfer aboard the vessel, 
to review and agree on--
    (1) The sequence of acts required for transfer;
    (2) The rate, maximum working pressure, and minimum working 
temperature of transfer;
    (3) The duties, stations, and watches of each person assigned for 
transfer; and
    (4) The emergency procedures in the examined Emergency Manual;
    (d) Ensure that the vessel is securely moored and that the transfer 
connections allow it to move to the limits of its moorings without 
placing a strain on the piping, hose, or loading arm used for transfer;
    (e) Ensure that each part of the transfer system is aligned to 
allow the flow of LHG to the desired place;
    (f) Ensure the display of the warning signs required by 
Sec. 127.1113;
    (g) Ensure that the requirements of this part concerning smoking 
and fire protection are met;
    (h) Ensure that qualified personnel are on duty in accordance with 
the examined Operations Manual and Secs. 127.1301 and 127.1302; and
    (i) Test the following to determine that they are operable:
    (1) The communication system required by Sec. 127.1111.
    (2) The gas detectors required by Sec. 127.1203.


Sec. 127.1317  Declaration of Inspection.

    (a) Each person in charge of transfer for the facility shall ensure 
that no person transfers LHG to or from a vessel until a Declaration of 
Inspection that meets paragraph (c) of this section is executed and 
signed by both the person in charge aboard the vessel and the person in 
charge for the facility.
    (b) No person in charge of transfer for the facility may sign the 
Declaration unless that person has fulfilled the requirements of 
Sec. 127.1315 and has indicated fulfillment of each requirement by 
writing his or her initials in the appropriate space on the 
Declaration.
    (c) Each Declaration must contain--
    (1) The name of the vessel and that of the facility;
    (2) The date and time that the transfer begins;
    (3) A list of the requirements in Sec. 127.1315 with the initials 
of both the person in charge aboard the vessel and the person in charge 
for the facility after each requirement, indicating the fulfillment of 
the requirement;
    (4) The signatures of both the person in charge aboard the vessel 
and the person in charge for the facility, and the date and time of 
signing, indicating that they are both ready to begin transfer; and
    (5) The signature of each relief person in charge and the date and 
time of each relief.
    (d) The person in charge of transfer for the facility shall give 
one signed copy of the Declaration to the person in charge of transfer 
aboard the vessel and retain the other.
    (e) Each operator of a facility shall retain a signed copy of the 
Declaration at the facility for 30 days after the transfer.


Sec. 127.1319  Transfer of LHG.

    (a) The operator of a waterfront facility handling LHG shall notify 
the COTP of the time and place of each transfer of LHG in bulk at least 
4 hours before it begins.
    (b) During transfer, each operator of a waterfront facility 
handling LHG shall ensure that--

[[Page 39800]]

    (1) The marine transfer area for LHG is under the supervision of a 
person in charge certified for transfers of LHG, who has no other 
assigned duties during the transfer;
    (2) The person in charge supervises transfers only to or from one 
vessel at a time unless authorized by the COTP.
    (3) No person transferring fuel or oily waste is involved in the 
transfer; and
    (4) No vessel is moored outboard of any LHG vessel unless allowed 
by the COTP or the examined Operations Manual of the facility.
    (c) During transfer, each person in charge of transfer for the 
facility shall--
    (1) Maintain communication with the person in charge of transfer 
aboard the LHG vessel;
    (2) Ensure that an inspection of the transfer piping and equipment 
for leaks, frost, defects, and other threats to safety takes place at 
least once every transfer;
    (3) Ensure that--
    (i) Transfer of LHG is discontinued as soon as a release or fire is 
detected in the area or aboard the vessel; and
    (ii) Transfer of flammable LHG is discontinued when electrical 
storms or uncontrolled fires approach near the area; and
    (4) Ensure that the outdoor lighting required by Sec. 127.1109 is 
turned on between sunset and sunrise.
    (d) Upon completion of transfer of LHG, each operator of a 
waterfront facility handling LHG shall ensure that hoses and loading 
arms used for transfer are drained of LHG residue and depressurized 
before disconnecting from the vessel.

    Note to Sec. 127.1319: Corresponding standards for vessels 
appear at 46 CFR part 154.


Sec. 127.1321  Release of LHG.

    (a) Each operator of a waterfront facility handling LHG shall 
ensure that--
    (1) No person intentionally releases LHG into the environment; and
    (2) If a release of LHG or its vapor threatens vessels or persons 
outside the marine transfer area for LHG, they are notified by the 
warning devices.
    (b) If LHG or its vapor is released, the person in charge of 
transfer for the facility shall--
    (1) Immediately notify the person in charge of transfer aboard the 
vessel that transfer must be shut down;
    (2) Shut down transfer in coordination with the person aboard the 
vessel;
    (3) Notify the COTP of the release; and
    (4) Not resume transfer until authorized by the COTP.


Sec. 127.1325  Access to marine transfer area for LHG.

    Each operator of a waterfront facility handling LHG shall ensure 
that--
    (a) Access to the marine transfer area for LHG from shoreside and 
waterside is limited to--
    (1) Personnel who work in the area, transfer personnel, vessel 
personnel, and delivery and service personnel in the course of their 
business;
    (2) Federal, State, and local officials; and
    (3) Other persons authorized by the operator;
    (b) Each person allowed into the area is positively identified as 
someone authorized to enter and that each person other than an employee 
of the facility displays an identifying badge;
    (c) Guards are stationed, and fences or other devices are 
installed, to prevent, detect, and respond to unauthorized access, 
fires, and releases of LHG in the area, except that alternative 
measures approved by the COTP (such as electronic monitoring or random 
patrols) will be sufficient where the stationing of guards is 
impracticable; and
    (d) Coast Guard personnel are allowed access to the facility, at 
any time, to make any examination or to board any vessel moored at the 
facility.

Maintenance


Sec. 127.1401  General.

    Each operator of a waterfront facility handling LHG shall ensure 
that all cargo handling equipment is operable, and that no equipment 
that may cause the release or ignition of LHG is used in the marine 
transfer area for LHG.


Sec. 127.1403  Inspections.

    (a) Each operator of a waterfront facility handling LHG shall 
conduct a visual inspection for defects of each pressure relief device 
not capable of being tested.
    (b) The operator shall conduct the inspection required by paragraph 
(a) of this section at least once each calendar year, with intervals 
between inspections not exceeding 15 months.


Sec. 127.1405  Repairs.

    Each operator of a waterfront facility handling LHG shall ensure 
that--
    (a) Equipment is repaired so that--
    (1) The equipment continues to meet the applicable requirements in 
this subpart; and
    (2) Safety is not compromised; and
    (b) Welding and cutting meet NFPA 51B.


Sec. 127.1407  Tests.

    (a) Each operator of a waterfront facility handling LHG shall 
conduct a static liquid-pressure test of the piping, hoses, and loading 
arms of the LHG-transfer system located in the marine transfer area for 
LHG, and shall verify the set pressure of the safety and relief 
valves--
    (1) After the system or the valves are altered;
    (2) After major repairs to the system or the valves;
    (3) After any increase in the MAWP of the system; and
    (4) At least once each calendar year, with intervals between tests 
not exceeding 15 months.
    (b) The pressure for the test under paragraph (a) of this section 
must be at least 1.1 times the MAWP and last for at least 30 minutes.
    (c) The operator shall conduct a test of each pressure gauge, to 
ensure that the displayed pressure is within 10 percent of the actual 
pressure, at least once each calendar year, with intervals between 
tests not exceeding 15 months.
    (d) The operator shall conduct a test of each item of remote 
operating or indicating equipment, such as a remotely operated valve, 
at least once each calendar year, with intervals between tests not 
exceeding 15 months.
    (e) The operator shall conduct a test of the emergency shutdown 
required by Sec. 127.1205 at least once every two months, to ensure 
that it will perform as intended. If transfers of LHG occur less often 
than every two months, the operator may conduct this test before each 
transfer instead of every two months.
    (f) The operator shall conduct a test of the warning alarm required 
by Sec. 127.1207 at least once every six months, to ensure that it will 
perform as intended. If transfers of LHG occur less often than every 
six months, the operator may conduct this test before each transfer 
instead of every six months.


Sec. 127.1409  Records.

    (a) Each operator of a waterfront facility handling LHG shall keep 
on file:
    (1) A description of the components inspected or tested under 
Sec. 127.1403 or 127.1407.
    (2) The date and results of each inspection or test under 
Sec. 127.1403 or 127.1407.
    (3) A description of any repair made after the inspection or test.
    (4) The date and a description of each alteration or major repair 
to the LHG transfer system or its valves.
    (b) The operator shall keep this information on file for at least 
24 months after the inspection, test, alteration, or major repair.

[[Page 39801]]


Firefighting Equipment


Sec. 127.1501  General.

    (a) The number, kind, and place of equipment for fire detection, 
protection, control, and extinguishment must be determined by an 
evaluation based upon sound principles of fire-protection engineering, 
analysis of local conditions, hazards within the waterfront facility 
handling LHG, and exposure to other property. A description of the 
number, kind, place, and use of fire equipment determined by this 
evaluation must appear in the Emergency Manual for each facility. The 
evaluation for each new facility and for all new construction on each 
existing facility must be submitted to the COTP for review when the 
emergency manual is submitted under Sec. 127.103.
    (b) All fire equipment for each facility must be adequately 
maintained, and periodically inspected and tested, so it will perform 
as intended.
    (c) The following must be red or some other conspicuous color and 
be in places that are readily accessible:
    (1) Hydrants and standpipes.
    (2) Hose stations.
    (3) Portable fire extinguishers.
    (4) Fire monitors.
    (d) Fire equipment must bear the approval, if applicable, of 
Underwriters Laboratories, Inc., Factory Mutual Research Corporation, 
or other independent laboratory recognized by NFPA.


Sec. 127.1503  Portable fire extinguishers.

    Each operator of a waterfront facility handling LHG must provide 
portable fire extinguishers of appropriate, number, size, and kind in 
the marine transfer area for LHG in accordance with NFPA 10.


Sec. 127.1505  Emergency response and rescue.

    (a) Each waterfront facility handling LHG must arrange for 
emergency response and rescue pending the arrival of resources for 
firefighting or pollution control. Response and rescue may be performed 
by facility personnel or by an off-site organization.
    (1) If response and rescue are performed by facility personnel, 
appropriate training and equipment for personnel protection must be 
furnished to those personnel. Training and equipment that meets 29 CFR 
1910.120, hazardous-waste operations and emergency response, will be 
appropriate.
    (2) If response and rescue are performed by an off-site 
organization, the organization must enter into a written agreement with 
the facility indicating the services it will perform and the time 
within which it will perform them to injured or trapped personnel.
    (b) [Reserved]


Sec. 127.1507  Water systems for fire protection.

    (a) Each waterfront facility handling LHG must have a supply of 
water and a means for distributing and applying the water to protect 
personnel; to cool storage tanks, equipment, piping, and vessels; and 
to control unignited leaks and spills in the marine transfer area for 
LHG except when the evaluation required by Sec. 127.1501(a) indicates 
otherwise. The evaluation must address fire protection for structures, 
cargo, and vessels. Each water system must include on the pier or wharf 
at least one 2\1/2\-inch supply line, one 2\1/2\-inch fire hydrant, and 
enough 2\1/2\-inch hose to connect the hydrant to the vessel.
    (b) Each water system must fully and simultaneously supply, for at 
least 2 hours, all fixed fire-protection systems, including monitor 
nozzles, at their designed flow and pressure for the worst single 
incident foreseeable, plus 63 L/s (1000 gpm) for streams from hand-held 
hoses.


Sec. 127.1509  Equipment for controlling and extinguishing fires.

    (a) Within each marine transfer area for LHG of each waterfront 
facility handling LHG that transfers a flammable LHG, portable or 
wheeled fire extinguishers suitable for gas fires, preferably dry 
chemical extinguishers, must be available at strategic sites, as 
determined by the evaluation required by Sec. 127.1501(a).
    (b) Fixed systems for extinguishing or controlling fires may be 
appropriate for protection against particular hazards. The evaluation 
required by Sec. 127.1501(a) may specify the use of one or more of the 
following fixed systems:
    (1) Low-, medium-, or high-expansion foam.
    (2) Dry chemicals.
    (3) Water applied as deluge, spray, or sprinkle.
    (4) Carbon dioxide.
    (5) Other NFPA approved fire extinguishing media.


Sec. 127.1511  International shore connection.

    Each marine transfer area for LHG that receives foreign flag 
vessels must have an international shore connection meeting the 
requirements of ASTM F-1121.

Fire Protection


Sec. 127.1601  Smoking.
    Each operator of a waterfront facility handling LHG shall ensure 
that no person smokes in the marine transfer area for LHG unless--
    (a) Neither flammable LHG nor its vapors are present in the area; 
and
    (b) The person is in a place designated and marked in accordance 
with local law.


Sec. 127.1603  Hotwork.

    Each operator of a waterfront facility handling LHG shall ensure 
that no person conducts welding, torch cutting, or other hotwork on the 
facility, or on a vessel moored to the facility, unless--
    (a) The COTP has issued a permit for that hotwork; and
    (b) The conditions of the permit are met.


Sec. 127.1605  Other sources of ignition.

    Each operator of a waterfront facility handling LHG shall ensure 
that in the marine transfer are for LHG--
    (a) There are no open fires or open flame lamps;
    (b) Heating equipment will not ignite combustible material;
    (c) Each chimney and appliance has a spark arrestor if it uses 
solid fuel or is located where sparks may ignite combustible material; 
and
    (d) All rubbish, debris, and waste go into appropriate receptacles.


Sec. 127.605 Table I  [Added]

    19. A new Table 1 is added after new Sec. 127.1605 to read as 
follows:

           Table 1 to Part 127.--List of Products and Hazards           
------------------------------------------------------------------------
                          Product                              Hazard   
------------------------------------------------------------------------
Acetaldehyde..............................................  F+T         
Ammonia, anhydrous........................................  T           
Butadiene.................................................  F           
Butanes...................................................  F           
Butane and propane (mixtures).............................  F           
Butylenes.................................................  F           
Chlorine..................................................  T           
Dimethylamine.............................................  F+T         
Ethane....................................................  F           
Ethyl chloride............................................  F+T         
Ethylene..................................................  F           
Ethylene oxide............................................  F+T         
Methyl-acetylene and propadiene (mixtures)................  F           
Methyl bromide............................................  F+T         
Methyl chloride...........................................  F+T         
Propane...................................................  F           
Propylene.................................................  F           
Sulphur dioxide...........................................  T           
Vinyl chloride............................................  F+T         
------------------------------------------------------------------------
Note: ``F'' indicates a flammable product. ``T'' indicates a toxic      
  product. ``F&T'' indicates a product both flammable and toxic.        


[[Page 39802]]

    Dated: June 23, 1995.
J.C. Card,
Rear Admiral, U.S. Coast Guard, Chief, Office of Marine Safety, 
Security and Environmental Protection.
[FR Doc. 95-18762 Filed 8-2-95; 8:45 am]
BILLING CODE 4910-14-M