[Federal Register Volume 69, Number 47 (Wednesday, March 10, 2004)]
[Rules and Regulations]
[Pages 11330-11337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4857]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 193

[Docket No. RSPA-03-14456; Amdt. 193-18]
RIN 2137-AD80


Pipeline Safety: Liquefied Natural Gas Facilities; Clarifying and 
Updating Safety Standards

AGENCY: Research and Special Programs Administration (RSPA), DOT.

ACTION: Final rule.

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SUMMARY: This final rule clarifies that the operation, maintenance, and 
fire protection requirements of the Research and Special Programs 
Administration's (RSPA) Office of Pipeline Safety's (OPS) regulations 
for liquefied natural gas (LNG) facilities apply to LNG facilities in 
existence or under construction as of March 31, 2000. An earlier final 
rule made the applicability of these requirements unclear. Additional 
changes to the regulations remove incorrect cross-references, clarify 
fire drill requirements, and require reviews of plans and procedures. 
Lastly, the final rule changes the regulations so that cross-references 
to the National Fire Protection Association standard, NFPA 59A, refer 
to the 2001 edition of that standard rather than the 1996 edition. 
These clarifications and changes will improve the clarity and 
effectiveness of the regulations.

DATES: This final rule takes effect April 9, 2004. However, LNG plants 
existing on March 31, 2000, need not comply with provisions of Sec.  
193.2801 on emergency shutdown systems, water

[[Page 11331]]

delivery systems, detection systems, and personnel qualification and 
training until September 12, 2005. Incorporation by reference of 
certain publications in this rule is approved by the Director of the 
Federal Register as of April 9, 2004.

FOR FURTHER INFORMATION CONTACT: L. M. Furrow by phone at 202-366-4559, 
by fax at 202-366-4566, by mail at U.S. Department of Transportation, 
400 7th St., SW., Washington, DC 20590, or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    On March 1, 2000, we published a final rule document amending the 
safety regulations in 49 CFR part 193, which apply to LNG facilities 
used in gas pipeline transportation (65 FR 10950). That document 
replaced many part 193 siting, design, construction, equipment, and 
fire protection requirements with references to a consensus standard, 
NFPA 59A, ``Standard for the Production, Storage, and Handling of 
Liquefied Natural Gas (LNG)'' (1996 edition). Until then, part 193 
referenced NFPA 59A (1996 edition) in only a few instances concerning 
siting, design, and fire protection.
    An amendment to Sec.  193.2005, ``Applicability,'' inadvertently 
implied that LNG facilities existing on March 31, 2000 (hereafter, 
``existing LNG facilities''), were exempt from part 193 operation, 
maintenance, and fire protection standards. After recognizing this 
ambiguity, we published a notice of proposed rulemaking (NPRM) to 
revise Sec.  193.2005 (68 FR 23272; May 1, 2003). In the NPRM, we also 
proposed to revise incorrect cross-references that resulted from the 
March 1, 2000, final rule to establish minimum standards for fire 
drills used in fire protection training, and to require that operators 
review their part 193 plans and procedures at least once a year. We 
further proposed to update all part 193 references to NFPA 59A to the 
2001 edition of that standard. Interested persons were invited to 
submit written comments on the proposed rules before July 1, 2003.

Advisory Committee

    The Technical Pipeline Safety Standards Committee (TPSSC) 
considered the NPRM and the associated evaluation of costs and benefits 
at a meeting in Washington, DC on May 30, 2003, and again in a 
teleconference held on July 31, 2003. TPSSC is a statutory advisory 
committee that advises RSPA/OPS on proposed safety standards and other 
policies for gas pipelines. It has an authorized membership of 15 
persons, five each representing government, industry, and the public. 
Each member has qualifications to consider the technical feasibility, 
reasonableness, cost-effectiveness, and practicability of proposed 
pipeline safety standards. Transcripts of the meeting and 
teleconference are available in Docket No. RSPA-98-4470.
    At the May 30 meeting, TPSSC voted unanimously to support our 
proposal to update references to NFPA 59A (2001 edition) for purposes 
of LNG facility siting, design, and construction. However, some members 
and audience participants were concerned that applying NFPA 59A (2001 
edition) provisions on fire protection retroactively, as we proposed, 
would unnecessarily increase operating costs and conflict with current 
plant procedures. So TPSSC postponed discussion of updating the 
reference to NFPA 59A in the fire protection rule, Sec.  193.2801. This 
fire protection issue and the proposed rules on fire drills and reviews 
of plans and procedures were discussed later at the teleconference. The 
next section of this preamble contains our treatment of TPSSC's advice 
on these matters.

Disposition of Comments and TPSSC Advice on the Proposed Rules

    This section of the preamble summarizes significant public comments 
and TPSSC advice we received on rules proposed in the NPRM. It also 
explains how we treated those comments and advice in developing the 
final rules. Subheadings correspond with new or amended rules proposed 
in the NPRM. We have not discussed all favorable comments or comments 
that suggested additional rulemaking actions. Changes proposed to 
Sec. Sec.  193.2019(a), 193.2503, 193.2507, 193.2509(b), 
193.2605(b)(2), and 193.2717(a) did not receive direct comment or TPSSC 
advice, so we adopted the proposed changes as final.
    Nine entities submitted written comments: American Gas Association 
(AGA), Columbia Gas Transmission Corporation (Columbia), Distrigas of 
Massachusetts LLC (Distrigas), Duke Energy Gas Transmission (Duke), 
KeySpan Energy (KeySpan), Paiute Pipeline Company (Paiute), Peoples Gas 
Light and Coke Company (Peoples Gas), Sound Energy Solutions (Sound), 
and Williams Gas Pipeline (Williams). All comments are in the docket 
and available at http://dms.dot.gov. Most commenters favored the 
proposal to update references to the 2001 edition of NFPA 59A, but 
either opposed or offered alternatives to other proposals.

Section 193.2005 Applicability.

    As revised by the March 1, 2000, final rule, Sec.  193.2005(a) 
reads as follows:

    Safety requirements mandating compliance with standard ANSI/NFPA 
59A and other changes in this part governing siting, design, 
construction, equipment, fire protection, operation and maintenance 
apply to LNG facilities placed in service after March 31, 2000 
unless otherwise noted.

    This rule implies that the changes made to part 193 fire 
protection, operation, and maintenance requirements do not apply to 
existing LNG facilities. However, as explained in the NPRM, this 
implication was inadvertent and contrary to RSPA's/OPS's long-standing 
policy of applying part 193 operation, maintenance, and fire protection 
regulations retroactively. We proposed to remove the implication by 
amending Sec.  193.2005(a) to read as follows:

    Standards in this part governing siting, design, installation, 
or construction of LNG facilities do not apply to LNG facilities 
existing or under construction before the date such standards take 
effect under this part.

    The proposed change to Sec.  193.2005(a) was based on former Sec.  
193.2005(a)(1), which exempted from siting, design, installation, or 
construction standards ``LNG facilities under construction before the 
date such standards are published.'' Former Sec.  193.2005 did not 
exempt any facilities from operation, maintenance, or fire protection 
standards.
    Although it was never an issue under former Sec.  193.2005(a)(1), 
AGA and Distrigas were concerned that proposed Sec.  193.2005(a) would 
disrupt planned LNG facilities that have received government approval 
for construction but are not yet under construction. These commenters 
thought that once LNG facilities receive such approval, they should be 
exempt from any new siting, design, installation, or construction 
standard adopted after the approval. As support for this view, AGA 
cited former Sec.  193.2005(a)(2) that was in effect prior to March 31, 
2000. This former section exempted LNG facilities from such new 
standards if the operator had filed an approval application with the 
appropriate government agency before March 1, 1978.
    Former Sec.  193.2005(a)(2) merely stated the filing-based 
exemption that Congress included in section 152 of Public Law 96-129 
(Nov. 30, 1979). This law directed DOT to establish new siting, design, 
and construction regulations within 180 days after enactment. Congress 
intended the exemption to ease the impact of these new regulations on 
LNG facilities

[[Page 11332]]

planned before March 1, 1978. However, Congress did not establish a 
similar exemption for LNG facilities planned subsequently. Instead, it 
chose to apply a construction-based exemption to these facilities. 
Under this exemption, new design, installation, and construction 
regulations do not apply to LNG facilities ``existing when the standard 
is adopted'' (49 U.S.C. 60103(c)(3)).
    Because Congress limited the filing-based exemption to facilities 
planned before March 1, 1978, and established a construction-based 
exemption for later-planned facilities, we do not think that 
establishing a filing-based exemption for these later-planned 
facilities would be appropriate. Moreover, LNG plant operators can 
apply for waivers of any regulation as provided in 49 U.S.C. 60118.
    Several commenters were concerned that if we amended Sec.  
193.2005(a) as proposed, the fire protection requirements of Sec.  
193.2801, which reference NFPA 59A provisions, would have an adverse 
impact on existing LNG facilities. AGA and Paiute said that the fire 
protection provisions of NFPA 59A (2001 edition) were very different 
from the previous requirements of Subpart I, and that industry needs 
more time to consider the impact of compliance. To illustrate this 
point, AGA and Paiute referred to section 9.7.2 of NFPA 59A (2001 
edition), which reads:

    Those employees who are involved in emergency activities, as 
determined in accordance with 9.1.2, shall be equipped with the 
necessary protective clothing and equipment and qualified in 
accordance with NFPA 600, Standard on Industrial Fire Brigades.

    AGA and Paiute said many operators relied on local fire departments 
and did not use plant fire brigades. Duke had a similar concern, saying 
that NFPA 600 is inconsistent with part 193 training requirements and 
would prevent plant personnel from carrying out firefighting duties.
    As another illustration of differences, AGA and Paiute referred to 
section 9.3.4 of NFPA 59A (2001 edition), which reads:

    The detection systems determined from the evaluation in 9.1.2 
shall be designed, installed, and maintained in accordance with NFPA 
72, National Fire Alarm Code, or NFPA 1221, Standard for the 
Installation, Maintenance, and Use of Emergency Services 
Communications Systems, as applicable.

    AGA and Paiute said many LNG plant operators could not test and 
maintain their systems under NFPA 72 requirements. Similarly, Williams 
commented that because some NFPA 72 provisions call for the use of 
licensed or certified personnel, experienced plant technicians could no 
longer install and maintain detection systems. Williams was concerned 
that LNG plant operators would have to hire outside contractors who may 
be unfamiliar with plant systems and hazards.
    We think these comments do not accurately reflect the impact of 
applying Sec.  193.2801 retroactively. Concerning the NFPA 600 issue, 
section 9.7.2 provides that employees who are involved in emergency 
activities, as determined in accordance with 9.1.2, must be qualified 
under NFPA 600. Two provisions of section 9.1.2 require determinations 
about employees involved in emergencies. Section 9.1.2(8) requires 
operators to determine ``the availability and duties of individual 
plant personnel * * * during an emergency.'' Under the second 
provision, section 9.1.2(9), operators must determine ``the protective 
equipment, special training, and qualification needed by individual 
plant personnel as specified by NFPA 600, Standard on Industrial Fire 
Brigades, for his or her respective emergency duties.'' However, an 
asterisk next to section 9.1.2(9) refers to section A.9.1.2(9), which 
reads:

    Plant fire brigades are not required by this standard. Where the 
facility elects to have a fire brigade, NFPA 600, Standard on 
Industrial Fire Brigades, is required for protective equipment and 
training.

    The sum of these interconnected NFPA 59A provisions is that the 
reference to NFPA 600 in section 9.7.2 applies to determinations made 
under section 9.1.2(9), which apply only to personnel involved in fire 
brigades. Thus it is reasonable to conclude that the NFPA 600 
qualifications required by 9.7.2 apply only to plant personnel who 
carry out emergency duties as part of a fire brigade. So section 9.7.2 
would not affect the many LNG plants that AGA and Paiute said rely on 
local fire departments instead of personnel fire brigades for fire 
fighting.
    As for NFPA 72, Subpart I has indirectly referenced this NFPA 
standard for years. Before the March 1, 2000, final rule took effect, 
former Sec. Sec.  193.2819 and 193.2821 required operators to ``provide 
and maintain'' gas and fire detection systems in existing LNG plants 
according to applicable NFPA 59A provisions. Section 9-4.4 of the 1979 
edition of NFPA 59A, the first edition referenced in Sec. Sec.  
193.2819 and 193.2821, required that the design, installation, and 
maintenance of detection systems meet various NFPA 72 standards. In a 
document published May 24, 1996 (Amdt. 193-11; 61 FR 26121), we updated 
these NFPA 59A references to the 1996 edition of NFPA 59A. Like the 
1979 edition, section 9-4.4 of the 1996 edition references NFPA 72 for 
the design, installation, and maintenance of detection systems. The 
2001 edition of NFPA 59A, proposed in the NPRM as the latest update of 
NFPA 59A references, contains a similar reference to NFPA 72 in section 
9.3.4. In short, our proposal to clarify that operators of existing LNG 
facilities must comply with the fire protection provisions of NFPA 59A, 
including its references to NFPA 72, is not a new regulatory approach. 
The proposal would simply continue an approach that has been in effect 
since the inception of part 193.
    Nevertheless, in view of the comments, we believe many operators 
may need additional time to meet NFPA 72 qualification and training 
provisions referenced in section 9.3.4 of NFPA 59A (2001 edition). Some 
operators may also need additional time to meet NFPA 600 qualification 
and training provisions related to personnel assigned to fire brigades. 
Therefore, final Sec.  193.2801 allows operators until September 12, 
2005, to meet these qualification and training requirements. This 
additional compliance time should alleviate commenters' concerns that 
their personnel do not meet NFPA 72 personnel qualification provisions.
    Duke said operators could only accomplish many fire prevention and 
control provisions of NFPA 59A during plant design and construction. It 
also said retrofitting existing fire protection equipment to meet these 
provisions would be very difficult and not always possible. KeySpan had 
similar concerns, particularly about provisions in NFPA 59A, Chapter 9, 
concerning emergency shutdown systems; gas, fire, and leak detection 
systems; and water delivery systems. Duke suggested existing LNG 
facilities should only have to meet section 9.6, ``Maintenance of Fire 
Protection Equipment,'' of NFPA 59A (2001 edition). Because some 
members, particularly a Duke representative, were concerned about 
applying the fire protection provisions of NFPA 59A retroactively, 
TPSSC voted unanimously that the proposed update of the NFPA 59A 
reference in Sec.  193.2801 should apply only to new LNG facilities.
    The Duke and Keyspan comments and TPSSC advice raise the issue of 
whether operators of existing LNG facilities should have to upgrade 
their fire protection systems to meet the current NFPA 59A standards or 
just maintain the existing systems. However, we think this issue was 
settled long ago. In authorizing safety standards for the operation and 
maintenance of LNG

[[Page 11333]]

facilities, Congress gave DOT specific authority to establish 
requirements for fire prevention and containment equipment (49 U.S.C. 
60103(d)(2)). Moreover, Congress did not exclude existing facilities 
from application of any operation or maintenance standard, although it 
did exclude these facilities from application of other safety standards 
(i.e., standards on design, location, installation, construction, 
initial inspection, and initial testing) (49 U.S.C. 60103(c)). As a 
result, when we established the fire protection rules in subpart I of 
part 193, we applied them to both new and existing facilities, and 
allowed operators of existing LNG facilities more than a year to 
retrofit their water delivery systems and gas and fire detection 
systems according to NFPA 59A standards (45 FR 70390, Oct. 23, 1980). 
Since then, whenever the references to NFPA 59A were updated to later 
published editions, operators have had to upgrade these systems as 
necessary to meet the later edition.
    The most recent update--to the 1996 edition of NFPA 59A--occurred 
May 24, 1996 (61 FR 26121), almost 4 years before we published the 
March 1, 2000, final rule. When that update occurred, LNG plant 
operators did not say that upgrading their fire protection systems 
would be difficult, although there was no question that the references 
to NFPA 59A in Subpart I applied retroactively. This lack of expressed 
concern about compliance with the 1996 edition is an important 
consideration in the present upgrading issue, because the provisions of 
the 1996 and 2001 editions on fire protection systems are very similar. 
Neither the commenters nor TPSSC pointed to any significant differences 
between the 1996 and 2001 editions on fire protection systems. 
Moreover, in spite of Duke's comments about possible compliance 
difficulties, a recent inspection of Duke's sole LNG plant by RSPA 
engineers found all the fire protection systems in full compliance with 
NFPA 59A (1996 edition) requirements. Therefore, we have decided to 
continue to apply Sec.  193.2801 retroactively as proposed.
    Nevertheless, we must recognize that before the March 1, 2000, 
final rule took effect, subpart I of part 193 did not require that LNG 
plants meet the fire protection provisions of NFPA 59A on emergency 
shutdown systems or detection systems other than gas and fire detection 
systems. In addition, the subsequent confusion over whether Sec.  
193.2801 applies to existing LNG facilities may have caused some 
operators to delay bringing their water delivery and gas and fire 
detection systems into compliance with the 1996 edition of NFPA 59A. 
Therefore, final Sec.  193.2801 allows operators until September 12, 
2005, to bring these systems into compliance with the 2001 edition. The 
overall compliance burden should not be great because we see little 
difference between the 1996 and 2001 editions of NFPA 59A regarding 
fire protection systems. Also, part 193 requires that LNG plants on 
which construction began after February 11, 1980, must have emergency 
shutdown systems.
    Columbia disagreed with the conclusion of the draft Regulatory 
Evaluation that applying operation, maintenance, and fire protection 
standards retroactively would have little cost impact on operators. One 
cost it mentioned was having to review and amend its operation and 
maintenance procedures. Our response to this comment is in the final 
Regulatory Evaluation, a copy of which is in the docket. As stated 
below under the heading ``Regulatory Analyses and Notices,'' the 
Regulatory Evaluation concludes that operators would incur only minimum 
compliance cost.
    Distrigas said the reference to NFPA 59A in Sec.  193.2801 was 
unclear. This rule provides that ``[e]ach LNG facility must meet fire 
prevention and fire control provisions of ANSI/NFPA 59A.'' Distrigas 
stated that operators are confused whether the reference to NFPA 59A 
includes all provisions of NFPA 59A related to fire prevention and 
control, all provisions of Chapter 9--Fire Protection, Safety, and 
Security, or just particular provisions of Chapter 9. Similarly, 
KeySpan suggested we change Sec.  193.2801 to state exactly which 
provisions of NFPA 59A (2001 edition) would apply. In consideration of 
these comments, we have changed Sec.  193.2801 to state: ``Each 
operator must provide and maintain fire protection at LNG plants 
according to sections 9.1 through 9.7 and section 9.9 of ANSI/NFPA 
59A.'' The remaining section in Chapter 9, section 9.8--Security, 
relates to matters that part 193 covers in Subpart J-Security.
    Williams asked us to clarify that the proposed term ``standards in 
this part'' means part 193 standards rather than NFPA standards. 
Williams was concerned that proposed Sec.  193.2005(a) could be 
interpreted to require that existing LNG facilities meet operation and 
maintenance provisions of NFPA 59A (2001 edition). In response to this 
comment, in final Sec.  193.2005(a) we changed ``standards'' to 
``regulations.'' We also added a parenthetical expression to explain 
that the term ``regulations'' includes any materials, such as NFPA 59A 
provisions, that are incorporated by reference in the regulations.

Section 193.2017 Plans and Procedures

    We proposed to require that operators review and update their part 
193 plans and procedures at intervals not exceeding 15 months, but at 
least once each calendar year.\1\ This proposed interval between 
reviews was based on a similar requirement applicable to gas pipelines 
under 49 CFR 192.605(a).
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    \1\ Part 193 required plans for personnel health (Sec.  
193.2711) and training (Sec. Sec.  193.2713-193.2719), and 
procedures for operations (Sec.  193.2503), emergencies (Sec.  
193.2509(b)), fluid transfers (Sec.  193.2513(a)), maintenance 
(Sec.  193.2605(b)), and security (Sec.  193.2903).
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    Although Williams supported annual reviews, AGA, Columbia, 
Distrigas, and Paiute argued that LNG plants do not experience 
significant enough changes in their operations from year to year to 
justify annual reviews of plans and procedures. AGA, Distrigas, and 
Paiute suggested review intervals of 2 years, not to exceed 27 months, 
noting that Sec.  193.2713(b) requires operations and maintenance 
personnel to receive refresher training in procedures every 2 years. 
AGA and Distrigas also suggested reviews would be appropriate whenever 
a significant change in facilities occurs. However, Distrigas thought 
reviews should not include drawings, prints, schematics, and other 
items that are not subject to change. Finally, TPSSC voted unanimously 
to recommend reviews at two-year intervals.
    After carefully considering these comments and TPSSC's advice, we 
agree that LNG plant operations generally do not change as frequently 
as gas pipeline operations. So fewer reviews of plans and procedures 
for LNG plants would be acceptable. We also agree that the 2-year 
interval for refresher training on operating and maintenance procedures 
is a suitable guide to how often operators should review their part 193 
plans and procedures. Still, as Distrigas suggested, if a significant 
change in plant facilities occurs in the interim, a 2-year interval 
could allow too much time to pass before updating related plans and 
procedures. Therefore, in final Sec.  193.2017(c), we have increased 
the proposed maximum interval between reviews from 1 to 2 years but 
also required reviews whenever a component \2\ is changed significantly 
or

[[Page 11334]]

a new component is installed. Reviews would have to include drawings, 
prints, schematics, and other items that have not changed only to the 
extent necessary to assure that plans and procedures are consistent 
with current plant operations.
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    \2\ Section 193.2007 defines ``component'' as any parts 
functioning as a unit, including, but not limited to, piping, 
processing equipment, containers, control devices, impounding 
systems, lighting, security devices, fire control equipment, and 
communication equipment, whose integrity or reliability is necessary 
to maintain safety in controlling, processing, or containing a 
hazardous fluid.
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    Based on its own comprehensive operations and maintenance 
procedures, Columbia disagreed with our assessment in the draft 
Regulatory Evaluation that annual reviews would have a minimal impact 
on operators. Our response to this comment is in the final Regulatory 
Evaluation, a copy of which is in the docket. As stated below under the 
heading ``Regulatory Analyses and Notices,'' the Regulatory Evaluation 
concludes that operators would incur only minimum compliance cost.

Section 193.2705 Construction, Installation, Inspection, and Testing

    This rule requires operators to determine periodically if their 
inspectors are satisfactorily performing duties assigned under Sec.  
193.2307 regarding inspection of construction, installation, and 
testing activities. However, in the final rule of March 1, 2000, we 
removed Sec.  193.2307 as no longer necessary in view of similar 
inspections required by NFPA 59A. So, in the NPRM, we proposed to 
eliminate the cross-reference to Sec.  193.2307, but still require that 
operators determine if required inspections of construction, 
installation, and testing activities are being done satisfactorily.
    Only Distrigas commented on proposed Sec.  193.2705(b). It said the 
proposed rule was unclear because it does not define the inspections 
operators would have to evaluate. Distrigas also said it was unclear 
that part 193 even requires inspections of construction, installation, 
and testing activities.
    We do not think Distrigas's comments warrant changing proposed 
Sec.  193.2705(b). The inspections operators would have to evaluate are 
those done by ``inspectors performing construction, installation, and 
testing duties required by [part 193].'' Although part 193 may not 
directly require such inspections, it indirectly requires them through 
cross-references to NFPA 59A. For example, Sec.  193.2303, 
``Construction acceptance,'' requires that components pass all 
applicable inspections prescribed by NFPA 59A. And section 4.1.1 of 
NFPA 59A (2001 edition) provides that operators must inspect LNG 
containers (a type of component) ``to ensure compliance with the 
engineering design and material, fabrication, assembly, and test 
provisions of this standard.'' Therefore, we have adopted proposed 
Sec.  193.2705(b) as final.

Section 193.2717 Training; Fire Protection

    Under Sec.  193.2717, operation and maintenance personnel and their 
immediate supervisors must undergo initial and continuing fire 
prevention and control training according to an instruction plan that 
includes fire drills. To clarify that a fire drill means more than a 
tabletop exercise, we proposed that fire drills include ``evacuation of 
buildings'' and ``personnel performing fire control duties.''
    Peoples Gas asked if fire drills have to include persons other than 
operator personnel. Fire drills are a mandatory component of fire 
protection training under Sec.  193.2717. The first sentence of Sec.  
193.2717(a) describes who is subject to fire protection training: ``All 
personnel involved in maintenance and operation of an LNG plant, 
including their immediate supervisors. * * *.'' Affected personnel 
would include individuals and contractors hired by operators to perform 
operation or maintenance functions on plant facilities. Other people 
who may be on site, such as visitors, vendors, or government safety or 
emergency personnel, are not subject to training under Sec.  193.2717. 
Still the training of operator personnel must cover procedures 
established under Sec.  193.2509 for promptly notifying appropriate 
local officials of emergencies and then cooperating with them in 
evacuations and emergencies that require mutual assistance. Given this 
connection between fire emergency procedures and local officials, we 
believe some fire drills at LNG plants must include appropriate local 
officials.
    AGA, Columbia, Distrigas, KeySpan, and Williams objected to the 
proposed fire drill standards as too restrictive considering the 
various ways of effectively training personnel. These commenters 
suggested the rule should merely list acceptable fire drill methods and 
allow operators to decide which methods to use. In support of this 
view, they stated that local fire departments and state agencies 
recognize tabletop fire drills nationally, and that such drills could 
be adequate for LNG plants, depending on plant size, siting, and 
design. In addition, they said that many classroom courses and hands-on 
training opportunities are available for LNG operator personnel.
    Several TPSSC members also considered the proposed standards too 
restrictive. They suggested the final rule should allow operators 
discretion to choose among a variety of options to satisfy the fire 
drill training requirement. As a result, TPSSC voted unanimously that 
operators should have discretion to use appropriate options that 
address fire prevention and response objectives.
    Other commenters foresaw difficulties in carrying out the proposed 
fire drill standards. Distrigas questioned whether ``evacuation of 
buildings'' would apply to all buildings at a plant, since a plant-wide 
drill may not always be feasible. In this regard, Columbia and Paiute 
were concerned about the potential consequences of leaving vital 
equipment unmonitored during a drill if technicians had to leave 
control buildings. Paiute suggested hands-on fire fighting combined 
with tabletop drills would be an adequate fire drill for these 
technicians. AGA, KeySpan, and Williams found the term ``personnel 
performing fire control duties'' confusing. AGA and Williams thought it 
could mean that fire control personnel must either control a fire while 
participating in a drill or just participate in the drill. Similarly, 
KeySpan questioned whether the proposed standard would require actual 
operation of water, dry chemical, and foam equipment.
    In evaluating these comments and TPSSC advice, we noted that an 
important purpose of fire protection training under Sec.  193.2717 is 
to assure that personnel can properly respond to fire emergencies 
according to plant procedures established under Sec.  193.2509. These 
procedures cover various practical activities, such as notifying plant 
personnel and local officials of fires, using appropriate fire control 
equipment, and evacuating the plant or nearby areas. Because fire 
drills test how personnel would handle these activities during a real 
emergency, we proposed that, at a minimum, fire drills include actual 
evacuations and performance of fire control duties. However, upon 
further consideration, we agree with commenters and TPSSC that the 
proposed standards are not easy to understand and may not be necessary 
for all LNG plants.
    Therefore, in the final rule, we replaced the proposed prescriptive 
standards with a performance standard. We think this approach will 
accomplish the objectives of the proposal while providing the 
discretion sought by commenters and TPSSC. Final Sec.  193.2717(c) 
merely requires that fire drills provide personnel hands-on experience 
in carrying out their duties under the fire emergency procedures

[[Page 11335]]

required by Sec.  193.2509. To meet this requirement, operators could 
use a variety of activities that simulate emergency conditions. 
Tabletop exercises would be acceptable if, as one commenter suggested, 
they are supplemented by some hands-on experience related to carrying 
out assigned emergency duties. Under final Sec.  193.2717(c), operators 
may decide whether to include actual operation of fire control 
equipment as part of hands-on experience in using the equipment.

Appendix A to Part 193--Incorporation by Reference

    Part 193 incorporates by reference provisions of various consensus 
standards, such as NFPA 59A.\3\ These documents, along with applicable 
editions and names and addresses of publishing organizations, are now 
listed in Appendix A to part 193. In addition, Sec.  193.2013, 
``Incorporation by reference,'' provides general information about 
incorporation by reference. However, the Office of the Federal 
Register, National Archives and Records Administration, has developed a 
new policy on the information Federal agencies should publish about 
referenced materials. To conform to this policy, we are deleting 
Appendix A and transferring its contents to Sec.  193.2013. As a 
result, all information about NFPA 59A and other documents referenced 
in part 193 will appear in one location. Section 193.2013 will also 
include cross-references to part 193 sections that incorporate the 
referenced materials.
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    \3\ NFPA 59A is referenced in Sec. Sec.  193.2019, 193.2051, 
193.2057, 193.2059, 193.2101, 193.2301, 193.2303, 193.2401, 
193.2521, 193.2639, and 193.2801.
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    This final rule adopts in Sec.  193.2013 our proposal to reference 
the 2001 edition of NFPA 59A, rather than the 1996 edition now in use. 
Except as discussed above concerning Sec.  193.2801, none of the 
commenters opposed this update. AGA commented that updating to the 2001 
edition would positively affect the outlook for energy supplies. 
Moreover, because of the renewed national interest in LNG, Sound urged 
that we expeditiously adopt the proposed update. It said the update 
would enable operators to avoid the higher costs, delays, and potential 
constraints on gas supply attendant to designing new LNG facilities 
under both the 1996 and 2001 editions. Therefore, we are adopting the 
update as proposed.
    To accommodate the update, in Sec. Sec.  193.2057 and 193.2059 we 
are changing the referenced sections of the 1996 edition to the 
corresponding sections of the 2001 edition. Also, throughout part 193, 
we are changing the designation ``ANSI/NFPA 59A'' to ``NFPA 59A,'' as 
the 2001 edition of NFPA 59A does not bear the designation ANSI/NFPA 
59A, although the document is an approved American National Standard.

Regulatory Analyses and Notices

Executive Order 12866 and DOT Policies and Procedures

    We do not consider this rulemaking to be a significant regulatory 
action under section 3(f) of Executive Order 12866 (58 FR 51735; Oct. 
4, 1993). Therefore, the Office of Management and Budget (OMB) has not 
received a copy of this rulemaking to review. We also do not consider 
this rulemaking to be significant under DOT regulatory policies and 
procedures (44 FR 11034: February 26, 1979).
    We prepared a Regulatory Evaluation of the final rules and a copy 
is in the docket. The evaluation concludes operators would incur only a 
minimum amount of cost, if any, to comply with the rules.

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), RSPA 
must consider whether rulemaking actions would have a significant 
economic impact on a substantial number of small entities. This final 
rule is consistent with customary practices in the gas pipeline 
industry. Therefore, based on the facts available about the anticipated 
impacts of this rulemaking, I certify that this rulemaking will not 
have a significant impact on a substantial number of small entities.

Executive Order 13175

    We have analyzed the final rules according to the principles and 
criteria contained in Executive Order 13084, ``Consultation and 
Coordination With Indian Tribal Governments.'' Because the rules would 
not significantly or uniquely affect the communities of the Indian 
tribal governments nor impose substantial direct compliance costs, the 
funding and consultation requirements of Executive Order 13084 do not 
apply.

Paperwork Reduction Act

    Title: Recordkeeping for LNG Facilities.
    Summary: Section 193.2017(c) adds a minor information collection 
requirement to existing information collection requirements. Under this 
new requirement, LNG plant operators must review and update their part 
193 plans and procedures at least once every 2 calendar years. They 
must also do so whenever a plant component changes significantly. 
However, we believe most operators routinely carry out reviews and 
updates while carrying out their plans and procedures. So we believe 
the burden of complying with the new review-and-update requirement 
would be minimal. Because the additional paperwork burden of this rule 
is likely to be minimal, we believe that submitting an analysis of the 
burdens to OMB under the Paperwork Reduction Act is unnecessary.
    Use: Records are kept to facilitate personnel training and other 
LNG plant activities.
    Respondents (Including the Number of): There are 150 gas pipeline 
operators.
    OMB Control Number: 2137-0048.
    Average Burden Estimate per Operator: 126.7 hours per year.
    Annual Burden Estimate: 19,000 hours per year.
    Frequency: Biennial and on occasion.

Unfunded Mandates Reform Act of 1995

    This rulemaking does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It does not result in costs of 
$100 million or more to either State, local, or tribal governments, in 
the aggregate, or to the private sector, and is the least burdensome 
alternative that achieves the objective of the rule.

National Environmental Policy Act

    We have analyzed the final rules for purposes of the National 
Environmental Policy Act (42 U.S.C. 4321 et seq.). Because the rules 
parallel present requirements or practices, we have decided they will 
not significantly affect the quality of the human environment. An 
environmental assessment document is available for review in the 
docket.

Executive Order 13132

    We have analyzed the final rules according to the principles and 
criteria contained in Executive Order 13132 (``Federalism''). None of 
the rules (1) has substantial direct effects on the States, the 
relationship between the national government and the States, or the 
distribution of power and responsibilities among the various levels of 
government; (2) imposes substantial direct compliance costs on State 
and local governments; or (3) preempts state law. Therefore, the 
consultation and funding requirements of Executive Order 13132 do not 
apply.

Executive Order 13211

    This rulemaking is not a ``Significant energy action'' under 
Executive Order 13211. It is not a significant regulatory action under 
Executive Order 12866 and

[[Page 11336]]

is not likely to have a significant adverse effect on the supply, 
distribution, or use of energy. Further, this rulemaking has not been 
designated by the Administrator of the Office of Information and 
Regulatory Affairs as a significant energy action.

List of Subjects in 49 CFR Part 193

    Fire prevention, Incorporation by reference, Pipeline safety, 
Reporting and recordkeeping requirements, Security measures.

0
Accordingly, RSPA is making the following amendments to 49 CFR part 
193:

PART 193--[AMENDED]

0
1. The authority citation for part 193 continues to read as follows:

    Authority: 49 U.S.C. 5103, 60102, 60103, 60111, 60118 and 49 CFR 
1.53.


0
2. Revise Sec.  193.2005(a) to read as follows:


Sec.  193.2005  Applicability.

    (a) Regulations in this part governing siting, design, 
installation, or construction of LNG facilities (including material 
incorporated by reference in these regulations) do not apply to LNG 
facilities in existence or under construction when the regulations go 
into effect.
* * * * *
0
3. Revise Sec.  193.2013 to read as follows:


Sec.  193.2013  Incorporation by reference.

    (a) This section lists materials all or part of which are 
incorporated by reference in the corresponding sections noted. 
Applicable editions are in parentheses following the titles of the 
materials. Earlier editions listed in previous editions of this part 
may be used for components manufactured, designed, or installed in 
accordance with those earlier editions at the time they were listed, 
unless otherwise provided in this part.\1\ The Director of the Federal 
Register has approved these incorporations by reference under 5 U.S.C. 
552(a) and 1 CFR part 51. The materials are incorporated as they exist 
on the date of the approval, and notice of any change in these 
materials will be published in the Federal Register. All materials are 
available for inspection at the Office of the Federal Register, 800 
North Capitol Street, NW, suite 700, Washington, DC, and at the Office 
of Pipeline Safety, Research and Special Programs Administration, 400 
Seventh Street, SW., Washington, DC.
---------------------------------------------------------------------------

    \1\ The user must refer to an appropriate previous edition of 49 
CFR for a listing of the earlier editions.
---------------------------------------------------------------------------

    (b) The material listed below is available for purchase from the 
American Gas Association, 400 N. Capitol St., NW., Washington, DC 20001 
or from ILI Infodisk, Inc., 610 Winters Avenue, Paramus, New Jersey 
07652:

(1) ``Purging Principles and Practices'' (1975), incorporation by 
reference approved for Sec. Sec.  193.2513, 193.2517, and 193.2615.

    (c) The material listed below is available for purchase from the 
American Society of Civil Engineers (ASCE), Parallel Centre, 1801 
Alexander Bell Drive, Reston, VA 20191-4400:

(1) ASCE 7-95 ``Minimum Design Loads for Buildings and Other 
Structures'' (1995), incorporation by reference approved for Sec.  
193.2067.

    (d) The material listed below is available for purchase from the 
American Society of Mechanical Engineers (ASME), Three Park Ave., New 
York, NY 10016-5990:

(1) ASME Boiler and Pressure Vessel Code, Section VIII, Divisions 1 and 
2 ( 1998), incorporation by reference approved for Sec.  193.2321.

    (e) The materials listed below are available for purchase from the 
Gas Technology Institute (formerly Gas Research Institute (GRI)), 1700 
S. Mount Prospect Road, Des Plaines, IL 60018:

(1) GRI-89/0176 ``LNGFIRE: A Thermal radiation Model for LNG Fires'' 
(June 29, 1990), incorporation by reference approved for Sec.  
193.2057.
(2) GRI-89/0242 ``LNG Vapor Dispersion Prediction with the DEGADIS 
Dense Gas Dispersion Model'' (April 1988-July 1990), incorporation by 
reference approved for Sec.  193.2059.
(3) GRI-96/0396.5 ``Evaluation of Mitigation Methods for Accidental LNG 
Releases, Volume 5: Using FEM3A for LNG Accident Consequence Analyses'' 
(April 1997), incorporation by reference approved for Sec.  193.2059.

    (f) The material listed below is available for purchase from the 
National Fire Protection Association (NFPA), 1 Batterymarch Park, P.O. 
Box 9101, Quincy, MA 02269-9101:

(1) NFPA 59A ``Standard for the Production, Storage, and Handling of 
Liquefied Natural Gas (LNG)'' (2001 edition), incorporation by 
reference approved for Sec. Sec.  193.2019, 193.2051, 193.2057, 
193.2059, 193.2101, 193.2301, 193.2303, 193.2401, 193.2521, 193.2639, 
and 193.2801.


0
4. Add Sec.  193.2017(c) to read as follows:


Sec.  193.2017  Plans and procedures.

* * * * *
    (c) Each operator must review and update the plans and procedures 
required by this part--
    (1) When a component is changed significantly or a new component is 
installed; and
    (2) At intervals not exceeding 27 months, but at least once every 2 
calendar years.


Sec.  193.2019  [Amended]

0
5. In Sec.  193.2019(a), remove ``1996 edition'' and in its place add 
``incorporated by reference, see Sec.  193.2013''.


Sec.  193.2051  [Amended]

0
6. Amend Sec.  193.2051 as follows:
0
a. In the first sentence, immediately after ``ANSI/NFPA 59A'' add 
``(incorporated by reference, see Sec.  193.2013)''; and
0
b. Remove ``ANSI/NFPA 59A'' wherever it appears in the section, and in 
its place add ``NFPA 59A''.


Sec.  193.2057  [Amended]

0
7. Amend Sec.  193.2057 as follows:
0
a. In the introductory text, remove ``section 2-2.3.1 of ANSI/NFPA 
59A'' and in its place add ``section 2.2.3.2 of NFPA 59A (incorporated 
by reference, see Sec.  193.2013)''; and
0
b. In paragraph (a), immediately after ``GRI-89/0176'' add 
``(incorporated by reference, see Sec.  193.2013)''.


Sec.  193.2059  [Amended]

0
8. Amend Sec.  193.2059 as follows:
0
a. In the introductory text, remove ``section 2-2.3.2 of ANSI/NFPA 
59A'' and in its place add ``sections 2.2.3.3 and 2.2.3.4 of NFPA 59A 
(incorporated by reference, see Sec.  193.2013)'';
0
b. In paragraph (a), add ``(incorporated by reference, see Sec.  
193.2013)'' immediately after ``GRI-89/0242'', and remove ``GRI 96/
0396.5'' and in its place add ``GRI-96/0396.5 (incorporated by 
reference, see Sec.  193.2013)''; and
0
c. In paragraph (c), remove ``section 2-2.3.3 of ANSI/NFPA 59A'' and in 
its place add ``section 2.2.3.5 of NFPA 59A (incorporated by reference, 
see Sec.  193.2013)''.


Sec.  193.2101  [Amended]

0
9. Amend Sec.  193.2101 as follows:
0
a. In the first sentence, immediately after ``ANSI/NFPA 59A'' add 
``(incorporated by reference, see Sec.  193.2013)''; and
0
b. Remove ``ANSI/NFPA 59A'' wherever it appears in the section, and in 
its place add ``NFPA 59A''.


Sec.  193.2301  [Amended]

0
10. Amend Sec.  193.2301 as follows:
0
a. In the first sentence, immediately after ``ANSI/NFPA 59A'' add

[[Page 11337]]

``(incorporated by reference, see Sec.  193.2013)''; and
0
b. Remove ``ANSI/NFPA 59A'' wherever it appears in the section, and in 
its place add ``NFPA 59A''.


Sec.  193.2303  [Amended]

0
11. In Sec.  193.2303, remove ``ANSI/NFPA 59A'' and in its place add 
``NFPA 59A (incorporated by reference, see Sec.  193.2013)''.


Sec.  193.2401  [Amended]

0
12. Amend Sec.  193.2401 as follows:
0
a. In the first sentence, immediately after ``ANSI/NFPA 59A'' add 
``(incorporated by reference, see Sec.  193.2013)''; and
0
b. Remove ``ANSI/NFPA 59A''wherever it appears in the section, and in 
its place add ``NFPA 59A''.


Sec.  193.2503  [Amended]

0
13. Amend Sec.  193.2503 as follows:
0
a. In paragraph (e), remove the semicolon and in its place add a 
period;
0
b. In paragraph (g), remove the semicolon and the word ``and'' and add 
a period in the place of the removed semicolon; and
0
c. Remove paragraph (h).

0
14. Revise the first sentence of Sec.  193.2507 to read as follows:


Sec.  193.2507  Monitoring operations.

    Each component in operation or building in which a hazard to 
persons or property could exist must be monitored to detect fire or any 
malfunction or flammable fluid that could cause ahazardous condition. * 
* *

0
15. Revise the first sentence of Sec.  193.2509(b) to read as follows:


Sec.  193.2509  Emergency procedures.

* * * * *
    (b) To adequately handle each type of emergency identified under 
paragraph (a) of this section and each fire emergency, each operator 
must follow one or more manuals of written procedures. * * *


Sec.  193.2521  [Amended]

0
16. Amend Sec.  193.2521 as follows:
0
a. In the second sentence, immediately after ``ANSI/NFPA 59A'' add 
``(incorporated by reference, see Sec.  193.2013)''; and
0
b. Remove ``ANSI/NFPA 59A'' wherever it appears in the section, and in 
its place add ``NFPA 59A''.

0
17. Revise Sec.  193.2605(b)(2) to read as follows:


Sec.  193.2605  Maintenance procedures.

* * * * *
    (b) * * *
    (2) A description of other actions necessary to maintain the LNG 
plant according to the requirements of this subpart.
* * * * *


Sec.  193.2639  [Amended]

0
18. Amend Sec.  193.2639 as follows:
0
a. In the second sentence, immediately after ``ANSI/NFPA 59A'' add 
``(incorporated by reference, see Sec.  193.2013)''; and
0
b. Remove ``ANSI/NFPA 59A''wherever it appears in the section, and in 
its place add ``NFPA 59A''.

0
19. Revise Sec.  193.2705(b) to read as follows:


Sec.  193.2705  Construction, installation, inspection, and testing.

* * * * *
    (b) Each operator must periodically determine whether inspectors 
performing construction, installation, and testing duties required by 
this part are satisfactorily performing their assigned functions.

0
20. In Sec.  193.2717, revise paragraph (a) and add paragraph (c) to 
read as follows:


Sec.  193.2717  Training: fire protection.

    (a) All personnel involved in maintenance and operations of an LNG 
plant, including their immediate supervisors, must be trained according 
to a written plan of initial instruction, including plant fire drills, 
to:
    (1) Know the potential causes and areas of fire;
    (2) Know the types, sizes, and predictable consequences of fire; 
and
    (3) Know and be able to perform their assigned fire control duties 
according to the procedures established under Sec.  193.2509 and by 
proper use of equipment provided under Sec.  193.2801.
* * * * *
    (c) Plant fire drills must provide personnel hands-on experience in 
carrying out their duties under the fire emergency procedures required 
by Sec.  193.2509.

0
21. Revise Sec.  193.2801 to read as follows :


Sec.  193.2801  Fire protection.

    Each operator must provide and maintain fire protection at LNG 
plants according to sections 9.1 through 9.7 and section 9.9 of NFPA 
59A (incorporated by reference, see Sec.  193.2013). However, LNG 
plants existing on March 31, 2000, need not comply with provisions on 
emergency shutdown systems, water delivery systems, detection systems, 
and personnel qualification and training until September 12, 2005.

Appendix A--[Removed]

0
22. Remove appendix A to part 193.

    Issued in Washington, DC on March 1, 2004.
Samuel G. Bonasso,
Deputy Administrator.
[FR Doc. 04-4857 Filed 3-9-04; 8:45 am]
BILLING CODE 4910-60-P