[Federal Register Volume 81, Number 83 (Friday, April 29, 2016)]
[Proposed Rules]
[Pages 25627-25639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09919]
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DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
49 CFR Parts 107, 171, 173, 178, 179 and 180
[Docket No. PHMSA-2010-0019 (HM-241)]
RIN 2137-AE58
Hazardous Materials: Incorporation of ASME Code Section XII and
the National Board Inspection Code
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.
ACTION: Supplemental Notice of Proposed Rulemaking (SNPRM).
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SUMMARY: This SNPRM proposes to incorporate and allow the use of the
2015 edition of the American Society of Mechanical Engineers (ASME)
Boiler and Pressure Vessel Code, Section XII--Rules for Construction
and Continued Service of Transport Tanks for the construction and
continued service of cargo tank motor vehicles (CTMVs), cryogenic
portable tanks, and multi-unit tank car tanks (``ton tanks''). The
PHMSA also proposes to incorporate and authorize the use of the 2015
edition of the National Board of Boiler and Pressure Vessel Inspectors
National Board Inspection Code, in our regulations as it applies to the
continued service of CTMVs, cryogenic portable tanks, and ton tanks
constructed to ASME Section XII standards, as well as for existing
CTMVs constructed in accordance with the current hazardous materials
regulations. If adopted, these amendments will allow for flexibility
regarding selection of authorized packaging, in addition to
qualification and maintenance for continued service of the packaging,
without compromising safety.
DATES: Submit comments by June 28, 2016. To the extent possible, PHMSA
will consider late-filed comments as we determine whether additional
rulemaking is necessary.
ADDRESSES: You may submit comments identified by the docket number
[PHMSA-2010-0019 (HM-241)] by any of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
Fax: 1-202-493-2251.
Mail: Docket Operations, U.S. Department of
Transportation, West Building, Ground Floor, Room W12-140, Routing
Symbol M-30, 1200 New Jersey Avenue SE., Washington, DC 20590.
Hand Delivery: To Docket Operations, Room W12-140 on the
ground floor of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal Holidays.
Instructions: All submissions must include the agency name and
docket number for this notice at the beginning of the comment. Note
that all comments received will be posted without change to the docket
management system, including any personal information provided.
Docket: For access to the dockets to read background documents or
comments received, go to http://www.regulations.gov or DOT's Docket
Operations Office (see ADDRESSES). To access and review ASME's Section
XII--Rules for Construction and Continued Service of Transport Tanks;
and the National Board's NBIC Parts 1, 2, and 3, and Part 2, Section 6,
Supplement 6--Continued Service and Inspection of DOT Transport Tanks,
and Part 3, Section 6, Supplement 6--Repair, Alteration, and
Modification of DOT Transport Tanks, go to: http://go.asme.org/PHMSA-ASME-CFR.
Privacy Act: Anyone is able to search the electronic form of any
written communications and comments received into any of our dockets by
the name of the individual submitting the document (or signing the
document, if submitted on behalf of an association, business, labor
union, etc.). You may review the DOT's complete Privacy Act Statement
in the Federal Register published on April 11, 2000 [65 FR 19477] or
you may visit http://www.dot.gov/privacy.
FOR FURTHER INFORMATION CONTACT: Dirk Der Kinderen, Hazardous Materials
Standards and Rulemaking Division, (202) 366-8553, or Stanley
Staniszewski, Engineering and Research Division, (202) 366-4492, Office
of Hazardous Materials Safety, Pipeline and Hazardous Materials Safety
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Executive Summary
II. ASME and NBIC Background
A. What is ASME?
B. What is Section XII of the Boiler and Pressure Vessel Code?
C. What is the National Board of Boiler and Pressure Vessel
Inspectors?
D. What is the National Board Inspection Code and Supplement 6?
III. Regulatory History and Response to Comments
A. ANPRM
B. NPRM
IV. SNPRM Summary
A. Why are we issuing a supplemental notice?
B. What are we proposing?
C. Why incorporate by reference?
D. Are there any major changes of note between the 2015 and 2013
editions of Section XII and the NBIC (including Supplement 6)?
V. Section-by-Section Review
VI. Regulatory Analyses and Notices
A. Statutory/Legal Authority for This Rulemaking
B. Executive Order 12866, Executive Order 13563, Executive Order
13610, and DOT Regulatory Policies and Procedures
C. Executive Order 13132
D. Executive Order 13175
E. Regulatory Flexibility Act, Executive Order 13272, and DOT
Regulatory Policies and Procedures
F. Paperwork Reduction Act
G. Regulation Identifier Number (RIN)
H. Unfunded Mandates Reform Act
I. Environmental Assessment
J. Privacy Act
K. International Trade Analysis
VII. List of Subjects
I. Executive Summary
The PHMSA (also ``we'' or ``us'') proposes to amend the Hazardous
Materials Regulations (HMR; 49 CFR parts 171-180) to incorporate by
reference and authorize the use of the following:
The 2015 edition of American Society of Mechanical
Engineers (ASME) Boiler and Pressure Vessel Code (BPVC), Section XII--
Rules for Construction and Continued Service of Transport Tanks
(hereinafter referred to as ``Section XII''); and
The 2015 edition of the National Board of Boiler and
Pressure Vessel
[[Page 25628]]
Inspectors National Board Inspection Code (NBIC), Parts 1, 2, and 3,
and Supplement 6 (hereinafter referred to as ``NBIC'' and ``Supplement
6,'' respectively);
The proposal is structured to provide an alternative to the 1998
editions of ASME Section VIII, Division 1 (currently incorporated by
reference (IBR) and hereinafter referred to as ``Section VIII, Division
1'') and the HMR requirements in Part 178 for the construction of cargo
tank motor vehicles (CTMVs) and cryogenic portable tanks, Part 179 for
the construction of multi-unit tank car tanks (hereinafter referred to
as ``ton tanks''), and Part 180 for the continuing qualification and
maintenance of CTMVs, cryogenic portable tanks, and ton tanks. We
previously responded to petitions submitted by industry representatives
by publishing a notice of proposed rulemaking (NPRM) \1\ to incorporate
the 2013 editions of Section XII and the NBIC (including Supplement 6).
Section XII sets forth standards for construction \2\ and continued
service \3\ of pressure vessels used for transporting hazardous
materials by various modes of transportation. The NBIC and Supplement 6
provide rules and guidelines for inspecting, repairing, and altering
transport tanks. Table 1 lists the packagings for which Section XII may
be used for construction.
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\1\ December 30, 2013 [78 FR 79363].
\2\ ``Construction'' is an all-inclusive term comprising
materials, design, fabrication, examination, inspection, testing,
certification, and over-pressure protection.
\3\ ``Continued service'' is an all-inclusive term referring to
inspection, testing, repair, alteration, and recertification of a
transport tank that has been in service.
Table 1--Authorized Transport Tanks Under Section XII
------------------------------------------------------------------------
Tank type Specification
------------------------------------------------------------------------
Cargo Tank Motor Vehicles (CTMVs)......... MC 331, 338, and DOT 406,
407, and 412.
Cryogenic Portable Tanks.................. UN T75.
Ton Tanks................................. DOT-106A and 110AW.
------------------------------------------------------------------------
If the proposed amendments are adopted, manufacturers will have the
option to either build tanks to Section XII or continue using Section
VIII, Division 1. While Section VIII, Division 1 applies to
construction only and must be used in conjunction with HMR Parts 178-
180 for construction and continued service, Section XII covers
construction of new tanks and continued service of existing tanks.
Further, as proposed, CTMVs and portable tanks built to Section VIII,
Division 1 would be authorized for qualification and continued service
using the more current edition of the NBIC in addition to Part 180;
whereas CTMVs and portable tanks built to Section XII would be required
to use NBIC (and Supplement 6) for qualification and continued service.
Table 2 describes the framework available to manufacturers and owners
of transport tanks with regard to IBR of Section XII and NBIC.
Table 2--Framework for Continued Service
------------------------------------------------------------------------
Is built to . . .
If a Table 1 . . . Then,
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CTMV.......................... Section XII...... The 2015 NBIC and
Supplement 6 must be
used.
CTMV.......................... Section VIII, Part 180 of the HMR
Division 1. must be used along
with the 2015 NBIC
or the 1992 NBIC
already in the HMR.
Cryogenic Portable Tank....... Section XII...... The 2015 NBIC and
Supplement 6 must be
used.
Cryogenic Portable Tank....... Section VIII, Part 180 of the HMR
Division 1. must be used along
with the 2015 NBIC
or the 1992 NBIC
already in the HMR.
Ton Tank...................... Section XII...... The 2015 NBIC and
Supplement 6 must be
used.
Ton Tank...................... Part 179 and FRA Part 180 and FRA
approval. approval must be
used.
------------------------------------------------------------------------
The 2015 editions of the respective codes include advancements in
design, material, fabrication, repair, and inspection of transport
tanks. Incorporation by reference would provide manufacturers and
owners with flexibility, while providing an equivalent level of safety
to the current use of Section VIII, Division 1 and the HMR.
The NBIC (including Supplement 6) was updated in conjunction with
Section XII to provide up-to-date standards for the qualification and
continued service of pressure vessels, including transport tanks. Both
Section XII and the NBIC were developed as global standards and were
written to be compatible with the United Nations Recommendations on the
Transport of Dangerous Goods. Moreover, these standards were developed
by voluntary consensus standards-development organizations \4\
comprised of stakeholders involved in the design, certification,
continued qualification, and maintenance of transport tanks, including
manufacturers of tanks and PHMSA engineers. These individuals have
expert knowledge of how to design, construct, and maintain tanks to
withstand the unique dynamic conditions and stresses of a
transportation environment.
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\4\ i.e., The American Society of Mechanical Engineers and the
National Board of Boiler and Pressure Vessel Inspectors.
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Manufacturers, tank owners, users, maintenance and repair entities,
and third-party inspectors (including potentially public sector
inspectors) could incur costs under the scope of our proposed
amendments. Manufacturers who opt for Section XII tanks would have to
purchase the updated standards and most likely attend additional
training. Entities that repair tanks and third-party inspectors opting
to provide Section XII repairs or inspections may have to acquire new
certificates of authorization and purchase and be trained in both
updated codes, although it is likely that many already have the most
current codes in order to maintain their ``U'' or ``R'' stamp in
accordance with obligations under the ASME.
Benefits associated with the use of Section XII and the NBIC
include greater efficiencies in the manufacture of tanks, as well as
the mitigation of the fluctuating cost of materials. Because Section
XII allows for the use of a broader range of materials of construction,
manufacturers now have more ways to lower the cost of tank
construction, while still maintaining safety. Also, CTMVs built to
Section XII could achieve lower transport costs due to reduced fuel
costs from weight savings and/or fewer miles traveled from increased
capacity.
The costs and benefits of this rulemaking would predominantly
impact only those entities opting to use the 2015 codes. Therefore,
PHMSA does
[[Page 25629]]
not believe the authorization to use and IBR Section XII and the NBIC
(including Supplement 6) would impose substantial costs on affected
entities. That is, we do not believe a manufacturer would opt to use
Section XII to build a tank unless it believes an economic advantage
will be gained.
II. ASME and NBIC Background
A. What is ASME?
The American Society of Mechanical Engineers (ASME) is an
international developer of codes and standards associated with the art,
science, and practice of mechanical engineering. The organization
develops and revises codes and standards that cover topics including
pressure technology, construction, engineering design, standardization,
and performance testing. Engineers, scientists, government officials,
and others contribute their technical expertise to this enterprise.
Codes and standards such as Section XII of the Boiler and Pressure
Vessel Code are developed based on market needs through a consensus
(committee) process that is open to all members of the public. The ASME
consensus committees are made up of volunteer subject matter experts,
ranging from manufacturers to users to government officials. Standards
and subsequent revisions are based on review of technical data by the
consensus committee and its subcommittees. The development and revision
process includes a public review for all actions. Any interested member
of the general public may review and comment on proposed ASME standards
or revisions. Refer to the following ASME Web site for the Section XII
committee and associated publication information: https://cstools.asme.org/csconnect/CommitteePages.cfm?Committee=N20150000. We
note that a PHMSA official participated on the committee that developed
the Section XII standards.
B. What is Section XII of the Boiler and Pressure Vessel Code?
Section XII provides standard requirements for construction and
continued service of pressure vessels for the transportation of
hazardous material by highway, rail, air, or water at pressures from
full vacuum to 3,000 psig (207 bar) and volumes greater than 120
gallons (450 liters). ``Construction'' is an all-inclusive term
comprising materials, design, fabrication, examination, inspection,
testing, certification, and over-pressure protection. ``Continued
service'' refers to inspection, testing, repair, alteration, and
recertification of a transport tank that has been in service. Section
XII also contains modal appendices containing requirements for
packagings used in specific transport modes and service applications.
Finally, rules pertaining to the use of the ASME ``T'' product
certification marks are also included.
C. What is the National Board of Boiler and Pressure Vessel Inspectors?
The National Board of Boiler and Pressure Vessel Inspectors
(hereinafter called the National Board) is a member organization that
promotes uniformity in the construction, installation, repair,
maintenance, and inspection of pressure equipment. The National Board,
which is comprised of the chief boiler inspectors representing much of
North America, oversees adherence to laws, rules, and regulations
relating to boilers and pressure vessels. Functions of the National
Board include the following: Commissioning inspectors through a
comprehensive examination process; accrediting qualified repair and
alteration companies; and developing installation, inspection, repair,
and alteration standards (i.e., the NBIC). Furthermore, as it is an
American National Standards Institute (ANSI) accredited standards
development organization, the National Board follows an approved set of
standards development procedures and is subject to regular audits by
ANSI.
D. What is the National Board Inspection Code and Supplement 6?
The National Board Inspection Code (NBIC) provides rules and
guidelines for the repair, alteration, inspection, installation,
maintenance, and testing of boilers, pressure vessels, and other
pressure-retaining items. Supplement 6 provides rules for continued
service inspections of transport tanks (i.e., CTMVs, portable tanks,
and ton tanks) that transport hazardous material subject to the HMR and
the United Nations Recommendations on the Transport of Dangerous
Goods--Model Regulations. Supplement 6 is intended to be used in
conjunction with other applicable parts of the NBIC and Section XII of
the ASME Boiler and Pressure Vessel Code.
III. Regulatory History and Response to Comments
All associated rulemaking actions, supporting documentation, and
comments on the rulemaking are available for review at the docket to
this rulemaking [PHMSA-2010-0019].
A. ANPRM
The PHMSA published an Advanced Notice of Proposed Rulemaking
(ANPRM) on December 23, 2010 [75 FR 80765], in which we asked a number
of questions pertaining to the potential costs, burdens, or safety
concerns associated with incorporating Section XII and the 2011 edition
of the NBIC for the construction and continued service of CTMVs,
cryogenic portable tanks, and ton tanks. The ANPRM generated comments
from 32 stakeholders, many of whom submitted multiple comments--some on
the length of the comment period and most on the substance of the
ANPRM. The majority of the comments--40 different comments from 21
commenters--were in opposition to the IBR of the two sets of standards
into the HMR. In the ANPRM, there were no specific proposals set forth
regarding the method of incorporation into the regulations of Section
XII and the NBIC (e.g., replacement of Section VIII, Division 1 with
Section XII and the NBIC or incorporation by reference of Section XII
and the NBIC as an alternative to Section VIII, Division 1). For that
reason, it was assumed by many commenters that Section XII would
outright replace Section VIII, Division 1 and the HMR, and these
commenters voiced their opposition with the belief that they would not
have an option to select the standard(s) to use.
B. NPRM
The PHMSA published an NPRM on December 30, 2013 [78 FR 79363] in
which we proposed to IBR the 2013 edition of Section XII, with limited
exceptions, as an alternative to existing standards for CTMVs,
cryogenic portable tanks, and ton tanks. Section VIII, Division 1, as
currently authorized in the HMR, applies to new construction only and
requires that tanks are marked with a ``U'' stamp to indicate
construction and certification in accordance with that section of the
ASME Code. Section XII is structured such that it addresses new
construction and continued service (e.g., repairs). Tanks constructed
under this standard will require a ``T'' stamp; whereas tanks that are
repaired under Section XII would be marked with either an ``R'' or a
``TR'' stamp to indicate a repair, dependent on whether the tank was
originally constructed and certified according to Section VIII,
Division 1 or Section XII, respectively. Further, PHMSA proposed to IBR
the 2013 edition of the NBIC (including Supplement 6) for alterations,
repairs, and inspections performed on all
[[Page 25630]]
ASME-constructed tanks used for the transportation of hazardous
materials. This proposed IBR is intended as an alternative to the
current IBR edition of the NBIC and conditions and limitations in HMR
Part 180 used for tanks constructed to Section VIII, Division 1.
Further, as proposed, use of the updated NBIC would be optional for
Section VIII, Division 1 CTMVs but required for Section XII authorized
transport tanks. The PHMSA provided a comparison of Section XII and
Section VIII, Division 1 (supplemented by the current HMR). Readers can
review this comparison in its entirety in the NPRM [Docket No. PHMSA-
2010-0019 (HM-241)]. Moreover, research and development projects
summarized in the NPRM supported the proposed codes and standards to be
adopted under this rulemaking docket. From the results of the studies
as well as our own analysis, PHMSA concluded that the proposed
standards provide an equivalent level of safety to the current
structure of standards in the HMR.
The NPRM generated comments from 20 stakeholders. The majority of
the comments were in opposition to IBR the two sets of standards into
the HMR; two commenters supported the proposals; and three commenters
supported the proposals with modification. Several commenters posed
questions or proposed additional modifications. Commenters in support
of the proposals generally indicated: (1) The need to incorporate
Section XII to reflect present-day improvements, especially the new
definitions of authorized inspection agencies; and (2) providing for an
alternative as reasons for support. Commenters opposing the proposals
generally indicated: (1) Lack of public input and inaccessibility to
current and future versions of Section XII and the NBIC; (2)
inefficient and excessive cost to the industry; and (3) no actual
improvement in hazardous materials transportation safety as reasons for
opposition. Commenters also raised questions about how continued
service requirements of Section XII will affect small industry
stakeholders and what role DOT/PHMSA may have in oversight of that
process. Commenter concerns are summarized and discussed further below.
1. Lack of Public Input in Future Versions of Section XII and the NBIC
Commenters expressed concern that decisions relative to the
development of the code are heavily weighted to those participating in
committee meetings, especially third-party inspection agencies who may
be biased by self-interest. Commenters also stated that the process
provides no assurance of public input for future revisions to the codes
because the National Board, for example, has no legal mandate to
provide for future participation by the general public or interested
parties.
The PHMSA disagrees. Information about the Section XII and NBIC
development and revision process is made available online to the
public, and draft revisions are made available for public review and
input.\5\ ASME and the National Board are accredited standards
developing organizations that meet due process requirements as defined
by the non-governmental American National Standards Institute.
Furthermore, committee participation is open to anyone with an interest
in a particular subject area and with the requisite technical
expertise. It may appear that decisions are weighted towards certain
committee members, yet committee membership is made up of more than
just third-party inspection agencies, as evidenced by the listing of
members for the various committees and subcommittees of both ASME and
the National Board. This information is also made available to the
public.
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\5\ For example, public comments may be submitted on proposed
new ASME Standards drafts and on proposals to revise existing ASME
Standards. All ASME public review proposals are available in hard
copy at no cost and some are available electronically also at no
cost. See https://cstools.asme.org/csconnect/PublicReviewpage.cfm.
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2. Inefficient and Excessive Cost to the Industry
Commenters stated Section XII would necessitate purchase of new
equipment and increased training for both the installation of the
equipment and its operation. Furthermore, commenters stated that
purchasing new publications from ASME and the National Board, while
also maintaining the existing editions and sections, will increase
direct costs along with the aforementioned equipment. In addition to
purchasing the codes, the cost and maintenance of welding
certifications will increase dramatically.
While there may be increased costs to industry, PHMSA does not
agree with commenters indicating inefficient or excessive costs for
adopting Section XII and NBIC codes. The PHMSA is proposing to IBR the
Section XII and NBIC codes as an alternative to current requirements
for the construction and continued service of certain CTMVs, cryogenic
portable tanks, and ton tanks (see Table 2 above). Use of Section XII
and the NBIC will not be mandated, so it will not necessitate equipment
purchase, employee training, or code purchase unless it is in the
interest of a manufacturer, non-manufacturer, or inspector to do so.
Although costs to each type of industry stakeholder will vary, we
believe the overall cost burden will be lower because of an expected
lower usage rate. It will remain a business decision to construct
pressure vessels to Section VIII, Division 1, to Section XII, or to
both. The PHMSA sees this as no different than making a determination
to construct all authorized DOT-specification CTMVs or specialize in
DOT 400 series CTMVs, for example. Furthermore, we believe it is very
likely that many in this industry already have the most current codes
in order to maintain their ``U'' or ``R'' stamps. We do however
acknowledge that those who enforce compliance with these standards will
incur a cost (e.g., training) regardless of the usage rate of the new
standard.
3. No Improvement in Safety
Commenters opposed to the NPRM generally indicated the lack of
safety improvements as a basis for the opposition. The PHMSA does not
agree with commenters indicating that adoption of Section XII and NBIC
would provide no improvements in hazardous material transportation
safety. The 2015 editions of Section XII and the NBIC include
advancements in design, material, construction, repair, and inspection
of transport tanks, and Section XII was specifically developed with the
transport environment in mind. Furthermore, IBR of these codes provides
the public with a more flexible approach to achieve the safety
transportation of hazardous material. Specifically, it would allow
manufacturers and owners of transport tanks flexibility in the
materials they use to build tanks, how they build tanks, and how they
test and inspect tanks, while providing at the very least the same
level of safety as currently provided by the HMR and Section VIII,
Division 1 for new construction and the HMR for continued qualification
and maintenance.
In response to comments and questions about PHMSA's role in
continuing service requirements and ensuring compliance with industry
standards, from design and manufacturing to repairs, PHMSA is proposing
to amend 49 CFR 107.307(a) to reiterate existing authority to enforce
compliance with industry standards incorporated by reference.
[[Page 25631]]
IV. SNPRM Summary
A. Why are we issuing a supplemental notice?
The PHMSA is issuing an SNPRM rather than a final rule for three
basic reasons:
(1) To provide stakeholders the opportunity to comment on the
safety improvements and updates reflected in the revised 2015 editions
of Section XII and the NBIC (and Supplement 6);
(2) To synchronize the timing of our rulemaking action with the
biennial updates of Section XII and NBIC by ASME and the National
Board, respectively; and
(3) To minimize or relieve the public and the government of
possible administrative burdens (e.g., special permit applications)
that would be associated with incorporating by reference the 2013
editions, as previously proposed, when 2015 editions have been
published.
B. What are we proposing?
In this SNPRM, PHMSA is proposing the following:
(1) IBR the 2015 edition of Section XII, (instead of the 2013
edition, as previously proposed for incorporation under the NPRM
published December 30, 2013 [78 FR 79363]);
(2) IBR the 2015 edition of the NBIC and Supplement 6 (instead of
the 2013 editions, as previously proposed for incorporation under the
December 2013 NPRM);
(3) Authorize construction and continued service of CTMVs,
cryogenic portable tanks, and ton tanks in accordance with Section XII.
The following transport tanks would be eligible for construction and
continued service under Section XII:
Table 3--Authorized Transport Tanks Under Section XII
------------------------------------------------------------------------
Tank type Specification
------------------------------------------------------------------------
Cargo Tank Motor Vehicles (CTMVs)......... MC331, 338, and DOT 406,
407, and 412.
Cryogenic Portable Tanks.................. UN T75.
Ton Tanks................................. DOT-106A and 110AW.
------------------------------------------------------------------------
Note: Tanks listed in this table that are already constructed under
Section VIII are not eligible for continued services using Section
XII.
(4) Require the use of the 2015 NBIC, and Supplement 6 where
applicable, for the qualification, requalification, and maintenance of
transport tanks (constructed under Section XII) listed in Table 3
above;
(5) Authorize the use of the 2015 NBIC for the continued service,
inspection, and repair of those CTMVs currently in service and
constructed to Section VIII, Division 1 and the HMR.
C. Why incorporate by reference?
Section 12(d) of Public Law 104-113, the National Technology
Transfer and Advancement Act of 1995, 15 U.S.C. 272 (hereinafter ``the
Act''), directs agencies to use voluntary consensus standards in lieu
of government-unique standards except where inconsistent with law or
otherwise impractical. ``Use'' means inclusion of a standard in whole,
in part, or by reference in regulation(s). We believe the use of
Section XII and the NBIC is consistent with the Act and serves PHMSA's
program needs by helping to improve safety through authorized use of
standards developed specifically with transportation in mind. The use
of such standards, whenever practicable and appropriate, is intended to
achieve the following goals:
(1) Eliminate the cost to the Government of developing its own
standards and decrease the cost of the burden of complying with agency
regulation.
(2) Provide incentives and opportunities to establish standards
that serve national needs.
(3) Promote efficiency and economic competition through
harmonization of standards.
D. Are there any major changes of note between the 2015 and 2013
editions of Section XII and the NBIC (including Supplement 6)?
The PHMSA's review of the 2015 edition of the codes did not reveal
any major substantive differences between the two editions, especially
with regard to the NBIC and Supplement 6. Below we highlight some of
the more notable changes to Section XII from the 2013 edition to the
2015 edition:
Revised the general requirements for welding so that the
Modal Appendices are used to provide direction for construction;
Revised Code Case 1750 to include Section XII to allow use
of additional materials for valves;
Updated Section XII regarding pressure relief devices for
consistency with updates to Section VIII, Division 1 and developed a
new Mandatory Appendix XIX based on these updates;
Updated Modal Appendix 1 (cargo tanks) for allowable
stress criteria.
V. Section-by-Section Review
The following is a section-by-section review of the amendments
proposed in this SNPRM:
A. Part 107
Section 107.307
Section 107.307 is the process for compliance orders and civil
penalties (i.e., enforcement). In this SNPRM, we are proposing to
revise paragraph (a) to reiterate PHMSA's existing authority to enforce
compliance with industry standards incorporated by reference into the
HMR.
Subpart F
Subpart F establishes a registration procedure for persons who are
engaged in the manufacture, assembly, inspection and testing,
certification, or repair of a cargo tank/CTMV manufactured in
accordance with a DOT specification or under terms of a special permit
issued under Part 107. In this SNPRM, we are not proposing to revise
this subpart, but we note for general awareness that the new Sec.
173.14, as discussed below, will reference the registration requirement
in this subpart by noting that ``inspectors'' and ``repairers'' of
these packagings must be registered with the DOT.
B. Part 171
Section 171.7
Section 171.7 lists IBR material. This SNPRM proposes to amend
Sec. 171.7, Reference material, to list the 2015 edition of Section
XII and the 2015 edition of the NBIC and Supplement 6. Specifically, a
new paragraph (g)(2) will be added to include an entry for `ASME Code
Section XII' in addition to the currently referenced sections of the
1998 edition of the `ASME Code', e.g., Section VIII, Division 1. We
will make a conforming amendment to redesignate current paragraph
(g)(2) as (g)(3) for ASME B31.4-1998 Edition, Pipeline Transportation
Systems for Liquid Hydrocarbons and other Liquids, Chapters II, III,
IV, V, and VI, November 11, 1998. In addition, we propose to amend
Sec. 171.7 to include the 2015 editions of the NBIC and Supplement 6.
Specifically, paragraph (x)(2) will be revised to include an entry for
`NBIC 2015,' and a new paragraph (x)(3) will be added for `NBIC 2015,
Supplement 6.'
C. Part 173
Section 173.14
In this SNPRM, we are proposing to add a new Sec. 173.14 for
authorization of and conditions on the use of Section XII
[[Page 25632]]
for the construction and continued service of certain types of
transport tanks discussed above, as follows:
For All Tank Types. Conditions for all authorized tank types will
be specified in paragraph (a)(1) as follows:
Authorized IBR material includes ASME Section XII Modal
Appendices, Mandatory Appendices, and Non Mandatory Appendices; and use
of ASME Section II materials, Section V Nondestructive Examination,
Section VIII, Division 1 for parts only, Section VIII, Division 2 for
Fatigue Analysis only, Section IX for welding and brazing in accordance
with Section XII requirements; authorized IBR material also includes
the NBIC Parts 1, 2, and 3, and Supplement 6 of Parts 2 and 3;
The NBIC and Supplement 6 must be used for the design,
repair, alteration, certification, qualification, and maintenance of
cargo tank motor vehicles, cryogenic portable tanks, and multi-unit
tank car tanks (ton tanks) constructed to Section XII;
Nameplate character markings must be a minimum 4 mm (5/
32''); markings directly on the tank must be a minimum 8 mm (5/16'');
Marking must be in accordance with Supplement 6. Periodic
test information is prohibited on the ASME nameplate;
Inspection personnel must have qualifications as required
by Section XII, Article TG-4, and as evident by having a current
National Board commission with endorsement for the level and type of
inspection (Transport Tank Class) to be performed, or certification
from their employer when applicable;
Inspectors or their employer must be registered with DOT;
and
Repairs must be performed by a facility holding a current
National Board certificate of authorization for the use of the National
Board ``TR'' or ``R'' stamp.
For CTMVs. Conditions and requirements specific to CTMVs will be
specified in paragraph (a)(2). The CTMVs must also conform to all
applicable requirements of Part 173 of the HMR and must meet: Section
XII, Modal Appendix 1 and the appropriate Article of the appendix for
the category of CTMV; all Mandatory Appendices; and applicable Non
Mandatory Appendices, except as follows:
Repairs must be performed by a DOT-registered facility
holding a current National Board certificate of authorization for the
use of the ``TR'' or ``R'' stamp; and
For Category 338 Cargo Tanks (synonymous with DOT MC 338
CTMVs), Section XII, Modal Appendix 1, Article 4, paragraph 1-4.4(g)(6)
does not apply. A minimum jacketed thickness of 2.4 mm (0.0946 in) 12
gauge in the reference steel is allowed.
For Cryogenic Portable Tanks. Conditions and requirements specific
to cryogenic portable tanks will be set forth in paragraph (a)(3).
These portable tank types must also conform to all applicable
requirements of Part 173 of the HMR and must meet: Section XII, Modal
Appendix 3, Article 1; all Mandatory Appendices; and applicable Non
Mandatory Appendices, except as follows:
External and internal visual inspections in accordance
with Supplement 6 are required in addition to Section XII, Modal
Appendix 3, Article 1, paragraph 3-1.10(b) and Article 1, 3-1.10(b)(5);
and
Section XII, Modal Appendix 3, Article 1, paragraph 3-1.10
requires repairs to be performed by a facility holding a current
National Board certificate of authorization for the use of the ``TR''
or ``R'' stamp. Records must be in accordance with the Supplement 6, as
applicable.
For Ton Tanks. Conditions and requirements specific to ton tanks
will be set forth in paragraph (a)(4). Ton tanks must conform to all
applicable requirements of Part 173 and must meet: Modal Appendix 4,
Article 1; all Mandatory Appendices; and applicable Non Mandatory
Appendices, except as follows:
Section XII, Modal Appendix 4, Article 1, paragraph 3-
1.10. Manufacturer-certified fusible plugs tested and qualified under
the fuse plug manufacturers' written quality control system are
required;
Section XII, Modal Appendix 4, Article 1, paragraph 4-8.
Non-ASME marked fusible plugs are allowed;
Section XII, Modal Appendix 4, Article 1, paragraph 4-
12(a). External and internal visual inspections must be in accordance
with Supplement 6;
Section XII, Modal Appendix 4, Article 1, paragraph 4-
12(e). Records must be kept in accordance with Supplement 6; and
A ton tank that fails a prescribed test or inspection must
be repaired as specified in the NBIC or removed from service.
D. Part 178
Section 178.278
We propose a new Sec. 178.278 authorizing the use of Section XII
and the NBIC (and Supplement 6) for construction and qualification of
cryogenic portable tanks.
Section 178.300
We propose a new Sec. 178.300 authorizing the use of Section XII
and the NBIC (and Supplement 6) for construction and qualification of
cargo tank motor vehicles.
E. Part 179
Section 179.302
We propose a new Sec. 179.302 authorizing the use of Section XII
and the NBIC (and Supplement 6) for construction and qualification of
ton tanks.
F. Part 180
Section 180.402
We propose a new Sec. 180.402 authorizing use of the NBIC for the
continuing qualification and maintenance of CTMVs.
Section 180.413
We propose to revise Sec. 180.413 to authorize use of the NBIC
with Section VIII, Division 1 for the continued service of CTMVs.
Section 180.502
We propose a new Sec. 180.502 authorizing use of the NBIC for the
continuing qualification and maintenance of ton tanks constructed to
Section XII.
Section 180.602
We propose a new Sec. 180.602 authorizing use of the NBIC for the
continuing qualification and maintenance of cryogenic portable tanks
constructed to Section XII.
VI. Regulatory Analyses and Notices
A. Statutory/Legal Authority for This Rulemaking
This SNPRM is published under the authority of the Federal
Hazardous Materials Transportation Law, 49 U.S.C. 5101 et seq. Section
5103(b) authorizes the Secretary to prescribe regulations for the safe
transportation, including security, of hazardous material in
intrastate, interstate, and foreign commerce. This SNPRM provides an
alternative to the current process for the construction and continued
service of CTMVs, cryogenic portable tanks, and ton tanks, without
compromising safety.
The Administrative Procedure Act (APA) requires Federal agencies to
give interested persons the right to petition an agency to issue,
amend, or repeal a rule (5 U.S.C. 553(e)). Section 106.95 of the HMR,
provides the process and procedures for persons to petition PHMSA to
add, amend, or delete a regulation. In this SNPRM, PHMSA is
[[Page 25633]]
addressing this statutory requirement by considering petitions for
rulemaking from ASME, the National Board, and the Pressure Vessels
Manufacturers Association.
B. Executive Order 12866, Executive Order 13563, Executive Order 13610,
and DOT Regulatory Policies and Procedures
This SNPRM is not considered a significant regulatory action under
Section 3(f) of Executive Order 12866 (``Regulatory Planning and
Review'') and, therefore, was not reviewed by the Office of Management
and Budget (OMB). The proposed rule is not considered a significant
rule under the Regulatory Policies and Procedures order issued by the
U.S. Department of Transportation [44 FR 11034].
Executive Order 13563 (``Improving Regulation and Regulatory
Review'') supplements and reaffirms the principles, structures, and
definitions governing regulatory review that were established in
Executive Order 12866, published September 30, 1993. Executive Order
13563, issued January 18, 2011, notes that our nation's current
regulatory system must not only protect public health, welfare, safety,
and our environment but also promote economic growth, innovation,
competitiveness, and job creation.\6\ Further, this executive order
urges government agencies to consider regulatory approaches that reduce
burdens and maintain flexibility and freedom of choice for the public.
In addition, Federal agencies are asked to periodically review existing
significant regulations; retrospectively analyze rules that may be
outmoded, ineffective, insufficient, or excessively burdensome; and
modify, streamline, expand, or repeal regulatory requirements in
accordance with what has been learned.
---------------------------------------------------------------------------
\6\ See http://www.whitehouse.gov/the-press-office/2011/01/18/improving-regulation-and-regulatory-review-executive-order.
---------------------------------------------------------------------------
Executive Order 13610 (``Identifying and Reducing Regulatory
Burdens''), issued May 10, 2012, urges agencies to conduct
retrospective analyses of existing rules to examine whether they remain
justified or whether they should be modified or streamlined in light of
changed circumstances, including the rise of new technologies.\7\
---------------------------------------------------------------------------
\7\ See http://www.gpo.gov/fdsys/pkg/FR-2012-05-14/pdf/2012-11798.pdf.
---------------------------------------------------------------------------
By building off of each other, these three Executive Orders require
agencies to regulate in the ``most cost-effective manner,'' to make a
``reasoned determination that the benefits of the intended regulation
justify its costs,'' and to develop regulations that ``impose the least
burden on society.''
The PHMSA believes that if the 2015 editions of Section XII and the
NBIC are incorporated as alternatives to Section VIII, Division 1 and
the HMR, transport tank manufacturers and owners would be provided with
more flexibility and freedom of choice regarding material of
construction and design for new construction, allowing for lighter-
weight, higher-capacity tanks capable of transporting more material per
shipment. Transport tanks built to Section XII will have been examined
by certified inspectors to ensure that they withstand conditions and
stresses unique to transportation, such as rollovers, bottom damage, or
piping damage. Furthermore, we believe the flexibility in selection of
the ASME standard of construction will facilitate international
competitiveness for the transport of hazardous materials; this
flexibility will also eliminate barriers for U.S. manufacturers
transporting goods internationally that have been caused by the
inflexible material construction requirements in Section VIII, Division
1 and the HMR. Further, the ASME standards have been deemed equivalent
by PHMSA technical staff and have been proven to provide, through
special permits, an equivalent level of safety to that of transport
tanks constructed and designed according to the specifications
currently provided in the HMR.
The overall costs and benefits associated with this SNPRM and the
supporting calculations are included in the supplement to the NPRM
regulatory impact analysis (RIA) provided in the docket for this
rulemaking. For specific responses to comments received to the NPRM
please see Section III of this document. Below is a brief summary of
the affected entities, as well as the costs and benefits of this SNPRM:
Costs
The majority of the new costs that would result from the optional
use of the IBR of the 2015 edition of ASME Section XII and the NBIC are
due to training and certification of stakeholders on the requirements
of the updated codes. There are three primary groups of affected
entities: (1) Manufacturers of tanks; (2) non-manufacturers (e.g.,
repair firms); and (3) inspectors. Using industry employment and wage
data from the U.S. Department of Labor, we estimated the number of
transport tank manufacturing firms, non-manufacturing firms involved in
the repair and maintenance of tanks, and tank inspectors in the United
States. The new costs to each of the three stakeholder groups are
described below.
1. Manufacturers
Using data from the Bureau of Labor Statistics (BLS), the Steel
Tank Institute (STI), the Pressure Vessel Manufacturers Association
(PVMA), and ASME's Pressure Vessel Manufacturer Members, we estimate
that there are 290 manufacturers of portable tanks, ton tanks, and
CTMVs. Collectively, these firms employ approximately 8,889 individuals
directly involved in production and maintenance of transport tanks
(e.g., boilermakers, mechanical engineers, production occupations,
mechanical drafters, industrial production managers, commercial and
industrial designers, and mechanical engineering technicians).\8\ Each
manufacturer would be required to purchase a copy of the Section XII
code and manufacturing employees would need to take ASME's online
training course, both of which would impose costs.
---------------------------------------------------------------------------
\8\ U.S. Bureau of Labor Statistics, Occupational Employment
Statistics, May 2011. http://www.bls.gov/oes/current/oes111021.htm.
---------------------------------------------------------------------------
New vessels manufactured under Section XII would be required to
hold an ASME ``T'' stamp of authorization, and repairs or alterations
to these vessels must be performed by a holder of a ``TR'' Certificate
of Authorization (although ASME may opt to not utilize this ``TR''
stamp and just require the current ``R'' stamp that is required). This
is an alternative to manufacturing, repairing, and altering under the
Section VIII code, where transport tanks have ASME ``U'' stamps and
repairs and authorizations are made by holders of an ``R'' Certificate
of Authorization. Purchase of this stamp is another source of costs.
The costs and the calculations supporting them are included in the
supplement to the NPRM RIA provided in the docket for this rulemaking.
2. Non-Manufacturers
Using data from the BLS, we estimate there are 3,863 non-
manufacturers, collectively employing 6,839 individuals directly
engaged in the repair, maintenance, and alteration of transport tanks
or performing associated design and supervision tasks. Non-
manufacturers include repair and maintenance firms of pressure vessels.
All repair firms would be required to purchase a copy of both ASME
Section XII and the NBIC which would impose a cost. In addition, non-
manufacturers that repair or alter tanks would be required to change
the scope of their existing ``R'' Certificate of Authorization or
obtain a ``TR'' certificate from the National Board, which would impose
a cost. These costs and the calculations
[[Page 25634]]
supporting them are included in the supplement to the NPRM RIA provided
in the docket for this rulemaking.
3. Inspectors
Tank inspectors include third-party inspectors, owner-user
inspectors, chief boiler inspectors, and public inspectors. Data from
the National Board of Boiler and Pressure Vessel Inspectors indicate
that there are 41 authorized third-party agencies.\9\ Assuming there is
an average of 10 inspectors at each agency, we estimate that there are
approximately 410 third-party inspectors in the United States. In
addition, the National Board of Boiler and Pressure Vessel Inspectors
show that there are 69 owner-user inspector organizations, which are
defined as ``owner-user[s] of pressure equipment that [maintain] an
established inspection program and whose organization and inspection
procedures meet the requirements of NB-371, Accreditation of Owner-User
Inspection Organization.'' \10\ Also, using data from the Department of
Labor, we estimate that there are 549 public inspectors by applying the
average figure for boiler inspectors per 100,000 capita from the 2010
economic census to estimate the number of public boiler inspectors in
each state. Incorporating by reference Section XII and the NBIC will
require inspection services to use the NBIC classifications of
Authorized Inspectors (AIs) and Certified Individuals (CIs). Third-
party and chief boiler inspectors would need to complete NBIC training
to become familiar with the Section XII standards. These
classifications and trainings would impose some costs on inspectors.
These costs and the calculations supporting them are included in the
supplement to the NPRM RIA provided in the docket for this rulemaking.
---------------------------------------------------------------------------
\9\ The National Board of Boiler and Pressure Vessel
Inspectors--New Construction Authorized Inspection Agencies Listing
http://www.nationalboard.org/Index.aspx?pageID=66&ID=122 and The
National Board of Boiler and Pressure Vessel Inspectors--Inservice
Authorized Inspection Agencies Listing http://www.nationalboard.org/Index.aspx?pageID=66&ID=123.
\10\ National Board of Boiler and Pressure Vessel Inspectors--
Owner-User Inspection Organizations http://www.nationalboard.org/Index.aspx?pageID=67.
---------------------------------------------------------------------------
Benefits
Based on the information presented in the ``Section XII Code
Differences'' document, there are several opportunities for cost
savings if the 2015 editions of Section XII and the NBIC are
incorporated. There are three differing aspects of tank design
requirements between Section VIII, Division 1 and Section XII: (1) The
required tensile strength margin is reduced from 4.0 to 3.5; (2) a new
rational design to reduce shell and head thickness is allowed; and (3)
tanks are allowed to be used until they reach the minimum allowed
thickness, which increases tanks' useful lives. These benefits and the
calculations supporting them are included in the supplement to the NPRM
RIA provided in the docket for this rulemaking.
Conclusion
As this SNPRM authorizes the voluntary use of the 2015 editions of
Section XII and the NBIC, a range of costs and benefits (as seen in
Table 4 below) were derived based on differing percentages of
implementation. The overall costs and benefits, and the calculations
supporting them, are included in the supplement to the NPRM RIA
provided in the docket for this rulemaking. In addition, this document
also includes a sensitivity analysis that varies a number of factors.
Table 4--Net Benefit Estimates
----------------------------------------------------------------------------------------------------------------
Estimate
----------------------------------------------------------------------------------------------------------------
Annualized Benefits and Costs
----------------------------------------------------------------------------------------------------------------
Estimated Benefits..................... $18,006,640 (low) to $21,598,728.37 (high).
Estimated Costs........................ $10,167,783 (low) to $15,480,558 (high).
------------------------------------------------------------------------
Net................................ $2,526,082 (low) to $11,430,946 (high).
----------------------------------------------------------------------------------------------------------------
Annualized per Tank Benefits and Costs
----------------------------------------------------------------------------------------------------------------
Estimated Benefits..................... $76 (low) to $91 (high).
Estimated Costs........................ $43 (low) to $77 (high).
------------------------------------------------------------------------
Net................................ $10 (low) to $48 (high).
----------------------------------------------------------------------------------------------------------------
C. Executive Order 13132
This proposed rule has been analyzed in accordance with the
principles and criteria contained in Executive Order 13132
(``Federalism'') and the President's memorandum (``Preemption'') that
was published in the Federal Register on May 22, 2009 [74 FR 24693].
This proposed rule will preempt State, local, and Indian tribe
requirements but does not propose any regulation that 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. Therefore, the
consultation and funding requirements of Executive Order 13132 do not
apply.
The Federal Hazardous Materials Transportation Law, 49 U.S.C. 5101-
5128, contains an express preemption provision (49 U.S.C. 5125 (b))
that preempts State, local, and Indian tribe requirements on the
following subjects:
(1) The designation, description, and classification of hazardous
materials;
(2) The packing, repacking, handling, labeling, marking, and
placarding of hazardous materials;
(3) The preparation, execution, and use of shipping documents
related to hazardous materials and requirements related to the number,
contents, and placement of those documents;
(4) The written notification, recording, and reporting of the
unintentional release in transportation of hazardous material; and
(5) The design, manufacture, fabrication, marking, maintenance,
recondition, repair, or testing of a packaging or container
represented, marked, certified, or sold as qualified for use in
transporting hazardous material.
This proposed rule addresses packaging for hazardous materials. If
adopted as final, this rule will preempt any State, local, or Indian
tribe
[[Page 25635]]
requirements concerning packaging for hazardous materials unless the
non-Federal requirements are ``substantively the same'' as the Federal
requirements. Furthermore, this proposed rule is necessary to update,
clarify, and provide relief from regulatory requirements.
Incorporation of new consensus standards by reference in the HMR
may impact state and local CTMV enforcement programs. Potential impacts
include the cost of purchasing the new Section XII standards and the
training of employees. However, PHMSA notes that many state enforcement
personnel are not currently equipped with Section VIII, Division 1 and
must use outside sources to reference this standard. It is our
understanding that during roadside inspections, state officials are
most often concerned with identifying that the ASME mark is intended
for the packaging on which it is stamped. This would not require state
governments to purchase copies of Section XII for every state trooper.
Rather, the most in-depth inspection performed on a tank is handled by
an independent third-party inspector, typically a National Board-
commissioned inspector from an insurance company. This would also apply
to the repair of the ASME packaging using the NBIC, which also requires
a marking. Furthermore, as engineers at PHMSA were instrumental in
developing Section XII and the NBIC, they understand them and are
available to help interpret the standards. As with other highly
technical or scientific standards that we incorporate in the HMR,
PHMSA's Hazardous Materials Information Center staff will have access
to the engineers who helped develop the standards. We invite State and
local governments with an interest in this rulemaking to comment on any
revisions to the HMR in hopes to address the issues that this proposed
rule may cause.
D. Executive Order 13175
This final rule has been analyzed in accordance with the principles
and criteria contained in Executive Order 13175 (``Consultation and
Coordination with Indian Tribal Governments''). The PHMSA is not aware
of any significant or unique affects or substantial direct compliance
costs on the communities of the Indian tribal governments from
proposals in this rulemaking. Therefore, we conclude that the funding
and consultation requirements of Executive Order 13175 do not apply.
However, we invite Indian tribal governments to provide comments should
they believe there will be an impact.
E. Regulatory Flexibility Act, Executive Order 13272, and DOT
Regulatory Policies and Procedures
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an
agency to review regulations to assess their impact on small entities
unless the agency determines that a rule is not expected to have a
significant impact on a substantial number of small entities. This
notice has been developed in accordance with Executive Order 13272
(``Proper Consideration of Small Entities in Agency Rulemaking'') and
DOT's Policies and Procedures to promote compliance with the Regulatory
Flexibility Act to ensure that potential impacts of draft rules on
small entities are properly considered.
The adoption of Section XII will not have a significant impact on a
substantial number of small entities, or even any foreseeable impact on
small businesses, given that the provisions proposed under this
supplemental notice are optional. Furthermore, PHMSA reviewed the
safety records of both transport tanks constructed under the current
method of construction authorized under the HMR and transport tanks
constructed to ASME Section XII under special permits and found no
differences in the safety record between the two methods of
construction.
We estimate that there are approximately 5,200 businesses likely to
be affected by this rule. The Small Business Administration (SBA) uses
industry-specific standards to estimate which of those are ``small
businesses.'' The PHMSA assumes that a significant number of businesses
within the regulatory scope (nearly all) are small.
Based on our analysis, the three major industries--manufacturers,
third-party inspection agencies, and tank repair services--could, at
their discretion, conform to the new standards. Manufacturers could
introduce new materials; third-party inspectors could conduct more
current, meaningful tests that are relevant to more transport specific
designs; and tank repair services could expand to accommodate the new
standards.
Based on the expected service life of a transport tank of 30 years,
we assume that only 1/30 of all transport tanks will be replaced each
year. Given the optional nature of this rule, the newly constructed
tanks will consist of some combination of Section XII transport tanks
and some Section VIII, Division 1 transport tanks. A manufacturer will
build tanks according to demand, including price. At the same time, we
believe repairers and inspectors will be able to adjust and accommodate
the small number of Section XII transport tanks entering the market
each year.
Based upon our above-mentioned 5,200 estimated businesses and
assumptions, PHMSA certifies that the proposals in this SNPRM will not
have a significant economic impact on a substantial number of small
entities. In this notice, PHMSA is soliciting further comment on this
conclusion that the proposals in this SNPRM will not cause a
significant economic impact on a substantial number of small entities.
F. Paperwork Reduction Act
Section 1320.8(d), Title 5, Code of Federal Regulations requires
that PHMSA provide interested members of the public and affected
agencies an opportunity to comment on information collection and
recordkeeping requests. The recordkeeping requirements in Section XII
and the NBIC are analogous; thus, the recordkeeping costs of complying
with Section XII and the NBIC are no different than those required
under the current regulatory scheme. Moreover, we believe the
recordkeeping requirements of Section XII and NBIC (specifically
Supplement 6) are more straightforward.
G. Regulation Identifier Number (RIN)
A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
April and October of each year. The RIN contained in the heading of
this document can be used to cross-reference this action with the
Unified Agenda.
H. Unfunded Mandates Reform Act
This proposed rule does not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. It does not result in costs of
$141,300,000 or more to either State, local, or tribal governments, in
the aggregate, or to the private sector, and it is the least burdensome
alternative that achieves the objective of the rule.
I. Environmental Assessment
The National Environmental Policy Act of 1969 (NEPA), as amended
(42 U.S.C. 4321-4347), and implementing regulations by the Council on
Environmental Quality (CEQ) (40 CFR part 1500) require Federal agencies
to consider the consequences of Federal actions and prepare a detailed
statement on actions that significantly affect the quality of the human
environment.
The CEQ regulations order Federal agencies to conduct an
environmental
[[Page 25636]]
assessment considering the following: (1) The need for the proposed
action, (2) alternatives to the proposed action, (3) probable
environmental impacts of the proposed action and alternatives, and (4)
the agencies and persons consulted during the consideration process
(see 40 CFR 1508.9(b)).
1. Need for the Proposal
The PHMSA is proposing this rulemaking to IBR the 2015 editions of
Section XII and the NBIC to provide greater flexibility in the
manufacture and repair of authorized transport tanks by authorizing
manufacture-to-industry standards (i.e., ASME Section XII developed
specifically with transportation in mind).
2. Alternatives Considered
The PHMSA is considering the following alternatives:
--Alternative 1 is to take no action;
--Alternative 2 is to IBR Section XII and NBIC (including Supplement 6)
and mandate its use by removing Section VIII, Division 1;
--Alternative 3 is to IBR Section XII and allow use of Section XII as
an alternative construction standard to Section VIII, Division 1 and
the HMR. Use of the NBIC for continued service Section VIII, Division 1
would be optional, while use of the NBIC for continued service of
Section XII transport tanks would be required; and
--Alternative 4 is to allow use of the Section XII standards through
Special Permit.
Each alternative presented represents different levels of adoption
of Section XII, from Alternative 1 (0%) to Alternative 2 (100%).
Alternatives 3 and 4 may result in a distribution of use between these
extremes. It is difficult to find a firm basis to project future market
activity--i.e., to calculate the expected distribution of transport
tank manufacture between the two standards. However, PHMSA believes
that the IBR of Section XII would provide an opportunity for savings to
both the manufacturer and the user of the tanks.
Alternative 1: No action. For this alternative, the HMR would
remain unchanged. This is not the preferred alternative. This
alternative maintains the status quo both for the construction and
design of Section VIII, Division 1 CTMVs, cryogenic portable tanks, and
ton tanks and for the continued service transport under Part 180
(including the 1992 edition of the NBIC for CTMVs). Though Section
VIII, Division 1 sets forth detailed criteria for the design,
construction, certification, and marking of stationary boilers and
pressure vessels, it does not account for the unique conditions and
stresses encountered in the transportation environment. The HMR
addresses this deficiency by adding requirements to account for
conditions and stresses likely to occur in transportation. This
alternative would not impose any costs, but it would prevent the
opportunity to realize any gains in efficiency.
Alternative 2: IBR and require use of both Section XII and NBIC and
remove Section VIII, Division 1. This is not the preferred alternative
either. This alternative would require transport tanks to be built to
transport-specific design standards, thus improving efficiencies
through greater design flexibility and variety in material of
construction. This alternative would likely lead to less fuel
consumption because of larger tank capacities, and Section XII would
also provide for more uniform enforcement over time. However,
implementing this alternative may preclude a normal market-based
transition from one standard to another, and complying with new
standards would effectively force manufacturers to make such a
transition regardless of costs associated with equipment investments
and personnel changes. Many commenters expressed concern that imposing
new ASME construction standards would unduly burden them either
immediately or in the future, and without recourse. Costs would include
the purchase of Section XII and the NBIC, stamp certification, and
familiarization training.
Alternative 3: IBR and authorize use of Section XII as an
alternative to Section VIII, Division 1, and use of the NBIC for
continued service, as applicable. This option is the preferred
alternative because it would provide regulatory flexibility without
diminishing current safety standards or imposing burdensome costs.
Specifically, it would provide more freedom for the marketplace with
respect to the construction of transport tanks, while at the same time
providing for pressure vessel options geared towards the transport
environment. Furthermore, this alternative would authorize the use of
the 2015 edition of the NBIC as it applies to existing tanks and would
require its use for those transport tanks built to Section XII, as
required by Section XII.
Alternative 4: Allow use of Section XII through special permit
application. For this alternative, the HMR would also remain unchanged.
This is not the preferred alternative. This alternative presents the
option to produce, use, and maintain transport tanks manufactured to
Section XII through a special permit. The PHMSA would allow
technological advancement yet also maintain some oversight over the
manufacture of these transport tanks. The PHMSA has already issued two
special permits related to Section XII. This option would require
positive action by manufacturers to apply for a special permit. While
this may be a more cautious approach, under this option each special
permit application would require technical drawings and incur the costs
and administrative burdens associated with special permit requests,
including the factual analysis required and ``party-to'' applications.
The PHMSA estimates that the typical special permit application costs
$45 to the applicant and $3,000 for us to evaluate.
The PHMSA is proposing Alternative 3, as it was found to be
optimal. Benefits associated with the rule include lower manufacturing
costs and higher capacities for shippers. Costs to industry are minimal
and incurred only when the manufacturer decides to build tanks to the
Section XII standards.
3. Environmental Consequences
When developing potential regulatory requirements, PHMSA evaluates
the requirements to consider the environmental impact. Specifically,
PHMSA evaluates the following: The risk of release and resulting
environmental impact; the risk to human safety, including any risk to
first responders; the longevity of the packaging; and the circumstances
in which the regulations would be carried out (i.e., the defined
geographic area, the resources, any sensitive areas) and how they could
thus be impacted.
The non-editorial proposed provisions of this SNPRM are discussed
in further detail and evaluated based on their overall environmental
impact, as follows:
Environmental benefits result from fewer trips for CTMVs, cryogenic
portable tanks, and ton tanks used to transport the same quantities of
hazardous materials, because of greater capacities. In most cases, due
to alternative materials of construction, the thickness of the tank
shells can be reduced, permitting more material to be hauled and
reducing the number of trips needed to handle the same volume of
product. For example, an MC 331 propane tank manufactured according to
Section XII would have a 12.5 percent reduction in wall thickness when
compared to Section VIII, Division 1. This reduction would lead to at
least a 2 percent increase in product capacity while maintaining the
current level of
[[Page 25637]]
safety. As supported by the studies referenced in the December 30, 2013
NPRM and based on the analysis of both sections of the ASME code, PHMSA
asserts that despite the reduction in the design margin, the standards
provide an equivalent level of safety. Because the proposed
alternatives would provide the same level of safety, the expectation is
that the risk of incidents is reduced proportionally to the reduction
of vehicle trips to move authorized packaging.
4. Federal Agencies Consulted
In an effort to ensure all appropriate Federal stakeholders are
provided a chance to provide input on potential rulemaking actions,
PHMSA, as part of its rulemaking development, consults other Federal
agencies that could be potentially affected. In developing this
rulemaking action, PHMSA consulted the Federal Motor Carrier Safety
Administration (FMCSA), Federal Railroad Administration (FRA),
Environmental Protection Agency (EPA), and Occupational Safety and
Health Administration (OSHA).
5. Conclusion
This SNPRM proposes to IBR Section XII and the NBIC as alternatives
to Section VIII, Division 1 and the HMR. As discussed above, PHMSA
believes these standards provide an equivalent level of safety and the
proposals in this SNPRM are environmentally neutral. In fact, depending
on the level of usage of Section XII and subsequent reduction of the
number of tanks needed to handle the same volume of product, this rule
may prove environmentally beneficial over time. However, PHMSA welcomes
any data, information, or comments related to environmental impacts
that may result from the proposal discussed in this notice.
J. Privacy Act
Anyone is able to search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review the
DOT's complete Privacy Act Statement in the Federal Register published
on April 11, 2000 (Volume 65, Number 70; Pages 19477-78), or you may
visit http://www.dot.gov/privacy.
K. International Trade Analysis
The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal
agencies from establishing any standards or engaging in related
activities that create unnecessary obstacles to the foreign commerce of
the United States. For purposes of these requirements, Federal agencies
may participate in the establishment of international standards, so
long as the standards have a legitimate domestic objective, such as
providing for safety, and do not operate to exclude imports that meet
this objective. The statute also requires consideration of
international standards and, where appropriate, that they be the basis
for U.S. standards. The PHMSA participates in the establishment of
international standards in order to protect the safety of the American
public, and we assess the effects of any rule to ensure that it does
not exclude imports that meet this objective. Section XII is written
using terminology compatible with international standards such as the
UN Recommendations and International Maritime Dangerous Goods Code. The
intent is for the standards to be used globally, and several foreign
manufacturers already possess the ``T'' stamp certification indicating
the ability to manufacture transport tanks in accordance with the
updated section of the code. Furthermore, one of the transport tanks
that can be constructed in accordance with Section XII is a UN T75
cryogenic portable tank. Accordingly, incorporating Section XII, and
the companion NBIC, as alternatives to Section VIII, Division 1 and the
HMR would be consistent with PHMSA's obligations under the Trade
Agreement Act, as amended.
List of Subjects
49 CFR Part 107
Administrative practice and procedure, Hazardous materials
transportation, Packaging and containers, Penalties, Reporting and
recordkeeping requirements.
49 CFR Part 171
Exports, Hazardous materials transportation, Hazardous waste,
Imports, Incorporation by reference, Reporting and recordkeeping
requirements.
49 CFR Part 173
Hazardous materials transportation, Packaging and containers,
Radioactive materials, Reporting and recordkeeping requirements,
Uranium.
49 CFR Part 178
Hazardous materials transportation, Motor vehicle safety, Packaging
and containers, Reporting and recordkeeping requirements.
49 CFR Part 179
Hazardous materials transportation, Railroad safety, Reporting and
recordkeeping requirements.
49 CFR Part 180
Hazardous materials transportation, Motor carriers, Motor vehicle
safety, Packaging and containers, Railroad safety, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 49 CFR Chapter I is amended as
follows:
PART 107--HAZARDOUS MATERIALS PROGRAM PROCEDURES
0
1. The authority citation for part 107 continues to read as follows:
Authority: 49 U.S.C. 5101-5128, 44701; Pub. L. 101-410 section 4
(28 U.S.C. 2461 note); Pub. L. 104-121 sections 212-213; Pub. L.
104-134 section 31001; Pub. L. 112- 141 section 33006, 33010; 49 CFR
1.81 and 1.97.
0
2. In Sec. 107.307, revise the paragraph (a) introductory text to read
as follows:
Sec. 107.307 General.
(a) When the Associate Administrator and the Office of Chief
Counsel have reason to believe that a person is knowingly engaging or
has knowingly engaged in conduct which is a violation of the Federal
Hazardous Material Transportation Law or any provision of this
subchapter or subchapter C of this chapter, or any standard
incorporated by reference in subchapter C of this chapter, or any
exemption, special permit, or order issued thereunder, for which the
Associate Administrator or the Office of Chief Counsel exercise
enforcement authority, they may--
* * * * *
PART 171--GENERAL INFORMATION, REGULATIONS, AND DEFINITIONS
0
3. The authority citation for part 171 continues to read as follows:
Authority: 49 U.S.C. 5101-5128, 44701; Pub. L. 101-410 section 4
(28 U.S.C. 2461 note); Pub. L. 104-134, section 31001; 49 CFR 1.81
and 1.97.
0
4. In Sec. 171.7,
0
a. Redesignate paragraph (g)(2) as (g)(3);
0
b. Add new paragraph (g)(2); and
0
c. Revise paragraph (x)(2).
The amendments read as follows:
Sec. 171.7 Reference material.
* * * * *
(g) * * *
(2) 2015 ASME Boiler and Pressure Vessel Code (ASME Code Section
XII), 2015 Edition, July 1, 2015 (as follows), into Sec. Sec. 173.14,
178.278, 178.301, 179.302:
[[Page 25638]]
(i) Section XII--Rules for Construction and Continued Service of
Transport Tanks.
(3) ASME B31.4-2012, Pipeline Transportation Systems for Liquids
and Slurries, November 12, 2012, into Sec. 173.5a.
* * * * *
(x) * * *
(2) 2015 National Board Inspection Code (NBIC), A Manual for Boiler
and Pressure Vessel Inspectors, 2015 Edition, into Sec. Sec. 173.14,
178.278, 178.301, 179.302, 180.402, 180.502, 180.602:
(i) Supplement 6, Continued Service and Inspection of DOT Transport
Tanks, 2015 Edition.
* * * * *
PART 173--SHIPPERS--GENERAL REQUIREMENTS FOR SHIPMENTS AND
PACKAGINGS
0
5. The authority citation for part 173 continues to read as follows:
Authority: 49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and
1.97.
0
6. Add Sec. 173.14 to read as follows:
Sec. 173.14 Authorization and conditions for the use of ASME Code
Section XII.
This section authorizes, with certain conditions and limitations,
the use of ASME Code Section XII (IBR, see Sec. 171.7) for the
construction and continued service of cargo tank motor vehicles,
cryogenic portable tanks, and multi-unit tank car tanks (ton tanks).
The following table presents the transport tanks authorized for
construction using ASME Code Section XII.
Authorized Specification Packaging Using Section XII
------------------------------------------------------------------------
Tank type Specification
------------------------------------------------------------------------
Cargo Tank Motor Vehicles (CTMVs)......... MC 331, 338, and DOT 406,
407, and 412.
Cryogenic Portable Tanks.................. UN T75.
Ton Tanks................................. DOT-106A and 110AW.
------------------------------------------------------------------------
Conditions and limitations on the use of the ASME Code Section XII
for design, construction, qualification and certification, and
maintenance are as follows--
(a) All tank types. (1) Use of ASME Code Section XII for design,
construction, qualification, and certification of authorized packaging
includes use of ASME Code Sections II (Materials), Section V
(Nondestructive Examination); Section VIII (Rules for Construction of
Pressure Vessels), Division 1 for parts only, and Division 2 for
fatigue analysis only; and Section IX, (Welding, Brazing, and Fusing
Qualifications);
(2) Continuing qualification and maintenance of cargo tank motor
vehicles, cryogenic portable tanks, and ton tanks must be in accordance
with the NBIC and Supplement 6 (IBR, see Sec. 171.7) in conjunction
with ASME Code Section XII as authorized in part 180 of this
subchapter;
(3) Nameplate character markings must be a minimum 4 mm (5/32''),
markings directly on the tank must be a minimum 8 mm (5/16'');
(4) Periodic test information is not permitted on the ASME
nameplate. Marking must be in accordance with the Supplement 6;
(5) A person performing a certification inspection (i.e., an
inspector) must be qualified in accordance with ASME Code Section XII
under its general rules for inspection (Article TG-4), and hold either
a current National Board of Boiler and Pressure Vessel Inspectors
(National Board) commission and endorsement of the ASME tank class
(e.g., Class 3 for DOT 406 cargo tanks) for the type of inspection to
be performed or, when applicable, a certification (in accordance with
the NBIC) from his or her employer. Inspectors of cargo tanks, or their
employer, must be registered with DOT in accordance with 49 CFR part
107, subchapter F; Inspectors of cryogenic portable tanks and ton tanks
need to be registered with DOT through approval by the Associate
Administrator prior performing inspection duties;
(6) A person (e.g., a facility) performing repairs on a cargo tank
authorized under this section must hold a current National Board
certificate of authorization for the use of the National Board ``TR''
or ``R'' stamp. Persons, or the employer, performing repairs on cargo
tanks must also be registered with DOT in accordance with 49 CFR part
107, subchapter F; Repairers of cryogenic portable tanks and ton tanks
must obtain prior approval from the Associate Administrator to make
repairs.
(b) Cargo tank motor vehicles. A cargo tank motor vehicles must
conform to all applicable requirements of this part, and must meet to
ASME Code Section XII, Modal Appendix 1 (for cargo tanks), all
Mandatory Appendices and Non Mandatory Appendices, except as follows:
(1) For MC 338 Cargo Tanks, ASME Code Section XII, Modal Appendix
1, Article 4, paragraph 1-4.4(g)(6) does not apply. A minimum jacketed
thickness of 2.4 mm (0.0946 in) 12 gauge in the reference metal is
permitted.
(c) Cryogenic portable tanks. Cryogenic portable tanks must conform
to all applicable requirements of this part, and must meet ASME Code
Section XII, Modal Appendix 3, Article 1, all Mandatory Appendices and
Non Mandatory Appendices, except as follows:
(1) An inspector must perform external and internal visual
inspection in accordance with Supplement 6 (IBR, see Sec. 171.7) in
addition to ASME Code Section XII, Modal Appendix 3, Article 1,
paragraph 3-1.10(b), and Article 1, 3-1.10(b)(5);
(2) ASME Code Section XII, Modal Appendix 3, Article 1, paragraph
3-1.10(b)(6) does not apply; and
(3) Records must be kept in accordance with the Supplement 6, as
applicable.
(d) Ton tanks. Ton tanks must conform to all applicable
requirements of this part and must meet ASME Section XII, Modal
Appendix 4, Article 1, all Mandatory Appendices and Non Mandatory
Appendices, except as follows:
(1) ASME Code Section XII, Modal Appendix 4, Article 1, paragraph
3-1.10 does not apply. Manufacturer-certified fusible plugs, tested and
qualified under the fuse plug manufacturers' written quality control
system must be used;
(2) Notwithstanding ASME Code Section XII, Modal Appendix 4,
Article 1, paragraph 4-8, non-ASME marked fusible plugs are authorized;
(3) Per ASME Code Section XII, Modal Appendix 4, Article 1,
paragraph 4-12(a), an inspector must perform an external and internal
visual inspection in accordance with NBIC Supplement 6;
(4) Records must be kept in accordance with the Supplement 6, as
applicable; and
(5) A ton tank that fails a prescribed test or inspection must be
repaired in accordance with NBIC or removed from service.
PART 178--SPECIFICATIONS FOR PACKAGINGS
0
7. The authority citation for part 178 continues to read as follows:
Authority: 49 U.S.C. 5101-5128, 49 CFR 1.81, 1.96 and 1.97.
0
8. Add Sec. 178.278 to read as follows:
Sec. 178.278 Alternative requirements for the design, construction,
inspection and testing of portable tanks intended for the
transportation of refrigerated liquefied gases.
Notwithstanding the requirements of Sec. Sec. 178.274 and 178.277
of this subpart,
[[Page 25639]]
UN T75 cryogenic portable tanks may be designed, constructed, inspected
(i.e., certified) and tested in accordance with ASME Code Section XII
(IBR, see Sec. 171.7) in conjunction with the NBIC and Supplement 6
(IBR, see Sec. 171.7), and in accordance with the conditions and
limitations of Sec. 173.14 of part 173 of this subchapter.
0
9. Add Sec. 178.301 to read as follows:
Sec. 178.301 Alternative requirements for the design, construction,
inspection and testing of cargo tank motor vehicles.
Notwithstanding the requirements of this subpart, cargo tank motor
vehicles Specification MC 331, 338, and DOT 406, 407, or 412 may be
designed, constructed, inspected (i.e., certified) and tested in
accordance with ASME Code Section XII (IBR, see Sec. 171.7) in
conjunction with the NBIC and Supplement 6 (IBR, see Sec. 171.7), and
in accordance with the conditions and limitations of Sec. 173.14 of
part 173 of this subchapter.
PART 179--SPECIFICATIONS FOR TANK CARS
0
10. The authority citation for part 179 continues to read as follows:
Authority: 49 U.S.C. 5101-5128, 49 CFR 1.81 and 1.97.
0
11. Revise Sec. 179.302 to read as follows:
Sec. 179.302 Alternative requirements for the design, construction,
inspection and testing of multi-unit tank car tanks (Classes DOT-106A
and 110AW).
Notwithstanding the requirements of this subpart, Class DOT-106A
and 110AW multi-unit tank car tanks may be designed, constructed,
inspected (i.e., certified) and tested in accordance with ASME Code
Section XII (IBR, see Sec. 171.7) in conjunction with the NBIC and
Supplement 6 (IBR, see Sec. 171.7), and in accordance with the
conditions and limitations of Sec. 173.14 of part 173 of this
subchapter.
PART 180--CONTINUING QUALIFICATION AND MAINTENANCE OF PACKAGINGS
0
12. The authority citation for part 180 is revised to read as follows:
Authority: 49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and
1.97.
0
13. Add Sec. 180.402 to read as follows:
Sec. 180.402 Alternative qualification and maintenance.
Notwithstanding the applicability of Sec. 180.401 and the
requirements of Sec. 180.413 (for ASME Code Section VIII, Division 1
cargo tanks) of this subpart for the continuing qualification and
maintenance of an authorized specification cargo tank motor vehicle,
and subject to conditions and limitations set forth in Sec. 173.14 of
part 173, the NBIC (IBR, see Sec. 171.7)--
(a) Must be used, with Supplement 6 (IBR, see Sec. 171.7), for the
continuing qualification, maintenance, or periodic testing (i.e.,
continued service) of cargo tanks constructed to ASME Code Section XII
in accordance with Sec. 178.301 of this subchapter; and
(b) May be used, in combination with the requirements of this part,
for the continuing qualification, maintenance, or periodic testing
(i.e., continued service) of cargo tank motor vehicles constructed to
ASME Code Section VIII, Division 1. Specifically, DOT specification
cargo tank motor vehicles constructed to ASME Section VIII, Division 1
that bear a U stamp may be inspected, repaired and tested under part
180, subpart E and the NBIC.
0
14. Add Sec. 180.502 to read as follows:
Sec. 180.502 Alternative qualification and maintenance.
Notwithstanding the applicability of Sec. 180.501 of this subpart
for the qualification and maintenance of multi-unit tank car tanks, and
subject to conditions and limitations set forth in Sec. 173.14 of part
173, the NBIC and Supplement 6 (IBR, see Sec. 171.7), must be used for
the continuing qualification, maintenance, or periodic testing (i.e.,
continued service) of Class DOT-106A and 110AW multi-unit tank car
tanks constructed to ASME Code Section XII in accordance with Sec.
179.302 of part 179 of this subchapter.
0
15. Add Sec. 180.602 as follows:
Sec. 180.602 Alternative qualification and maintenance.
Notwithstanding the applicability of Sec. 180.601 of this subpart
for the continuing qualification, maintenance or periodic testing of
portable tanks, and subject to conditions and limitations set forth in
Sec. 173.14 of part 173, the NBIC and Supplement 6 (IBR, see Sec.
171.7) must be used for the continuing qualification, maintenance, or
periodic testing (i.e., continued service) of cryogenic portable tanks
constructed and qualified to ASME Code Section XII in accordance with
Sec. 178.278 of part 178 of this subchapter.
Issued in Washington, DC, on April 22, 2016, under authority
delegated in 49 CFR 1.97.
William S. Schoonover,
Deputy Associate Administrator, Pipeline and Hazardous Materials Safety
Administration.
[FR Doc. 2016-09919 Filed 4-28-16; 8:45 am]
BILLING CODE 4910-60-P