**DEPARTMENT OF TRANSPORTATION**

**Research and Special Programs Administration**

**49 CFR Part 193**

**\[Docket No. RSPA-03-14456; Amdt. 193-18\]**

**RIN 2137-AD8■**

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

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

**ACTION:** Final rule.

## 

**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
§193.2801 on emergency shutdown systems, water 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
<buck.furrow@RSPA.dot.gov>.

**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 §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 §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, §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 §§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](http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=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, §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 §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 §193.2005(a) was based on former §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 §193.2005 did not exempt any facilities
from operation, maintenance, or fire protection standards.

Although it was never an issue under former §193.2005(a)(1), AGA and
Distrigas were concerned that proposed §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 §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 §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
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 §193.2005(a) as
proposed, the fire protection requirements of §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
§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
§§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 §§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 §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
§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 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 §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 §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 §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 §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 §193.2801 to state exactly which provisions of NFPA 59A (2001
edition) would apply. In consideration of these comments, we have
changed §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 §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
§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).

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 §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 §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 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.

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 §193.2307
regarding inspection of construction, installation, and testing
activities. However, in the final rule of March 1, 2000, we removed
§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 §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 §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
§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, §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 §193.2705(b) as final.

*Section 193.2717 Training; Fire Protection*

Under §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 §193.2717. The first sentence of §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 §193.2717. Still the
training of operator personnel must cover procedures established under
§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 §193.2717 is to
assure that personnel can properly respond to fire emergencies according
to plant procedures established under §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 §193.2717(c) merely requires that
fire drills provide personnel hands-on experience in carrying out their
duties under the fire emergency procedures required by §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 §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, §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 §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.

This final rule adopts in §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 §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 §§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 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.

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

PART 193---\[AMENDED\]

■ 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.

■ 2. Revise §193.2005(a) to read as follows:

**§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.

\* \* \* \* \*

■ 3. Revise §193.2013 to read as follows:

**§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.[^4] 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.

\(b\) 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 §§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 §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 §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 §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 §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 §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 §§193.2019, 193.2051, 193.2057, 193.2059, 193.2101,
193.2301, 193.2303, 193.2401, 193.2521, 193.2639, and 193.2801.

■ 4. Add §193.2017(c) to read as follows:

**§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.

**§193.2019 \[Amended\]**

■ 5. In §193.2019(a), remove "1996 edition" and in its place add
"incorporated by reference, see §193.2013".

**§193.2051 \[Amended\]**

■ 6. Amend §193.2051 as follows:

■ a. In the first sentence, immediately after "ANSI/NFPA 59A" add
"(incorporated by reference, see §193.2013)"; and

■ b. Remove "ANSI/NFPA 59A" wherever it appears in the section, and in
its place add "NFPA 59A".

**§193.2057 \[Amended\]**

■ 7. Amend §193.2057 as follows:

■ 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 §193.2013)"; and

■ b. In paragraph (a), immediately after "GRI-89/0176" add
"(incorporated by reference, see §193.2013)".

**§193.2059 \[Amended\]**

■ 8. Amend §193.2059 as follows:

■ 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 §193.2013)";

■ b. In paragraph (a), add "(incorporated by reference, see §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 §193.2013)"; and

■ 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 §193.2013)".

**§193.2101 \[Amended\]**

■ 9. Amend §193.2101 as follows:

■ a. In the first sentence, immediately after "ANSI/NFPA 59A" add
"(incorporated by reference, see §193.2013)"; and

■ b. Remove "ANSI/NFPA 59A" wherever it appears in the section, and in
its place add "NFPA 59A".

**§193.2301 \[Amended\]**

■ 10. Amend §193.2301 as follows:

■ a. In the first sentence, immediately after "ANSI/NFPA 59A"
add"(incorporated by reference, see §193.2013)"; and

■ b. Remove "ANSI/NFPA 59A" wherever it appears in the section, and in
its place add "NFPA 59A".

**§193.2303 \[Amended\]**

■ 11. In §193.2303, remove "ANSI/NFPA 59A" and in its place add "NFPA
59A (incorporated by reference, see §193.2013)".

**§193.2401 \[Amended\]**

■ 12. Amend §193.2401 as follows:

■ a. In the first sentence, immediately after "ANSI/NFPA 59A" add
"(incorporated by reference, see §193.2013)"; and

■ b. Remove "ANSI/NFPA 59A"wherever it appears in the section, and in
its place add "NFPA 59A".

**§193.2503 \[Amended\]**

■ 13. Amend §193.2503 as follows:

■ a. In paragraph (e), remove the semicolon and in its place add a
period;

■ b. In paragraph (g), remove the semicolon and the word "and" and add a
period in the place of the removed semicolon; and

■ c. Remove paragraph (h).

■ 14. Revise the first sentence of §193.2507 to read as follows:

**§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. \* \* \*

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

**§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. \* \* \*

**§193.2521 \[Amended\]**

■ 16. Amend §193.2521 as follows:

■ a. In the second sentence, immediately after "ANSI/NFPA 59A" add
"(incorporated by reference, see §193.2013)"; and

■ b. Remove "ANSI/NFPA 59A" wherever it appears in the section, and in
its place add "NFPA 59A".

■ 17. Revise §193.2605(b)(2) to read as follows:

**§193.2605 Maintenance procedures.**

\* \* \* \* \*

\(b\) \* \* \*

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

\* \* \* \* \*

**§193.2639 \[Amended\]**

■ 18. Amend §193.2639 as follows:

■ a. In the second sentence, immediately after "ANSI/NFPA 59A" add
"(incorporated by reference, see §193.2013)"; and

■ b. Remove "ANSI/NFPA 59A"wherever it appears in the section, and in
its place add "NFPA 59A".

■ 19. Revise §193.2705(b) to read as follows:

**§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.

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

**§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 §193.2509 and by proper
use of equipment provided under §193.2801.

\* \* \* \* \*

\(c\) Plant fire drills must provide personnel hands-on experience in
carrying out their duties under the fire emergency procedures required
by §193.2509.

■ 21. Revise §193.2801 to read as follows :

**§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 §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---\[Removed\]**

■ 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

# 

[^1]: Part 193 required plans for personnel health (§193.2711) and
    training (§§193.2713-193.2719), and procedures for operations
    (§193.2503), emergencies (§193.2509(b)), fluid transfers
    (§193.2513(a)), maintenance (§193.2605(b)), and security
    (§193.2903).

[^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.

[^3]: NFPA 59A is referenced in §§193.2019, 193.2051, 193.2057,
    193.2059, 193.2101, 193.2301, 193.2303, 193.2401, 193.2521,
    193.2639, and 193.2801.

[^4]: The user must refer to an appropriate previous edition of 49 CFR
    for a listing of the earlier editions.