Document ID: USCG-2019-0444-0001
Agency: uscg
Document Type: Proposed Rule
Title: Operational Risk Assessments for Waterfront Facilities Handling Liquefied Natural Gas as Fuel, and Updates to Industry Standards
Posted Date: 2020-10-05T04:00Z

[Federal Register Volume 85, Number 193 (Monday, October 5, 2020)]
[Proposed Rules]
[Pages 62651-62679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21071]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 127

[Docket No. USCG-2019-0444]
RIN 1625-AC52

Operational Risk Assessments for Waterfront Facilities Handling 
Liquefied Natural Gas as Fuel, and Updates to Industry Standards

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to amend its regulations concerning 
waterfront facilities handling liquefied natural gas (LNG) and 
liquefied hazardous gas (LHG). The proposed rule would make the 
following three changes. First, the proposed rule would revise the 
Coast Guard's existing regulations to allow waterfront facilities 
handling LNG as fuel to conduct an operational risk assessment instead 
of a waterway suitability assessment (WSA) without first obtaining 
Captain of the Port approval. Second, the proposed rule would revise 
existing regulations to update incorporated technical standards to 
reflect the most recent published editions. Third, for waterfront 
facilities handling LNG that must comply with the WSA requirements, the 
proposed rule would require these facilities to provide information to 
the Coast Guard regarding the nation of registry for vessels 
transporting natural gas that are

[[Page 62652]]

reasonably anticipated to be servicing the facilities, and the 
nationality or citizenship of officers and crew serving on board those 
vessels.

DATES: Comments and related material must be received by the Coast 
Guard on or before December 4, 2020.

ADDRESSES: You may submit comments identified by docket number USCG-
2019-0444 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for 
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further 
instructions on submitting comments.
    Collection of information. Submit written comments and 
recommendations for the proposed information collection discussed in 
section VIII.D of this preamble within 30 days of publication of this 
notice to the Coast Guard's online docket and to the Office of 
Information and Regulatory Affairs (OIRA) in the White House Office of 
Management and Budget. For submission to OIRA use www.reginfo.gov/public/do/PRAMain. To find this particular information collection 
select ``Currently under Review'' or use the search function.
    Viewing material proposed for incorporation by reference. Make 
arrangements to view this material by calling the person identified in 
the FOR FURTHER INFORMATION CONTACT section of this document. Copies of 
the material are also available as indicated in the ``Incorporated by 
Reference'' in Sec.  127.003 in the proposed regulatory text.

FOR FURTHER INFORMATION CONTACT: For information about this document 
call or email Mr. Ken Smith, Project Manager, Coast Guard, Vessel and 
Facility Operating Standards Division, Commandant (CG-OES-2); telephone 
202-372-1413, email Ken.A.Smith@uscg.mil.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Public Participation and Request for Comments
II. Abbreviations
III. Executive Summary
IV. Basis and Purpose
V. Background
VI. Discussion of Proposed Rule
VII. Incorporation by Reference
VIII. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards and Incorporation by Reference
    M. Environment

I. Public Participation and Request for Comments

    The Coast Guard views public participation as essential to 
effective rulemaking, and will consider all comments and material 
received during the comment period. Your comment can help shape the 
outcome of this rulemaking. If you submit a comment, please include the 
docket number for this rulemaking, indicate the specific section of 
this document to which each comment applies, and provide a reason for 
each suggestion or recommendation.
    We encourage you to submit comments through the Federal eRulemaking 
Portal at http://www.regulations.gov. If you cannot submit your 
material by using http://www.regulations.gov, contact the person in the 
FOR FURTHER INFORMATION CONTACT section of this proposed rule for 
alternate instructions. Documents mentioned as being available in the 
docket, and all public comments, will be available in our online docket 
at http://www.regulations.gov and can be viewed by following that 
website's instructions. Additionally, if you visit the online docket 
and sign up for email alerts, you will be notified when comments are 
posted or if a final rule is published.
    We accept anonymous comments. All comments received will be posted 
without change to http://www.regulations.gov and will include any 
personal information you have provided. For more about privacy and 
submissions in response to this document, see DHS's eRulemaking System 
of Records notice (85 FR 14226, March 11, 2020).
    We do not plan to hold a public meeting but will consider doing so 
if our consideration of public comments indicates a meeting would be 
helpful. We would issue a separate Federal Register notice to announce 
the date, time, and location of such a meeting.

II. Abbreviations

ANSI American National Standards Institute
API American Petroleum Institute
ASME American Society of Mechanical Engineers
BLS U.S. Bureau of Labor Statistics
COI Collection of Information
CFR Code of Federal Regulations
CG-OES Coast Guard, Office of Operating and Environmental Standards
COTP Captain of the Port
DNV GL Det Norske Veritas Germanischer Lloyd
ECA Emission Control Area
FR Federal Register
FERC Federal Energy Regulatory Commission
GSA General Services Administration
HAZID Hazard Identification
IBR Incorporated by reference
ICR Information collection request
IEC International Electrotechnical Commission
ISO International Organization for Standardization
LOI Letter of Intent
LOR Letter of Recommendation
LHG Liquefied hazardous gas
LNG Liquefied natural gas
MARPOL International Convention for the Prevention of Pollution from 
Ships
MISLE Marine Information for Safety and Law Enforcement
NFPA National Fire Protection Association
OMB Office of Management and Budget
ORA Operational risk assessment
PWSA Ports and Waterways Safety Authorities
SBA Small Business Administration
SME Subject Matter Expert
Sec.  Section
U.S.C. United States Code
WSA Waterway suitability assessment

III. Executive Summary

    The purpose of this proposed rule is to amend the regulations 
concerning waterfront facilities handling liquefied natural gas (LNG) 
and liquefied hazardous gas (LHG) in 33 CFR part 127. The proposed rule 
would make the following three changes.
    First, the proposed rule would add new Sec.  127.008 to allow 
waterfront facilities handling LNG as fuel (LNG fuel facilities \1\) to 
conduct an operational risk assessment (ORA) instead of a waterway 
suitability assessment (WSA), without first obtaining Captain of the 
Port (COTP) approval. By allowing LNG fuel facilities to use an ORA in 
lieu of a WSA without submitting an alternative request and meeting 
with the COTP, the proposed rule would reduce the regulatory burden on 
LNG fuel facilities by reducing the scope of the analysis and the 
amount of information facility owners would have to submit to the Coast 
Guard. Currently, there are three existing LNG fuel facilities. The 
Coast Guard anticipates 1 new LNG fuel facility would become 
operational every year in the next 10 years. Reducing the regulatory 
burden could result in lower

[[Page 62653]]

fuel costs, and thereby increase the maritime industry's level of 
interest in converting or constructing vessels to use LNG as a marine 
fuel to comply with stricter emissions standards and realize economic 
advantages.\2\
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    \1\ We propose to add a new definition for LNG fuel facility to 
mean a waterfront facility that handles LNG for the sole purpose of 
providing LNG from shore-based structures to vessels for use as a 
marine fuel, and that does not transfer LNG to or receive LNG from 
vessels capable of carrying LNG in bulk as cargo.
    \2\ See the report by the Congressional Research Service, titled 
``LNG as a Maritime Fuel: Prospects and Policy'' (dated February 5, 
2019) at https://fas.org/sgp/crs/misc/R45488.pdf.
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    Second, the proposed rule would update the technical standards 
already incorporated by reference in part 127 to reflect the most 
recent published editions of these standards. We have determined that 
modified, expanded, and new LNG fuel facilities, waterfront facilities 
handling LNG, and waterfront facilities handling LHG are built to the 
most recent industry standards available at the time of modification, 
expansion, or construction and not the outdated standards currently 
codified in 46 CFR part 127. Therefore, owners and operators would not 
incur any cost to meet the updated standards. The Coast Guard 
anticipates these updated industry standards would apply to one new LNG 
fuel facility, two new waterfront facilities handling LNG, and three 
new waterfront facilities handling LHG per year in the next 10 years.
    Third, for waterfront facilities handling LNG that must comply with 
the WSA requirements in Sec.  127.007, the proposed rule would require 
these facilities to provide information to the Coast Guard at the time 
the WSA is submitted regarding the nation of registry for vessels 
transporting natural gas that are reasonably anticipated to be 
servicing the facilities and the nationality of citizenship of officers 
and crew serving on board those vessels. We are proposing this change 
to assist us in meeting our obligation under Sec.  304(c)(2) of the 
Coast Guard and Maritime Transportation Act of 2006 (Pub. L. 109-241). 
This statute requires the Coast Guard, when operating as a contributing 
agency in the Federal Energy Regulatory Commission (FERC) shoreside 
licensing process for an onshore or near-shore LNG terminal, to provide 
this information to FERC. The Coast Guard anticipates two waterfront 
facilities handling LNG that must submit a WSA would be affected 
annually by this proposed change.
    Eliminating the requirement to submit an alternative request and 
meet with the COTP to obtain approval before conducting an ORA in lieu 
of a WSA would result in cost savings to the LNG fuel facility owner. 
This change is deregulatory under Executive Orders 13771 and 13777, 
with annualized cost savings to both industry and the government of 
approximately $16,843 using a 7-percent discount rate.

IV. Basis and Purpose

    The Ports and Waterways Safety Authorities (PWSA) (46 U.S.C. 
chapter 700), authorizes the Secretary of the department in which the 
Coast Guard is operating to take certain actions to advance port, 
harbor, and coastal facility safety and security. Specifically, 
sections 70011 and 70034 of Title 46 of the United States Code (U.S.C.) 
authorize the Secretary to promulgate regulations to establish 
standards for the handling, loading, unloading, storage, stowage, and 
movement of hazardous materials on a vessel and waterfront facility on 
or along U.S. navigable waters as necessary to protect the vessel, 
structure, water, or shore area. The Secretary has delegated this 
authority to the Commandant of the Coast Guard (DHS Delegation 
0170.1(II)(70)). The purpose of the proposed rule is to revise existing 
regulations for the assessment of LNG fuel facilities by reducing 
unnecessary requirements; update technical standards applicable to 
waterfront facilities handling LNG and LHG; and implement a statutory 
provision for waterfront facilities handling LNG that must complete a 
WSA.

V. Background

A. International Maritime Organization (IMO) Emissions Standards and 
LNG as a Marine Fuel

    The IMO International Convention for the Prevention of Pollution 
from Ships (MARPOL) Annex VI,\3\ first adopted in 1997, limits the main 
air pollutants contained in ships exhaust gas, including sulfur oxides 
and nitrous oxides, and prohibits deliberate emissions of ozone 
depleting substances. MARPOL Annex VI also provides for the 
establishment of Emissions Control Areas (ECAs), which are waters close 
to coastlines where more stringent emissions controls may be imposed. 
Under MARPOL Annex VI, the North American ECA came into force on August 
1, 2012. A possible option for vessel operators to meet the more 
stringent fuel oil sulfur content standards of the ECA is to install 
LNG-fueled engines, because such engines emit only trace amounts of 
sulfur.
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    \3\ MARPOL Annex VI has been incorporated into U.S. law by the 
Act to Prevent Pollution from Ships (33 U.S.C. 1901 et seq.)
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    In order to comply with these stricter IMO emissions standards and 
realize economic advantages associated with the increasing LNG supply, 
there has been a growing interest by the maritime industry in 
converting existing vessels and constructing new vessels to use LNG as 
a marine fuel. The maritime industry is also considering a variety of 
methods for supplying LNG to vessels for use as a marine fuel, 
including delivery from vessels (such as barges and small tank vessels) 
or from shore-based structures on waterfront facilities handling LNG 
(such as storage tanks, mobile tank trucks, and rail cars).

B. Existing Regulations for Waterfront Facilities Handling LNG

    Existing regulations for waterfront facilities handling LNG are 
contained in 33 CFR part 127. Although originally written to address 
large quantities of LNG that are imported or exported as cargo at large 
storage facilities,\4\ 33 CFR part 127, by virtue of the definition of 
a waterfront facility handling LNG,\5\ also applies to LNG transferred 
between vessels and shore-based structures including tank trucks and 
rail cars for use as fuel. Part 127 outlines requirements pertaining to 
general information, general design, equipment, operations, 
maintenance, firefighting, and security.
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    \4\ See final rule, titled ``Liquefied Natural Gas Waterfront 
Facilities'' (53 FR 3370, dated February 5, 1988).
    \5\ 33 CFR 127.005.
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    Section 127.007 contains the Letter of Intent (LOI) and WSA 
requirements, including the Preliminary WSA and Follow-on WSA 
requirements. The WSA examines the risk of transporting large volumes 
of LNG through connected waterways and the transfer of LNG to or from 
waterfront facilities handling LNG. The Coast Guard developed the WSA 
requirement to address safety and security risks potentially presented 
by LNG carriers traveling to or from waterfront facilities handling 
LNG.\6\
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    \6\ See final rule, titled, ``Revision of LNG and LHG Waterfront 
Facility General Requirements'' (75 FR 29420, dated May 26, 2010).
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    The facility owner or operator submits the LOI and WSA documents to 
the Coast Guard. The LOI must contain: (1) The name, address, and 
telephone number of the owner and operator; (2) the name, address, and 
telephone number of the Federal, State, or local agency having 
jurisdiction for siting, construction, and operation; (3) the name, 
address, and telephone number of the facility; (4) the physical 
location of the facility; (5) a description of the facility; (6) the 
LNG vessels' characteristics and the frequency of LNG shipments to or 
from the facility; and (7) charts showing waterway channels and 
identifying commercial, industrial, environmentally sensitive,

[[Page 62654]]

and residential areas in and adjacent to the waterway used by the LNG 
vessels en route to the facility, within at least 25 kilometers (15.5 
miles) of the facility (33 CFR 127.007(c)).
    The Preliminary WSA must contain an analysis of the following 
topics: (1) Port characterization; (2) characterization of the LNG 
facility and the LNG tank vessel route; (3) risk assessments for 
maritime safety and security; (4) risk management strategies; and (5) 
resource needs for maritime safety, security, and response. It must 
also contain a section listing recommended risk mitigation measures and 
conclusions (33 CFR 127.007(f)(2)).
    This information gives the COTP the opportunity to identify any 
issues or factors that might have been overlooked when considering the 
various potential safety and security impacts the LNG marine traffic 
may have on the port and associated waterways. It also provides an 
opportunity for the project sponsor and the COTP to identify the 
stakeholders at the port who should be consulted when developing the 
Follow-on WSA. The Follow-on WSA provides a complete analysis of the 
topics outlined in the Preliminary WSA and identifies credible security 
threats and navigational safety hazards for the LNG marine traffic, 
along with appropriate risk management strategies and the resources 
needed to carry them out. The information obtained in the LOI and WSA 
enables the Coast Guard to provide specific recommendations, in a 
Letter of Recommendation (LOR) described in Sec.  127.009, as to the 
suitability of the waterway for LNG marine traffic to the Federal, 
State, or local government agencies having jurisdiction for siting, 
construction, and operation.

C. Alternative Coast Guard Procedures

    Coast Guard regulations in Sec.  127.017 allow facility operators 
to request alternative procedures to those in Sec.  127.007 if the 
alternative provides at least the same degree of safety provided by the 
regulations. An owner or operator seeking to use an alternative 
procedure should identify the ``gaps'' where requirements cannot be met 
or are not appropriate and should explain what alternatives the Coast 
Guard should consider instead. Whenever possible, owners and operators 
should reference existing standards, practices, and procedures to help 
substantiate the request.\7\
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    \7\ See CG-OES Policy Letter No. 02-15, ``Guidance Related to 
Vessels and Waterfront Facilities Conducting LNG Marine Fuel 
Transfer (Bunkering) Operations.'' This document is available at 
https://www.dco.uscg.mil/Portals/9/DCO%20Documents/5p/5ps/Operating%20and%20Environmental%20Standards/OES-2/Policy%20Letters/CG%20OES%20Policy%20Letter%2002-15%20signature%20with%20Enclosures.pdf?ver=2017-07-21-124107-000. 
See also 80 FR 10131 (Feb. 25, 2015) (notice of availability).
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    Prior to the construction of three LNG fuel facilities, the Coast 
Guard met with the facility owners to discuss Federal regulations that 
would apply to their projects. During those discussions, the owners 
indicated that it was inappropriate for their projects to conduct a WSA 
under Sec.  127.007 because their intended operations did not include 
use of the waterway. Unlike waterfront facilities handling LNG that 
receive large quantities of LNG that are imported or exported as cargo 
on large tankships on the waterway, their LNG fuel facilities would 
receive LNG from shore-based sources using tank trucks. Instead of 
conducting a WSA for their projects, they requested to conduct an ORA 
focused specifically on their intended operations.
    Based on information provided by these facility owners that: (1) 
LNG would not be delivered to the facility by a vessel on the waterway; 
(2) incidents involving LNG would be limited to the location of the 
facility; (3) the quantity of LNG stored at the facility would be 
relatively small compared to larger waterfront facilities handling LNG 
that import or export LNG as cargo; and (4) the quantity of LNG stored 
on vessels as fuel would not pose as much of a safety concern to the 
port as larger tankships that transport LNG to larger waterfront 
facilities handling LNG to be imported or exported as cargo, the Coast 
Guard agreed that COTPs could allow the use of ORAs as an alternative 
to WSAs under Sec.  127.017.
    Since ORAs and WSAs follow similar procedures for assessing risk, 
the Coast Guard is proposing to modify the scope of assessments to be 
conducted for LNG fuel facilities to focus on operations solely taking 
place at the facilities, provided that LNG is not delivered to the 
facilities by LNG tank vessels. If an LNG fuel facility would receive 
LNG by vessel, an assessment of the waterway--that is, a WSA--would 
need to be carried out to determine the impact of the proposed 
operations on the port and waterway.

VI. Discussion of Proposed Rule

    Under this proposed rule, prospective applicants seeking 
authorization to build, modify, or reactivate an inactive LNG fuel 
facility would be allowed to submit an LOI and an ORA to the Coast 
Guard, which would enable us to provide specific recommendations, in a 
LOR described in Sec.  127.009, to agencies having jurisdiction. 
Eliminating the requirement to submit an alternative request and meet 
with the COTP to obtain approval before conducting an ORA in lieu of a 
WSA would eliminate unnecessary paperwork associated with analysis of a 
waterway not being used by the facility and provide regulatory 
certainty for future LNG fuel facility project proponents.
    By eliminating unnecessary paperwork and reducing the regulatory 
burden on facility owners and operators, the Coast Guard is promoting 
the goals of Executive Orders 13771 and 13777. Reducing the regulatory 
burden and increasing cost savings could increase the maritime 
industry's level of interest in converting existing vessels and 
constructing new vessels that use LNG as a marine fuel to comply with 
stricter emissions standards.
    For waterfront facilities handling LNG that must conduct a WSA 
under proposed Sec.  127.007, the proposed rule would require these 
facilities to submit to the Coast Guard, at the time the WSA and LOI 
are submitted, information on the nation of registry for, and the 
nationality or citizenship of officers and crew serving on board, 
vessels transporting LNG that are reasonably anticipated to be 
servicing those facilities. This proposed change would implement the 
statutory mandate in section 304(c)(2) of the Coast Guard and Maritime 
Transportation Act of 2006 (Pub. L. 109-241) requiring the Coast Guard 
to provide this information to FERC when the Coast Guard is operating 
as a contributing agency in the FERC shoreside licensing process for an 
onshore or near-shore LNG terminal. This is the most efficient way to 
comply with the statutory requirement that we provide this information 
to FERC.
    The proposed rule would also update the technical standards found 
in the existing regulations that would be applicable to waterfront 
facilities handling LNG and LHG.
    We provide a section-by-section description in the following 
paragraphs of our proposed amendments to 33 CFR part 127, subparts A 
through C, in section number order with topical headings.

Subpart A--General

Proposed Revisions to Authorities Listed for Part 127
    The Coast Guard proposes to amend the authority citation for this 
Part by removing 33 U.S.C. 1231 and adding, in its place, 46 U.S.C. 
70034. This reflects the changes made by the Coast Guard

[[Page 62655]]

Authorization Act of 2018,\8\ which re-codified the Ports and Waterways 
Safety Program into Title 46 of the U.S.C. The Coast Guard also 
proposes to add 46 U.S.C. 70011 to the list of existing statutory 
authorities for this Part, to make it clear that 46 U.S.C. 70011 
(previously 33 U.S.C. 1225) authorizes the Coast Guard to take such 
action as is necessary to (1) prevent damage to, or the destruction of, 
any bridge or other structure on or in the navigable waters of the 
United States, or any land structure or shore area immediately adjacent 
to such waters; and (2) protect the navigable waters and the resources 
therein from harm resulting from vessel or structure damage, 
destruction, or loss. Authorized actions under this section include, 
among other things, establish standards for the handling, loading, 
unloading, storage, stowage, and movement of hazardous materials on a 
vessel or structure on or along U.S. navigable waters, as necessary to 
prevent damage to, or the destruction of, any bridge or other structure 
on or in the navigable waters of the United States, or any land 
structure or shore area immediately adjacent to such waters; and 
protect the navigable waters and the resources therein from harm 
resulting from vessel or structure damage, destruction, or loss.
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    \8\ See Public Law 115-282, December 4, 2018, 132 Stat 4192.
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Proposed Revisions to Sec.  127.001 Applicability
    The Coast Guard proposes to remove the word, ``existing'' from 
paragraphs (a) and (c) because the term as it is currently defined in 
Sec.  127.005 does not cover waterfront facilities handling LNG 
constructed after 1988. This is a problem because if it is not removed, 
paragraphs (a) and (c) would only apply to new waterfront facilities 
handling LNG and waterfront facilities handling LNG that were built 
before 1988. In order to ensure paragraphs (a) and (c) apply to all LNG 
facilities, the Coast Guard proposes to remove the term ``existing.''
    The Coast Guard also proposes to amend paragraph (c) by removing a 
reference to Sec.  127.701, which contains security requirements for 
the marine transfer area for LNG of inactive facilities. These security 
requirements are now contained in 33 CFR part 105, subpart B, and apply 
to facilities subject to part 127. The reference to Sec.  127.701 is 
duplicative and no longer needed.
    A new paragraph (f) is proposed to clarify the standards approved 
for incorporation by reference in Sec.  127.003 only apply to 
facilities constructed, expanded, or modified under a contract awarded 
after the implementation date of the final rule. As used in this 
section, we consider ``constructed'' to mean construction of a new 
facility, ``expanded'' to mean changes to a facility that was 
previously constructed that results in an increase in the storage 
capacity or operations at the facility and ``modified'' to mean changes 
made to a facility that was previously constructed that does not result 
in increased storage capacity or operations (e.g., the addition of a 
sprinkler system in an area where one did not previously exist). A 
facility being expanded or modified would only need to apply the 
applicable new standards that are involved in the action to expand or 
modify the facility. All other facilities, unless expanded or modified 
in accordance with part 127, would be required to meet previously 
applicable standards but may request to apply later editions of the 
standards in accordance with Sec.  127.017.
Proposed Revisions to Sec.  127.003 Incorporation by Reference
    The Coast Guard proposes to amend this section by updating the 
technical standards to reflect the most recent published editions of 
the standards. We encourage the use of these updated standards because 
they reflect the best available technologies, practices, and procedures 
that are recommended by consensus bodies and other groups with 
experience in the industry. However, only waterfront facilities 
handling LNG and LHG constructed, expanded, or modified under a 
contract awarded after the implementation date of the final rule would 
be required to meet the applicable requirements outlined in the most 
recent editions of these standards. Existing facilities may voluntarily 
request authorization to apply the updated standards, but they will 
only be required to apply the standards that applied to them prior to 
the implementation date of the final rule.
    The following is the list of the standards we propose to update:
     American Petroleum Institute (API) standard, API 
Recommended Practice 2003, Protection Against Ignitions Arising Out of 
Static, Lightning and Stray Currents, Eighth Edition, September 2015. 
This standard presents the current state of knowledge and technology in 
the fields of static electricity and stray currents applicable to the 
prevention of hydrocarbon ignition in the petroleum industry, and it is 
based on both scientific research and practical experience. The 2015 
edition builds on the technically sound work presented in prior 
editions. It emphasizes the need to maintain awareness and the 
continuing need to develop and use sound procedures for controlling 
hazards and minimizing the possible static ignition risks associated 
with handling hydrocarbons.
     American Society of Mechanical Engineers (ASME) standard, 
ASME B16.5-2017, Pipe Flanges and Flanged Fittings, NPS \1/2\ through 
NPS 24 Metric/Inch Standard, November 20, 2017. This standard covers 
pressure-temperature ratings, materials, dimensions, tolerances, 
marking, testing, and methods of designating openings for pipe flanges 
and flanged fittings. The 2017 edition adds the use of size NPS 22, and 
updates materials and working pressures. The current regulations 
reference a 1988 edition of the standard, including 1992 addenda and 
errata. But the current regulations use the term ``ANSI'' rather than 
``ASME.'' We propose to correctly identify the current name of the 
standard.
     ASME B31.3-2018, Process Piping, ASME Code for Pressure 
Piping, B31, August 30, 2019. This standard contains requirements for 
piping typically found in petroleum refineries; chemical, 
pharmaceutical, textile, paper, semiconductor, and cryogenic plants; 
and related processing plants and terminals. It covers materials and 
components, design, fabrication, assembly, erection, examination, 
inspection, and testing of piping. The 2018 edition standardizes the 
use of SI metric units for some purposes and U.S. Customary units for 
others, and provides a table for conversion of units.
     ASTM standard, ASTM F 1121-87 (Reapproved 2015), Standard 
Specification for International Shore Connections for Marine Fire 
Applications, approved May 1, 2015. This standard covers the 
specifications for the design and manufacture of international shore 
connections to be used with marine firefighting systems during an 
emergency when a stricken ship has a system failure. This standard has 
continued to be reapproved since development and has not changed. We 
are merely incorporating the most recent published edition of this 
standard.
     International Electrotechnical Commission (IEC), IEC 
60079-29-1, Edition 2.0, Explosive Atmospheres--Part 29-1: Gas 
Detectors--Performance Requirements of Detectors for Flammable Gases, 
July 2016. This standard specifies general requirements for 
construction, testing, and performance and describes the test methods 
that apply to portable, transportable, and fixed apparatus for the 
detection and measurement of flammable gas or vapor concentrations with 
air. This standard superseded

[[Page 62656]]

ANSI S12.13, Part I, Performance Requirements, Combustible Gas 
Detectors (1986 Edition), which is currently incorporated by reference 
in the regulations.
     National Fire Protection Agency (NFPA) 10, Standard for 
Portable Fire Extinguishers, 2018 Edition, effective April 21, 2017. 
This standard applies to the selection, installation, inspection, 
maintenance, recharging, and testing of portable extinguishing 
equipment and Class D extinguishing agents. The 2018 edition includes 
clarifications on electronic monitoring, obsolete extinguishers, 
extinguishers in areas containing oxidizers, extinguisher signs, and 
mounting equipment and cabinets.
     NFPA 30, Flammable and Combustible Liquids Code, 2018 
Edition, effective September 6, 2017. This standard applies to the 
storage, handling, and use of flammable and combustible liquids, 
including waste liquids. The 2018 edition incorporates essential safety 
updates and references to current UL standards, as well as completely 
revised requirements for general purpose warehouses.
     NFPA 51B, Standard for Fire Prevention During Welding, 
Cutting and Other Hot Work, 2019 Edition, effective July 15, 2019. This 
standard covers provisions to prevent injury, loss of life, and loss of 
property from fire or explosion as a result of hot work. In the 2019 
edition, the scope was modified to clarify that the standard is 
intended to be used for preventing injuries and not just loss of life 
during hot work operations. The purpose was also revised to clarify 
that the standard provides requirements for everyone involved in hot 
work operations.
     NFPA 59A, Standard for the Production, Storage, and 
Handling of Liquefied Natural Gas (LNG), 2019 Edition, effective 
November 25, 2018. This standard provides minimum fire protection, 
safety, and related requirements for the location, design, 
construction, security, operation, and maintenance of LNG plants. The 
2019 edition presents a reorganization of the requirements for plant 
siting and layout to facilitate better focus and implementation of the 
requirements contained in the standard. This edition also includes new 
requirements under which a single-wall ASME container with 
supplementary design and fabrication requirements can be safely 
implemented for storage at small-scale LNG facilities.
     NFPA 70, National Electrical Code, 2017 Edition, effective 
August 24, 2016. The provisions of this standard apply to the design, 
modification, construction, inspection, maintenance, and testing of 
electrical systems, installations and equipment. The 2017 edition 
addresses the advancement of privately-owned wind and solar power 
generation and distribution equipment, including coverage of higher 
voltage systems that were once only the utilities' domain.
     NFPA 251, Standard Methods of Tests of Fire Resistance of 
Building Construction and Materials, 2006 Edition, effective August 18, 
2005. This standard provides methods of fire tests applicable to 
assemblies of masonry units and to composite assemblies of structural 
materials for buildings, including bearing and other walls, partitions, 
columns, girders, beams, slabs, and composite slab and beam assemblies 
for floors and roofs. This standard also applies to other assemblies 
and structural units that constitute permanent integral parts of a 
finished building. The time temperature curve of NFPA 251 referenced in 
the definition of fire endurance rating in Sec.  127.005 has not 
changed. We are merely incorporating the most recent published edition 
of NFPA 251.
    The Coast Guard is also proposing to add three new standards to the 
list of technical standards incorporated by reference in Sec.  127.003 
to provide requirements to LNG fuel facilities on conducting ORAs. The 
proposed new standards are--
     Det Norske Veritas Germanischer Lloyd (DNV GL), 
Recommended Practice, DNVGL-RP-G105, Development and Operation of 
Liquefied Natural Gas Bunkering Facilities, October 2015 Edition. This 
standard provides guidance to the industry on development, 
organizational, technical, functional, and operational issues in order 
to ensure global compatibility and secure a high level of safety, 
integrity, and reliability for LNG bunkering (fueling) facilities.
     International Organization for Standardization (ISO), ISO/
TS 18683:2015(E), Guidelines for Systems and Installations for Supply 
of LNG as Fuel to Ships, First Edition, 15 January 2015. This standard 
gives guidance on the minimum requirements for the design and operation 
of the LNG bunkering (fueling) facility, including the interface 
between the LNG supply facilities and receiving ship.
     ISO/TS 28460:2010(E), Petroleum and Natural Gas 
Industries--Installation and Equipment for Liquefied Natural Gas--Ship-
to-Shore Interface and Port Operations, First Edition, 15 December 
2010. This standard specifies the requirements for ship, terminal, and 
port service providers to ensure the safe transit of an LNG carrier 
through the port area and the safe and efficient transfer of its cargo.
    The Coast Guard also proposes to amend the introductory text to 
Sec.  127.003 by adding a reference at the end of the paragraph to 
refer to Sec.  127.017 for alternative compliance methods. We propose 
this change to clarify that later editions of the standards listed in 
Sec.  127.003 could be considered as an acceptable alternative if they 
can be shown to provide a degree of protection, safety, or performance 
equal to or better than the standard we recognize and prior approval is 
obtained by the COTP.
Proposed Revisions to Sec.  127.005 Definitions
    The Coast Guard proposes to amend Sec.  127.005 by adding a new 
definition for ``LNG fuel facility'' and by revising the existing 
definitions for ``Facility'' and ``Fire endurance rating.'' We are 
proposing to add the definition for ``LNG fuel facility'' to describe 
waterfront facilities that handle LNG for the sole purpose of providing 
LNG from shore-based structures to vessels for use as a marine fuel, 
and that does not transfer LNG to or receive LNG from vessels capable 
of carrying LNG in bulk as cargo. We are proposing to revise the 
definition of ``facility'' to specify it includes LNG fuel facilities. 
The proposed revised definition of ``fire endurance rating'' is being 
amended to reference the 2006 edition of NPFA 251; however, the time-
temperature curve referenced in the 2006 edition of NFPA 251 remains 
the same as in the current incorporated by reference 1990 edition.
Proposed Revisions to Sec.  127.007 Letter of Intent and Waterway 
Suitability Assessment for Waterfront Facilities Handling LNG or LHG
    The proposed rule would amend paragraphs (a), (b), and (e) by 
removing the word ``existing'' from each paragraph because the term--as 
it is currently defined in Sec.  127.005--does not cover waterfront 
facilities handling LNG and LHG constructed after 1988 and 1996, 
respectively. By removing the word, ``existing'' from paragraphs (a), 
(b), and (e) it clarifies that the LOI and WSA requirements apply to 
the new construction or expansion of any LNG or LHG facility that would 
result in an increase in the size and/or frequency of LNG or LHG marine 
traffic on the waterway.
    The proposed rule would redesignate existing paragraphs (g) and 
(h), as paragraphs (h) and (i). We would also add a new paragraph (g) 
to require an owner or operator intending to build a new LNG facility 
to submit the WSA no later than the date that the owner or

[[Page 62657]]

operator files a pre-filing request with FERC under 18 CFR 153 or 157, 
and include the nation of registry for, and the nationality or 
citizenship of officers and crew serving on board, vessels transporting 
natural gas that are reasonably anticipated to be servicing the LNG 
facility. We are proposing this change to assist us in meeting our 
obligation under Sec.  304(c)(2) of the Coast Guard and Maritime 
Transportation Act of 2006 (Pub. L. 109-241), which requires the Coast 
Guard, when operating as a contributing agency in the FERC shoreside 
licensing process for an onshore or near-shore LNG terminal, to provide 
this information to FERC.
    Finally, in this section the Coast Guard proposes to add a new 
paragraph (j) to clarify that an owner or operator intending to build 
an LNG fuel facility, modify an LNG fuel facility, or reactivate an 
inactive LNG fuel facility, may comply with the new requirements 
proposed in Sec.  127.008 in lieu of the requirements in Sec.  127.007.
Proposed Addition of Sec.  127.008 Letter of Intent and Operational 
Risk Assessment for LNG Fuel Facilities
    The Coast Guard proposes to add this new section, which would 
contain the LOI and new ORA submission requirements for owners or 
operators of LNG fuel facilities. Since an LNG fuel facility would not 
receive LNG from vessels, it is not associated with LNG tank vessel 
traffic for which the WSA is designed. Instead, an analysis of the 
safety and security of the marine transfer operation is appropriate. 
ORAs are suitable for evaluating and identifying risks and mitigation 
measures for situations involving quantities and delivery methods of 
LNG that are much smaller than those associated with large quantities 
of LNG that are imported or exported as cargo at large storage 
facilities. In the event that an LNG fuel facility would receive LNG by 
vessel using the waterway, a WSA would need to be carried out to 
determine the impact of the proposed operations on the port and 
waterway. The Coast Guard anticipates this proposed new section would 
help lead to reduced costs for LNG fuel facilities because owners or 
operators would no longer have to submit an alternative request and 
meet with the COTP to obtain approval before conducting an ORA in lieu 
of a WSA.
    Proposed new paragraph (a) would require an owner or operator 
seeking to build an LNG fuel facility, modify the construction of any 
LNG fuel facility, or reactivate an inactive LNG fuel facility electing 
to complete an ORA in lieu of a WSA to submit an LOI to the Coast Guard 
at least 1 year before LNG transfer operations begin. We propose to 
allow an owner or operator the option of completing an ORA in lieu of a 
WSA. This approach would give owners and operators the ability to make 
appropriate business decisions in order to maintain flexibility for 
future operations without compromising marine safety. An owner or 
operator of an LNG fuel facility may initially provide LNG from shore-
based structures to vessels for use as a marine fuel from LNG 
transported to the facility via a tank truck or rail car. This type of 
operation would require completion of an ORA only. However, at a future 
time the same facility may elect to receive LNG from vessels using the 
waterway, which would then require completion of a WSA to ensure 
potential impacts on the waterway due to increased LNG vessel traffic 
are fully assessed.
    Proposed new paragraph (b) would require the LOI to contain the 
requirements listed in existing Sec.  127.007(c)(1) through (c)(5), as 
follows: (1) The name, address, and telephone number of the owner and 
operator; (2) the name, address, and telephone number of the agency 
having jurisdiction for siting, construction, and operation; (3) the 
name, address, and telephone number of the facility; (4) the physical 
location of the facility; and (5) a description of the facility. If 
there is any change in the information provided in the LOI, or if no 
LNG fuel transfer operations are scheduled within the next 12 months, 
proposed new paragraph (c) would require the owner or operator to 
notify the Coast Guard in writing within 15 days of discovering this 
information.
    Proposed new paragraph (d)(1) would establish that the ORA must be 
carried out in accordance with Chapter 7 of ISO 18683:2015(E) and 
Appendix D of DNVGL-RP-G105, or Chapter 19 of NFPA 59A. The Coast Guard 
selected these standards because the ISO standard and the DNVGL-RP were 
created specifically to address LNG fuel facilities and are 
complementary of each other (e.g., DNVGL-RP refers to ISO 18683). NFPA 
59A was selected because it is the primary standard associated with how 
LNG facilities are built and operated in the United States. This 
paragraph would also allow an owner or operator of an LNG fuel facility 
the ability to seek authorization by the Coast Guard to use another 
voluntary consensus standard for risk assessment acceptable to the 
Coast Guard. The proposed ORA would also have to consider possible 
factors affecting the ship/shore interface and port operations 
described in Section 6 of ISO 28460:2010(E), according to proposed new 
paragraph (d)(2). The standards referenced in proposed new paragraphs 
(d)(1) and (d)(2) contain requirements relative to conducting risk 
assessments that are focused on providing LNG as fuel (bunkering 
operations).
Proposed Revisions to Sec.  127.009 Letter of Recommendation
    The Coast Guard proposes to amend this section to accommodate an 
LOR based on an ORA. After the COTP receives the information and 
analysis under the LOI and ORA requirements in Sec.  127.008, the COTP 
will issue a LOR as to the operational safety and security of the LNG 
fuel facility to the Federal, State, or local government agencies 
having jurisdiction for siting, construction, and operation of the 
facility and send a copy to the owner or operator of the proposed LNG 
fuel facility. Currently, a LOR is issued after the COTP receives the 
information and analysis under the LOI and WSA requirements in Sec.  
127.007. The proposed amendment would add the issuance of a LOR when 
the Coast Guard receives the information and analysis under proposed 
new Sec.  127.008.
Proposed Revisions to Sec.  127.015 Appeals
    The Coast Guard proposes to revise paragraph (c)(1) to update the 
mailing address for submitting appeals of District Commander rulings 
related to actions taken by Coast Guard officials under part 127. We 
also propose to revise paragraphs (c)(1) and (d) to reflect a name 
change for the office where appeals should be sent.
Proposed Revisions to Sec.  127.017 Alternatives
    We propose to amend paragraph (a) to clarify that the COTP may 
consider alternative compliance methods. Newer editions of a standard 
we incorporate by reference in Sec.  127.003 could be considered as 
acceptable alternatives if they could be shown to provide a degree of 
protection, safety, or performance equal to or better than the 
incorporated standard.
Proposed Revisions to Sec.  127.019 Operations Manual and Emergency 
Manual: Procedures for Examination
    We proposed to delete the word ``existing'' from paragraph (b) to 
clarify that all waterfront facilities handling LNG and LHG--regardless 
of when they were constructed--must submit the information required in 
Sec.  127.019.

[[Page 62658]]

Subpart B--Waterfront Facilities Handling Liquefied Natural Gas
Proposed Revisions to Sec.  127.101 Design and Construction: General
    The Coast Guard proposes to amend this section to reflect the 
correct section references in the 2019 edition of NFPA 59A, which is 
proposed to replace the 1994 edition. The standards referenced involve 
plant siting and layout, piping systems and components, instrumentation 
and electrical services, transfer systems for LNG, refrigerants, other 
flammable fluids, and seismic design of LNG plants.
Proposed Revisions to Sec.  127.107 Electrical Power Systems
    The Coast Guard proposes to amend paragraph (a) to add the text 
``(incorporated by reference, see Sec.  127.003)'' to direct the reader 
to more details about the material incorporated by reference. 
Additionally, the Coast Guard proposes to amend paragraph (c) to 
reflect the correct section references as contained in the 2017 edition 
of the standard. This change is needed to ensure that auxiliary 
generators and other sources of power comply with the latest edition of 
NFPA 70, as indicated in Section 700.12 of this standard.
Proposed Revisions to Sec.  127.201 Sensing and Alarm Systems
    The Coast Guard proposes to amend paragraphs (b)(2) and (c)(2) by 
referencing section 16.4 of the 2019 edition of NFPA 59A. We also 
propose amending paragraph (c)(1) by referencing section 500.5(B)(1) of 
the 2017 edition of NFPA 70, which defines a Class 1, Division 1 
location. The current regulations reference section 9-4 in the 1994 
edition of NFPA 59A and section 500-5(a) in the 1993 edition of NFPA 
70.
Proposed Revisions to Sec.  127.313 Bulk Storage
    The Coast Guard proposes to amend paragraph (b) by referencing the 
2018 edition of NFPA 30. The current regulations reference Chapter 4 of 
the 1993 edition, which pertains to the storage of containers and 
portable tanks. The standard has been updated over the years, and 
information that was once part of Chapter 4 has been relocated to 
different chapters throughout the standard. Accordingly, we can no 
longer reference a specific chapter and propose to adopt the standard 
in total.
Proposed Revisions to Sec.  127.405 Repairs
    The Coast Guard proposes to amend paragraphs (a)(1) and (b) by 
referencing the 2019 edition of NFPA 59A. In paragraph (b) we also 
propose to reference the 2019 edition of NFPA 51B. The current 
regulations reference the 1994 edition of NFPA 59A and the 1994 edition 
of NFPA 51B. Section 10.4.3 of NFPA 59A and NFPA 51B relate to repairs 
and identify specific requirements for welding and brazing.
Proposed Revisions to Sec.  127.603 Portable Fire Extinguishers
    The Coast Guard proposes to amend paragraph (a) by updating NFPA 
59A to the 2019 edition and NFPA 10 to the 2018 edition. The current 
regulations reference the 1994 edition of NFPA 10. Section 16.6.1 of 
NFPA 59A and Chapter 6 of NFPA 10 relate to portable fire extinguishers 
and identify specific requirements for portable and wheeled fire 
extinguishers.
Proposed Revisions to Sec.  127.611 International Shore Connection
    In this section, the Coast Guard proposes to change ``ASTM F 1121'' 
to ``ASTM F 1121-87'' to reference the standard by its correct 
designation and to reference the 2015 edition of this standard. The 
standard ASTM F 1121-87 provides specifications for international shore 
connections used in marine fire applications.
Proposed Removal of Sec.  127.701 Security on Existing Facilities; 
Sec.  127.703 Access to the Marine Transfer Area for LNG; Sec.  127.705 
Security Systems; Sec.  127.707 Security Personnel; Sec.  127.709 
Protective Enclosures; and Sec.  127.711 Communications
    The Coast Guard proposes to remove these sections from the CFR. 
These regulations are no longer needed because facilities regulated 
under part 127 are required to comply with the maritime security 
regulations for facilities contained in 33 CFR part 105. See 33 CFR 
105.105(a)(1). Therefore, it is no longer necessary to have security 
regulations for facilities in part 127.
Subpart C--Waterfront Facilities Handling Liquefied Hazardous Gas
Proposed Revisions to Sec.  127.1101 Piping Systems
    In paragraph (a), the Coast Guard proposes to change ``ASME B31.3'' 
to ``ASME B.31.3-2018'' to reference the standard by its correct 
designation and to reference the 2018 edition of this standard instead 
of the 1993 edition. This standard pertains to process piping and 
contains requirements for piping typically found in petroleum 
refineries, including chemical, pharmaceutical, textile, paper, 
semiconductor, cryogenic plants, and related processing plants and 
terminals. We also propose to reference Sec.  127.003 with respect to 
the reference to API Recommended Practice 2003 (API RP 2003) in 
paragraph (h). This standard, as updated in 2015, outlines requirements 
for protection against ignitions arising out of static, lightning, and 
stray currents.
Proposed Revisions to Sec.  127.1102 Transfer Hoses and Loading Arms
    In paragraph (a)(4)(ii), the Coast Guard proposes to change 
American National Standards Institute (ANSI) standard ``ANSI B16.5'' to 
``ASME B16.5-2017'' to reference the standard by its correct 
designation and to reference the 2017 edition of the standard. This 
standard outlines design specifications for pipe flanges and flanged 
fittings. The current regulations reference a 1988 edition of the 
standard, but now uses the term ``ANSI'' rather than ``ASME.''
Proposed Revisions to Sec.  127.1103 Piers and Wharves and Sec.  
127.1105 Layout and Spacing of Marine Transfer Area for LHG
    The Coast Guard proposes to remove the word ``existing'' from these 
sections to clarify that the regulations in Sec. Sec.  127.1103 and 
127.1105 apply to new construction in the marine transfer area on all 
LHG facilities and not just to ``existing'' LHG facilities.
Proposed Revisions to Sec.  127.1203 Gas Detection
    In paragraph (a), the Coast Guard proposes to change ``ANSI S12.13, 
Part I'' to ``IEC 60079-29-1'' to reference the name of the standard by 
which the original ANSI standard is now known. The current regulations 
reference the 1986 edition of ANSI S.12.13, Part I. We propose to 
incorporate by reference the July 2016 edition of IEC 60079-29-1, which 
pertains to performance requirements of detectors for flammable gases.
Proposed Revisions to Sec.  127.1313 Storage of Hazardous Materials
    The Coast Guard proposes to amend paragraph (b) by referencing the 
2018 edition of NFPA 30. The current regulations reference Chapter 4 of 
the 1993 edition, which pertains to the storage of containers and 
portable tanks. The standard has been updated over the years, and 
information that was once part of Chapter 4 has been relocated to 
different chapters throughout the standard. Accordingly, we can no 
longer reference a specific chapter and intend to adopt the standard in 
total.

[[Page 62659]]

Proposed Revisions to Sec.  127.1501 General
    The Coast Guard proposes to remove the word ``existing'' to clarify 
that Sec.  127.1501 applies to new construction on all LHG facilities 
and not just to ``existing'' LHG facilities.
Proposed Revisions to Sec.  127.1511 International Shore Connection
    In this section, the Coast Guard proposes to change ``ASTM F 1121'' 
to ``ASTM F 1121-87'' to reference the standard by its correct 
designation and to reference the 2015 edition of this standard. The 
standard ASTM F 1121-87 provides specifications for international shore 
connections used in marine fire applications.
Technical Changes
    In the following sections, we propose to remove the word ``shall,'' 
and replace it with the word ``must'' to more clearly convey these 
sections contain requirements: Sec. Sec.  127.011, 127.019, 127.301, 
127.309, 127.311, 127.313, 127.315, 127.317, 127.319, 127.321, 127.401, 
127.403, 127.405, 127.407, 127.409, 127.613, 127.615, 127.617, 
127.1207, 127.1301, 127.1302, 127.1309, 127.1311, 127.1313, 127.1315, 
127.1317, 127.1319, 127.1321, 127.1325, 127.1401, 127.1403, 127.1405, 
127.1407, 127.1409, 127.1601, 127.1603, and 127.1605. Additionally, in 
Sec. Sec.  127.005, 127.101, 127.107, 127.201, 127.313, 127.405, 
127.603, 127.611, 127.1101, 127.1102, 127.1107, 127.1203, 127.1313, 
127.1405, and 127.1503, we propose to add the text ``(incorporated by 
reference, see Sec.  127.003)'' to direct the reader to more details 
about the materials incorporated by reference in the ``Incorporation by 
reference'' section contained in Sec.  127.003. In Sec.  127.107, we 
propose to delete ``National Electrical Code'' and insert ``NFPA'' in 
its place to reflect the correct name of NFPA 70.

VII. Incorporation by Reference

    Material proposed for incorporation by reference appears in Sec.  
127.003. For information about how to view this material, see the 
ADDRESSES section of this preamble. Copies of the material are 
available from the sources listed in Sec.  127.003. Before publishing a 
binding rule, we will submit this material to the Director of the 
Federal Register for approval of the incorporation by reference.

VIII. Regulatory Analyses

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. Executive Order 13771 (Reducing Regulation and Controlling 
Regulatory Costs) directs agencies to reduce regulation and control 
regulatory costs and provides that ``for every one new regulation 
issued, at least two prior regulations be identified for elimination, 
and that the cost of planned regulations be prudently managed and 
controlled through a budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
proposed rule a significant regulatory action under section 3(f) of 
Executive Order 12866. Accordingly, OMB has not reviewed it. DHS 
considers this rule to be an Executive Order 13771 deregulatory action. 
See the OMB Memorandum titled ``Guidance Implementing Executive Order 
13771, titled `Reducing Regulation and Controlling Regulatory Costs''' 
(April 5, 2017). Details on the estimated cost savings of this proposed 
rule can be found in the rule's regulatory analysis below.
    We performed our regulatory analysis for this proposed rule based 
on the Coast Guard's PWSA authority to address safety and security 
issues raised by the increased use of LNG by maritime vessels. The 
Coast Guard is proposing to:
     Modify current regulations to allow LNG fuel facilities 
that do not receive LNG from vessels to conduct an ORA instead of the 
WSA without first obtaining COTP approval per existing Sec.  127.007;
     Update the technical standards currently referenced in 33 
CFR part 127 to reflect the most recent published editions;
     Amend the existing regulations by removing the word 
``shall'' and replacing it with the word ``must''; and
     Require a waterfront facility handling LNG that must 
submit a WSA and LOI (LNG import/export facility) \9\ to provide 
information to the Coast Guard on the nation of registry for, and the 
nationality or citizenship of officers and crew serving on board, 
vessels transporting natural gas that are reasonably anticipated to be 
servicing that facility if that information is known at the time the 
facilities submit the documents to the COTP.
---------------------------------------------------------------------------

    \9\ For the purpose of simplification, in this Regulatory 
Analysis we refer to a waterfront facility handling LNG that must 
submit a WSA as an ``LNG import/export facility'' because current 
U.S. LNG operations involve only the import or export of LNG as 
cargo.
---------------------------------------------------------------------------

    Table 1 of this analysis provides a summary of the affected 
population, cost savings, no cost changes, and unquantified benefits of 
this proposed rule. The Coast Guard estimates an annualized cost 
savings to industry of $16,157 (with a 7-percent discount rate), and an 
annualized cost savings to the government of $690 (with a 7-percent 
discount rate), for a total annualized cost savings of $16,847 in 2018 
dollars, using a 7-percent discount rate.

          Table 1--Summary of the Impacts of the Proposed Rule
------------------------------------------------------------------------
             Category                              Summary
------------------------------------------------------------------------
Applicability.....................  [check] New LNG import/export
                                     facilities.
                                    [check] New LNG Fuel Facilities.
                                    [check] New LHG Facilities.
Affected Population...............  [check] 20 new LNG import/export
                                     facilities over the 10-year
                                     analysis period.
                                    [check] 10 new LNG Fuel Facilities
                                     over the 10-year analysis period.
                                    [check] 30 new LHG facilities over
                                     the 10-year analysis period.
Costs Savings to Industry (7-       [check] 10-year: ($113,482).*
 percent discount rate).
                                    [check] Annualized: ($16,157) *.
Costs Savings to Government (7-     [check] 10-year: ($4,845) *.
 percent discount rate).

[[Page 62660]]

 
                                    [check] Annualized: ($690) *.
Perpetual period total cost         [check] Annualized: ($11,527).
 savings in 2016 dollars
 discounted back to 2016 (7-
 percent discount rate).
No cost changes...................  [check] Update incorporated
                                     technical standards to reflect the
                                     most recent published editions.
                                    [check] Require the LOI of a new LNG
                                     import/export facility to include
                                     information on the nation of
                                     registry for, and the nationality
                                     or citizenship of officers and crew
                                     serving on board, vessels
                                     transporting natural gas that are
                                     reasonably anticipated to be
                                     servicing that facility.
                                    [check]
------------------------------------------------------------------------
* Costs are in 2018 Dollars.

Affected Population
    There are currently 12 existing LNG import/export facilities, 3 
existing LNG fuel facilities, and 106 existing LHG facilities that are 
regulated under 33 CFR part 127. Table 2 presents the projected number 
of LNG import/export facilities, LNG fuel facilities, and LHG 
facilities over the 10-year analysis period. Based on the Coast Guard's 
Marine Information for Safety and Law Enforcement (MISLE) database on 
activation dates of the 3 existing LNG fuel facilities and the 
projected activation dates of 1 LNG fuel facility under construction, 
the Coast Guard estimates that 10 new LNG fuel facilities would be 
built during the 10-year analysis period, or 1 annually.\10\ Using 
MISLE data on existing LNG import/export facilities, and FERCs list of 
approved and proposed facilities, the Coast Guard estimates that 20 new 
LNG import/export facilities would be built during the 10-year analysis 
period, or 2 annually.\11\ Using MISLE data, the Coast Guard estimates 
that 30 new LHG facilities would be built during the 10-year analysis 
period, or 3 annually. However, as noted in the supporting statements 
for the OMB-approved Information Collection Request (ICR) under Control 
Number 1625-0049, the Coast Guard expects these new LHG facilities to 
replace existing facilities for a static total population of 106 
facilities.\12\ If you have comments about these population estimates, 
please submit comments identified by docket number USCG-2019-0444 using 
the Federal eRulemaking Portal at http://www.regulations.gov.
---------------------------------------------------------------------------

    \10\ The first LNG fuel facility in the U.S. became operational 
in 2016. The second and third became operational in 2018 and 2019, 
respectively. The fourth facility is anticipated to start operation 
by the end of 2020.
    \11\ Based on FERCs website on approved and proposed LNG import/
export facilities, 2 facilities would become active by the end of 
2020, 1 facility would become active in 2021, 2 facilities would 
become active in 2022, 3 facilities would become active in 2023, and 
1 facility would become active in 2024. Hence, the Coast Guard has 
determined that, on average, 2 new LNG import/export facilities 
would become active annually. See https://www.ferc.gov/industries-data/natural-gas/overview/lng.
    \12\ The supporting statement for the OMB-approved Information 
Collection Request (ICR) with a Control Number of 1625-0049 can be 
found at: https://www.regulations.gov/document?D=USCG-2016-0258-0002.
---------------------------------------------------------------------------

    Table 2 contains the number of new facilities to become operational 
over a 10-year period of analysis.

                                                            Table 2--Total Facilities by Year
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                     LNG import/export facilities               LHG Facilities                          LNG fuel facilities
                                 -----------------------------------------------------------------------------------------------------------------------
              Year                 Existing       New                  Existing       New                  Existing       New      Retiring
                                  facilities  facilities     Total    facilities  facilities     Total    facilities  facilities  facilities     Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
1...............................          12           2          14           3           1           4         106           3           3         106
2...............................          14           2          16           4           1           5         106           3           3         106
3...............................          16           2          18           5           1           6         106           3           3         106
4...............................          18           2          20           6           1           7         106           3           3         106
5...............................          20           2          22           7           1           8         106           3           3         106
6...............................          22           2          24           8           1           9         106           3           3         106
7...............................          24           2          26           9           1          10         106           3           3         106
8...............................          26           2          28          10           1          11         106           3           3         106
9...............................          28           2          30          11           1          12         106           3           3         106
10..............................          30           2          32          12           1          13         106           3           3         106
--------------------------------------------------------------------------------------------------------------------------------------------------------

Cost Analysis
Industry Cost Savings
    The Coast Guard proposes to add new Sec.  127.008, which would 
allow businesses that intend to build an LNG fuel facility, modify an 
existing LNG fuel facility, or reactivate an inactive LNG fuel facility 
to complete an LOI and ORA instead of an LOI and a WSA under Sec.  
127.007. The Coast Guard determined that conducting an ORA is more 
appropriate than conducting a WSA because the waterfront facilities are 
handling LNG for the sole purpose of providing LNG from shore-based 
structures to vessels for use as a marine fuel, and they do not 
transfer LNG to or receive LNG from vessels capable of carrying LNG in 
bulk as cargo. The ORA is focused on the safety and security associated 
with shore-based operations within the marine transfer area, whereas a 
WSA focuses more on the risks and vulnerabilities of the waterway 
associated with an LNG import/export facility. Although ORAs and WSAs 
follow similar procedures for assessing risk, the Coast Guard 
determined that the scope of the assessment for an LNG fuel facility 
could be narrowed to focus on operations solely taking place at the 
facility.
    Currently, LNG fuel facilities have the option of submitting an 
alternative request and completing a modified WSA or ORA that focuses 
on operational risk, or the option of completing a traditional

[[Page 62661]]

WSA that focuses on waterway traffic, security, and navigational 
hazards in addition to operational risk. As noted in the ``affected 
population'' section of this analysis, there are currently three active 
LNG fuel facilities and one other LNG fuel facility that is under 
construction. Of these four facilities, three submitted alternative 
requests and were granted permission to conduct an ORA under existing 
alternative methods because the Coast Guard determined that an ORA was 
more appropriate for their intended LNG operations. The other LNG fuel 
facility chose to complete a WSA and thus did not submit an alternative 
request. Based on this background information and discussions with 
subject matter experts (SMEs) in the Coast Guard Office of Operating 
and Environmental Standards (CG-OES), we estimate that 75 percent of 
the LNG fuel facilities submitted an alternative request and completed 
an ORA and the other 25 percent completed a WSA (see Table 3 below). If 
you have comments concerning these estimates, please submit comments 
identified by docket number USCG-2019-0444 using the Federal 
eRulemaking Portal at http://www.regulations.gov.
    According to the OMB-approved ICR for LNG and LHG facilities with 
an OMB Control Number of 1625-0049, completing an alternative request 
requires 2 clerical hours and 8 managerial hours. The mean hourly wage 
rates for clerks and managers were obtained from the U.S. Bureau of 
Labor Statistics (BLS). The BLS reports that the mean hourly wage rates 
for clerks and managers were $28.68 and $75.95 in 2018, 
respectively.\13\ To account for the cost of employee benefits, such as 
vacation time and health insurance, we multiplied the mean hourly wage 
rates by a load factor of 1.65, resulting in a loaded mean hourly wage 
rate of about $47.32 for a clerk ($28.68 x 1.65) and about $125.32 for 
a manager ($75.95 x 1.65).\14\
---------------------------------------------------------------------------

    \13\ The Coast Guard used 2018 wage data from the U.S. Bureau of 
Labor Statistics' Occupational Employment Statistics for the natural 
gas distribution sector using the North American Industry 
Classification System with an industry code of 221200. Readers can 
view the wage rates at https://www.bls.gov/oes/2018/may/naics4_221200.htm. Note that we used the occupational code of 
Information and Record Clerks, OC 43-4000, as a proxy for the labor 
category ``clerk'', and the occupational code of Architectural and 
Engineering Managers, OC 11-9041, as a proxy for the labor category 
``manager'' as a manager with some engineering knowledge is expected 
to be involved in completing the alternative request.
    \14\ To obtain the load factor, we divided the total cost for 
employers by the wages and salaries of private workers for the 
utility sector in December 2018, or $61.87/$37.60 = 1.65. Readers 
can find this information in Table 10 of the Employer Costs for 
Employee Compensation December 2018 News Release available at 
https://www.bls.gov/news.release/archives/ecec_03192019.pdf.
---------------------------------------------------------------------------

    Therefore, the Coast Guard estimates the labor cost of completing 
an alternative request to be about $1,097, which includes $94.64 in 
clerical labor cost (2 clerical hours x $47.32 per hour) and $1,002.56 
in managers labor cost (8 managerial hours x $125.32 per hour). With 
the proposed rule, LNG fuel facilities would no longer submit an 
alternative request to complete an ORA; therefore, each new facility 
would have a one-time cost savings of $1,097 (we show the cost occurs 
annually because of the assumption of one new facility entering service 
each year). As shown in table 3, given that 75 percent of the new 
facilities would submit an alternative request, the Coast Guard 
estimates the annualized cost savings to industry to be about $823 
using a 7-percent discount rate.

                             Table 3--Discounted Cost Savings to Industry of No Longer Completing an Alternative Submission
                                                                         [$2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Total number
                                                                   Total change    of facilities    Total cost       Cost savings        Cost savings
                              Year                                    in cost       completing        savings      discounted at 3%    discounted at 7%
                                                                                    alternative
(a)                                                                          (b)             (c)     (d) = (b) x  (e) = (d) / (1.03)  (f) = (d) / (1.07)
                                                                                                             (c)               \(a)\               \(a)\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1...............................................................          $1,097            0.75            $823                $799                $769
2...............................................................          $1,097            0.75            $823                $776                $719
3...............................................................          $1,097            0.75            $823                $753                $672
4...............................................................          $1,097            0.75            $823                $731                $628
5...............................................................          $1,097            0.75            $823                $710                $587
6...............................................................          $1,097            0.75            $823                $689                $548
7...............................................................          $1,097            0.75            $823                $669                $512
8...............................................................          $1,097            0.75            $823                $650                $479
9...............................................................          $1,097            0.75            $823                $631                $448
10..............................................................          $1,097            0.75            $823                $612                $418
                                                                 ---------------------------------------------------------------------------------------
    Total.......................................................  ..............  ..............          $8,229              $7,020              $5,780
                                                                 ---------------------------------------------------------------------------------------
        Annualized..............................................  ..............  ..............  ..............                $823                $823
--------------------------------------------------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.

    As part of requesting an alternative approval to conduct an ORA, 
the requesting party would meet with the COTP to discuss the 
alternative. These meetings often require representatives of the 
requesting firm to travel to meet with the COTP. For this reason, the 
travel costs associated with these meetings mainly depend on the 
distance between the facility and the firm's headquarters. Review of 
the headquarters locations and the site locations of existing and under 
construction LNG fuel facilities in our MISLE database suggests that 75 
percent of the facilities are approximately an 80-mile round trip drive 
from the COTP; therefore, the Coast Guard assumes the representatives 
of these facilities would drive to the meeting. Flight travel would be 
required for visits to the other 25 percent of facilities.\15\ 
Moreover, discussions with Coast Guard SMEs in the CG-OES revealed that 
a meeting

[[Page 62662]]

would last for an average of 2 hours and involves two managerial 
employees, one technical employee (engineer) and one outside consultant 
hired by the firm.
---------------------------------------------------------------------------

    \15\ Of the four LNG fuel facilities (three existing and one 
projected to be operational in the future), three of the facilities 
are, on average, within an 80-mile round trip from their respective 
headquarters. One facility located in Jacksonville, FL, is an 
approximately 1,700-mile round trip from its headquarters' location 
in Houston, TX. Based on this information, we assume that 75 percent 
of participants would drive while the other 25 percent would fly.
---------------------------------------------------------------------------

    The Coast Guard estimates that it would take approximately 2 hours 
to complete the 80-mile round trip drive, and including driving time, 
we estimate the duration of the meeting would take about 4 work hours. 
The BLS reported a mean hourly wage rate for an engineer to be $51.33 
in 2018; using a load factor of 1.65, we obtained a loaded mean hourly 
wage rate of about $84.69 ($51.33 x 1.65).\16\ Discussions with 
industry consultants revealed that the mean hourly wage rate for a 
consultant completing WSAs and ORAs for LNG fuel facilities was about 
$229 in 2017.\17\ Using the inflation factor of 1.0225, the Coast Guard 
estimates the consultant mean hourly wage rate to be about $234 in 2018 
dollars.\18\
---------------------------------------------------------------------------

    \16\ The Coast Guard calculated an engineer's mean hourly wage 
using 2018 wage data from the U.S. Bureau of Labor Statistics' 
Occupational Employment Statistics for the natural gas distribution 
sector using the North American Industry Classification System with 
an industry code of 221200. Readers can use the link https://www.bls.gov/oes/2018/may/naics4_221200.htm. Note that the 
occupational code for engineers is OC 17-2000.
    \17\ Discussion with consultants reveal that, on average, in 
2017, completing a WSA costs $114,585 and 500 hours. Based on this 
information, the Coast Guard estimates the mean consultant wage rate 
to be about $229.17 ($114,585/500 hours = $229.17 per hour) in 2017.
    \18\ To obtain the inflation factor, we divided the GDP deflator 
for 2018 (110.382) by the GDP deflator for 2017 (107.948), or 
110.382/107.948 = 1.0225.
---------------------------------------------------------------------------

    The Coast Guard estimates the total labor cost per meeting when 
industry representatives drive to the COTP to be about $2,277 annually, 
which is the sum of $338.76 in engineer's labor cost (4 hours x 
$84.69), $1,002.56 in manager's labor cost (2 managers x 4 hours x 
$125.32), and $936 for the consultant's labor cost (4 hours x $234).
    To calculate the cost of driving to the COTP's facility, the Coast 
Guard used the 2018 General Services Administration (GSA) reimbursable 
rate for personal vehicles, $0.54 per mile, which considers the cost of 
fuel, depreciation, maintenance, and insurance.\19\ Accordingly, the 
Coast Guard estimates that an 80-mile round trip drive to the COTP 
costs about $43.20 (80 miles x $0.54 per mile) annually.
---------------------------------------------------------------------------

    \19\ Readers can view the 2018 reimbursable rates for personal 
vehicles at: https://www.govinfo.gov/content/pkg/FR-2018-01-03/pdf/2017-28394.pdf.
---------------------------------------------------------------------------

    With the proposed rule, industry representatives would no longer 
need to drive to meet with the COTP to submit and discuss the 
alternative, resulting in an annual cost savings of $2,321 per meeting 
($43 driving cost + $2,277 in labor cost). As shown in table 4, given 
that about 56.5 percent of the new LNG fuel facilities would drive to 
the COTP, the Coast Guard estimates the annualized cost savings to 
industry of no longer having to drive to the COTP to discuss an 
alternative request to be about $1,299 using a 7-percent discount 
rate.\20\ The Coast Guard estimates the discounted cost savings to 
industry of no longer driving to meet with a COTP to be about $9,122 
over a 10-year period of analysis using a 7-percent discount rate.
---------------------------------------------------------------------------

    \20\ We obtained 56.25 percent by multiplying the proportion of 
facilities submitting alternative (75 percent) by the proportion 
driving to the COTP (75 percent). i.e., 0.75 x 0.75 = 0.5625.

                                   Table 4--Discounted Industry Cost Savings for No Longer Meeting With COTP (Driving)
                                                                         [$2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Total number
                  Year                    Travel cost   Labor cost   Total change    of facilities   Cost savings      Cost savings       Cost savings
                                                                        in cost            *                         discounted at 3%   discounted at 7%
(a)                                               (b)          (c)     (d) = (b) +             (e)     (f) = (d) x        (g) = (f) /        (h) = (f) /
                                                                               (c)                             (e)       (1.03) \(a)\       (1.07) \(a)\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,262             $1,214
2.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,225             $1,135
3.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,189             $1,061
4.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,155               $991
5.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,121               $927
6.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,088               $866
7.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,057               $809
8.......................................       $43.20       $2,277          $2,321            0.56          $1,299             $1,026               $756
9.......................................       $43.20       $2,277          $2,321            0.56          $1,299               $996               $707
10......................................       $43.20       $2,277          $2,321            0.56          $1,299               $967               $661
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................  ...........  ...........  ..............  ..............         $12,995            $11,085             $9,127
                                         ---------------------------------------------------------------------------------------------------------------
        Annualized......................  ...........  ...........  ..............  ..............  ..............             $1,299             $1,299
--------------------------------------------------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.
* The fraction of facilities submitting an alternative for an ORA (0.75) multiplied by the fraction of industry representatives driving to the COTP
  (0.75).

    As stated above, 25 percent of the facilities submitting 
alternative requests would need to fly to meet with the COTP. The Coast 
Guard estimates that, including travel time, the trip would take 
approximately 12 work hours. Accordingly, the labor cost per meeting 
would be about $6,832, which is the sum of $1,016 for an engineer's 
labor cost (12 hours x $84.69 per hour), $3,008 for a manager's labor 
cost (2 managers x 12 hours x $125.32 per hour), and $2,808 for a 
consultant's labor cost (12 hours x $234 per hour).
    To calculate the cost of flying to the COTP's facility, the Coast 
Guard first computed the cost of a plane ticket, hotel, rental car, and 
per diem. The Coast Guard estimates the cost of each round trip flight 
(non-stop) to be about $350, for a total flight cost of $1,400 (4 
flight tickets x $350 per flight ticket).\21\
---------------------------------------------------------------------------

    \21\ U.S. Bureau of Transportation Statistics (https://www.bts.gov/content/national-level-domestic-average-fare-series) 
reports the average cost of a domestic U.S. flight on a quarterly 
basis. The Coast Guard estimates the mean cost of domestic flight to 
be $349.56 in 2018.

---------------------------------------------------------------------------

[[Page 62663]]

The Coast Guard assumes that each individual would spend a total of 1 
night in a hotel at a cost of $106 per night,\22\ for a total cost of 
$424 (4 rooms x $106 per night). The Coast Guard assumes that the four 
representatives would share a rental car estimated to cost $61 for 
transit to and from the airport and the meeting.\23\ The Coast Guard 
also assumes that each individual would need 2 days of meals and 
incidental allowance (first and last day of travel), which is about $38 
per day per person for a total of $304 ($38 per day x 2 days x 4).\24\ 
Accordingly, the Coast Guard estimates the total cost of flight travel 
to be about $2,189, which includes the cost of plane tickets ($1,400), 
cost of overnight accommodations ($424), cost of a rental car ($61), 
and per diem expenses ($304).
---------------------------------------------------------------------------

    \22\ The Coast Guard multiplied the 2018 standard GSA rate for 
lodging, $93 (which can be found here: https://www.gsa.gov/travel/plan-book/per-diem-rates/per-diem-rates-lookup/?action=perdiems_report&state=FL&fiscal_year=2016&zip=&city=), by 
the mean lodging tax rate of 13.69 percent (which can be found on 
page 7 of the HVS 2018 Lodging Tax Report: https://www.hotelnewsresource.com/pdf18/HVS092018.pdf) for a total cost of 
$106 per night ($93 per night x 13.69 percent tax = $106 per night) 
in 2018 dollars.
    \23\ The Coast Guard used the $50 cost estimate of a round trip 
airport transfer from the Validation of Merchant Mariners' Vital 
Information and Issuance of Coast Guard Merchant Mariner's Licenses 
and Certificates of Registry Interim Rule (https://www.regulations.gov/document?D=USCG-2004-17455-0001) as a proxy for 
the cost of a round trip airport transfer, and traveling to and from 
the meeting. We adjusted the $50 amount to 2018 dollars using an 
inflation factor of 1.2556, which is obtained by dividing 2018 GDP 
deflator (110.382) by 2006 GDP deflator (90.006), i.e., 110.382/
90.006 = 1.2256. So, we estimate the airport transfer cost to be 
about $61 ($50 x 1.2256 = $61) in 2018 dollars.
    \24\ The 2018 GSA rate for meals and incidental expenses for 
first and last day of travel is $38.25 (See https://www.gsa.gov/travel/plan-book/per-diem-rates/per-diem-rates-lookup/?action=perdiems_report&state=FL&fiscal_year=2018&zip=&city=jacksonville).
---------------------------------------------------------------------------

    The Coast Guard estimates that the proposed rule would result in an 
annual cost savings of about $9,021 per meeting ($2,189 in 
transportation cost and $6,832 in labor cost) as industry 
representatives would no longer need to fly to meet with the COTP. 
Given that 18.75 percent of the new LNG fuel facilities (one facility a 
year) would choose to fly to meet with the COTP, the Coast Guard 
estimates the annualized cost savings to industry of not flying would 
be about $1,691 ($9,021 x 1 facility x 0.75 x 0.25) using a 7-percent 
discount rate.\25\ Moreover, the Coast Guard estimates the discounted 
or the present value cost savings to industry of no longer flying to 
meet with the COTP to be $11,880 over a 10-year period of analysis 
using a 7-percent discount rate. See table 5 for detail.
---------------------------------------------------------------------------

    \25\ We obtained 18.75% by multiplying the proportion of 
facilities submitting alternative (75%) by the proportion flying to 
the COTP (25%). i.e., 0.25 x 0.75 = 0.1875.

                                   Table 5--Discounted Industry Cost Savings for No Longer Meeting with COTP (Flight)
                                                                         [$2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Total number
                  Year                    Travel cost   Labor cost   Total change    of facilities   Cost savings      Cost savings       Cost savings
                                                                        in cost            *                         discounted at 3%   discounted at 7%
(a)                                               (b)          (c)     (d) = (b) +             (e)     (f) = (d) x        (g) = (f) /        (h) = (f) x
                                                                               (c)                             (e)       (1.03) \(a)\       (1.07) \(a)\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................       $2,189       $1,642          $1,581         $0.1875          $1,691             $1,642             $1,581
2.......................................        2,189        1,594           1,477          0.1875           1,691              1,594              1,477
3.......................................        2,189        1,548           1,381          0.1875           1,691              1,548              1,381
4.......................................        2,189        1,503           1,290          0.1875           1,691              1,503              1,290
5.......................................        2,189        1,459           1,206          0.1875           1,691              1,459              1,206
6.......................................        2,189        1,417           1,127          0.1875           1,691              1,417              1,127
7.......................................        2,189        1,375           1,053          0.1875           1,691              1,375              1,053
8.......................................        2,189        1,335             984          0.1875           1,691              1,335                984
9.......................................        2,189        1,296             920          0.1875           1,691              1,296                920
10......................................        2,189        1,259             860          0.1875           1,691              1,259                860
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................  ...........  ...........  ..............  ..............          16,914             14,428             11,880
                                         ---------------------------------------------------------------------------------------------------------------
        Annualized......................  ...........  ...........  ..............  ..............  ..............              1,691              1,691
--------------------------------------------------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.
* The fraction of facilities submitting alternative (0.75) multiplied by the fraction flying to the COTP (0.25).

    Based on reviews of data in MISLE and discussions with Coast Guard 
SMEs, the Coast Guard determined that of the four LNG fuel facilities 
(three existing and one under construction), three submitted an 
alternative request and completed an ORA and one completed a WSA. 
Accordingly, the Coast Guard estimates that under the existing 
regulatory requirements 25 percent of LNG fuel facilities would 
complete a full WSA instead of submitting an alternative request. 
Discussions with industry representatives suggest that consulting firms 
hired by the facility to conduct WSAs and ORAs would take approximately 
289 hours to complete an ORA and 500 hours to complete a WSA. 
Accordingly, the Coast Guard estimates the average cost to complete a 
WSA to be $117,000 (500 consultant hours x $234 per hour) and the 
average cost to complete an ORA to be $67,626 (289 consultant hours x 
$234 per hour), for a cost savings of $49,374. Table 6 presents the 
annualized cost savings to industry for completing an ORA in lieu of a 
WSA. Given that only 25 percent of new facilities complete a WSA, the 
Coast Guard estimates the total annualized cost savings to industry of 
completing an ORA in lieu of a WSA to be approximately $12,344 ($49,374 
in cost savings x 1 facility x 0.25 of facilities that submit WSAs) 
using a 7-percent discount rate. The Coast Guard estimates the total 
discounted or present value cost savings of industry completing an ORA 
in place of a WSA to be about $86,696 over a 10-year period of analysis 
using a 7-percent discount rate.

[[Page 62664]]

                                   Table 6--Discounted Cost Savings to Industry of Completing ORAs as Opposed to WSAs
                                                                         [$2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Total number
                                                                   Total change     of new LNG      Total cost       Cost savings        Cost savings
                              Year                                    in cost          fuel           savings      discounted at 3%    discounted at 7%
                                                                                    facilities
(a)                                                                          (b)             (c)     (d) = (b) x  (j) = (i) / (1.03)  (k) = (i) / (1.07)
                                                                                                             (c)               \(a)\               \(a)\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1...............................................................         $49,374           0.250         $12,344             $11,984             $11,536
2...............................................................          49,374           0.250          12,344              11,635              10,781
3...............................................................          49,374           0.250          12,344              11,296              10,076
4...............................................................          49,374           0.250          12,344              10,967               9,417
5...............................................................          49,374           0.250          12,344              10,648               8,801
6...............................................................          49,374           0.250          12,344              10,337               8,225
7...............................................................          49,374           0.250          12,344              10,036               7,687
8...............................................................          49,374           0.250          12,344               9,744               7,184
9...............................................................          49,374           0.250          12,344               9,460               6,714
10..............................................................          49,374           0.250          12,344               9,185               6,275
                                                                 ---------------------------------------------------------------------------------------
    Total.......................................................  ..............  ..............         123,435             105,293              86,696
                                                                 ---------------------------------------------------------------------------------------
        Annualized..............................................  ..............  ..............  ..............              12,344              12,344
--------------------------------------------------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.

Total Cost Savings to Industry
    Table 7 contains the total cost savings to industry of removing the 
requirements that LNG fuel facilities submit an alternative request and 
meet with the COTP to conduct an ORA in lieu of a WSA. The Coast Guard 
estimates the total present value or discounted cost savings to 
industry of the proposed rule over a 10-year period of analysis to be 
about $113,482 in 2018 dollars, using a 7-percent discount rate. The 
Coast Guard estimates the annualized cost savings to industry to be 
about $16,157 in 2018 dollars, using a 7-percent discount rate.

                                                          Table 7--Total Industry Cost Savings
                                                                         [$2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Cost savings item
                                         ----------------------------------------------------------
                                                        Industry cost   Industry cost                 Total cost       Cost savings       Cost savings
                  Year                    Alternative  for driving to   for flying to      ORA          savings      discounted at 3%   discounted at 7%
                                           submission   meeting with    meeting with    instead of  (undiscounted)
                                                            COTP            COTP           WSA
(a)                                               (b)             (c)             (d)          (e)     (f) = (b) +        (g) = (f) /        (h) = (f) /
                                                                                                       (c) + (d) +       (1.03) \(a)\       (1.07) \(a)\
                                                                                                               (e)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................         $823          $1,299          $1,691      $12,344         $16,157            $15,687            $15,100
2.......................................          823           1,299           1,691       12,344          16,157             15,230             14,112
3.......................................          823           1,299           1,691       12,344          16,157             14,786             13,189
4.......................................          823           1,299           1,691       12,344          16,157             14,356             12,326
5.......................................          823           1,299           1,691       12,344          16,157             13,937             11,520
6.......................................          823           1,299           1,691       12,344          16,157             13,532             10,766
7.......................................          823           1,299           1,691       12,344          16,157             13,137             10,062
8.......................................          823           1,299           1,691       12,344          16,157             12,755              9,404
9.......................................          823           1,299           1,691       12,344          16,157             12,383              8,789
10......................................          823           1,299           1,691       12,344          16,157             12,023              8,214
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................  ...........  ..............  ..............  ...........         161,573            137,825            113,482
                                         ---------------------------------------------------------------------------------------------------------------
        Annualized......................  ...........  ..............  ..............  ...........  ..............            $16,157            $16,157
--------------------------------------------------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.

Changes With No Cost Impacts
    The Coast Guard is proposing to incorporate by reference updated 
and new industry standards that are available and known to the 
industry. Based on discussions with an industry consultant and SMEs in 
the CG-OES, the Coast Guard determined that new, expanded, and modified 
LNG import/export facilities, LNG fuel facilities, and LHG facilities 
are built to the most current industry standards available at the time 
of construction, expansion, or modification and not the outdated 
standards currently codified in 33 CFR part 127. In addition, the new 
industry standards do not apply to facilities constructed, expanded, or 
modified under a contract awarded after the implementation date of the 
final rule. Hence, the Coast Guard does not anticipate owners and 
operators of new, expanded and modified facilities to incur any cost to 
meet the updated or new industry standards. If you have comments 
concerning this assumption, please submit comments identified by docket 
number USCG-2019-0444 using the Federal eRulemaking Portal at http://www.regulations.gov.

[[Page 62665]]

    In addition, as part of the LOI, the Coast Guard proposes to add 
new paragraph Sec.  127.007(g) requiring an LNG import/export facility 
that complete a WSA to provide information to the Coast Guard on the 
nation of registry for, and the nationality or citizenship of officers 
and crew serving on board, vessels transporting liquefied natural gas 
that are reasonably anticipated to be servicing that facility. This 
requirement would only be applicable when a facility has to submit the 
LOI and WSA to the Coast Guard and is not required every time a vessel 
comes to port. Because both the LOI and WSA are submitted years before 
the facility becomes operational, Coast Guard SMEs have determined that 
it is highly unlikely any specific details regarding vessels and their 
crew would be known at the time the LOI and WSA are submitted. Table 8 
summarizes the proposed changes with no cost impacts. If you have 
comments or have questions concerning the no cost determination 
presented in Table 8, please submit comments identified by docket 
number USCG-2019-0444 using the Federal eRulemaking Portal at http://www.regulations.gov.

                   Table 8--Summary of Proposed Changes to 33 CFR 127 With no Economic Impacts
----------------------------------------------------------------------------------------------------------------
                                                                     Changes to baseline
             Topic                CFR section    Facility type(s)       requirements            Cost impact
----------------------------------------------------------------------------------------------------------------
                                              General Requirements
----------------------------------------------------------------------------------------------------------------
Authority.....................  ..............  All..............   Revised the     No cost.
                                                                    authority citation to   This change is
                                                                    read as 46 U.S.C.       administrative in
                                                                    70011 and 70034;        nature.
                                                                    Department of
                                                                    Homeland Security
                                                                    Delegation No. 0170.1.
Applicability.................  Sec.   127.001  All..............   Amended         No cost.
                                                                    paragraph (a) and (c)   This change is
                                                                    by removing the word    administrative in
                                                                    ``existing'' because    nature.
                                                                    the term as it is
                                                                    currently defined in
                                                                    Sec.   127.005 does
                                                                    not cover waterfront
                                                                    facilities handling
                                                                    LNG and LHG
                                                                    constructed after
                                                                    1988 and 1996,
                                                                    respectively.
                                                Inactive LNG fuel   Amended         No cost. The
                                                 and import/        paragraph (c) by        Coast Guard has
                                                 export             removing a reference    determined that the
                                                 facilities.        to Sec.   127.701,      security
                                                                    which contains          requirements are now
                                                                    security requirements   covered under 33 CFR
                                                                    for inactive LNG        part 105 and thus
                                                                    facilities.             reference to Sec.
                                                                                            127.701 in paragraph
                                                                                            (c) is duplicative.
                                                                                            Accordingly,
                                                                                            removing the
                                                                                            requirement does not
                                                                                            have cost
                                                                                            implications
                                                All..............   Waterfront      No cost.
                                                                    facilities handling     This change is
                                                                    LNG and LHG             administrative in
                                                                    constructed, expanded   nature.
                                                                    or modified under a
                                                                    contract awarded
                                                                    after [INSERT 30 DAYS
                                                                    AFTER PUBLICATION IN
                                                                    THE Federal Register]
                                                                    are required to
                                                                    comply with the
                                                                    standards referenced
                                                                    in Sec.   127.003.
                                                                    All other facilities,
                                                                    unless expanded or
                                                                    modified in
                                                                    accordance with this
                                                                    part, are required to
                                                                    meet the standards
                                                                    that were in effect
                                                                    at the time the
                                                                    facilities were
                                                                    constructed, but may
                                                                    request to apply a
                                                                    later edition of the
                                                                    standards in
                                                                    accordance with Sec.
                                                                     127.017.
Incorporation by reference....  Sec.   127.003  All..............   Updated         No cost. The
                                                                    standards that are      Coast Guard has
                                                                    currently listed to     determined that all
                                                                    reflect the latest      new LNG import/
                                                                    edition of the          export facilities,
                                                                    standards available     LNG fuel facilities,
                                                                    and adding three new    and LHG facilities
                                                                    standards for           would meet the most
                                                                    incorporation by        recent industry
                                                                    reference (see          standards in the
                                                                    section ``Discussion    absence of
                                                                    of Proposed Rule'' of   regulation.
                                                                    this preamble for a
                                                                    list of these
                                                                    standards).
Definitions...................  Sec.   127.005  All..............   Added new       No cost.
                                                                    definitions for ``LNG   This change is
                                                                    fuel facility'' and     administrative in
                                                                    modified the existing   nature.
                                                                    definitions for
                                                                    ``Facility'' and
                                                                    ``Fire endurance
                                                                    rating.''.
LOI and WSA...................  Sec.   127.007  New LNG import/     Amended         No cost.
                                                 export             paragraph (a), (b),     This change is
                                                 facilities and     and (e) by removing     administrative in
                                                 LHG Facilities.    the word ``existing''   nature
                                                                    because the term as
                                                                    it is currently
                                                                    defined in Sec.
                                                                    127.005 does not
                                                                    cover waterfront
                                                                    facilities handling
                                                                    LNG and LHG
                                                                    constructed after
                                                                    1988 and 1996,
                                                                    respectively.
                                                New LNG Fuel        Excluded LNG    No cost.
                                                 Facilities.        fuel facilities from    This change is
                                                                    this section because    administrative in
                                                                    they will be            nature.
                                                                    addressed in a new
                                                                    Sec.   127.008.

[[Page 62666]]

 
                                                New LNG import/     Added a new     No cost. The
                                                 export             paragraph (g)           Coast Guard has
                                                 facilities.        requiring a LNG         determined that
                                                                    import/export           facilities with
                                                                    facility to provide     specific details
                                                                    information to the      regarding vessels
                                                                    Coast Guard on the      and their crew would
                                                                    nation of registry of   not be known at the
                                                                    the vessels for, and    time of LOI and ORA
                                                                    the nationality or      submission.
                                                                    citizenship of
                                                                    officers and crew
                                                                    serving on board,
                                                                    vessels transporting
                                                                    natural gas that are
                                                                    reasonably
                                                                    anticipated to be
                                                                    servicing that
                                                                    facility.
                                                                    Added a new     No cost.
                                                                    paragraph (j) to        This change is
                                                                    clarify that an owner   administrative in
                                                                    or operator intending   nature.
                                                                    to construct a new
                                                                    LNG fuel facility or
                                                                    modify any LNG fuel
                                                                    facility, or
                                                                    reactivate an
                                                                    inactive LNG fuel
                                                                    facility may comply
                                                                    with Sec.   127.008
                                                                    in lieu of meeting
                                                                    the requirements in
                                                                    this section.
LOI and ORA...................  Sec.   127.008  New LNG Fuel        Identified      No cost. The
                                                 Facilities.        industry standards      Coast Guard has
                                                                    related to conducting   determined that all
                                                                    risk assessments on     new LNG fuel
                                                                    LNG fuel facilities.    facilities and LHG
                                                                                            facilities would
                                                                                            meet the most recent
                                                                                            industry standards
                                                                                            in the absence of
                                                                                            regulation.
Letter of Recommendation......  Sec.   127.009  All New             Updated text    No cost.
                                                 Facilities.        to refer to Sec.        This change is
                                                                    127.008.                administrative in
                                                                                            nature, and it only
                                                                                            clarifies that the
                                                                                            letter for
                                                                                            recommendation may
                                                                                            be sent after the
                                                                                            receipt of a WSA or
                                                                                            ORA.
Inspection of Waterfront        Sec.   127.011  All New             Replaced the    No cost.
 Facilities.                                     Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Appeals.......................  Sec.   127.015  All New             Updated the     No cost.
                                                 Facilities.        address of Coast        This change is
                                                                    Guard Headquarters.     administrative in
                                                                    Updated the     nature.
                                                                    name of the Coast       No cost.
                                                                    Guard office            This change is
                                                                    reviewing appeals.      administrative in
                                                                                            nature.
Alternatives..................  Sec.   127.017  All New             Added           No cost.
                                                 Facilities.        reference to Sec.       This change is
                                                                    127.003.                administrative in
                                                                                            nature
Operations Manual and           Sec.   127.019  All New             Replaced the    No cost.
 Emergency Manual Procedures                     Facilities.        word ``shall'' with     This change is
 for Examination.                                                   ``must.''.              administrative in
                                                                    Amended         nature.
                                                                    paragraph (b) by        No cost.
                                                                    removing the word       This change is
                                                                    ``existing'' to         administrative in
                                                                    clarify that all        its nature.
                                                                    waterfront facilities
                                                                    handling LNG and LHG
                                                                    regardless of when
                                                                    they were constructed
                                                                    must submit the
                                                                    information required
                                                                    in Sec.   127.019.
----------------------------------------------------------------------------------------------------------------
                                          LNG--Design and Construction
----------------------------------------------------------------------------------------------------------------
Design and Construction         Sec.   127.101  New LNG             Updated         No cost.
 General.                                        Facilities.        references to NFPA      This change is
                                                                    59A chapters and        administrative in
                                                                    sections to reflect     nature.
                                                                    the numbering in the
                                                                    most recent edition.
Electrical Power System.......  Sec.   127.107  New LNG             Added           No cost. The
                                                 Facilities.        references to Sec.      Coast Guard has
                                                                    127.003,                determined that that
                                                                    ``Incorporation by      all new LNG and LHG
                                                                    reference.''.           facilities would
                                                                    Removed a       meet the most recent
                                                                    reference to the        industry standards
                                                                    National Electrical     in the absence of
                                                                    Code.                   regulation.
                                                                                            No cost.
                                                                                            This change is
                                                                                            administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------
                                                 LNG--Equipment
----------------------------------------------------------------------------------------------------------------
Sensing and Alarm Systems.....  Sec.   127.201  New LNG             Added           No cost. The
                                                 Facilities.        references to Sec.      Coast Guard has
                                                                    127.003,                determined that that
                                                                    ``Incorporation by      all new LNG and LHG
                                                                    reference.''.           facilities would
                                                                    Updated         meet the most recent
                                                                    references to NFPA      industry standards
                                                                    59A sections to         in the absence of
                                                                    reflect the numbering   regulation.
                                                                    in the most recent      No cost.
                                                                    edition.                This change is
                                                                                            administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------

[[Page 62667]]

 
                                                 LNG--Operations
----------------------------------------------------------------------------------------------------------------
Persons in Charge of Shoreside  Sec.   127.301  New LNG             Replaced the    No cost.
 Transfer Operations:                            Facilities.        word ``shall'' with     This change is
 Qualifications and                                                 ``must.''.              administrative in
 Certification.                                                                             nature.
Operations Manual and           Sec.   127.309  New LNG             Replaced the    No cost.
 Emergency Manual Use.                           Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Motor Vehicles................  Sec.   127.311  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Bulk Storage..................  Sec.   127.313  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                    Added           nature.
                                                                    references to Sec.      No cost. The
                                                                    127.003,                Coast Guard has
                                                                    ``Incorporation by      determined that that
                                                                    reference.              all new LNG and LHG
                                                                                            facilities would
                                                                                            meet the most recent
                                                                                            industry standards
                                                                                            in the absence of
                                                                                            regulation.
Primary Transfer Inspection...  Sec.   127.315  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Declaration of Inspection.....  Sec.   127.317  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
LNG Transfer..................  Sec.   127.319  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Release of LNG................  Sec.   127.321  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------
                                                LNG--Maintenance
----------------------------------------------------------------------------------------------------------------
Maintenance: General..........  Sec.   127.401  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Inspections...................  Sec.   127.403  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Repairs.......................  Sec.   127.405  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                    Updated         nature.
                                                                    references to NFPA      No cost. The
                                                                    59A sections to         Coast Guard has
                                                                    reflect the numbering   determined that all
                                                                    in the most recent      new LNG and LHG
                                                                    edition.                facilities would
                                                                    Added           meet the most recent
                                                                    references to Sec.      industry standards
                                                                    127.003,                in the absence of
                                                                    ``Incorporation by      regulation.
                                                                    reference.''.
Testing.......................  Sec.   127.407  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Records.......................  Sec.   127.409  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------
                                               LNG--Fire Equipment
----------------------------------------------------------------------------------------------------------------
Portable Fire Extinguishers...  Sec.   127.603  New LNG             Added           No cost. The
                                                 Facilities.        references to Sec.      Coast Guard has
                                                                    127.003,                determined that that
                                                                    ``Incorporation by      all new LNG and LHG
                                                                    reference.''.           facilities would
                                                                    Updated         meet the most recent
                                                                    references to NFPA      industry standards
                                                                    59A sections to         in the absence of
                                                                    reflect the numbering   regulation.
                                                                    in the most recent      No cost.
                                                                    edition.                This change is
                                                                                            administrative in
                                                                                            nature.
International Shore Connection  Sec.   127.611  New LNG             Added           No cost. The
                                                 Facilities.        references to Sec.      Coast Guard has
                                                                    127.003,                determined that all
                                                                    ``Incorporation by      new LNG and LHG
                                                                    reference.''.           facilities would
                                                                    Updated the     meet the most recent
                                                                    referenced version of   industry standards
                                                                    ASTM F 1121-87.         in the absence of
                                                                                            regulation.
Smoking.......................  Sec.   127.613  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Fires.........................  Sec.   127.615  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     These changes are
                                                                    ``must.''.              administrative in
                                                                                            nature.
Hotwork.......................  Sec.   127.617  New LNG             Replaced the    No cost.
                                                 Facilities.        word ``shall'' with     These changes are
                                                                    ``must.''.              administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------

[[Page 62668]]

 
                                                  LNG--Security
----------------------------------------------------------------------------------------------------------------
Security on Existing            Sec.   127.701  New LNG             Removed the     No cost.
 Facilities.                                     Facilities.        section as the          These changes are
                                                                    requirements in this    administrative in
                                                                    section are no longer   nature
                                                                    needed because
                                                                    facilities regulated
                                                                    under part 127 are
                                                                    required to comply
                                                                    with the maritime
                                                                    security facilities
                                                                    regulations contained
                                                                    in 33 CFR part 105.
Access to the Marine Transfer   Sec.   127.703  New LNG             Removed the     No cost.
 Area for LNG.                                   Facilities.        section as the          These changes are
                                                                    requirements in this    administrative in
                                                                    section are no longer   nature.
                                                                    needed because
                                                                    facilities regulated
                                                                    under part 127 are
                                                                    required to comply
                                                                    with the maritime
                                                                    security facilities
                                                                    regulations contained
                                                                    in 33 CFR part 105.
Security Systems..............  Sec.   127.705  New LNG             Removed the     No cost.
                                                 Facilities.        section as the          These changes are
                                                                    requirements in this    administrative in
                                                                    section are no longer   nature.
                                                                    needed because
                                                                    facilities regulated
                                                                    under Part 127 are
                                                                    required to comply
                                                                    with the maritime
                                                                    security facilities
                                                                    regulations contained
                                                                    in 33 CFR part 105..
Security Personnel............  Sec.   127.707  New LNG             Removed the     No cost.
                                                 Facilities.        section as the          These changes are
                                                                    requirements in this    administrative in
                                                                    section are no longer   nature.
                                                                    needed because
                                                                    facilities regulated
                                                                    under Part 127 are
                                                                    required to comply
                                                                    with the maritime
                                                                    security facilities
                                                                    regulations contained
                                                                    in 33 CFR part 105.
Protective Enclosures.........  Sec.   127.709  New LNG             Removed the     No cost.
                                                 Facilities.        section as the          These changes are
                                                                    requirements in this    administrative in
                                                                    section are no longer   nature.
                                                                    needed because
                                                                    facilities regulated
                                                                    under part 127 are
                                                                    required to comply
                                                                    with the maritime
                                                                    security facilities
                                                                    regulations contained
                                                                    in 33 CFR part 105.
Communications................  Sec.   127.711  New LNG             Removed the     No cost.
                                                 Facilities.        section as the          These changes are
                                                                    requirements in this    administrative in
                                                                    section are no longer   nature.
                                                                    needed because
                                                                    facilities regulated
                                                                    under part 127 are
                                                                    required to comply
                                                                    with the maritime
                                                                    security facilities
                                                                    regulations contained
                                                                    in 33 CFR part 105.
----------------------------------------------------------------------------------------------------------------
                                          LHG--Design and Construction
----------------------------------------------------------------------------------------------------------------
Piping Systems................            Sec.  New LHG             Updated the     No cost. The
                                      127.1101   Facilities.        referenced version of   Coast Guard has
                                                                    ASME B31.3.             determined that all
                                                                    Added           new LNG and LHG
                                                                    references to Sec.      facilities would
                                                                    127.003,                meet the most recent
                                                                    ``Incorporation by      industry standards
                                                                    reference.''.           in the absence of
                                                                                            regulation.
Transfer Hoses and Loading                Sec.  New LHG             Updated the     No cost. The
 Arms.                                127.1102   Facilities.        referenced version of   Coast Guard has
                                                                    ASME B16.5.             determined that all
                                                                    Added           new LNG and LHG
                                                                    references to Sec.      facilities would
                                                                    127.003,                meet the most recent
                                                                    ``Incorporation by      industry standards
                                                                    reference.''.           in the absence of
                                                                                            regulation.
Piers and wharves.............            Sec.  New LHG..........   Removed the     No cost.
                                      127.1103                      word ``existing''       These changes are
                                                                    from this section to    administrative in
                                                                    clarify the             nature.
                                                                    requirements in this
                                                                    section apply to new
                                                                    constructions in the
                                                                    marine transfer area
                                                                    on all LHG
                                                                    facilities, and not
                                                                    just to ``existing''
                                                                    facilities.
Layout and spacing of marine              Sec.  New LHG..........   Removed the     No cost.
 transfer area for LHG.               127.1105                      word ``existing from    These changes are
                                                                    this section to         administrative in
                                                                    clarify the             nature.
                                                                    requirements in this
                                                                    section apply to new
                                                                    constructions in the
                                                                    marine transfer area
                                                                    on all LHG
                                                                    facilities, and not
                                                                    just to ``existing''
                                                                    facilities.

[[Page 62669]]

 
Electrical Systems............            Sec.  New LHG             Added           No cost. The
                                      127.1107   Facilities.        references to Sec.      Coast Guard has
                                                                    127.003,                determined that all
                                                                    ``Incorporation by      new LNG and LHG
                                                                    reference.''.           facilities would
                                                                                            meet the most recent
                                                                                            industry standards
                                                                                            in the absence of
                                                                                            regulation.
----------------------------------------------------------------------------------------------------------------
                                                 LHG--Equipment
----------------------------------------------------------------------------------------------------------------
Gas Detection.................            Sec.  New LHG             Updated the     No cost. The
                                      127.1203   Facilities.        referenced version of   Coast Guard has
                                                                    UL 60079-29-1..         determined that all
                                                                    Added           new LNG and LHG
                                                                    references to Sec.      facilities would
                                                                    127.003,                meet the most recent
                                                                    ``Incorporation by      industry standards
                                                                    reference.''.           in the absence of
                                                                                            regulation.
Warning Alarms................            Sec.  New LHG             Replaced the    No cost.
                                      127.1207   Facilities.        word ``shall'' with     These changes are
                                                                    ``must.''.              administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------
                                                 LHG--Operations
----------------------------------------------------------------------------------------------------------------
Persons in Charge of Transfers            Sec.  New LHG             Replaced the    No cost.
 for the Facility:                    127.1301   Facilities.        word ``shall'' with     This change is
 Qualifications and                                                 ``must.''.              administrative in
 Certification..                                                                            nature.
Training......................            Sec.  New LHG             Replaced the    No cost.
                                      127.1302   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Operations Manual and                     Sec.  New LHG             Replaced the    No cost.
 Emergency Manual Use.                127.1309   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Motor Vehicles................            Sec.  New LHG             Replaced the    No cost.
                                      127.1311   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Storage of Hazardous Materials            Sec.  New LHG             Replaced the    No cost.
                                      127.1313   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                    Added           nature.
                                                                    references to Sec.
                                                                    127.003,
                                                                    ``Incorporation by
                                                                    reference.''.
Preliminary Transfer                      Sec.  New LHG             Replaced the    No cost.
 Inspection.                          127.1315   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Declaration of Inspection.....            Sec.  New LHG             Replaced the    No cost.
                                      127.1317   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Transfer of LHG...............            Sec.  New LHG             Replaced the    No cost.
                                      127.1319   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Release of LHG................            Sec.  New LHG             Replaced the    No cost.
                                      127.1321   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Access to Marine Transfer Area            Sec.  New LHG             Replaced the    No cost.
 for LHG.                             127.1325   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------
                                                LHG--Maintenance
----------------------------------------------------------------------------------------------------------------
General.......................            Sec.  New LHG             Replaced the    No cost.
                                      127.1401   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Inspections...................            Sec.  New LHG             Replaced the    No cost.
                                      127.1403   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Repairs.......................            Sec.  New LHG             Replaced the    No cost.
                                      127.1405   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                    Added           nature.
                                                                    references to Sec.      No cost. The
                                                                    127.003,                Coast Guard has
                                                                    ``Incorporation by      determined that all
                                                                    reference.''.           new LNG and LHG
                                                                                            facilities would
                                                                                            meet the most recent
                                                                                            industry standards
                                                                                            in the absence of
                                                                                            regulation.
Tests.........................            Sec.  New LHG             Replaced the    No cost.
                                      127.1407   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Records.......................            Sec.  New LHG             Replaced the    No cost.
                                      127.1409   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------
                                               LHG--Fire Equipment
----------------------------------------------------------------------------------------------------------------
General.......................            Sec.  New LHG             Amended this    No cost.
                                      127.1501   facilities.        section by removing     This change is
                                                                    the word ``existing''   administrative in
                                                                    to clarify that Sec.    nature.
                                                                     127.1501 applies to
                                                                    new LHG facilities,
                                                                    not just ``existing''
                                                                    LHG facilities..
Portable Fire Extinguishers...            Sec.  New LHG             Added           No cost.
                                      127.1503   Facilities.        references to Sec.      This change is
                                                                    127.003,                administrative in
                                                                    ``Incorporation by      nature.
                                                                    reference.''.

[[Page 62670]]

 
International Shore Connection            Sec.  New LHG             Added           No cost.
                                      127.1511   Facilities.        references to Sec.      This change is
                                                                    127.003,                administrative in
                                                                    ``Incorporation by      nature.
                                                                    reference.''.           No cost. The
                                                                    Updated the     Coast Guard has
                                                                    referenced version of   determined that all
                                                                    ASTM F 1121-87.         new LNG and LHG
                                                                                            facilities would
                                                                                            meet the most recent
                                                                                            industry standards
                                                                                            in the absence of
                                                                                            regulation.
----------------------------------------------------------------------------------------------------------------
                                              LHG--Fire Protection
----------------------------------------------------------------------------------------------------------------
Smoking.......................            Sec.  New LHG             Replaces the    No cost.
                                      127.1601   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Hotwork.......................            Sec.  New LHG             Replaces the    No cost.
                                      127.1603   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
Other Sources of Ignition.....            Sec.  New LHG             Replaces the    No cost.
                                      127.1605   Facilities.        word ``shall'' with     This change is
                                                                    ``must.''.              administrative in
                                                                                            nature.
----------------------------------------------------------------------------------------------------------------

Cost Savings to Government
    Under the current regulation in Sec.  127.017, the Coast Guard must 
review alternative requests submitted by facilities seeking to conduct 
a modified WSA. According to the most recent ICR for 33 CFR part 127 
with an OMB Control Number of 1625-0049, reviewing an alternative 
request requires 4 hours of enlisted staff time (2 hours of E-5 time 
and 2 hours of E-6 time) and 1 hour of two officers' time combined (0.5 
hours of O-2 time and 0.5 hours of O-3 time). To estimate the labor 
cost of reviewing alternative requests, we used loaded hourly wage 
rates of officers and enlisted staff members in Commandant Instruction 
7310.1T, Coast Guard Reimbursable Standard Rates. For the 2018 fiscal 
year, the loaded hourly wage rates for O-2, O-3, O-4, E-5, and E-6 
employees were $69, $82, $97, $54, and $61, respectively.\26\ 
Accordingly, the Coast Guard estimates the total labor cost of 
reviewing an alternative request to be about $306, which includes $76 
in officers labor cost [(0.5 hours of O-2 time x $69) + (0.5 hours of 
O-3 time x $82)] and $230 in enlisted staff labor cost [(2 hours of E-5 
time x $54) + (2 hours of E-6 time x $61)].
---------------------------------------------------------------------------

    \26\ Readers can find the wage rates of officers and enlisted 
staff members on page 2 of Enclosure 2 of the Commandant Instruction 
7310.1T. This document is available in the docket where indicated 
under the Public Participation and Request for Comments section of 
this preamble.
---------------------------------------------------------------------------

    Given that 75 percent of LNG fuel facilities have currently 
submitted an alternative request and given that there is only one 
submission, the Coast Guard estimates annualized cost savings to the 
Federal Government of no longer reviewing these requests to be about 
$229 ($306 in cost saving x 1 facility x 0.75) using a 7-percent 
discount rate.
    In addition to reviewing the alternative request, Coast Guard staff 
must also meet with representatives of the firm submitting the 
alternative request. Discussions with Coast Guard SMEs in the CG-OES 
revealed that the meeting lasts 2 hours and involves an O-3 and O-4 
level staff of the Coast Guard. Accordingly, the Coast Guard estimates 
the total labor cost of reviewing an alternative request to be $358 ((2 
hours of O-3 time x $82) + (2 hours of O-4 time x $97)). Therefore, 
given the assumption that 75 percent of LNG fuel facilities would 
submit alternative requests and given that there will be one 
submission, the average annual cost savings to the Federal Government 
of no longer meeting facility representatives would be $269 ($358 in 
cost saving x 1 facility x 0.75), undiscounted.
    Finally, the Coast Guard expects the Federal Government to save 
money from reviewing an ORA when compared to a WSA. The OMB-approved 
ICR with a Control Number of 1625-0049 reports that reviewing a WSA and 
the corresponding Hazard Identification (HAZID) \27\ study requires 20 
hours of enlisted staff time (10 hours of E-5 time and 10 hours of E-6 
time) and 40 hours of officer time (20 hours of O-2 time and 20 hours 
of O-3 time), costing approximately $4,170 ((10 hours of E-5 time x 
$54) + (10 hours of E-6 time x $61) + (20 hours of O-2 time x $69) + 
(20 hours of O-3 time x $82)). Based on discussions with Coast Guard 
SMEs in Sector Jacksonville, reviewing an ORA and the corresponding 
HAZID study requires 38 hours of officer time (19 hours of O-3 time and 
19 hours of O-4 time), costing about $3,401 ((19 hours of O-3 time x 
$82) + (19 hours of O-4 time x $97)). Accordingly, the Coast Guard 
estimates that the cost savings from reviewing an ORA instead of a WSA 
is about $769 ($4,170--$3,401), undiscounted. Therefore, given only 25 
percent of the LNG facilities currently conduct a WSA instead of 
submitting an alternative request, the Coast Guard estimates the 
annualized cost savings to the government of reviewing an ORA instead 
of a WSA to be about $192 ($769 in cost savings x 1 facility x 0.25) 
using a 7-percent discount rate.
---------------------------------------------------------------------------

    \27\ A HAZID study is carried out to identify the main risks 
that can occur during LNG transfers from an LNG fuel facility to a 
receiving vessel.
---------------------------------------------------------------------------

    Table 9 presents the total cost savings to the Federal Government 
of the proposed change that would eliminate the requirement to submit 
an alternative request and meet with the COTP to conduct an ORA in lieu 
of a WSA. The Coast Guard estimates the total discounted or present 
value cost to the Federal Government over a 10-year period of analysis 
to be about $4,845 using a 7-percent discount rate. The Coast Guard 
estimates the annualized cost savings to the Federal Government to be 
about $690 using a 7-percent discount rate.

[[Page 62671]]

                                                         Table 9--Total Government Cost Savings
                                                                         [$2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Cost savings item
                                           --------------------------------------------------
                   Year                       Alternative     Meeting with                        Total cost         Cost savings        Cost savings
                                              submission        industry      Reviewing WSAs        savings        discounted at 3%    discounted at 7%
                                                review       representatives
(a)                                                    (b)               (c)             (d)   (e) = (b) + (c) +  (f) = (e) / (1.03)  (g) = (e) / (1.07)
                                                                                                             (d)               \(a)\               \(a)\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.........................................            $229              $269            $192                $690                $670                $645
2.........................................             229               269             192                 690                 650                 603
3.........................................             229               269             192                 690                 631                 563
4.........................................             229               269             192                 690                 613                 526
5.........................................             229               269             192                 690                 595                 492
6.........................................             229               269             192                 690                 578                 460
7.........................................             229               269             192                 690                 561                 430
8.........................................             229               269             192                 690                 545                 402
9.........................................             229               269             192                 690                 529                 375
10........................................             229               269             192                 690                 513                 351
                                           -------------------------------------------------------------------------------------------------------------
    Total.................................  ..............  ................  ..............               6,899               5,885               4,845
                                           -------------------------------------------------------------------------------------------------------------
        Annualized........................  ..............  ................  ..............  ..................                 690                 690
--------------------------------------------------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.

Total Cost Savings
    Table 10 summarizes the total costs of this proposed rule to 
industry and the Federal Government for the 10-year period of analysis. 
The Coast Guard estimates the total discounted or present value cost to 
industry and the Federal Government over a 10-year period of analysis 
to be about $118,328 in 2018 dollars, using a 7-percent discount rate. 
We estimate the annualized cost savings to be about $16,847 in 2018 
dollars, using a 7-percent discount rate. Using a perpetual period of 
analysis, the Coast Guard estimates the total annualized cost savings 
of this notice of proposed rulemaking to be $11,527 in 2016 dollars and 
discounted back to 2016 using a 7-percent discount rate.

                       Table 10--Total Cost Savings to Industry and the Federal Government
                                                     [$2018]
----------------------------------------------------------------------------------------------------------------
                                                                                      Discounted cost savings
              Year                 Industry cost    Government      Total cost   -------------------------------
                                      savings      cost savings       savings           3%              7%
----------------------------------------------------------------------------------------------------------------
1...............................         $16,157            $690         $16,847         $16,357         $15,745
2...............................          16,157             690          16,847          15,880          14,715
3...............................          16,157             690          16,847          15,418          13,752
4...............................          16,157             690          16,847          14,969          12,853
5...............................          16,157             690          16,847          14,533          12,012
6...............................          16,157             690          16,847          14,109          11,226
7...............................          16,157             690          16,847          13,698          10,492
8...............................          16,157             690          16,847          13,299           9,805
9...............................          16,157             690          16,847          12,912           9,164
10..............................          16,157             690          16,847          12,536           8,564
                                 -------------------------------------------------------------------------------
    Total.......................         161,573           6,899         168,472         143,710         118,328
                                 -------------------------------------------------------------------------------
        Annualized..............  ..............  ..............  ..............          16,847          16,847
----------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.

Alternatives
    While developing this proposed rule, the Coast Guard considered 
three alternatives to the proposed rule. We present a summary of the 
alternatives below and show their corresponding impact and cost savings 
in table 11.
Alternative 1: No Action Alternative
    In this alternative, the Coast Guard would accept the status quo 
and review each proposal for an LNG fuel facility on a case-by-case, 
equivalency basis. We rejected this alternative because the Coast Guard 
believes this approach is inefficient in an environment of growing 
interest in LNG fuel because it does not respond to the needs of the 
U.S. maritime industry. This alternative would not impose any 
additional costs on industry, nor would LNG fuel facilities receive any 
cost savings from submitting an ORA as opposed to a WSA.
Alternative 2: Submit an ORA, but Do Not Update the IBR Standards 
Alternative
    Under this alternative, the Coast Guard would reduce industry 
burden by allowing new LNG fuel facilities to submit an ORA instead of 
a WSA. This alternative would not impose any additional costs to 
industry. We rejected this alternative because the Coast Guard would 
not be updating the existing incorporated by reference (IBR)

[[Page 62672]]

standards and regulations would continue to reference outdated 
standards instead of reflecting industry best practices and the best 
technologies available to industry.
Alternative 3: Continue To Meet With the COTP When Submitting the ORA
    Under this alternative, the Coast Guard would allow new LNG fuel 
facilities to submit an ORA instead of a WSA as long as the facility 
representatives meet with the COTP and get the ORA approved. Although 
this alternative is less burdensome compared to the baseline, the Coast 
Guard rejected this alternative because it would require industry 
representatives to continue meeting with the COTP in person to discuss 
the ORA. A requirement to meet the COTP would needlessly impose greater 
burden than the proposed rule without providing an improvement in 
safety sufficient to justify the difference in burden.

                                 Table 11--Comparison of Regulatory Alternatives
----------------------------------------------------------------------------------------------------------------
                                          Annualized total
               Alternative                  cost savings                  Impact of the alternative
----------------------------------------------------------------------------------------------------------------
Proposed Rule...........................           $16,847  Codifies industry standards establishing national
                                                             baseline safety standards and alleviating
                                                             discrepancies and unnecessary duplication between
                                                             regulatory standards and industry best practices.
                                                             In addition, the NPRM reduces the burden to
                                                             industry by allowing new LNG fuel facilities to
                                                             submit an ORA instead of a WSA without first having
                                                             to submit an alternative request and meet with the
                                                             COTP to obtain approval.
Alternative 1: No Action................                 0  Does not codify minimum safety standards, respond to
                                                             industry needs, or reduce industry burden. It does
                                                             not impose any additional costs.
Alternative 2: Submit an ORA, but do not            16,847  The alternative would reduce the burden to industry
 update the IBR Standards Alternative.                       by allowing new LNG fuel facilities to submit an
                                                             ORA instead of a WSA without first having to submit
                                                             an alternative request and meet with the COTP to
                                                             obtain approval. However, this alternative would
                                                             not codify minimum safety standards. This
                                                             alternative would not impose any additional costs
                                                             to industry.
Alternative 3: Continue to Meet with the            13,166  The alternative codifies industry standards
 COTP when submitting an ORA.                                establishing national baseline safety standards. In
                                                             addition, the alternative reduces the burden to
                                                             industry by allowing new LNG fuel facilities to
                                                             submit an ORA instead of a WSA without first having
                                                             to submit an alternative request and meet with the
                                                             COTP to obtain approval. However, this alternative
                                                             still requires meeting with the COTP, making it
                                                             more burdensome compared to the NPRM. This
                                                             alternative would not impose any new cost to
                                                             industry, but has less cost savings compared to
                                                             Alternative 2.
----------------------------------------------------------------------------------------------------------------

B. Small Entities

    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, the Coast 
Guard considered whether this proposed rule would have a significant 
economic impact on a substantial number of small entities. The term 
``small entities'' comprises small businesses, not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000. Below is a threshold analysis of the 
small entity impacts.
    The proposed rule would apply to new LNG fuel facilities, LNG 
import and export facilities, and new LHG facilities.
LNG Fuel Facilities
    The Coast Guard has determined the proposed rule would have no cost 
or a cost savings impact on existing LNG fuel facilities and would 
generate cost savings to one new facility per year. In particular, the 
Coast Guard estimates that the proposed rule would generate a cost 
savings of about $16,153, using 7-percent discount rate, to one new LNG 
fuel facility per year. To estimate the potential impact on small 
entities, the $16,153 in cost saving has to be compared with the annual 
revenue data of the new LNG fuel facility impacted by the proposed 
rule. The Coast Guard determined that an entity would have to have an 
annual revenue of $1,615,300 or less for the proposed rule to have an 
impact greater than 1 percent of revenue.
    Moreover, using the Small Business Administration's (SBA) size 
standards table,\28\ the Coast Guard has determined that two of the 
four LNG fuel facilities are small entities. These two small entities 
have a North American Industry Classification System (NAICS) code of 
213112 and 541990. Based on SBA's size standards table, the size 
standard for these codes are $38.5 million and $15 million, 
respectively. Publicly available data suggests that the annual revenue 
of the two facilities are about $2.4 million and about $3.8 million. 
Thus, conservatively assuming the new LNG fuel facility would have 
annual revenues equivalent to the smallest entity in the industry, the 
Coast Guard estimates that the economic impact, in the form of cost 
savings, of the proposed rule would be approximately 0.673 percent of 
revenue (($16,153/$2,400,000) x 100 = 0.673).
---------------------------------------------------------------------------

    \28\ Readers can view industry size standards at the following 
link https://www.sba.gov/document/support--table-size-standards 
(accessed 07/11/2019).
---------------------------------------------------------------------------

    No not-for-profit organizations are involved with LNG fuel 
facilities. In addition, this proposed rule would not have an adverse 
or beneficial impact on small government entities.
LNG Import and Export Facilities
    The Coast Guard has determined that the proposed rule would have no 
cost or a cost savings impact on existing and new LNG import/export 
facilities. Moreover, no not-for-profit organizations are involved with 
LNG import/export facilities. This proposed rule would not have an 
adverse or beneficial impact on small government entities.
LHG Facilities
    The Coast Guard has determined that the proposed rule would have no 
cost or a cost savings impact on existing and new LHG facilities. 
Moreover, no not-for-profit organizations are involved with LHG 
facilities. This proposed rule would not have an adverse or beneficial 
impact on small government entities.
    As noted above, the Coast Guard has determined that the economic 
impact on the affected small entities is not significant. Thus, the 
Coast Guard certifies under 5 U.S.C. 605(b) that this

[[Page 62673]]

proposed rule would not have a significant economic impact on a 
substantial number of small entities.
    If you think that your business, organization, or governmental 
jurisdiction qualifies as a small entity and that this proposed rule 
would have a significant economic impact on it, please submit a comment 
to the docket at the address listed in the ADDRESSES section of this 
preamble. In your comment, explain why you think it qualifies and how 
and to what degree this proposed rule would economically affect it.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Public Law 104-121, we want to assist small 
entities in understanding this proposed rule so that they can better 
evaluate its effects on them and participate in the rulemaking. If the 
proposed rule would affect your small business, organization, or 
governmental jurisdiction and you have questions concerning its 
provisions or options for compliance, please contact the person in the 
FOR FURTHER INFORMATION CONTACT section of this proposed rule. The 
Coast Guard will not retaliate against small entities that question or 
complain about this proposed rule or any policy or action of the Coast 
Guard.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

D. Collection of Information

    This proposed rule would call for a revised collection of 
information under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-
3520. As defined in 5 CFR 1320.3(c), ``collection of information'' 
comprises reporting, recordkeeping, monitoring, posting, labeling, and 
other similar actions. The title and description of the information 
collection, a description of those who must collect the information, 
and an estimate of the total annual burden follow. The estimate covers 
the time for reviewing instructions, searching existing sources of 
data, gathering and maintaining the data needed, and completing and 
reviewing the collection.
    Title: Waterfront Facilities Handling Liquefied Natural Gas and 
Liquefied Hazardous Gas.
    OMB Control Number: 1625-0049.
    Summary of the Collection of Information: The Coast Guard currently 
collects information from waterfront facilities handling LNG and LHG 
under 33 CFR part 127. The current information collection request (ICR 
201609-1625-002, OMB Control Number 1625-0049) contains requirements in 
the following sections: LOIs, WSAs, the submission of appeals to the 
Coast Guard, the submission of alternatives to the Coast Guard, 
Operations Manuals, Emergency Manuals, Certification of the Person in 
Charge, Declaration of Inspection, and Records of Maintenance. In 
addition, the proposed rule would add a new collection of information 
for ORA submissions for new LNG fuel facilities.
    Need for Information: The Coast Guard has regulations that provide 
safety standards for the design and construction, equipment, 
operations, maintenance, personnel training, and fire protection at 
waterfront facilities handling LNG. These regulations help reduce the 
probability that an accident could occur and help reduce the damage and 
injury to persons and property should an accident occur.
    Use of Information: The Coast Guard currently uses the information 
collected under OMB Control Number 1625-0049 for the following 
purposes: (1) Determine the suitability of a waterfront facility 
handling LNG to safely conduct LNG fuel transfer operations; (2) 
properly evaluate alternative procedures to ensure they provide at 
least the same degree of safety as the regulations; (3) ensure that 
safe operating procedures and an effective training program are set up 
by the waterfront facility operator; (4) ensure that effective 
procedures have been set up by the waterfront facility operator to 
respond to emergencies; ensure the person in charge of an LNG or LHG 
transfer is properly qualified; and (5) verify that persons in charge 
are following proper transfer procedures.
    Description of the Respondents: The respondents are LNG import/
export facilities, LNG fuel facilities, and LHG facilities.
    Number of Respondents: The currently approved number of respondents 
for this collection of information is 156 respondents, comprised of 143 
LHG facilities and 13 waterfront facilities handling LNG (2 LNG fuel 
facilities and 11 LNG import/export facilities). Based on the most 
recent population data from MISLE, the current number of respondents is 
121, comprised of 106 LHG facilities and 15 waterfront facilities 
handling LNG (3 LNG fuel facilities and 12 LNG import/export 
facilities). The Coast Guard anticipates the number of waterfront 
facilities handling LNG would increase by three annually (two new LNG 
import/export facilities and one LNG fuel facility). The Coast Guard 
also anticipates three new LHG facilities would replace three retiring 
facilities annually, maintaining the number of LHG facilities at 106 
throughout the 10-year period of analysis. Accordingly, the number of 
respondents is anticipated to be 124 (106 LHG facilities + 14 LNG 
import/export facilities + 4 LNG fuel facilities) respondents in year 
1; 127 (106 LHG facilities + 16 LNG import/export facilities + 5 LNG 
fuel facilities) respondents in year 2; and 130 (106 LHG facilities + 
18 LNG import/export facilities + 6 LNG fuel facilities respondents in 
year 3.
    Frequency of Response: The number of responses per year pursuant to 
this proposed rule would vary by requirement. The proposed rule does 
not change the frequency of responses for existing requirements. 
However, the proposed rule introduces a new ORA requirement, which is a 
one-time requirement for the lifetime of the LNG fuel facility.
    Burden of Response: The burden per response for each regulatory 
requirement varies. Because the Coast Guard possesses better data now 
than it did the last time collection 1625-0049 was renewed, the 
proposed rule would adjust the currently approved burden to complete a 
WSA from 704 hours to 500 hours and would create a new burden of 289 
hours to complete an ORA. The proposed rule would also eliminate the 10 
hours of burden required to prepare an alternative request.
    Estimate of Total Annual Burden: The first year burden to 
respondents of this proposed rule is 6,720 hours, which is a 3,015 hour 
reduction in burden from the current corresponding ICR approved under 
OMB Control Number 1625-0049 total of 9,734 hours. This reduction in 
burden is the result of both program changes of 221 hours and 
adjustment changes of 2,794 hours. The program changes correspond to 
the proposed removal of a WSA and an alternative request, which 
requires 510 hours (500 hours for a WSA and 10 hours for an alternative 
request) to complete, in lieu of an ORA, which requires 289 hours. The 
adjustment change or a reduction of 2,794 hours includes the following: 
(1) A 4-hour increase in burden due to rounding errors; (2) a 919-hour 
increase in burden due to adjustment in the

[[Page 62674]]

number of existing LNG facilities from 13 to 15 and the number of new 
LNG facilities that need to complete a WSA under the existing 
regulation from 1 per year to 3 per year (1 new LNG fuel facility per 
year and 2 new LNG import/export facilities per year); (3) a 3,105-hour 
reduction in burden due to adjustment in the number of existing LHG 
facilities from 143 per year to 106 per year, and the corresponding 
adjustment in new facilities from 5 per year to 3 per year; and (4) a 
612-hour reduction in burden due to adjustments to the number of hours 
required to complete a WSA from 704 per year to 500 per year (the 
difference is a result of going from 704 hours to complete a WSA for 3 
facilities a year, or 2,112 hours, to 500 hours to complete a WSA for 
the same 3 facilities, or 1,500 hours, for a net reduction of 612 hours 
annually).
    For a new LNG import/export facility, the proposed rule would 
require that it provide information to the Coast Guard at the time the 
WSA is submitted on the nation of registry for, and the nationality or 
citizenship of officers and crew serving on board, vessels transporting 
natural gas that are reasonably anticipated to be servicing that 
facility. The Coast Guard does not expect specific details regarding 
vessels and their crew would be known at the time the LOI and WSA are 
submitted to the Coast Guard several years before the facility begins 
operations. The Paperwork Reduction Act would not apply to this 
requirement as the Coast Guard anticipates only two new LNG import/
export facilities per year would be subject to this requirement.\29\
---------------------------------------------------------------------------

    \29\ The Paperwork Reduction Act applies to collections of 
information using identical questions posed to, or reporting or 
recordkeeping requirements imposed on, ten or more persons per year. 
See 5 CFR 1320.3(c), and Office of Management and Budget Memorandum 
for the Heads of Executive Departments and Agencies and Independent 
Regulatory Agencies, dated April 7, 2010, at p. 2.
---------------------------------------------------------------------------

    As required by 44 U.S.C. 3507(d), we will submit a copy of this 
proposed rule to OMB for its review of the collection of information.
    We ask for public comment on the proposed revised collection of 
information to help us determine, among other things--
     How useful the information is;
     Whether the information can help us perform our functions 
better;
     How we can improve the quality, usefulness, and clarity of 
the information;
     Whether the information is readily available elsewhere;
     How accurate our estimate is of the burden of collection;
     How valid our methods are for determining the burden of 
collection; and
     How we can minimize the burden of collection.
    If you submit comments on the collection of information, submit 
them by the date listed in the DATES section of this preamble to both 
the OMB and to the docket where indicated under ADDRESSES.
    You need not respond to a collection of information unless it 
displays a currently valid control number from OMB. Before the Coast 
Guard could enforce the collection of information requirements in this 
proposed rule, OMB would need to approve the Coast Guard's request to 
collect this information.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(Federalism) if it has a substantial direct effect on States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. We have analyzed this proposed rule under Executive Order 
13132 and have determined that it is consistent with the fundamental 
federalism principles and preemption requirements described in 
Executive Order 13132. Our analysis follows.
    The proposed rule, with respect to the LOI, WSA, and ORA submission 
requirements and COTP approval (Sec. Sec.  127.007, 127.008, 127.009, 
127.015, and 127.017), does not conflict with State interests. They are 
procedural requirements for the Coast Guard's own safety and security 
risk analysis, approval, and appeal process of a new, modified, or 
reactivated facility and its attendant LNG transfer operations. As it 
relates to other requirements imposed by individual States, or their 
political subdivisions, the submission and approval process for the 
construction of a new structure would be unaffected by this rule.
    Moreover, with respect to LNG transfer operations that may be 
included in the LOI, WSA, and ORA submissions, pursuant to 46 U.S.C. 
70011(b)(1), Congress has expressly authorized the establishment of 
``procedures, measures and standards for the handling, loading, 
unloading, storage, stowage and movement on a structure of explosives 
or other dangerous articles and substances, including oil or hazardous 
material.'' The Coast Guard affirmatively preempts any State rules 
related to these procedures, measures, and standards (See United States 
v. Locke, 529 U.S. 89, 109-110 (2000)). Therefore, because the States 
may not regulate within these categories, this rule is consistent with 
the fundamental federalism principles and preemption requirements 
described in Executive Order 13132.
    Regarding the updates of technical standards referenced in 33 CFR 
part 127, it is Congress's express intent that, with respect to 
waterfront structures, States retain the power to regulate to higher 
standards than those promulgated by the Coast Guard. As stated in 46 
U.S.C. 70011(c), ``State Law.--Nothing in this section, with respect to 
structures, prohibits a State or political subdivision thereof from 
prescribing higher safety equipment or safety standards than those that 
may be prescribed by regulations under this section.'' Thus, Congress 
has made clear that the federal standards promulgated under this 
section establish the uniform minimum standards of the United States, 
but individual States are entitled to impose higher safety equipment 
requirements or higher safety standards for structures within their 
jurisdiction.
    The Coast Guard recognizes the key role that State and local 
governments may have in making regulatory determinations. Additionally, 
for rules with federalism implications and preemptive effect, Executive 
Order 13132 specifically directs agencies to consult with State and 
local governments during the rulemaking process. If you believe this 
proposed rule would have implications for federalism under Executive 
Order 13132, please contact the person listed in the FOR FURTHER 
INFORMATION CONTACT section of this preamble.

F. Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100 million (adjusted for 
inflation) or more in any one year. Although this proposed rule would 
not result in such an expenditure, we do discuss the effects of this 
proposed rule elsewhere in this preamble.

G. Taking of Private Property

    This proposed rule would not cause a taking of private property or 
otherwise have taking implications under Executive Order 12630 
(Governmental Actions and Interference with Constitutionally Protected 
Property Rights).

[[Page 62675]]

H. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988, (Civil Justice Reform), to minimize 
litigation, eliminate ambiguity, and reduce burden.

I. Protection of Children

    We have analyzed this proposed rule under Executive Order 13045 
(Protection of Children from Environmental Health Risks and Safety 
Risks). This proposed rule is not an economically significant rule and 
would not create an environmental risk to health or risk to safety that 
might disproportionately affect children.

J. Indian Tribal Governments

    This proposed rule does not have tribal implications under 
Executive Order 13175 (Consultation and Coordination with Indian Tribal 
Governments), because it would not have a substantial direct effect on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes.

K. Energy Effects

    We have analyzed this proposed rule under Executive Order 13211 
(Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use). We have determined that it is not a 
``significant energy action'' under that order because 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.

L. Technical Standards and Incorporation by Reference

    The National Technology Transfer and Advancement Act, codified as a 
note to 15 U.S.C. 272, directs agencies to use voluntary consensus 
standards in their regulatory activities unless the agency provides 
Congress, through OMB, with an explanation of why using these standards 
would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This proposed rule incorporates by reference the following new 
voluntary consensus standards, which are listed and summarized below:
     ISO/TS 18683:2015(E), Guidelines for Systems and 
Installations for Supply of LNG as Fuel to Ships, First Edition, 15 
January 2015. This standard gives guidance on the minimum requirements 
for the design and operation of the LNG bunkering (fueling) facility, 
including the interface between the LNG supply facilities and receiving 
ships.
     ISO/TS 28460:2010(E), Petroleum and Natural Gas 
Industries--Installation and Equipment for Liquefied Natural Gas--Ship-
to-Shore Interface and Port Operations, First Edition, 15 December 
2010. This standard specifies the requirements for ship, terminal, and 
port service providers to ensure the safe transit of an LNG carrier 
through the port area and the safe and efficient transfer of its cargo.
    This proposed rule also incorporates the following new technical 
standard other than a voluntary consensus standard.
     DNV GL, Recommended Practice, DNVGL-RP-G105, Development 
and Operation of Liquefied Natural Gas Bunkering Facilities, October 
2015 Edition. This standard provides guidance to the industry on the 
developmental, organizational, technical, functional, and operational 
issues of LNG bunkering (fueling) facilities in order to ensure global 
compatibility and secure a high level of safety, integrity, and 
reliability.
    This technical standard was selected because it aligns with ISO/TS 
18683:2015(E). Both DNVGL-RP-G105 and ISO/TS 18683:2015(E) provide 
guidance to industry on conducting risk assessments that are focused on 
providing LNG as a marine fuel (bunkering operations).
    This proposed rule incorporates by reference the following updated 
voluntary consensus standards, which are listed and summarized below:
     API Recommended Practice 2003, Protection Against 
Ignitions Arising Out of Static, Lightning and Stray Currents, Eighth 
Edition, September 2015. This standard presents the current state of 
knowledge and technology in the fields of static electricity and stray 
currents applicable to the prevention of hydrocarbon ignition in the 
petroleum industry, which is based on both scientific research and 
practical experience.
     ASME B16.5-2017, Pipe Flanges and Flanged Fittings, NPS 
\1/2\ through NPS 24 Metric/Inch Standard, November 20, 2017. This 
standard covers pressure-temperature ratings, materials, dimensions, 
tolerances, marking, testing, and methods of designating openings for 
pipe flanges and flanged fittings.
     ASME B31.3-2018, Process Piping, ASME Code for Pressure 
Piping, B31, August 30, 2019. This standard contains requirements for 
piping typically found in petroleum refineries; chemical, 
pharmaceutical, textile, paper, semiconductor, and cryogenic plants; 
and related processing plants and terminals. It covers materials and 
components, design, fabrication, assembly, erection, examination, 
inspection, and testing of piping.
     ASTM F 1121-87 (Reapproved 2015), Standard Specification 
for International Shore Connections for Marine Fire Applications, 
approved May 1, 2015. This standard covers the specifications for the 
design and manufacture of international shore connections to be used 
with marine firefighting systems during an emergency when a stricken 
ship has a system failure.
     IEC 60079-29-1, Edition 2.0, Explosive Atmospheres--Part 
29-1: Gas Detectors--Performance Requirements of Detectors for 
Flammable Gases, July 2016. This standard specifies general 
requirements for construction, testing, and performance, and describes 
the test methods that apply to portable, transportable, and fixed 
apparatus for the detection and measurement of flammable gas or vapor 
concentrations with air.
     NFPA 10, Standard for Portable Fire Extinguishers, 2018 
Edition, effective April 21, 2017. This standard applies to the 
selection, installation, inspection, maintenance, recharging, and 
testing of portable extinguishing equipment and Class D extinguishing 
agents.
     NFPA 30, Flammable and Combustible Liquids Code, 2018 
Edition, effective September 6, 2017. This standard applies to the 
storage, handling, and use of flammable and combustible liquids, 
including waste liquids.
     NFPA 51B, Standard for Fire Prevention During Welding, 
Cutting, and Other Hot Work, 2019 Edition, effective July 15, 2019. 
This standard covers provisions to prevent injury, loss of life, and 
loss of property from fire or explosion as a result of hot work.
     NFPA 59A, Standard for the Production, Storage, and 
Handling of Liquefied Natural Gas (LNG), 2019 Edition, effective 
November 25, 2018. This standard provides minimum fire protection, 
safety, and related requirements for the location, design, 
construction, security, operation, and maintenance of LNG plants.
     NFPA 70, National Electrical Code, 2017 Edition, effective 
August 24, 2016. The provisions of this standard apply to the design, 
modification, construction,

[[Page 62676]]

inspection, maintenance, and testing of electrical systems, 
installations, and equipment.
     NFPA 251, Standard Methods of Tests of Fire Resistance of 
Building Construction and Materials, 2006 Edition, effective August 18, 
2005. This standard provides methods of fire tests applicable to 
assemblies of masonry units and to composite assemblies of structural 
materials for buildings, including bearing and other walls, partitions, 
columns, girders, beams, slabs, and composite slab and beam assemblies 
for floors and roofs. This standard also applies to other assemblies 
and structural units that constitute permanent integral parts of a 
finished building.
    The proposed section that references these standards and the 
locations where these standards are available is listed in Sec.  
127.003. If you disagree with our analysis of these standards or are 
aware of voluntary consensus standards that might apply but are not 
listed, please send a comment explaining your disagreement or 
identifying additional standards to the docket using one of the methods 
listed in the ADDRESSES section of this preamble.

M. Environment

    We have analyzed this proposed rule under Department of Homeland 
Security Management Directive 023-01, Rev. 1, associated implementing 
instructions, and Environmental Planning COMDTINST 5090.1 (series), 
which guide the Coast Guard in complying with the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made 
a preliminary determination that this action is one of a category of 
actions that do not individually or cumulatively have a significant 
effect on the human environment. A preliminary Record of Environmental 
Consideration supporting this determination is available in the docket. 
For instructions on locating the docket, see the ADDRESSES section of 
this preamble. This proposed rule would be categorically excluded under 
paragraphs A3 and L54 in Appendix A, of Table 1 of DHS Directive 
Instruction Manual 023-01, Rev. 1.\30\ Paragraph A3 pertains to 
promulgation of rules and other guidance documents that interpret or 
amend existing regulations without changing its environmental effect. 
Paragraph L54 pertains to regulations that are editorial or procedural. 
We seek any comments or information that may lead to the discovery of a 
significant environmental impact from this proposed rule.
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    \30\ https://www.dhs.gov/sites/default/files/publications/DHS_Instruction%20Manual%20023-01-001-01%20Rev%2001_508%20Admin%20Rev.pdf.
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List of Subjects in 33 CFR Part 127

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

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 33 CFR part 127 as follows:

0
1. The authority citation for part 127 is revised to read as follows:

    Authority:  46 U.S.C. 70011 and 70034; 46 U.S.C. Chapter 701; 
Department of Homeland Security Delegation No. 0170.1. Pub. L. 109-
241, sec. 304(c)(2).

0
2. Amend Sec.  127.001 as follows:
0
a. In paragraph (a), remove the word ``existing'';
0
b. Revise paragraph (c); and
0
c. Add paragraph (f).
    The revision and addition reads as follows:

Sec.  127.001   Applicability.

* * * * *
    (c) Sections 127.007(b), (c), and (d), and 127.019(b) of subpart A 
of this part apply to the marine transfer area for LNG of each inactive 
facility.
* * * * *
    (f) Waterfront facilities handling LNG and LHG constructed, 
expanded, or modified under a contract awarded after November 4, 2020 
are required to comply with the applicable standards referenced in 
Sec.  127.003. All other facilities, unless expanded or modified in 
accordance with this part, are required to meet previously applicable 
standards but may request to apply a later edition of the standards in 
accordance with Sec.  127.017.
0
3. Revise Sec.  127.003 to read as follows:

Sec.  127.003   Incorporation by reference.

    Certain material is incorporated by reference into this part with 
the approval of the Director of the Federal Register under 5 U.S.C. 
552(a) and 1 CFR part 51. To enforce any edition other than that 
specified in this section, the Coast Guard must publish a document in 
the Federal Register and the material must be available to the public. 
All approved material is available for inspection at the U.S. Coast 
Guard, Office of Operating and Environmental Standards (CG-OES), 2703 
Martin Luther King Jr. Avenue SE, STOP 7509, Washington, DC 20593-7509, 
202-372-1410, and is available from the sources listed below. It is 
also available for inspection at the National Archives and Records 
Administration (NARA). For information on the availability of this 
material at NARA, call 202-741-6030 or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html. See Sec.  127.017 for 
alternative compliance methods.
    (a) API, 200 Massachusetts Avenue NW, Suite 1100, Washington, DC 
20001-5571, 202-682-8000, http://www.api.org.
    (1) API Recommended Practice 2003, Protection Against Ignitions 
Arising Out of Static, Lightning and Stray Currents, Eighth Edition, 
September 2015, (``API RP 2003''), IBR approved for Sec.  127.1101(h).
    (2) [Reserved]
    (b) ASME, Two Park Avenue, New York, NY 10016-5990, 800-843-2763, 
https://www.asme.org.
    (1) ASME B16.5-2017, Pipe Flanges and Flanged Fittings, NPS \1/2\ 
Through NPS 24 Metric/Inch Standard, November 20, 2017, IBR approved 
for Sec.  127.1102(a).
    (2) ASME B31.3-2018, Process Piping, ASME Code for Pressure Piping, 
B31, August 30, 2019, IBR approved for Sec.  127.1101(a).
    (c) ASTM International, 100 Barr Harbor Drive, P.O. Box C700, West 
Conshohocken, PA 19428-2959, 610-832-9500, https://www.astm.org.
    (1) ASTM F 1121-87 (Reapproved 2015), Standard Specification for 
International Shore Connections for Marine Fire Applications, approved 
May 1, 2015, IBR approved for Sec. Sec.  127.611 and 127.1511.
    (2) [Reserved]
    (d) DNV GL, Veritasveien 1, 1363 Hovik, Norway, +47 6757 9900, 
https://www.dnvgl.com.
    (1) DNV GL, Recommended Practice, DNVGL-RP-G105, Development and 
Operation of Liquefied Natural Gas Bunkering Facilities, October 2015 
Edition, IBR approved for Sec.  127.008(d).
    (2) [Reserved]
    (e) IEC International Electrotechnical Commission, 3 rue de 
Varembe, 1st floor, P.O. Box 131, CH 1211, Switzerland, +41 22 919 02 
11, https://www.iec.ch.
    (1) IEC 60079-29-1, Edition 2.0, Explosive Atmospheres--Part 29-1: 
Gas Detectors--Performance Requirements of Detectors for Flammable 
Gases, July 2016, IBR approved for Sec.  127.1203(a).
    (2) [Reserved]
    (f) ISO-International Organization for Standardization, BIBC II, 
Chemin de Blandonnet 8, CP 401, 1214 Vernier, Geneva, Switzerland, +41 
22 749 01 11, https://www.iso.org.
    (1) ISO/TS 18683:2015(E), Guidelines for Systems and Installations 
for Supply of LNG as Fuel to Ships, First Edition,

[[Page 62677]]

15 January 2015, (``ISO 18683''), IBR approved for Sec.  127.008(d).
    (2) ISO/TS 28460:2010(E), Petroleum and Natural Gas Industries--
Installation and Equipment for Liquefied Natural Gas--Ship-to-Shore 
Interface and Port Operations, First Edition, 15 December 2010, (``ISO 
28460''), IBR approved for Sec.  127.008(e).
    (g) NFPA, 1 Batterymarch Park, Quincy, MA 02169-7471, 800-344-3555, 
https://www.nfpa.org.
    (1) NFPA 10, Standard for Portable Fire Extinguishers, 2018 
Edition, effective April 21, 2017, IBR approved for Sec. Sec.  
127.603(a) and 127.1503.
    (2) NFPA 30, Flammable and Combustible Liquids Code, 2018 Edition, 
effective September 6, 2017, IBR approved for Sec. Sec.  127.313(b) and 
127.1313(b).
    (3) NFPA 51B, Standard for Fire Prevention During Welding, Cutting, 
and Other Hot Work, 2019 Edition, effective July 15, 2019, IBR approved 
for Sec. Sec.  127.405(b) and 127.1405(b).
    (4) NFPA 59A, Standard for the Production, Storage, and Handling of 
Liquefied Natural Gas (LNG), 2019 Edition, effective November 25, 2018, 
IBR approved for Sec. Sec.  127.008(d), 127.101 introductory text, and 
(a) through (g), 127.201(b) and (c), 127.405(a) and (b), and 
127.603(a).
    (5) NFPA 70, National Electrical Code, 2017 Edition, effective 
August 24, 2016, IBR approved for Sec. Sec.  127.107(a) and (c), 
127.201(c), and 127.1107.
    (6) NFPA 251, Standard Methods for Tests of Fire Resistance of 
Building Construction and Materials, 2006 Edition, effective August 18, 
2005, IBR approved for Sec.  127.005.
0
3. In Sec.  127.005, revise the definitions of ``Facility'' and ``Fire 
endurance rating'' and add a definition for ``LNG fuel facility'' to 
read as follows:

Sec.  127.005   Definitions.

* * * * *
    Facility means either a waterfront facility handling LHG or a 
waterfront facility handling LNG, and includes LNG fuel facilities.
    Fire endurance rating means the duration for which an assembly or 
structural unit will contain a fire or retain structural integrity when 
exposed to the temperatures specified in the standard time-temperature 
curve in NFPA 251 (incorporated by reference, see Sec.  127.003).
* * * * *
    LNG fuel facility means a waterfront facility that handles LNG for 
the sole purpose of providing LNG from shore-based structures to 
vessels for use as a marine fuel, and that does not transfer LNG to or 
receive LNG from vessels capable of carrying LNG in bulk as cargo.
* * * * *
0
4. Amend Sec.  127.007 as follows:
0
a. Revise the section heading, and paragraphs (a), (b), and (e);
0
b. Redesignate paragraph (h) as paragraph (i);
0
c. Redesignate paragraph (g) as paragraph (h);
0
d. Add paragraphs (g) and (j).
    The revisions and additions read as follows:

Sec.  127.007  Letter of intent and waterway suitability assessment for 
waterfront facilities handling LNG or LHG.

    (a) An owner or operator intending to build a new facility handling 
LNG or LHG, or an owner or operator planning new construction to expand 
marine terminal operations in any facility handling LNG or LHG, where 
the construction or expansion would result in an increase in the size 
and/or frequency of LNG or LHG marine traffic on the waterway 
associated with a facility, must submit a Letter of Intent (LOI) to the 
Captain of the Port (COTP) of the zone in which the facility is or will 
be located. The LOI must meet the requirements in paragraph (c) of this 
section.
    (b) An owner or operator intending to reactivate an inactive 
facility must submit an LOI that meets paragraph (c) of this section to 
the COTP of the zone in which the facility is located.
* * * * *
    (e) An owner or operator intending to build a new LNG or LHG 
facility, or an owner or operator planning new construction to expand 
marine terminal operations in any facility handling LNG or LHG, where 
the construction or expansion would result in an increase in the size 
and/or frequency of LNG or LHG marine traffic on the waterway 
associated with a facility, must file or update as appropriate a 
waterway suitability assessment (WSA) with the COTP of the zone in 
which the facility is or will be located. The WSA must consist of a 
Preliminary WSA and a Follow-on WSA. A COTP may request additional 
information during review of the Preliminary WSA or Follow-on WSA.
* * * * *
    (g) An owner or operator intending to build a new LNG facility must 
submit the preliminary WSA no later than the date that the owner or 
operator files a pre-filing request with FERC under 18 CFR parts 153 or 
157. The LOI must include the nation of registry for, and the 
nationality or citizenship of the officers and crew serving on board, 
vessels transporting LNG that are reasonably anticipated to be 
servicing the LNG facility.
* * * * *
    (j) An owner or operator intending to construct a new LNG fuel 
facility or modify any LNG fuel facility, or reactivate an inactive LNG 
fuel facility may comply with Sec.  127.008 in lieu of meeting the 
requirements in this section.
0
5. Add Sec.  127.008 to read as follows:

Sec.  127.008  Letter of intent and operational risk assessment for LNG 
fuel facilities.

    (a) An owner or operator intending to build a new LNG fuel 
facility, modify construction of any LNG fuel facility, or reactivate 
an inactive LNG fuel facility electing to complete an operational risk 
assessment in lieu of a WSA as outlined in Sec.  127.007, must submit a 
Letter of Intent (LOI) and an operational risk assessment to the 
Captain of the Port (COTP) of the zone in which the LNG fuel facility 
is or will be located at least 1 year prior to the start of LNG 
transfer operations.
    (b) Each LOI must contain the information in Sec.  127.007(c)(1) 
through (5).
    (c) The owner or operator who submits an LOI under paragraph (a) of 
this section must notify the COTP in writing within 15 days of any of 
the following:
    (1) There is any change in the information submitted under 
paragraph (b) of this section; or
    (2) No LNG fuel transfer operations are scheduled within the next 
12 months.
    (d) The operational risk assessment required by paragraph (a) must:
    (1) Be carried out in accordance with Chapter 7 of ISO 
18683:2015(E) and Appendix D of DNVGL-RP-G105; or Chapter 19 of NFPA 
59A (all incorporated by reference, see Sec.  127.003); or other 
industry developed risk assessment method acceptable to the Office of 
Operating and Environmental Standards, Commandant (CG-OES); and
    (2) Consider possible factors affecting the ship/shore interface 
and port operations described in Section 6 of ISO 28460:2010(E) 
(incorporated by reference, see Sec.  127.003).
0
6. Amend Sec.  127.009 by revising paragraphs (a) introductory text and 
(a)(1) to read as follows:

Sec.  127.009  Letter of recommendation.

    (a) After the COTP receives the information and analyses required 
by Sec.  127.007 or Sec.  127.008, the COTP issues a Letter of 
Recommendation (LOR) as to the suitability of the waterway for LNG

[[Page 62678]]

or LHG marine traffic or the operational safety and security of the LNG 
fuel facility to the Federal, State, or local government agencies 
having jurisdiction for siting, construction, and operation, and, at 
the same time, sends a copy to the owner or operator, based on the--
    (1) Information submitted under Sec. Sec.  127.007 or 127.008;
* * * * *

Sec.  127.011   [Amended]

0
7. Amend Sec.  127.011 by removing the word ``shall'' and adding, in 
its place, the word ``must''.
0
8. In Sec.  127.015, revise paragraphs (c)(1) and (d) to read as 
follows:

Sec.  127.015   Appeals.

* * * * *
    (c) * * *
    (1) Appeal that ruling in writing to the Assistant Commandant for 
Prevention Policy, U.S. Coast Guard, (CG-5P), 2703 Martin Luther King 
Jr. Ave. SE, Stop 7509, Washington, DC 20593-7509; and
* * * * *
    (d) The Assistant Commandant for Prevention Policy issues a ruling 
after reviewing the appeal submitted under paragraph (c) of this 
section, which is final agency action.
* * * * *
0
9. In Sec.  127.017, revise the introductory text of paragraph (a) to 
read as follows:

Sec.  127.017   Alternatives.

    (a) The COTP may allow alternative procedures, methods, or 
equipment standards, including alternatives to standards listed in 
Sec.  127.003, to be used by an operator instead of any requirements in 
this part if--
* * * * *

Sec.  127.019   [Amended]

0
10. Amend Sec.  127.019 as follows:
0
a. In paragraphs (a) and (b), remove the word ``shall'' wherever it 
appears, and add, in its place, the word ``must''; and
0
b. In paragraph (b), remove the word ``existing''.
0
11. Revise Sec.  127.101 to read as follows:

Sec.  127.101   Design and construction: General.

    The marine transfer area for LNG must meet the following criteria 
in NFPA 59A (incorporated by reference, see Sec.  127.003):
    (a) Chapter 5, Section 5.3.1.7;
    (b) Chapter 6, Section 6.7;
    (c) Chapter 10;
    (d) Chapter 11, except Sections 11.9, and 11.10;
    (e) Chapter 12;
    (f) Chapter 15, except Sections 15.4 and 15.6; and
    (g) Annex B.
0
12. Amend Sec.  127.107 by revising paragraphs (a) and (c) to read as 
follows:

Sec.  127.107   Electrical power systems.

    (a) The electrical power system must have a power source and a 
separate emergency power source, so that failure of one source does not 
affect the capability of the other source. The system must meet NFPA 70 
(incorporated by reference, see Sec.  127.003).
* * * * *
    (c) If an auxiliary generator is used as an emergency power source, 
it must meet Section 700.12 (incorporated by reference, see Sec.  
127.003).
0
13. In Sec.  127.201, revise paragraphs (b)(2), (c)(1) and (2) to read 
as follows:

Sec.  127.201   Sensing and alarm systems.

* * * * *
    (b) * * *
    (2) Meet section 16.4 of NFPA 59A (incorporated by reference, see 
Sec.  127.003).
    (c) * * *
    (1) Be in each enclosed or covered Class I, Division 1, hazardous 
location defined in section 500.5(B)(1) of NFPA 70 (incorporated by 
reference, see Sec.  127.003) and each area in which flammable or 
combustible material is stored; and
    (2) Meet section 16.4 of NFPA 59A (incorporated by reference, see 
Sec.  127.003).

Sec.  127.301   [Amended]

0
14. In Sec.  127.301(b), remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.309   [Amended]

0
15. In Sec.  127.309, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.311   [Amended]

0
16. In Sec.  127.311(a), remove the word ``shall'' and add, in its 
place, the word ``must''.

Sec.  127.313   [Amended]

0
17. Amend Sec.  127.313 as follows:
0
a. In paragraph (a), remove the word ``shall'' and add, in its place, 
the word ``must''; and
0
b. In paragraph (b), remove ``Chapter 4 of'' and add ``(incorporated by 
reference, see Sec.  127.003)'' after ``NFPA 30''.

Sec.  127.315   [Amended]

0
18. In Sec.  127.315, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.317   [Amended]

0
19. In Sec.  127.317, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.319   [Amended]

0
20. In Sec.  127.319, remove the word ``shall'' wherever it appears and 
add, in its place, the word ``must''.

Sec.  127.321   [Amended]

0
21. In Sec.  127.321, remove the word ``shall'' wherever it appears and 
add, in its place, the word ``must''.

Sec.  127.401   [Amended]

0
22. In Sec.  127.401, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.403   [Amended]

0
23. In Sec.  127.403, remove the word ``shall'' and add, in its place, 
the word ``must''.
0
24. In Sec.  127.405, revise the introductory text and paragraphs 
(a)(1) and (b) to read as follows:

Sec.  127.405   Repairs.

    The operator must ensure that--
    (a) * * *
    (1) The equipment continues to meet the applicable requirements in 
this subpart and in NFPA 59A (incorporated by reference, see Sec.  
127.003); and
* * * * *
    (b) Welding is done in accordance with NFPA 51B and Section 10.4.3 
of NFPA 59A (both incorporated by reference, see Sec.  127.003).

Sec.  127.407   [Amended]

0
25. In Sec.  127.407 (a), remove the word ``shall'' and add, in its 
place, the word ``must''.

Sec.  127.409   [Amended]

0
26. In Sec.  127.409(a), remove the word ``shall'' and add, in its 
place, the word ``must''.
0
27. In Sec.  127.603, revise paragraph (a) to read as follows:

Sec.  127.603   Portable fire extinguishers.

* * * * *
    (a) Portable fire extinguishers that meet section 16.6.1 of NFPA 
59A and Chapter 6 of NFPA 10 (both incorporated by reference, see Sec.  
127.003); and
* * * * *

Sec.  127.611   [Amended]

0
28. In Sec.  127.611, remove ``ASTM F 1121'' and add, in its place, the 
text ``ASTM F 1121-87''.

Sec.  127.613   [Amended]

0
29. In Sec.  127.613, remove the word ``shall'' and add, in its place, 
the word ``must''.

[[Page 62679]]

Sec.  127.615   [Amended]

0
30. In Sec.  127.615, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.617   [Amended]

0
31. In Sec.  127.617, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.701   [Amended]

0
32. Remove the undesignated center heading ``Security'' that precedes 
Sec.  127.701.

Sec.  127.701   [Removed]

0
33. Remove Sec.  127.701.

Sec.  127.703   [Removed]

0
34. Remove Sec.  127.703.

Sec.  127.705   [Removed]

0
35. Remove Sec.  127.705.

Sec.  127.707   [Removed]

0
36. Remove Sec.  127.707.

Sec.  127.709   [Removed]

0
37. Remove Sec.  127.709.

Sec.  127.711   [Removed]

0
38. Remove Sec.  127.711.

Sec.  127.1101   [Amended]

0
39. Amend Sec.  127.1101 as follows:
0
a. In paragraph (a), remove ``ASME B31.3'' and add, in its place, the 
text ``ASME B31.3-2018 (incorporated by reference, see Sec.  
127.003)''; and
0
b. In paragraph (h), add ``(incorporated by reference, see Sec.  
127.003)'' after ``API RP 2003''.

Sec.  127.1102   [Amended]

0
40. In Sec.  127.1102(a)(4)(ii), remove ``ANSI B16.5'' and add, in its 
place, ``ASME B16.5-2017 (incorporated by reference, see Sec.  
127.003)''.

Sec.  127.1103   [Amended]

0
41. In Sec.  127.1103, remove the word ``existing'' wherever it 
appears.

Sec.  127.1105   [Amended]

0
42. In Sec.  127.1105, remove the word ``existing.''

Sec.  127.1107   [Amended]

0
43. In Sec.  127.1107, add ``(incorporated by reference, see Sec.  
127.003)'' after ``NFPA 70''.

Sec.  127.1203   [Amended]

0
44. In Sec.  127.1203(a), remove ``ANSI S12.13, Part I'' and add, in 
its place, ``IEC 60079-29-1 (incorporated by reference, see Sec.  
127.003)''.

Sec.  127.1207   [Amended]

0
45. In Sec.  127.1207(c), remove the word ``shall'' and add, in its 
place, the word ``must''.

Sec.  127.1301   [Amended]

0
46. In Sec.  127.1301(b), remove the word ``shall'' wherever it appears 
and add, in its place, the word ``must''.

Sec.  127.1302   [Amended]

0
47. In Sec.  127.1302, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.1309   [Amended]

0
48. In Sec.  127.1309, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.1311   [Amended]

0
49. In Sec.  127.1311, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.1313   [Amended]

0
50. Amend Sec.  127.1313 as follows:
0
a. In paragraph (a), remove the word ``shall'' and add, in its place, 
the word ``must''; and
0
b. In paragraph (b), remove ``Chapter 4 of'' and add ``(incorporated by 
reference, see Sec.  127.003)'' after ``NFPA 30''.

Sec.  127.1315   [Amended]

0
51. In Sec.  127.1315 remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.1317   [Amended]

0
52. In Sec.  127.1317, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.1319   [Amended]

0
53. In Sec.  127.1319, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.1321   [Amended]

0
54. In Sec.  127.1321, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.1325   [Amended]

0
55. In Sec.  127.1325, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.1401   [Amended]

0
56. Remove the word ``shall'' and add, in its place, the word ``must''.

Sec.  127.1403   [Amended]

0
57. In Sec.  127.1403, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.1405   [Amended]

0
58. Amend Sec.  127.1405 as follows:
0
a. In the introductory paragraph, remove the word ``shall'' and add, in 
its place, the word ``must'';
0
b. In paragraph (a)(1), remove the word ``and''; and
0
c. In paragraph (b), add ``(incorporated by reference, see Sec.  
127.003)'' after the text ``NFPA 51B''.

Sec.  127.1407   [Amended]

0
59. In Sec.  127.1407, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.1409   [Amended]

0
60. In Sec.  127.1409, remove the word ``shall'' wherever it appears, 
and add, in its place, the word ``must''.

Sec.  127.1501   [Amended]

0
61. In Sec.  127.1501 (a), remove the word ``existing.''

Sec.  127.1503   [Amended]

0
62. In Sec.  127.1503, add ``(incorporated by reference, see Sec.  
127.003)'' after ``NFPA 10''.

Sec.  127.1511  [Amended]

0
63. In Sec.  127.1511, remove ``ASTM F 1121'' and add, in its place, 
``ASTM F 1121-87''.

Sec.  127.1601   [Amended]

0
64. In Sec.  127.1601, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.1603   [Amended]

0
65. In Sec.  127.1603, remove the word ``shall'' and add, in its place, 
the word ``must''.

Sec.  127.1605   [Amended]

0
66. In Sec.  127.1605, remove the word ``shall'' and add, in its place, 
the word ``must''.

    Dated: September 18, 2020.
R. V. Timme,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention 
Policy.
[FR Doc. 2020-21071 Filed 10-2-20; 8:45 am]
BILLING CODE 9110-04-P