Document ID: USCG-2011-1178-0108
Agency: uscg
Document Type: Notice
Title: National Preparedness for Response Exercise Program (PREP) Guidelines
Posted Date: 2016-04-11T04:00Z

[Federal Register Volume 81, Number 69 (Monday, April 11, 2016)]
[Notices]
[Pages 21362-21370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08215]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[USCG-2011-1178]

National Preparedness for Response Exercise Program (PREP) 
Guidelines

AGENCY: Coast Guard, DHS.

ACTION: Notice of availability of updated PREP Guidelines.

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SUMMARY: The U.S. Coast Guard (USCG) announces that the updated 2016 
PREP Guidelines have been finalized and are now publicly available. The 
USCG is publishing this notice on behalf of the National Scheduling 
Coordination Committee (NSCC), which has been renamed and henceforth 
will be known as the PREP Compliance, Coordination, and Consistency 
Committee (PREP 4C). The PREP 4C is comprised of the same membership as 
was the NSCC, and includes representatives from the USCG under the 
Department of Homeland Security (DHS); the Environmental Protection 
Agency (EPA); the Pipeline and Hazardous Materials Safety 
Administration (PHMSA) under the Department of Transportation (DOT); 
and the Bureau of Safety and Environmental Enforcement (BSEE) under the 
Department of the Interior (DOI).

DATES: The 2016 PREP Guidelines document will become effective on June 
10, 2016.

ADDRESSES: To view the 2016 PREP Guidelines as well as documents 
mentioned in this notice as being available in the docket, go to http://www.regulations.gov, type ``USCG-2011-1178'' and click ``Search.'' 
Then click the ``Open Docket Folder.'' Additional relevant comments are 
available in related docket BSEE-2014-0003 and may be viewed online 
using the same procedure.

FOR FURTHER INFORMATION CONTACT: 
    For USCG: Mr. Jonathan Smith, Office of Marine Environmental 
Response Policy, 202-372-2675.
    For EPA: Mr. Troy Swackhammer, Office of Emergency Management, 
Regulations Implementation Division, 202-564-1966.
    For BSEE: Mr. John Caplis, Oil Spill Preparedness Division, 703-
787-1364.
    For DOT/PHMSA: Mr. Eddie Murphy, Office of Pipeline Safety, 202-
366-4595.

SUPPLEMENTARY INFORMATION:

I. Acronyms

ACP Area Contingency Plan
API American Petroleum Institute
BSEE Bureau of Safety and Environmental Enforcement
CFR Code of Federal Regulations
COTP Captain of the Port
DOI Department of the Interior
DOT Department of Transportation
EPA Environmental Protection Agency
EVC Equipment Preparedness Verification Capability
FE Functional Exercise
FOSC Federal On-Scene Coordinator
FR Federal Register
FRP Facility Response Plan
FSE Full-Scale Exercise
GIUE Government-Initiated Unannounced Exercise
GRP Geographic Response Plan
GRS Geographic Response Strategies
HSEEP Homeland Security Exercise and Evaluation Program
IMT Incident Management Team
NCP National Oil and Hazardous Substances Pollution Contingency Plan
NIMS National Incident Management System
NSCC National Scheduling Coordination Committee
NSFCC National Strike Force Coordination Center
NTL Notice to Lessees
OCS Outer Continental Shelf
OPA 90 Oil Pollution Act of 1990
OSPD Oil Spill Preparedness Division
OSRO Oil Spill Removal Organization
OSRP Oil Spill Response Plan
PAV Preparedness Assessment Visit
PHMSA Pipeline and Hazardous Materials Safety Administration
PREP Preparedness for Response Exercise Program
PREP 4C PREP Compliance, Coordination, and Consistency Committee
QI Qualified Individual
RRT Regional Response Team
SSDI Subsea Dispersant Injection
TTX Tabletop Exercise
USCG U.S. Coast Guard
VRP Vessel Response Plan
WCD Worst Case Discharge

II. Background

    On February 22, 2012, the USCG invited comments and suggestions for 
updating the PREP Guidelines (77 FR 10542). The PREP 4C received public 
comments in docket number USCG-2011-1178. After considering those 
comments, the PREP 4C issued a draft update to the PREP Guidelines. The 
PREP 4C also issued a notice (79 FR 16363, March 25, 2014) that 
announced the availability of the draft update to the PREP Guidelines, 
invited comment on the draft, and provided responses to the comments 
received in docket USCG-2011-1178. That second notice (79 FR 16363) was 
published as a BSEE-issued document in docket BSEE-2014-0003. The PREP 
4C reviewed the comments received in docket BSEE-2014-0003, and on 
February 27, 2015, published a subsequent notice and request for 
further comment on the updated draft PREP Guidelines again in docket 
USCG-2011-1178 (80 FR 10704). The PREP 4C considered the comments 
received in docket USCG-2011-1178, and today announces the availability 
of an updated and final version of the 2016 PREP Guidelines. This 
notice also responds to the latest round of comments that was received 
in the USCG docket in response to the February 27, 2015 notice.

III. Summary of Comments and Changes

    When the USCG, on the behalf of the PREP 4C, requested public 
review of the second updated draft of the PREP Guidelines in its 
February 2015 notice at 80 FR 10704, the USCG received 77 comment 
submissions from government agencies, regulated communities, private 
industry, and non-governmental organizations. All of the comments

[[Page 21363]]

received are posted on http://www.regulations.gov, under docket number 
USCG-2011-1178. This document summarizes and responds to those comments 
that were within the scope of the proposed update.
    Since the February 27, 2015 publication of the updated draft PREP 
Guidelines and Federal Register notice (80 FR 10704), the NSCC has been 
reconstituted and renamed the PREP 4C. While the Committee is comprised 
of same membership agencies, it has adopted a new charter that 
established Committee Co-Chairs from the USCG and the EPA, and created 
a comprehensive oversight agenda for the administration of the PREP 
program. Published materials regarding the PREP 4C and the PREP program 
will be available online at the National Strike Force Coordination 
Center (NSFCC) Web site.
    The PREP 4C has incorporated numerous changes into the 2016 PREP 
Guidelines document as a result of public comments. In the following 
sections, we summarize the most recent comments received and the 
changes that the PREP 4C has made in promulgating the 2016 PREP 
Guidelines.
    Two commenters requested a public meeting. The PREP 4C discussed 
this request, and given that there were three rounds of public comments 
in the Federal Register, it was determined that a public meeting was no 
longer necessary.

A. Summary of Changes

    Revised Formatting of the PREP Guidelines Document: The formatting 
of the PREP Guidelines has been updated to provide consistency and ease 
of use throughout the entire document.
    The Definition of an Oil Spill Removal Organization (OSRO): 
Numerous commenters suggested the need to clarify the different types 
of providers that should be considered OSROs for the purposes of PREP. 
The definition of an OSRO has been updated to include, and better 
describe, a broader range of response resources and services, including 
source control, all spill countermeasures, and supporting services that 
an OSRO may provide in order to adequately contain, secure, recover, or 
mitigate a discharge of oil. While the nature of OSROs has evolved over 
time, the OSRO definitions in the Code of Federal Regulations (CFR) 
have not changed and are different from agency to agency. For the 
purposes of the PREP Guidelines, the OSRO definition has been broadened 
to be more inclusive, to reflect that multiple response options are 
available, and to ensure that the needs of all involved in PREP are 
met. This definition is not intended to conflict with the regulations.
    Plan Holder Exercises: Commenters indicated that the terms 
``internal'' and ``external'' as used to describe different types of 
PREP exercises were confusing. The PREP 4C agrees. As a result, 
``internal'' exercises, as described in the previous Guidelines, are 
now referred to as ``plan holder'' exercises. For the purpose of the 
Guidelines, plan holder exercises are conducted to evaluate the 
industry-specific oil spill response plans. This includes regulated 
vessels, pipelines, railcars, and facilities. Plan holder exercises may 
involve both internal and external entities, and may be initiated by 
either the plan holder or by a government agency, but are all conducted 
as part of the plan holder's triennial exercise cycle to test the 
response plan and overall preparedness. The term ``external'' will no 
longer be used to describe a type of exercise under PREP. A table has 
been added to the PREP Guidelines (Appendix B) to further address the 
confusion between internal and external exercises. Further, this table 
is a crosswalk between PREP and the Homeland Security Exercise and 
Evaluation Program (HSEEP) and can be used as a Quick Reference Guide 
for the requirements for any particular type of PREP Exercise.
    PREP versus Regulation Terminology: Commenter's noted some 
inconsistency with respect to terminology between the PREP Guidelines 
and the regulations. PREP4C has changed certain exercise-related terms 
in order to harmonize PREP with other national-level exercise programs. 
In particular, the term ``Spill Management Team (SMT)'' has been 
replaced by the term ``Incident Management Team (IMT).'' For example, 
an SMT tabletop exercise (SMT TTX) will now be called an IMT exercise. 
Much of the exercise terminology was updated to align with the HSEEP. 
This does not imply new or different requirements from the regulations, 
but rather provides a ``synonym'' that is consistent with nationwide 
exercise terminology.
    Area-Level Exercises: Area-level exercises evaluate the components 
of an Area Contingency Plan (ACP). Additional HSEEP terminology is 
being adopted for Area-level exercises, and may also be used by 
industry plan holders at their discretion. Single functional tests, 
such as Area-level notification exercises and equipment deployments, 
will now be referred to as ``drills.'' Area IMT exercises may be 
conducted as appropriate ``discussion-based'' exercises, which would 
include TTXs, workshops, and seminars. Major Area-level exercises 
designed to test the ACP and the entire response community will now be 
conducted on a quadrennial cycle as ``operations-based, functional or 
full-scale exercises (FE/FSEs).''
    Planning for Area FE/FSEs: This revision of the Guidelines also 
changes the context and terminology that will be used to plan Area FE/
FSEs. In the past, the planning for approximately one third of the Area 
FE/FSEs was led by the government partners in the Area Committee 
(``Government-led''), with a single industry plan holder as an exercise 
partner. Industry plan holders traditionally led the remaining two 
thirds of these exercises (``Industry-led''), with the Area Committee 
as an exercise partner. Under these revised Guidelines, those terms 
will no longer be used within the PREP system; the planning for all 
Area FE/FSEs should be a considered a joint and shared responsibility 
between the government members of the Area Committee and industry plan 
holders (and their contracted OSROs). Regardless of the division of 
labor that is enacted for planning any specific Area FE/FSE, a joint 
exercise design team composed of all the exercise planning partners 
should develop the FE/FSE scope, scenario, and objectives. The joint 
FE/FSE design team should be comprised of representatives from Federal 
Government agencies, state and local government agencies, the local 
response community, and an industry plan holder. If applicable, tribal 
entities will be invited to participate. The lead planning element, if 
one is designated, will coordinate the overall execution of the Area 
FE/FSE; however, it remains the ultimate responsibility of the Area 
Committee and the Area Committee Chair to ensure that the Area FE/FSE 
is completed in accordance with the PREP Guidelines and the quadrennial 
schedule. The lead planning partner and the Area Committee Chair will 
share the decision-making responsibility for the design of the 
exercise, including the scope, scenario, and objectives. The goal of 
the PREP is to conduct an Area FE/FSE for each Area Contingency Plan 
during each quadrennial cycle.
    The Guiding Principles Section of the Guidelines now includes 
additional information regarding the planning of Area FE/FSEs and also 
for evaluating incident-based Area exercise credit requests. In 
particular, Area FE/FSEs should involve a scenario that addresses the 
scope and complexity of, at a minimum, a complex Incident Command 
System (ICS) Type 3 Incident.
    Shared Credit for OSRO Equipment Deployment Exercises: Additional

[[Page 21364]]

information has been included in the Guiding Principles Section on 
sharing credit between plan holders for equipment deployment exercises 
conducted by OSROs. Due to the large number of plan holders 
participating in PREP, and the burden it would put on OSROs to conduct 
separate equipment deployment exercises on behalf of each plan, it has 
become an accepted practice for OSROs to conduct equipment deployment 
exercises on behalf of all their plan holders. In such circumstances, 
exercise credit can be extended to and shared amongst all the plan 
holders for the deployment of that specific OSRO equipment and 
personnel in a specific location (USCG Captain of the Port (COTP) zone, 
Regional Response Team (RRT) region, EPA ACP area, or EPA subarea), 
provided that each plan holder has contracted for the use of the 
equipment and personnel that was exercised. Where exercise credit is 
extended to all the plan holders who are clients for an OSRO's 
equipment deployment exercise, each type of response equipment being 
deployed in this manner should be exercised on an annual basis.

B. Summary of Select Comments and Responses

General Comments
    Aligning PREP Terminology and Processes with Other National 
Exercise Programs: Three commenters recommended aligning the PREP 
Guidelines with various elements of the HSEEP.
    Response: The PREP 4C has decided to adopt certain terminology from 
HSEEP in order to better align the two programs, especially where HSEEP 
terms are more reflective of the lexicon used today within the National 
Incident Management System (NIMS). In the previous revision of the 
Guidelines, the PREP 4C changed certain exercise-related terms. In 
particular, the term ``Spill Management Team (SMT)'' was replaced by 
the term ``Incident Management Team (IMT).'' The term ``tabletop 
exercise (TTX)'' was temporarily removed; however, in response to the 
public comments, the term has been reinstated in the Guidelines as a 
proper reference to a type of discussion-based exercise that is 
appropriate for IMT exercises. The 2016 PREP Guidelines incorporate a 
number of additional HSEEP terms and concepts with respect to the Area-
level exercises. However, the PREP 4C did not believe it was within the 
scope of the existing PREP mandate to completely adopt the HSEEP 
exercise design and evaluation processes. While the PREP 4C would 
encourage plan holders to consider adopting various HSEEP best 
practices.
    Differences in Terminology between PREP and Agency-specific OPA 
Implementing Regulations: Multiple comments noted some inconsistencies 
between terminology now being used in the 2016 PREP Guidelines and the 
regulations promulgated by different agencies that contain the 
requirement for exercising oil spill response plans.
    Response: Exercise terminology that was updated to align with the 
HSEEP does not imply in any way new or different requirements than what 
is contained in regulations; rather, these terms should be viewed and 
treated as ``synonyms'' that have been adopted to ensure that the PREP 
program is consistent and easily compared to nationwide exercise 
terminology used in most other current programs. PREP 4C made every 
effort to ensure that terminology is as straightforward and 
transferable as is practical, and has developed a table in the PREP 
Guidelines (Appendix B) in order to provide a crosswalk and quick 
reference guide between the exercise types in PREP and HSEEP 
terminology.
    Use of the Term ``Containment'': One commenter stated that the 
addition of source control and subsea containment equipment into the 
PREP Guidelines document requires the use of the word ``containment'' 
to be defined everywhere in the document as either subsea or surface.
    Response: The PREP 4C acknowledges that the term ``containment'' 
can be used in the context of containing oil on the water's surface as 
well as containing oil under water. Wherever the word containment is 
used in the context of containing oil under the water's surface, the 
word ``subsea'' will precede the word ``containment''. Where the word 
``containment'' is used by itself, it is presumed to be associated with 
efforts to contain oil on the water's surface.
    Use of Electronic Messaging for Qualified Individual (QI) 
Notification Exercises: One commenter requested that electronic 
messaging be allowed as a primary means for notifying QIs of a spill.
    Response: The PREP 4C has reviewed the language within the draft 
PREP Guidelines and determined that the language will remain the same. 
The PREP 4C determined that verbal notification should remain the 
primary means of communication because it quickly confirms that the 
notification has been received and allows for immediate questions that 
may save time in emergencies. Electronic messaging is an acceptable 
alternative if voice is unavailable; however, confirmation of 
notification must be received.
    Equipment Deployment Exercises and Lessons Learned Regarding 
Equipment Performance: One commenter noted a concern regarding the 
conditions under which equipment deployment exercises are conducted, as 
well as the lack of mechanisms in place to capture field deployment 
information. This commenter recommended that the USCG and BSEE develop 
a standard system to evaluate the performance of spill response 
equipment under a range of environmental conditions and capture that 
information in a lessons learned database.
    Response: The primary purpose of the PREP Guidelines is to provide 
guidance to industry on oil spill response exercises as required by OPA 
90. Collecting information concerning the performance of spill response 
equipment in a database is outside the scope of these Guidelines.
    Dispersant-Related Objectives during PREP Exercises: One commenter 
requested that the Guidelines clarify what activities should be 
conducted by dispersant providers by using the term ``dispersant 
service OSROs'' in various places in the document, including in the 
objectives for IMT and equipment deployment exercises.
    Two commenters submitted extensive recommendations to incorporate 
additional specific dispersant-related objectives in unannounced, 
deployment, and IMT exercises.
    Response: The PREP 4C determined that the best way to provide 
clarity on this issue was to broaden the definition of OSRO to include 
all providers that offer any and all spill response resources designed 
to contain and secure a discharge, and recover or mitigate the impacts 
of the spilled oil through various countermeasures and supporting 
services, including mechanical recovery, in-situ burning, dispersants, 
bioremediation, salvage, source control, and other response services 
directly supporting the incident such as aerial surveillance and remote 
sensing. As such, the use of term OSRO in the Guidelines should be 
interpreted broadly to apply to providers that render any and all such 
services, unless it is specifically stated in the language of a 
particular section to be applicable to a smaller subset of such 
providers.
    Both BSEE and USCG regulations have requirements concerning 
dispersant capabilities for many of their plan holders. In order to 
ensure both government and industry are prepared to use all available 
response countermeasures, the PREP 4C incorporated additional guidance

[[Page 21365]]

regarding dispersants and in-situ burning into various exercise 
objectives, as applicable. In particular, BSEE had included in the 
previous version of the draft Guidelines an exercise objective for 
industry IMT exercises to prepare and submit usage plans for each 
chemical, biological, or in-situ burning countermeasure that is cited 
as a response strategy within oil spill response plans (OSRP) during 
the course of their exercise cycle. BSEE has now added to that 
objective a recommendation to prepare Daily Dispersant Application 
Plans using the template contained in American Petroleum Institute 
(API) Technical Report 1148, or an equivalently structured document, 
for surface-applied dispersants. BSEE has also added language to the 
IMT exercise objectives for offshore facilities that would involve the 
submission of a subsea dispersant injection (SSDI) application request, 
a usage and monitoring plan, and an overall dispersant stockpile 
management plan. The USCG has also adopted language in their IMT 
exercise requirements for preparing usage plans for chemical, 
biological, or in-situ burning countermeasures.
    Deployment of Dispersant Equipment: One commenter recommended 
clarifying the requirements for the deployment of dispersant equipment 
by including wording specific to deploying ``dispersant capabilities'' 
in the list of objectives for each of the various agency sections.
    Response: Specific guidance regarding the deployment of dispersant 
equipment is adequately articulated in the Guiding Principles Section 
and does not need to be repeated throughout each agency section of the 
Guidelines.
    Dispersant Deployment Exercises: One commenter recommended that 
dispersant deployment exercises should include testing of flight 
tracking and recording systems, key communications equipment, and flow 
control and reporting systems, and that dosage charts should be 
verified. One commenter suggested that every dispersant aircraft should 
be deployed annually.
    Response: The PREP 4C added language to the Guiding Principles 
regarding the deployment of dispersant equipment to include the testing 
of flight tracking and recording systems, key communications gear, and 
flow control and reporting systems. The PREP 4C believes that verifying 
dosage charts is beyond the scope of an equipment deployment exercise, 
and should be addressed through an OSRO's maintenance program and 
verified, if necessary, through audits conducted by the USCG during 
Preparedness Assessment Visits (PAVs) or by BSEE during Equipment 
Preparedness Verification Capability (EVC) meetings. The PREP 4C also 
believes that requiring every dispersant aircraft to be deployed in an 
exercise annually is not in alignment with existing agency regulatory 
requirements or the overall PREP Guidelines regarding the deployment of 
equipment. PREP states that each type of dispersant system should be 
deployed in a triennial cycle, unless that equipment is being deployed 
by an OSRO on behalf of all plan holders for shared credit. In cases of 
shared credit deployment exercises, each type of dispersant application 
system would need to be deployed by an OSRO annually, but not each 
individual dispersant spraying or spotter aircraft.
    Reducing the Frequency of Equipment Deployment Exercises for 
Facility-owned Equipment: One commenter suggested that facilities that 
have company-owned response equipment onsite that is operated by an 
OSRO be required to conduct only one equipment deployment exercise per 
year.
    Response: The USCG, EPA, and other PREP 4C members disagree with 
this suggestion. Facility-owned equipment is stored at a single 
facility and is not used frequently for response or preparedness 
activities like other OSRO equipment; therefore, such equipment should 
be exercised twice annually to ensure its serviceability is properly 
maintained. It should be noted that EPA's requirement on plan holder 
equipment deployment frequency in Section 4 remains the same as USCG's.
    Deployment Exercises for In-Situ Burning Equipment: One commenter 
indicated that a deployment exercise of in-situ burning equipment 
should not require Federal On-Scene Coordinator (FOSC) approval.
    Response: The PREP 4C agrees. The requirement for FOSC approval has 
been removed and the language clarified to indicate that the burning of 
oil during an equipment deployment exercise is not allowed. The 
deployment of in-situ burning equipment by itself that does not involve 
any discharge or burning of oil does not require any government 
approval in order to be conducted. The discharge of oil for the 
purposes of conducting in-situ burning research is not permitted and is 
outside of the scope of the PREP Guidelines.
    Worst Case Discharge (WCD) Definition/Area Exercise Scenario 
Design: Several comments were submitted regarding the need to 
substitute a WCD with a near WCD that occurs in a high sensitivity 
environment.
    Response: WCD is defined in the CWA, and further defined in each 
agency's regulations and cannot be changed by the PREP Guidelines. PREP 
4C believes, however, that preparedness is a function of many variables 
besides spill volume. As such, PREP 4C believes that Area Committees 
should have flexibility when designing an Area FE/FSEs scope and 
scenario as long as the exercise tests the elements of the plan that 
would similarly be required in responding to a WCD, consistent with the 
guidance for ACPs as described in 40 CFR 300.210(c). Focusing on a 
complex ICS Type 3 or greater incident will ensure that the critical 
elements outlined by the National Oil and Hazardous Substances 
Pollution Contingency Plan (NCP) are considered and exercised.
    Government-Initiated Unannounced Exercises (GIUEs): Multiple 
comments were received requesting clarification of the requirements for 
plan holder participation in GIUEs for multiple vessels or facilities 
covered under a single plan.
    Response: The language in Section 2, Guiding Principles, has been 
updated to clarify guidance regarding participation in GIUEs for plan 
holders that have plans covering multiple vessels and facilities. A 
facility that has successfully completed a GIUE will not be required to 
participate in another GIUE for at least 36 months; however, other 
facilities covered in the same plan are still subject to GIUES at any 
time. A vessel that has successfully completed a GIUE will not be 
required to participate in another GIUE in any COTP zone for 36 months. 
Other vessels under that same plan will not be required to complete 
another GIUE in that same COTP zone for 36 months. Other vessels in the 
same plan may be subject to a GIUE in another COTP zone at any time.
    Frequency of GIUEs: One commenter suggested including a frequency 
for agencies to conduct GIUEs, stating that all agencies should have a 
minimum number of GIUEs that are to be conducted.
    Response: The frequency or number of GIUEs conducted by each agency 
is outside the scope of the PREP Guidelines. It is up to each agency to 
determine its policy regarding GIUEs based upon available resources, as 
well as preparedness and compliance monitoring needs.
    Publication of USCG GIUE Results: One commenter suggested that each 
USCG Sector should be required to publish their GIUE results and the 
findings from each exercise annually in

[[Page 21366]]

a public venue. This would allow interested parties to verify that the 
required number of unannounced exercises were conducted, as well as 
ensure that lessons learned from each of those exercises are shared for 
the overall benefit of industry's continuous improvement process in oil 
spill response.
    Response: USCG disagrees with publishing GIUE results because they 
are considered compliance monitoring activities. In discussions with 
PREP 4C, all agencies agreed to emphasize to their field personnel that 
each Area Committee should discuss general GIUE trends within their 
area of responsibility to assess overall preparedness and share lessons 
learned.
    Testing Geographic Response Plans (GRPs) during PREP Exercises: One 
commenter noted that GRPs and Geographic Response Strategies (GRSs), 
which have been incorporated into many ACPs, should be incorporated 
into PREP, tested during deployment exercises, and the resultant data 
collected to be used to improve the GRPs/GRSs.
    Response: The PREP 4C agrees that the targeted testing of certain 
GRPs and GRSs is a desirable preparedness activity that could improve 
the quality of the strategies contained within an ACP. The PREP 
Guidelines cover the testing of response strategies in Section 2, 
Guiding Principles, Area FE/FSE Exercises. The PREP 4C encourages Area 
Committees and FOSCs to consider exercising and evaluating GRPs as part 
of the Area exercise cycle, subject to their discretion and available 
funding.
    Appendix A. Core Components for Exercising Response Plans: One 
commenter indicated that Appendix A was out of date and needed 
significant updates.
    Response: The PREP 4C reviewed the content and organization of 
Appendix A and made a number of adjustments to the Appendix. Language 
was inserted into the Guiding Principles Section that strengthens the 
connection between the plan holder exercise cycles and Area exercise 
cycles, and the need to exercise each Core Component as appropriate. 
Appendix A was retitled as ``Core Components for Exercising Response 
Plans'' to place more emphasis on using the Appendix as a tool for 
designing and evaluating exercises, in addition to serving as a 
compliance measure for a plan holder's or Area Committee's execution of 
their exercise cycles. The ``Source Control'' Core Component was 
revised to include well control activities. The ``Recovery'' Core 
Component was retitled ``Mitigation,'' and the supporting language was 
broadened to clarify that mitigation may include the use of various 
spill countermeasures, including, but not limited to, dispersants, in-
situ burning, and bioremediation, in addition to mechanical oil 
recovery.
USCG-Regulated Facilities/Vessels Comments
    GIUEs: Federal versus State/Local Requirements: Several commenters 
noted that many local/state governments retain their own exercise and 
resource requirements and that these local/state mandates need to be 
considered in the PREP Guidelines.
    Response: The USCG disagrees that state and local requirements be 
incorporated into the PREP Guidelines; however the USCG does agree that 
coordination among local, state, and federal stakeholders is optimal to 
minimize burden on industry. A state's right to administer its own 
regulatory program within the confines of federal and state laws must 
be respected. As such, programs can coexist as distinct programs with 
separate, different standards. It is vitally important not to blend the 
two programs and blur the lines between state and federal 
jurisdictions. In the spirit of minimizing impacts to industry and 
promoting overall government efficiency, USCG-specific instruction/
guidance on conducting GIUEs does indeed promote coordination with EPA, 
and state and local agencies. Conducting a ``joint'' exercise may 
reduce the burden on the regulated plan holder, but various regulatory 
participants (USCG, EPA, state, etc.) may have distinctly different 
objectives and standards unique to their respective regulations.
    Scope/Emphasis of GIUEs: One commenter suggested that USCG GIUEs 
should focus more on the aspects of a plan holder's preparedness than 
on the arrival and deployment times of response equipment.
    Response: In general terms, the USCG agrees. The PREP Guidelines 
have been synchronized with new USCG GIUE policy. Language in Section 2 
for USCG and EPA GIUEs stresses multiple components for successful 
completion of GIUE, not just arrival and deployment of equipment, 
particularly for inland plan holders.
    Fleet Limits for GIUEs: There were several comments regarding the 
burden/expense of vessel GIUEs and the need to identify fleet limits 
(if all vessels fall under the same plan).
    Response: The USCG acknowledges the concerns expressed regarding 
the burden posed by vessel GIUEs. The PREP Guidelines have been updated 
to include language clarifying GUIE limits. Each Vessel Response Plan 
(VRP) (which may include multiple vessels), is restricted to one GIUE 
per 36 months per COTP zone. A vessel that successfully completes a 
GIUE may not be targeted for a GIUE anywhere for 36 months. Other 
vessels falling under the same VRP are eligible for a GIUE in other 
COTP zones, provided the plan number has not otherwise been subject to 
a GIUE within the last 36 months.
    Vessel Response Plan Exercise Frequencies and Economic Burden: Many 
comments were focused on the economic impacts of conducting numerous 
exercises (including GIUEs, equipment deployment, and remote assessment 
and consultation exercises).
    Response: The USCG acknowledges the concerns expressed regarding 
the economic burden posed by VRP exercise frequencies. As the PREP 
Guidelines are implementing guidance for existing regulatory 
requirements, an economic analysis is not required for the Guidelines. 
The PREP guidelines do not add to the economic burden of complying with 
the existing regulations and may, in fact, provide some economic relief 
through reasonable accommodations that still meet the intent of the 
regulations. Specific examples include:
    Remote Assessment and Consultation Exercises. The frequency of 
remote assessment and consultation exercises is significantly reduced 
in PREP, from quarterly to annually per vessel when the vessel operates 
in U.S. waters. The economic burden of this exercise on vessel 
stakeholders is correspondingly reduced. Annual per vessel credit is 
appropriate for remote assessment and consultation exercises to ensure 
that each vessel in the fleet would have the opportunity to simulate 
initiation of a remote assessment and consultation assessment each 
year.
    Equipment Deployment Exercises. Credit for equipment deployment 
exercises for salvage and marine firefighting services may be claimed 
for real world operations, when documented as outlined in Chapter 3. 
This also applies to traditional oil spill recovery and storage 
equipment. Granting credit to world events and operations in lieu of 
conducting traditional exercises optimizes resources and time. This 
practice allows the resource provider to realize income from the 
practical use of the equipment on an actual project while 
simultaneously meeting equipment deployment exercise requirements for 
their vessel owner or operator clients.
    Government-Initiated Unannounced Exercises. The PREP guidelines 
clarify vessel GIUE target selection and

[[Page 21367]]

eligibility criteria. PREP articulates that the regulatory GIUE 
limitation of 1 GIUE per 36 months applies to a VRP (and the entire 
fleet of vessels covered under it) vice an individual vessel. More 
specifically, if a unique vessel is subject to a GIUE, the entire fleet 
of vessels covered under the same VRP is exempt from GIUEs for 36 
months in the COTP Zone in which it was conducted. It is important to 
note that the 36 month GIUE limitations described above are based on 
successful completion of GIUEs only. If a GIUE is deemed unsuccessful, 
the 36 month exemption period does not apply.
EPA-Regulated Facilities Comments
    Scope of Emergency Procedures Exercise: One commenter indicated 
that the scope of an emergency procedures exercise is not defined in 
the Guidelines.
    Response: This exercise is optional for EPA-regulated facilities. 
The scope and objectives of an emergency procedures exercise have not 
changed and are outlined in Section 4 of the PREP Guidelines.
    Frequency of Equipment Deployment Exercises: One commenter 
indicated that the frequencies for equipment deployment exercises for 
EPA Facility Response Plan (FRP) facilities need clarification.
    Response: Frequencies for equipment deployment exercises are either 
annual or semi-annual based on ownership of the response equipment, and 
are clearly specified in Section 4 of the PREP Guidelines; this 
requirement has not changed.
DOT-Regulated Facilities Comments
    Inclusion of Guidance for Railcars in the PREP Guidelines: One 
commenter submitted several comments regarding the inclusion of new 
exercise and training guidance for railroads having railcars with 
capacities of 3,500 gallons or more.
    Response: The inclusion of railcar-specific exercise guidance will 
not be addressed in the PREP Guidelines until new requirements have 
been promulgated in the CFR by PHMSA. PHMSA may address the inclusion 
of railcars in a future update of the PREP Guidelines. However, 
railroads may voluntarily use the PREP Guidelines described for PHMSA-
regulated facilities. In anticipation of new requirements for railcars, 
Section 5 of the PREP Guidelines has been broadened to allow for the 
inclusion of other DOT/PHMSA-regulated facilities.
BSEE-Regulated Offshore Facilities Comments
    Platforms for Drilling Relief Wells during PREP Exercises: Five 
commenters stated that during exercises, certain elements such as a 
drilling rig for implementing a relief well are assessed and documented 
regarding their availability, but are not actually contracted and 
mobilized.
    Response: BSEE agrees that in many exercises, the contracting and 
deployment of resources are simulated based on an assessment of their 
current availability. BSEE does not anticipate conducting any PREP 
exercises where a drilling platform necessary for a relief well would 
actually be expected to be contracted and mobilized for the purposes of 
successfully completing the exercise.
    Exercising Source Control and Subsea Containment Capabilities: Two 
commenters stated that exercising well control scenarios is currently 
not required under BSEE regulations.
    Response: BSEE disagrees. As outlined in Notice to Lessees (NTL) 
2010-N10 and NTL 2012-N06, 30 CFR part 254 requires a plan holder to 
describe in its plan, and then exercise, how it will respond to a WCD, 
including any equipment necessary to contain and recover the discharge. 
BSEE interprets this regulatory language to be inclusive of any 
resources necessary to contain and secure the source of a potential or 
actual discharge, which could include the use of well control 
capabilities such as capping stacks, cap and flow equipment, subsea 
containment devices, and other supporting equipment. As the specific 
actions for controlling and securing the source of the discharge 
through well control are not expressly delineated in the current 
regulations, BSEE will work to clarify expectations and requirements in 
the regulations in a future proposed rulemaking. In the interim, BSEE 
requires under 30 CFR part 254 that source control and subsea 
containment capabilities be available, and these capabilities must be 
included in a plan holder's exercise program.
    Source Control and Subsea Containment Equipment Providers: One 
commenter stated that entities that provide source control equipment 
should not be considered OSROs, as they often do not own the equipment 
or provide the people who might operate the equipment.
    Response: BSEE disagrees. The definition of an OSRO is very broad 
and may include many types of organizations, to include any entity that 
offers response resources necessary to abate, contain, mitigate, and/or 
recover any oil that may be discharged. OSROs may also include entities 
that provide various technologies, services, or equipment that support 
source control or spill response countermeasures. Therefore, for the 
purposes of PREP, BSEE considers organizations that provide source 
control equipment, personnel, and critical support services that may be 
necessary to secure a potential threat or actual discharge of oil into 
the water to meet the definition of an OSRO. Companies that 
manufacture, but do not operate their equipment during a spill, are not 
typically considered OSROs.
    Deployment Exercises for Source Control, Subsea Containment, and 
Supporting Equipment: One commenter requested that BSEE clarify that 
the guidance regarding equipment deployment exercises in Section 6.3 
and 6.4 does not apply to source control and subsea containment 
equipment.
    Response: The commenter is correct; the guidance on equipment 
deployment exercises in Section 6.3 and 6.4 does not apply to source 
control and subsea containment equipment. Section 6.5 was purposely 
added to the PREP Guidelines to specifically address source control and 
subsea containment equipment and prevent confusion with respect to the 
applicability of requirements within Section 6.3 and 6.4.
    Advance Planning for Source Control-related Deployment Exercises: 
One commenter suggested that BSEE consult with industry during the 
advance planning of any source control and subsea containment equipment 
deployment exercises in order to capture past lessons learned and 
maximize the safety of all exercise participants.
    Response: BSEE agrees that collaboration with industry to jointly 
plan for deployment exercises involving source control equipment is an 
effective way to capture past lessons learned and maximize safety, as 
long as such collaboration is compatible with the objectives of the 
particular equipment deployment exercise. BSEE has added language to 
Section 6.5 that encourages agency personnel to conduct advance 
planning with industry whenever possible in preparing for these 
exercises.
    Shared Credit for Source Control and Subsea Containment Deployment 
Exercises: One commenter suggested that all plan holders who contract 
for the services of a source control provider should share in the 
credit for any equipment deployment exercises involving that provider's 
source control equipment.

[[Page 21368]]

    Response: As there is no frequency requirement for plan holders to 
conduct equipment deployment exercises for source control and subsea 
containment equipment, shared credit is not necessary for these 
exercises at this time. However, if any frequency for such equipment 
deployment exercises were to be established in the regulations in the 
future, BSEE agrees that credit for any such equipment deployment 
exercises should be shared amongst all the plan holders that contract 
for that provider's services. BSEE will consider any source control and 
subsea containment deployment exercises that have been completed by a 
contracted provider in the past when evaluating the need for a GIUE 
involving a different plan holder but involving the same provider or 
equipment.
    Frequency of Source Control and Subsea Containment Exercises: 
Numerous commenters raised concerns regarding the frequency of 
deployment exercises for source control and subsea containment 
equipment, and offered suggestions on potential deployment requirements 
and verification practices. One commenter felt it was essential to test 
the full range of source control and subsea containment equipment, 
including all necessary supporting logistical arrangements, once every 
triennial cycle. Another commenter supported a much more limited 
deployment and testing regime of this equipment and recommended an 
interval of once every nine years. Five commenters stated that frequent 
deployment of capping stacks in exercises could damage the equipment 
and result in plan holders not having source control equipment coverage 
while repairs are made.
    Response: BSEE is required to verify the ability and preparedness 
of plan holders to implement their source control plans (as outlined in 
their Oil Spill Response Plans or referenced Regional Containment 
Demonstrations). BSEE recognizes industry's many concerns regarding the 
costs, safety concerns, and operational disruptions that may accompany 
the deployment of this equipment. BSEE also appreciates the many 
suggestions that were offered by commenters for possible deployment 
frequencies and verification best practices. As the current regulations 
in 30 CFR part 254 do not establish a required interval for the 
deployment of this type of equipment, the PREP Guidelines cannot 
provide any additional guidance on a specific interval requirement at 
this time. In the absence of any defined scope and frequency interval 
in the regulations, BSEE will continue to conduct deployments of source 
control capabilities at the discretion of the BSEE Oil Spill 
Preparedness Division (OSPD) Chief, in consultation with the 
appropriate BSEE Regional Director, as needed to assess and verify the 
overall preparedness of a plan holder, or group of plan holders, to 
operate in an Outer Continental Shelf (OCS) Region. As the scope and 
cost of such deployment exercises can be quite large, BSEE does not 
intend to require plan holders or providers of source control, subsea 
containment, and supporting equipment to conduct deployment exercises 
at the same semi-annual or annual frequency as required for other spill 
response equipment. BSEE will continue to evaluate the information that 
was submitted to the docket as BSEE prepares to update its regulations 
in 30 CFR part 254.
    Operational Risk during Deployment Exercises: Five commenters 
stated that source control and subsea containment equipment should be 
removed from the equipment deployment section of the Guidelines due to 
the perceived increased risk that any such deployment operations might 
entail.
    Response: BSEE disagrees. As with the deployment of any substantial 
and complex piece of response equipment, safety risks are present, but 
can be effectively addressed through proper attention to, and 
implementation of, safe working practices and operational risk 
management throughout the exercise.
    Deployment Exercises for Subsea Dispersant Injection (SSDI) 
Equipment: One commenter stated that if SSDI equipment in an OSRP were 
to be used in conjunction with the deployment of source control and 
subsea containment operations, SSDI should be included in Section 6.5 
of the Guidelines regarding source control and subsea containment 
deployment exercises. The commenter also stated that a requirement to 
develop dispersant stockpile management plans should be added to the 
contents of Regional Containment Demonstration Plans.
    Response: BSEE agrees in part. The deployment of SSDI equipment 
will occur in close proximity to the deployment of source control and 
subsea containment equipment, and will involve many similar logistical 
and operational challenges. As such, BSEE will treat the deployment 
exercises of these two types of equipment in a similar manner. BSEE 
will not require plan holders to exercise their SSDI equipment at the 
same frequency intervals as other spill countermeasures that are 
designed for removing or mitigating oil at the water's surface. Plan 
holders will only be required to exercise SSDI equipment upon receiving 
direction from the Chief of OSPD, or the Chief's designated 
representative. However, plan holders should carefully describe how 
SSDI capabilities will be used in their OSRPs. Plan holder exercises 
and training, BSEE equipment verifications, and GIUEs should also 
reflect this information. Completing SSDI usage requests and plans, as 
well as completing dispersant stockpile management plans (as 
appropriate), were also added in response to comments as possible 
exercise objectives in Section 6.2, which provides guidance on BSEE-
required IMT exercises. While BSEE acknowledges the value of adding 
information that addresses the management of dispersant stockpiles in 
the Regional Containment Demonstration Plans, the content of the 
Regional Containment Demonstrations is outside of the scope of the PREP 
Guidelines document.
    GIUEs Involving Source Control, Subsea Containment, and Supporting 
Equipment: One commenter stated that source control and subsea 
containment equipment should be excluded from deployment during a GIUE. 
Five commenters raised concerns regarding cost, high risks, and 
substantial time burdens associated with unannounced exercises of this 
equipment, and questioned their utility to demonstrate real readiness. 
In particular, these commenters raised concerns regarding the cost and 
impacts to industry operations if source control and subsea containment 
equipment must be recalled from active commercial service and deployed 
in a GIUE. One commenter further elaborated on the potential for 
disruption and the expected challenges of obtaining the necessary 
equipment during a non-emergency GIUE due to the mutual aid nature of 
the arrangements made for equipment through their source control 
provider that is likely to remain in active service until an emergency 
occurs. The commenters further stated that they, in collaboration with 
other plan holders, USCG, and BSEE, conduct annual IMT exercises and 
training with their source control provider to ensure that they are 
ready to implement source control activities during an incident, which 
should obviate the need to conduct any GIUEs involving source control 
capabilities. One commenter stated that logistical systems supporting 
source control operations should be deployed and exercised triennially 
in a GIUE. Five commenters stated that quarterly material inspections 
and testing of capping stacks is adequate to

[[Page 21369]]

ensure the preparedness of a plan holder and source control provider, 
and that deployments of the capping stack and other source control 
equipment in an unannounced exercise are unnecessary. Five commenters 
suggested that BSEE coordinate with the plan holder to observe source 
control equipment that is in daily operational use in normal drilling 
operations to verify its material condition, availability, and 
operational readiness, rather than requiring the equipment to be 
deployed in an exercise. Five commenters stated that during a GIUE 
targeting the deployment of source control or subsea containment 
equipment, the plan holder or service provider should be able to 
provide documentation of past operational use in lieu of conducting an 
actual deployment of the equipment.
    Response: BSEE fully acknowledges industry's concerns regarding the 
complexity, operational impacts, and costs associated with a GIUE of 
any source control and subsea containment equipment, and will factor 
these concerns into any decisions requiring such exercises. BSEE will 
also evaluate the potential for costs and disruptions to mutual aid 
sources of equipment when considering the possibility of designing, 
holding, and evaluating any GIUE that would involve the deployment of 
such equipment. BSEE will also evaluate a plan holder's and their 
source control providers' exercise, training, and maintenance programs 
in their assessment of the plan holder's overall preparedness when 
determining the need to hold a GIUE involving source control 
capabilities. BSEE agrees that plan holder-initiated exercises and 
training, whether announced or unannounced, are critical parts of plan 
holder preparedness. However, BSEE also believes that GIUEs serve as an 
important added incentive for plan holders to maintain their readiness. 
The GIUE is an important evaluation and compliance tool used by BSEE in 
exercising its oversight responsibilities that is not always adequately 
replicated by agency participation in plan holder-initiated exercises 
and training. BSEE believes that the logistical systems that support 
source control and subsea containment operations are candidates to be 
part of the potential scope and exercise objectives for a GIUE. BSEE 
has added language to that effect in the subsection providing guidance 
on BSEE GIUEs. BSEE does not, however, set or implement regular 
frequency intervals for deploying or exercising the specific 
capabilities, whether spill response, source control, or supporting 
logistical systems, for any specific plan holder, OSRO, or support 
service provider through its execution of GIUEs. The inspection and 
testing of source control equipment conducted under 30 CFR part 250 
have a different focus and purpose from GIUEs and equipment deployment 
exercises conducted under 30 CFR part 254 and PREP. BSEE acknowledges 
that these activities may be synergistic in ensuring overall 
preparedness; however, they are not redundant to the point of making 
one or the other unnecessary. The inspection and testing of capping 
stacks is an important part of the overall process of ensuring and 
maintaining the functionality and proper operating condition of source 
control capabilities; PREP exercises, on the other hand, often focus on 
an operator's ability to mobilize and deploy the equipment, and on the 
proficiencies of response personnel who must operate the equipment in 
emergency conditions. BSEE will certainly consider the overall 
performance of these tests and inspections when considering whether 
there is a need to hold a deployment exercise, whether announced or a 
GIUE, of a capping stack or other significant source control equipment. 
BSEE acknowledges the potential utility of conducting checks of 
equipment while it is in actual operational use as a form of verifying 
material readiness, and may elect to pursue this means in certain 
circumstances. However, checks performed in this manner may not always 
satisfy BSEE compliance and exercise objectives or requirements for 
evaluating certain aspects of a plan holder's and their source control 
providers' overall readiness. BSEE disagrees with the suggested 
practice of providing documentation of past operational use as the 
default means of meeting GIUE deployment exercise expectations and 
objectives; however, it is left to the discretion of the BSEE officials 
conducting the GIUE to determine what level of actual deployment 
operations will be required to test spill response preparedness and 
what items may be satisfied through the presentation of documentation. 
Decisions regarding focus, scope, and means of compliance for any BSEE-
initiated GIUE objectives that will test spill response preparedness, 
including those involving source control and subsea containment 
equipment, is at the discretion of the BSEE OSPD Office Chief and the 
Chief's designated Section personnel conducting the GIUE. BSEE does not 
intend to routinely conduct GIUEs that include the deployment of source 
control, subsea containment, and supporting equipment as part of the 
scope of a GIUE; however, BSEE has the authority and retains the 
prerogative to require GIUEs that have the deployment of source 
control, subsea containment, and/or supporting equipment as an element 
of that exercise, or to require deployment exercises of this equipment 
that are coordinated in advance but have some elements and objectives 
that will remain undisclosed until the commencement of the exercise. As 
organizations that provide source control, subsea containment, and 
supporting equipment and services cover multiple plan holders, if any 
deployment exercise is successfully conducted by such a service 
provider, BSEE will honor credit for that deployment exercise to all 
plan holders who contract with the provider for that equipment. This 
extension of credit does not extend to IMT exercises where the 
management and oversight of source control activities must be exercised 
to ensure proper integration with other surface response activities and 
the overall management of the incident. These IMT exercises must 
include interaction between officials from a plan holder's specific 
organization and its IMT, including those officials who would manage 
source control and subsea containment activities, and therefore should 
be conducted separately and singularly for each OSRP.
    Frequency of GIUEs Conducted by BSEE: Five commenters requested 
that BSEE clarify language regarding the frequency of GIUEs, and 
specifically requested that the word ``generally'' be removed regarding 
the applicability of a GIUE to any facility. One commenter stated that 
each BSEE OSPD Section should set a minimum number of GIUEs that will 
be conducted in each OCS Region, and those numbers and exercise results 
should be published annually.
    Response: BSEE agrees with the requested clarification of removing 
the word ``generally'', and has made the requested change. BSEE 
disagrees that the Bureau should be bound to a fixed number of GIUEs 
for any given year. BSEE will use a number of factors that vary from 
year to year in determining the need to conduct GIUEs and will use 
risk-based decision-making tools whenever possible. The current 
language in the revised Guidelines has been retained to indicate that 
the number of GIUEs conducted by BSEE will be determined by the BSEE 
OSPD Chief, and does not make any reference to a specific minimum 
number that must be conducted in a given year. In order to maintain 
maximum flexibility in conducting GIUEs as preparedness

[[Page 21370]]

needs dictate, BSEE does not intend to publish any information in 
advance regarding the number of GIUEs being planned during a calendar 
year. BSEE does publish the number of GIUEs that were conducted each 
year in its Annual Report, which is available for public viewing on the 
BSEE Web site. BSEE does not publish the specific results of each GIUE 
in the report.
    Dispersant Application Requests and Usage Plans: Two commenters 
stated that IMTs should be proficient in preparing request forms and 
application plans for the use of aerial dispersants to the FOSC/RRT, 
and that the Daily Aerial/Vessel Dispersant Application Plan, as 
outlined in API Technical Report 1148, is an acceptable template that 
would provide for a consistent methodology for such plans.
    Response: BSEE agrees, and has inserted language in their IMT 
exercise guidance recommending that IMTs use the API Technical Report 
in preparing the requests and usage plans.

IV. Public Availability of 2016 PREP Guidelines

    The PREP 4C has finalized the 2016 PREP Guidelines which will be 
publicly available on a new NSFCC/PREP4C Web site and can also be found 
at https://Homeport.uscg.mil/exercises. The USCG is releasing the 2016 
PREP Guidelines on behalf of the PREP 4C.

    Dated: April 5, 2016.
P.J. Brown,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Response 
Policy.
[FR Doc. 2016-08215 Filed 4-8-16; 8:45 am]
 BILLING CODE 9110-04-P