[Federal Register Volume 85, Number 193 (Monday, October 5, 2020)]
[Proposed Rules]
[Pages 62651-62679]
[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

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<EMAIL_ADDRESS>
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

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,

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

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

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

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.

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.

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).

                                    [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

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

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.

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

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.

                                   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.

    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.

                                                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.
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                                          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.
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                                                 LNG--Equipment
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