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0900006480e85872
U.S. DOT/RSPA - Draft Regulatory Evaluation and Regulatory Flexibility Assessment Liquefied Natural Gas Facilities Clarifying and Updated Safety Standards
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Page 14 2t133 ::/,y 23 ;?+, f 1: 9 1 RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION 49 CFR Part 193 [Docket No. RSPA-03-14456; Notice 11 - 2 RIN 2137-AD80 Draft Regulatory Evaluation and Regulatory Flexibility Assessment Liquefied Natural Gas Facilities Clarifying and Updating Safety Standards Backmound The Research and Special Programs Administration (RSPA) is proposing to clarifjr its safety standards for liquefied natural gas (LNG), Part 193. In addition, this notice proposes to revise standards that contain incorrect cross-references, make minor editorial changes to sections concerning fire protection and training standards, and require annual reviews of plans and procedures. The notice also proposes to update present references to the National Fire Protection Association (NFPA) 59A standard to the 2001 edition of that standard. These actions are neec ed to remove ambiguities, assure that plans and procedures are up-to-date, and modernize present references to NFPA 59A. The changes would improve the clarity and effectiveness of RSPA’:; LNG facility safety standards. Need for the remlation In the Federal Register of March 1,2000 (65 FR 10950), RSPA published a Final Rule amending the safety standards in 49 CFR Part 193 for liquefied natural gas facilities used in gas pipeline#
Page 2transportation. The purpose of the Final Rule, which took effect March 3 1,2000, was to replace many existing standards on siting, design, construction, equipment, and fire protection with references to a consensus standard, NFPA 59A, “Standard for the Production, Storage, and Handling of LNG’ (1996 edition). However, an amendment to 3 193.2005 inadvertently made the application of Part 193 to existing LNG facilities unclear. As amended by the Final Rule, 193.2005(a) can now be interpreted to exclude LNG facilities existing on March 3 1,2000, from all changes the Final Rule made to operation, maintenance, and fire protection standards. However, RSPA did not intend such a broad exclusion. This NPRM would clarifL that LNG facilities existing or now under construction are exempt only from new or amended standards on siting, design installation, and construction of LNG facilities. Below is a summary of the changes proposed in the NPRM. Part 193 contains several sections with cross-references to sections in Subpart I, Fire Protection, that were removed by the Final Rule published March 1,2000. RSPA is proposing to delete tl e incorrect cross references. Part 193 requires operators to prepare and follow written plans and procedures for various LNIS plant activities. For example, plans are required for personnel health (0 193.271 1) and training ($3 193.271 1-193.2717) and procedures are required for operations (0 193.2503), emergencies ($ 193.2509(b)), fluid transfers (0 193.2513(a)), maintenance ($ 193.2605(b)), and security (8 193.2903). Under 3 193.2017 operators must make their plans and procedures available fcr review by federal and state inspectors. Reviews by RSPA personnel have disclosed that while 2#
Page 3operators generally keep their plans and procedures up-to-date, not all plans and procedures are kept up-to-date. And outmoded plans and procedures can be a source of safety problems. Our safety standards in 49 CFR Part 192, which apply to gas pipelines serving LNG plants, address this potential problem by requiring operators to review and update their operating and maintenance procedures at intervals not exceeding 15 months, but at least once each calendar year (8 192.605(a)). We think a similar requirement should apply to plans and procedures for LNG plants. Therefore, we are proposing to establish a new 0 193.2017(c) to require annual reviews and updates of plans and procedures required by Part 193. Section 193.27 17 requires operators of LNG plants to train their operations and maintenance personnel in fire protection. The training must include “plant fire drills.” To meet this fire dri 1 requirement, some operators use only tabletop exercises. We believe such exercises are inconsistent with the ordinary meaning of “fire drill,” which includes the evacuation of buildings and personnel performing fire control duties. Therefore, to insure that proper fire drills are conducted, we are proposing to amend 5 193.2717 to require that fire drills include personnel performing fire control duties and the evacuation of buildings. See proposed 0 193.27 17(c) below. At present, many sections in Part 193 concerning siting, design, construction, equipment, fire protection, and operating and maintenance records incorporate by reference the 1996 edition csf NFPA 59A, “Standard for the Production, Storage, and Handling of LNG.” However, the 195’6 edition of the standard is now out-of-date and is no longer available in book form from NFPA . 3#
Page 4The latest edition, the 2001 edition, is available from NFPA either in book or electronic form. We have considered the differences between the 1996 and 2001 editions of NFPA 59A and believe it is in the interest of LNG facility safety to amend Part 193 to reference the 2001 edition instead of the 1996 edition. This update would be accomplished by changing Appendix A to Part 193 as set forth below. In addition, the specific reference to the 1996 edition in 5 193.2019(a) would be replaced by a general reference to NFPA 59A. As indicated by 5 193.2013(a), any general reference to NFPA 59A refers to the latest edition listed in Appendix A. Alternatives RSPA considered two alternative scenarios. First, the status quo alternative or do not adopt an:i of the clarifjmg changes. Second, adopt the changes that add clarity and update the rules, RSPA chose the second alternative as it felt that adopting these changes would clarify the regulations and update the rules to reflect general industry practice. Benefits This section describes the benefits of the proposed changes. The first proposed change is amending the rule that potentially excluded existing LNG facilitic s from all changes made to operation, maintenance, and fire protection standards that were mad€ in the final rule published in March 3 1,2000. RSPA believes making this change will benefit thc public by allowing RSPA to enforce its regulations in this area. However, since 4#
Page 5operators likely continued to follow the pre-2000 changes in this area the safety benefits of this change would be minimal. The second proposed change concerned the deleting of incorrect cross references. The benefit of this be to lessen the confusion of operators who when trying to check a cross reference finds out that the reference does not exist. The third proposed revision is operators must review and revise their plans and procedures onc 2 a year. The major benefit of this change is ensure that operators have up-to-date information in their plans and procedures. Outmoded plans and procedures could lead to potential safety problems if operators are following outmoded safety precautions. The fourth proposed change is to require operators to perform “plant fire drills” which include the evacuation of buildings and personnel performing fire control duties. RSPA has observed that a small number of LNG operators have been performing “table top” fire drills instead of “plant lire drills” as described above. RSPA believes that the practicing of “plant fire drills” will better prepare LNG personnel in times of emergency. The fifth and final change involves updating the incorporation by reference from the 1966 edil ion of the National Fire Protection Administration (NFPA) 59A, “Standard for the Production, Storage, and Handling of LNG, which is out-of-date and unavailable with the 2001 edition of the NFPA Standard. The newer addition includes differences regarding the concept of maximum 5#
Page 6credible earthquake, new models of vapor dispersion distances, testing frequencies for LNG tank relief valves, and changes to training and security standards. RSPA believes that these changes represent industry’s most current views on LNG safe practices. RSPA believes that adoption of these changes should lead to more clear and coherent regulatioiis that will be easier to follow and enforce and represent the most current thinking on the safe operation of LNG facilities. costs This section examines the costs of adopting the regulation changes described above. The first proposed change concerns amendments to the LNG regulations that were made in 2000. These changes included sections on operations, maintenance, and fire protection. RSPA does lot believe that any LNG operators changed their practices as a result of amendments to these sections in the 2000 Federal Register notice. Therefore, RSPA does not believe that any opera tors will face a cost impact to this proposed change. The second change concerned the deletion of incorrect cross references. This will have not cost impact as it will only remove some incorrect text references. The third proposed change concerns the requirement for an annual updating and review of plans and procedures. The vast majority of LNG facilities already own and operate natural gas 6#
Page 7pipelines. Therefore they already comply with similar regulations in Part 192 that require annuit1 review and updating. RSPA believes that because they already comply with these similar requirements they are likely to be complying with this proposed requirement for annual updating of LNG facilities and that this proposed change will have little to no economic impact on LNG facility owners and operators. The fourth requirement concerns the requirement for LNG “plant fire drills” in lieu of table top exercises. An internal survey by RSPA revealed that the majority of LNG operators were performing “plant fire drills” rather than table top drills. Therefore, RSPA concludes that this change will only impact a small number of operators. The fifth and final change involves the updating of the referencing of the NFPA LNG standards from the out-of-date 1996 edition to the more current 2001 edition. NFPA is an industry led standards organization. As such they represent a group which develops safety guidelines deve‘ op with industry coordination and collaboration. RSPA believes that as a recognized standards organizations their guidelines are being universally adopted by the LNG industry. Therefore, RSPA believes there will be no cost impact on making this change in reference. After performing its review, RSPA believes that these changes will have little or no economic impact on LNG operators. 7#
Page 8Conclusion RSPA has analyzed this proposal and found that none of the changes proposed will have an adverse consequence on costs to operators or safety to the general public. Rather, the updating of and the clarification of LNG regulations has the potential for enhanced public safety. R e d a t o w Flexibilitv Certification Based upon the above information showing that the economic impact of this rule will be minirrlal, as they merely clarify the regulations and adopt general industry practices and offer additional options to pipeline operators, I certify under Section 605 of the Regulatory Flexibility Act that this regulation will not have a significant impact on a substantial number of small entities. 8#
This material provides agency context. It does not replace binding regulatory text, and its legal effect depends on the underlying authority and facts.