Federal Register, Volume 77 Issue 68 (Monday, April 9, 2012)

[Federal Register Volume 77, Number 68 (Monday, April 9, 2012)]
[Proposed Rules]
[Pages 21359-21381]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-7919]

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Vol. 77

Monday,

No. 68

April 9, 2012

Part V

Department of Homeland Security

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Coast Guard

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33 CFR Parts 151, 155, 156 et al.

46 CFR Part 197

MARPOL Annex I Amendments; Proposed Rule

Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Proposed
Rules

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Parts 151, 155, 156, and 157

46 CFR Part 197

[Docket No. USCG-2010-0194]
RIN 1625-AB57

MARPOL Annex I Amendments

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this notice of proposed rulemaking (NPRM), we are proposing
to update our regulations to harmonize U.S. regulations with
international conventions regarding oil pollution and safety of life at
sea. The Coast Guard proposes to amend our regulations covering
Navigation and Navigable Waters to align with recent amendments to
Annex I of the International Convention for the Prevention of Pollution
from Ships, 1973, as modified by the Protocol of 1978, which were
adopted by the Marine Environment Protection Committee during its 52nd,
54th, 56th, and 59th sessions. In addition, we are proposing to
incorporate guidance from the Maritime Safety Committee, based on
updates to the International Convention for the Safety of Life at Sea
1974, into our regulations covering shipping. Finally, we are seeking
public comment on an alternative to add a requirement that some new
U.S. non-oceangoing vessels be equipped with an oily bilge water
storage tank.

DATES: Comments and related material must either be submitted to our
online docket via http://www.regulations.gov on or before July 9, 2012
or reach the Docket Management Facility by that date. Comments sent to
the Office of Management and Budget (OMB) on collection of information
must reach OMB on or before July 9, 2012.

ADDRESSES: You may submit comments identified by docket number USCG-
2010-0194 using any one of the following methods:
(1) Federal eRulemaking Portal: http://www.regulations.gov.
(2) Fax: 202-493-2251.
(3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001.
(4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is 202-366-9329.
To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.
Collection of Information Comments: If you have comments on the
collection of information discussed in section VI.D. of this NPRM, you
must also send comments to the Office of Information and Regulatory
Affairs, (OIRA), Office of Management and Budget. To ensure that your
comments to OIRA are received on time, the preferred methods are by
email to oira_submission@omb.eop.gov (include the docket number and
``Attention: Desk Officer for Coast Guard, DHS'' in the subject line of
the email) or fax at 202-395-6566. An alternate, though slower, method
is by U.S. mail to the Office of Information and Regulatory Affairs,
Office of Management and Budget, 725 17th Street NW., Washington, DC
20503, Attn: Desk Officer, U.S. Coast Guard.
Viewing incorporation by reference material: You may inspect the
material proposed for incorporation by reference at U.S. Coast Guard
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001 between
9 a.m. and 4 p.m., Monday through Friday, except Federal holidays. The
telephone number is 202-372-1427. Copies of the material are available
as indicated in the ``Incorporation by Reference'' section of this
preamble.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call or email Patrick J. Mannion, U.S. Coast Guard Office of
Operating and Environmental Standards, (CG-5222); telephone 202-372-
1439, email Patrick.J.Mannion@uscg.mil. If you have questions on
viewing or submitting material to the docket, call Renee V. Wright,
Program Manager, Docket Operations, telephone 202-366-9826.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Public Participation and Request for Comments
A. Submitting Comments
B. Viewing Comments and Documents
C. Privacy Act
D. Public Meeting
II. Abbreviations
III. Background
A. MARPOL 73/78
B. SOLAS 1974
IV. Discussion of Proposed Rule
A. Definitional Changes, 33 CFR 151.05
B. Southern South African Waters, 33 CFR 151.13
C. Additional Entries in the Oil Record Book, 33 CFR 151.25
D. Oil Fuel Tank Protection, 33 CFR 155.250
E. Requirements for Oil Sludge Tanks and Oil Filtering Equipment
and Exemption for High-Speed Craft, 33 CFR 155.360 and 370
F. Prevention of Pollution During Transfer of Oil Cargo Between
Oil Tankers at Sea, 33 CFR 156.400-156.420
1. Applicability of Subpart D, 33 CFR 156.400
2. Definitions, 33 CFR 156.405
3. Rules on Safety and Environmental Protection, 33 CFR 156.410
4. Notification, 33 CFR 156.415
5. Reporting of Incidents, 33 CFR 156.420
G. Requirements for Sea Chest Permanently Connected to Cargo
Lines, 33 CFR 157.08 and 157.11
H. Pump-Room Bottom Protection, 33 CFR 157.14
I. Accidental Oil Outflow Performance, 33 CFR 157.20
J. Limitation of Older Regulations to Tankers Delivered After
January 2010, 33 CFR 157.19
K. Implementation of SOLAS 1974 Requirements for Material Safety
Data Sheets
L. Standards Incorporated by Reference
V. Other Alternatives Considered
VI. Incorporation by Reference
VII. Regulatory Analyses
A. Executive Order 12866 and Executive Order 13563 (Regulatory
Planning and Review)
1. The Affected Population
2. Costs
3. Benefits
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Unfunded Mandates Reform Act
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment

I. Public Participation and Request for Comments

We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided.

A. Submitting Comments

If you submit a comment, please include the docket number for this
rulemaking (USCG-2010-0194), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and

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material online or by fax, mail, or hand delivery, but please use only
one of these means. We recommend that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so that we can contact you if we have questions regarding
your submission.
To submit your comment online, go to http://www.regulations.gov and
insert ``USCG-2010-0194'' in the ``Keyword'' box. If you submit your
comments by mail or hand delivery, submit them in an unbound format, no
larger than 8\1/2\ by 11 inches, suitable for copying and electronic
filing. If you submit comments by mail and would like to know that they
reached the Facility, please enclose a stamped, self-addressed postcard
or envelope. We will consider all comments and material received during
the comment period and may change this proposed rule based on your
comments.

B. Viewing Comments and Documents

To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
select the Advanced Docket Search option on the right side of the
screen, insert USCG-2010-0194 in the Docket ID box, press Enter, and
then click on the item in the Docket ID column. If you do not have
access to the internet, you may view the docket by visiting the Docket
Management Facility in Room W12-140 on the ground floor of the
Department of Transportation West Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. We have an agreement with the Department of
Transportation to use the Docket Management Facility.

C. Privacy Act

Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008 issue of the
Federal Register (73 FR 3316).

D. Public Meeting

We do not plan to hold a public meeting. But you may submit a
request for one to the docket using one of the methods specified under
ADDRESSES. In your request, explain why you believe a public meeting
would be beneficial. If we determine that one would aid this
rulemaking, we will hold one at a time and place announced by a later
notice in the Federal Register.

II. Abbreviations

APPS Act to Prevent Pollution from Ships
CFR Code of Federal Regulations
COC Certificate of Compliance
COI Collection of Information
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
Sec. Section symbol
ICR Information Collection Renewal
IMO International Maritime Organization
IOPP International Oil Pollution Prevention
ISO International Standards Organization
MARPOL 73/78 International Convention for the Prevention of
Pollution from Ships, 1973, as modified by the Protocol of 1978
relating to that Convention
MSC Maritime Safety Committee
MSDS Material Safety Data Sheets
MEPC Marine Environment Protection Committee
NLS Noxious liquid substance
NPRM Notice of Proposed Rulemaking
OCIMF Oil Companies International Marine Forum
OCMI Officer in Charge, Marine Inspection
OIRA Office of Information and Regulatory Affairs
OMB Office of Management and Budget
PSC Port state control
SOLAS 1974 International Convention for the Safety of Life at Sea
1974
STS Ship-to-Ship transfer
U.S.C. United States Code

III. Background

Protection of the marine environment and maritime safety are two of
the primary missions of the Coast Guard. Specific Coast Guard
regulations are designed to minimize the amount of pollution produced
by ships at sea and to protect mariners. Many of the pollution control
regulations implement the International Convention for the Prevention
of Pollution from Ships, 1973, as modified by the Protocol of 1978
relating to that Convention (MARPOL 73/78). Similarly, many mariner
safety regulations incorporate provisions from the International
Convention for the Safety of Life at Sea, as amended (SOLAS 1974), to
which the U.S. is also a signatory nation.

A. MARPOL 73/78

MARPOL 73/78 is an international agreement prepared under the
direction of the International Maritime Organization (IMO), a United
Nations specialized agency with responsibility for the safety and
security of shipping and the prevention of marine pollution by ships.
MARPOL 73/78 is the main international convention covering prevention
of pollution of the marine environment by ships from either operational
or accidental causes. MARPOL 73/78 is a combination of two
international agreements adopted in 1973 and 1978 and revised by
subsequent amendments. The International Convention for the Prevention
of Pollution from Ships, was adopted on November 2, 1973 (1973
Convention), and covered pollution by oil, chemicals, harmful
substances in packaged form, sewage, and garbage. The Protocol of 1978,
which amended the 1973 Convention, was adopted in February 1978, in
response to a spate of tanker accidents that occurred in 1976 and 1977.
MARPOL 73/78 entered into force on October 2, 1983. Annex I of MARPOL
73/78 (Annex I), Regulations for the Prevention of Pollution by Oil,
contains provisions intended to minimize both operational and
accidental oil pollution from vessels.
Annex I is implemented in U.S. law through the Act to Prevent
Pollution from Ships (APPS) (Pub. L. 96-478, Oct. 21, 1980, 94 Stat.
2297), codified at 33 U.S.C. 1901 et seq. Under 33 U.S.C. 1902, 1903,
and Department of Homeland Security Delegation No. 0170.1, the Coast
Guard has the authority to draft regulations to implement the MARPOL
73/78 and the amendments thereunder, with respect to U.S. vessels and
foreign vessels within U.S. navigable waters or exclusive economic
zone. The Coast Guard implements MARPOL 73/78 through regulations in 33
CFR parts 151, 155, 156, and 157.
Amendments to MARPOL 73/78 are made through the resolution drafting
and adoption process within the Marine Environment Protection Committee
(MEPC) of IMO. The United States takes part in revising and updating
MARPOL 73/78 by sending delegates to MEPC, who are charged with
negotiating with delegates of other signatory nations to support the
U.S. position regarding pollution from ships.
Since the last revision of Coast Guard regulations implementing
Annex I in 2001, (66 FR 55571), there have been numerous amendments to
the international standards, meaning that the Coast Guard regulations
in the CFR and the provisions of Annex I are not currently aligned.
Annex I was revised by the following resolutions:
MEPC.117(52) (October 15, 2004): This resolution revised
all of Annex I and adopted new Annex I Regulations 22 and 23.
Regulation 22 requires that every tanker of 5,000 deadweight tons or
more, constructed on or after January 1, 2007, meet minimum standards
of pump-room bottom protection, while Regulation 23 requires that every
tanker delivered on or after January 1, 2010, must meet the standard
for accidental

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oil outflow performance. MEPC.117(52) became effective January 1, 2007.
MEPC.141(54) (March 24, 2006): This resolution adopted
Annex I Regulation 12A, which contains requirements for the protected
location of oil fuel tanks and performance standards for accidental oil
fuel outflow for all ships delivered on or after August 1, 2010. This
resolution became effective August 1, 2007.
MEPC.154(55) (October 13, 2006): In this resolution, the
MEPC adopted the Southern South African Waters as a special area, which
prohibits the discharge of bilge water and oil in the defined area.
This resolution entered into force on March 4, 2008.
MEPC.186(59) (July 17, 2009): This resolution adopted a
new Chapter 8 (consisting of Regulations 40, 41, and 42) to Annex I to
prevent pollution during transfer of oil cargo between oil tankers at
sea. In addition, it added a requirement for a Ship-to-Ship transfer
(STS) operations plan. This entered into force on January 1, 2011, and
applies to STS Operations involving oil tankers of 150 gross tons and
more.
MEPC.187(59) (July 17, 2009): This resolution amended
Annex I Regulations 1, 12, 13, 17, and 38 by altering definitions
relating to oil residue, and by adding requirements that ships over 400
gross tons contain sludge tanks that meet certain enumerated
requirements to Regulation 12. It also amended International Oil
Pollution Prevention (IOPP) Certificate Forms A and B to include a
section regarding the means for retention and disposal of oil residues,
and added new recordkeeping requirements prescribing entries in the Oil
Record Book for bunkering of fuel or bulk lubricating oil or any
failure of oil filtering equipment. This resolution entered into force
on January 1, 2011.
With this proposed rule, and as required by the APPS, we would
align our regulations in 33 CFR parts 151, 155, 156, and 157 with
international standards in Annex I regarding oil pollution from ships.
By aligning the U.S. domestic regulations with international standards,
compliant U.S. vessels would not be subject to Port State Control (PSC)
enforcement measures while engaged in international trade.
On August 27, 2007, we published a notice (72 FR 49013), announcing
our policy for resolving conflicts between our regulations and the
Annex I amendments, which remain in effect until our regulations are
aligned with the amendments to MARPOL 73/78. Our goal in this
rulemaking is to align the regulations in the CFR with those in Annex
I, and thus promote consistent and homogenous enforcement of Annex I
through revisions to 33 CFR parts 151, 155, 156, and 157.

B. SOLAS 1974

In addition to revisions to MARPOL 73/78, we have not yet
integrated some revisions to the SOLAS 1974 agreement into 46 CFR Part
197. The Coast Guard represents the United States as a signatory nation
of SOLAS 1974, which specifies standards for the safe operation of
ships at sea. Under 46 U.S.C. 3306, 46 U.S.C. 3703, and Department of
Homeland Security Delegation No. 0170.1, the Coast Guard has authority
to prescribe necessary rules and regulations to implement the
provisions of SOLAS 1974. These sections include authority over the
inspection of vessels and the carriage of liquid bulk dangerous
cargoes. The Coast Guard implements SOLAS 1974, in part, through
regulations in 46 CFR part 197.
Like MARPOL 73/78, SOLAS 1974 is amended by resolution of an IMO
Committee, in this case the Maritime Safety Committee (MSC). In
resolution MSC.150(77), the 77th Session of the MSC urged that
beginning in June 2003, governments ensure the supply and carriage of
Material Safety Data Sheets (MSDS) for Annex I cargoes and marine
fuels. The 83rd session of MSC amended SOLAS 1974 by adding Regulation
5-1 to Chapter VI, stating that ``Ships carrying Annex I cargoes, as
defined in Appendix I to Annex I of [MARPOL 73/78], and marine fuel
oils shall be provided with a MSDS prior to the loading of such cargoes
based on the recommendations developed by IMO.'' The 86th session of
the MSC further amended the SOLAS 1974 into clear and concise language
to ensure a common understanding and unambiguous implementation of
SOLAS Regulation VI/5-1. SOLAS Regulation VI/5-1 entered into force
internationally on July 1, 2009.
Because of these amendments, differences have developed between
SOLAS 1974 and existing Coast Guard regulations. Our proposal resolves
those differences in this rulemaking. Our goal is to adopt SOLAS
Regulation VI/5-1 into U.S. law through 46 CFR part 197, which will
allow enforcement of the provision in the U.S. as well as decrease
exposure of U.S. vessels to PSC detention risk. Therefore, in this
notice, we propose adding regulations to 46 CFR part 197 to conform
with resolution MSC.286(86) (June 5, 2009). MSC.286 (86) adopts
guidelines for the implementing SOLAS Regulation VI/5-1, specifically
requiring the provision of MSDSs for Annex I type oils as cargo in bulk
and oil fuels, replacing the earlier resolution on MSDSs (MSC.150(77)
(June 2, 2003)).

IV. Discussion of Proposed Rule

In this notice of proposed rulemaking (NPRM), we are proposing to
update our regulations in Titles 33 and 46 of the CFR to harmonize U.S.
regulations with international conventions regarding oil pollution and
safety of life at sea. The purpose of this rule is to fulfill the
obligations of the United States to implement MARPOL 73/78 and SOLAS
1974 amendments for U.S. vessels and all vessels operating on the
navigable waters of the United States to which those amendments apply.
The proposed updates in 33 CFR parts 151, 155, 156, and 157 are
intended to implement recent amendments to MARPOL 73/78 for U.S.
vessels and all vessels operating on the navigable waters of the United
States to which those amendments apply. Additionally, we are proposing
to add a new subpart D to 46 CFR part 197 to require MSDSs for Annex I
cargoes and marine fuels to align our regulations with SOLAS 1974.
By aligning the domestic regulations with international standards,
compliant U.S. vessels would not be subject to PSC enforcement measures
while engaged in international trade. In addition, the updated
regulations would produce benefits in terms of offshore oil pollution
prevention and mariner safety.
In the sections below, we discuss the proposed changes to the CFR,
the relevant Annex I amendment(s) that prompted the change, and what we
believe the effect of the proposed changes would be. Following this
section is a table that summarizes each change.

A. Definitional Changes, 33 CFR 151.05

Based on MEPC.187(59), we are proposing to make definitional
changes to 33 CFR 151.05 to align with the ``Definitions,'' of Annex I,
Regulation 1. We are proposing to add definitions for ``oil residue
(sludge),'' ``oil residue (sludge) tank,'' ``oily bilge water,'' and
``oily bilge water holding tank,'' and revise the definitions of ``oily
mixture'' (including deletion of a redundant definition) and ``oil
residue'' (which is a separate term from ``oil residue (sludge)'') in
the definitions section in Sec. 151.05. Adding the definitions from
Annex I would improve the clarity of the regulations and help assure
adherence to them.

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B. Southern South African Waters, 33 CFR 151.13

Section 151.13 codifies MARPOL 73/78 ``special areas'' where, for
recognized technical reasons associated with its oceanographic and
ecological condition and the character of its traffic, special
mandatory methods for the prevention of oil pollution are required. We
are proposing to add ``the Southern South African waters'' to this
section in accordance with MEPC.154(55), which added this new special
area to Regulation 1.11 of Annex I.

C. Additional Entries in the Oil Record Book, 33 CFR 151.25

We are proposing to add three new Oil Record Book entry
requirements, to record the bunkering of oil, any failures of oil
filtering equipment, and failures of the oil discharge monitoring and
control system. We are proposing these changes to conform to the
provisions of Annex I Regulation 17 (17.2.5 and 17.5) and Regulation 36
(36.6), which require these entries in the Oil Record Book. The changes
to Annex I were based on Annex III of MEPC.187(59), adopted on July 17,
2009.
Two of these changes would be in Section 151.25(d), which applies
to all ships that are required to have an Oil Record Book. In 33 CFR
151.25(d)(5), we propose adding a requirement to make an entry for the
bunkering of fuel or bulk lubricating oil. This additional entry would
help to track the use and disposal of oil and oil residues. In 33 CFR
151.25(d)(6) we propose adding a requirement to make an entry for any
failure of oil filtering equipment. The third change would be in 33 CFR
151.25(e), which applies only to oil tankers of 150 gross tons or more.
We propose adding a requirement, as subparagraph (e)(11), to make an
entry for any failure of the oil discharge monitoring and control
system. These additional entries would capture equipment failures for
all ships with an Oil Record Book.

D. Oil Fuel Tank Protection, 33 CFR 155.250

We are proposing to incorporate by reference Regulation 12A, ``Oil
fuel tank protection,'' which details specific requirements for oil
fuel tank protection. On March 24, 2006, MEPC adopted MEPC.141(54),
which added Regulation 12A, to Annex I. Regulation 12A mandates that
oil fuel tanks be protectively located, and expands performance
standards for accidental oil fuel outflow in the event of a collision
or grounding. In addition, Regulation 12A sets a maximum capacity limit
of 2,500 cubic meters per oil fuel tank, limiting environmental damage
should a tank rupture occur. Pursuant to Section 612 of the Coast Guard
Authorization Act of 2010, Public Law 111-281, 121 Stat. 2905 (2010)
(codified as amended at 46 U.S.C. 3306(2010)), Congress required that
all new U.S. vessels meet the requirements of Regulation 12A.
To add these requirements to the CFR, we are proposing to add 33
CFR 155.250, ``Oil fuel tank protection,'' which would apply to each
ship with an aggregate oil fuel capacity of 600 cubic meters or more,
delivered on or after August 1, 2010. Proposed 33 CFR 155.250
references Regulation 12A, which would be incorporated by reference in
33 CFR 155.140.

E. Requirements for Oil Sludge Tanks and Oil Filtering Equipment and
Exemption for High-Speed Craft, 33 CFR 155.360 and 370

The Coast Guard is proposing two changes that would modify Subpart
B of part 155, ``Vessel Equipment.'' These proposed changes would
incorporate changes made to Annex I, Chapter 3, Regulations 12 ``Tanks
for oil residues (sludge),'' and 14 ``Requirements for Machinery Spaces
of All Ships.'' Regulation 12 governs tanks for oil residues (sludge),
and Regulation 14 governs oil filtering equipment.
We are proposing changes to the regulations in 33 CFR 155.360 and
155.370 designed to prevent the discharge of oil sludge into the marine
environment, as well as to incorporate an exemption for high-speed
craft contained in Annex I.
The first part of our proposed changes concerns oil sludge. Oil
sludge, defined in 33 CFR 151.05, consists of residual waste products
that can accumulate in the course of using or delivering oil.
Currently, under 33 CFR 155.360 and 155.370, oceangoing vessels 400
gross tons or more are required to have oily water separating equipment
and sludge tanks capable of retaining all oil residues (sludge)
onboard. Additionally, they are not permitted to store oily water in
their bilges.
To prevent discharge of this sludge into ocean waters, Regulation
12 (paragraph 1) of Annex I requires that all ships of 400 gross tons
or more be fitted with a tank or tanks of adequate capacity to receive
oil residues that cannot be dealt with otherwise in accordance with oil
pollution regulations. Such tanks store the sludge until it can be
disposed of safely.
To adopt the changes to Regulation 12, we are proposing revisions
to both 33 CFR 155.360 and 155.370, which regulate oily mixture
discharges on oceangoing vessels. In 33 CFR 155.360, the regulations
apply to ships of 400 gross tons and above but less than 10,000 gross
tons, excluding those that carry ballast water in their fuel tanks. In
33 CFR 155.370, the regulations apply to ships 10,000 gross tons or
more, as well as to all ships over 400 gross tons that carry ballast
water in their fuel tanks. Adding the requirement regarding sludge
tanks to both sections matches the applicability in Regulation 12, as
it applies to ``every ship of 400 gross tons and above.''
The proposed rule prohibits persons from operating a ship unless it
is fitted with sludge tanks capable of storing the oil residues that
cannot be dealt with through filtering. To provide specifications for
sludge tanks we are proposing to adopt verbatim the language in
Regulation 12, paragraph 2, and add it to 33 CFR 155.360 and 155.370,
as paragraph (b)(3) of each section. These requirements would mandate
that the sludge tanks be provided with a designated disposal pump and
that they have no discharge connections to the bilge system, bilge
water holding tanks, tank top, or oily water separators, although there
is an exception for certain safeguarded drains.
In addition to the changes regarding oil sludge, we are also
proposing to include an exemption for high-speed craft, which is
contained in Regulation 14 of Annex I, as paragraph (a)(1) in sections
155.360 and 155.370. This exemption in the Annex I regulations,
contained in Regulation 14.5.2 (as modified by Regulation 14.5.3),
permits high-speed craft over 400 gross tons to operate without oil
filtering equipment if they are fitted with a holding tank to store
oily bilge water onboard and discharge it to reception facilities. We
believe that the only vessels affected by this exemption are ferries.
Therefore, we believe that the proposed changes to sections 155.360 and
155.370 of the CFR accurately reflect the Annex I regulations.

F. Prevention of Pollution During Transfer of Oil Cargo Between Oil
Tankers at Sea, 33 CFR 156.400-156.420

We are proposing to add a new subpart D to 33 CFR part 156 to cover
Ship to Ship (STS) transfer Operations between oil tankers at sea. This
type of transfer is common in instances where a large tanker transfers
oil to a smaller tanker that is able to offload to a port. Proposed
subpart D, containing new Sec. Sec. 156.400-156.420, aligns with Annex
I Regulations 40, 41, and 42 (collectively, chapter 8), added by

[[Page 21364]]

MEPC resolution 186(59), which apply to oil tankers of 150 gross tons
or more engaged in STS Operations conducted on or after April 1, 2012.
Regulations 41 and 42 impose two substantive requirements
(Regulation 40 pertains to the applicability of the chapter).
Regulation 41, ``General Rules on Safety and Environmental
Protection,'' requires that oil tankers involved in STS Operations
carry and follow an ``STS Operations Plan,'' based on the International
Maritime Organization (IMO) Manual on Oil Pollution, Section 1:
Prevention. Regulation 41 also requires that the person in charge of
STS Operations be qualified to perform all relevant duties, and that
records of STS Operations be retained on board for 3 years. Regulation
42, ``Notification,'' requires each tanker to provide 48-hour advance
notification to the Flag State when planning STS Operations in the Flag
State's territorial sea or exclusive economic zone. It also specifies
required elements of that notification.
Because some STS Operations also could be classified as lightering
operations, which are regulated under subpart B of 33 CFR 156, we are
proposing to modify the applicability section (Sec. 156.200) and
definition of Lightering or Lightering Operations (Sec. 156.205) of
that subpart to explicitly exclude STS Operations. While STS Operations
and lightering operations are similar, they are not identical.
1. Applicability of Subpart D, 33 CFR 156.400
The Coast Guard is proposing to base the applicability of subpart D
on Regulation 40 of Annex I. Proposed subpart D would apply to certain
oil tankers in U.S. territorial seas, as well as U.S. oil tankers that
conduct STS Operations in ports or terminals under the jurisdiction of
other parties to MARPOL 73/78. Specifically, it would apply to an oil
tanker of 150 gross tons or above conducting STS Operations on or after
April 1, 2012, and to the STS Operations if one of the oil tankers
involved is 150 gross tons or above.
Regulation 40 specifies several exceptions, which are incorporated
into proposed Sec. 156.400. Proposed subpart D would not apply to oil
transfer operations associated with fixed or floating platforms used
for the offshore production and storage of oil, which we have addressed
by specifying, in proposed Sec. 156.400(a), that this subpart applies
to the transfer of oil cargo between oil tankers at sea. Proposed
paragraph (b) addresses the other exemptions specified in Regulation 40
by stating that subpart D also would not apply to bunkering operations
where the oil transferred is to be used as fuel, to STS Operations for
the purpose of securing the safety of a ship or saving life at sea,
specific pollution incidents, and to STS Operations involving warships
or governmental, noncommercial service.
2. Definitions, 33 CFR 156.405
The Coast Guard is proposing to add a definition section to subpart
D defining ``oil tanker'' and ``STS Operations'' to ensure that these
regulations are applied properly. This proposed section also contains
definitions for ``Authorized Classification Society,'' ``Flag State,''
and ``marine environment,'' to eliminate any ambiguity that could
arise.
3. Rules on Safety and Environmental Protection, 33 CFR 156.410
Regulation 41 of Annex I contains general rules on safety and
environmental protection, which are being proposed in subpart D as
Sec. 156.410. These rules require that oil tankers carry an STS
Operations Plan developed under best practice guidelines that comply
with that plan. It also requires that the person in overall advisory
control of the STS Operations be qualified to perform all relevant
duties, and that owners or operators of vessels retain records of STS
Operations for 3 years. The requirements of Regulation 41 are being
proposed as paragraphs (a) through (h) of Sec. 156.410. These
regulations would help to ensure that best practices are followed with
regard to the transfer of oil at sea, to mitigate the risk of oil
pollution and to promote safety.
The Coast Guard is proposing additional requirements for those STS
Operations that were formerly categorized as lightering operations.
Some lightering operations, which are currently regulated under subpart
B of part 156, would be classified as STS Operations under subpart D as
a result of the changes in this proposal. Lightering operations are
currently subject to more extensive regulation than that being proposed
for STS Operations. To avoid confusion in overlapping cases, we are
proposing to explicitly exclude STS Operations from the applicability
section of subpart B, and regulating all STS Operations under subpart
D, as discussed above in section IV.F.1. However, in order to preserve
the existing regulatory requirements for those lightering operations
that could also be classed as STS Operations, we have added these
requirements to subpart D as well. These requirements are listed in
Sec. 156.410(i). The specific items listed, including requirements for
Certificates of Inspection, Certificates of Compliance, or Tank Vessel
Examination Letters, are derived from the current requirements in Sec.
156.210, which governs lightering operations, and are necessary for
liquid bulk cargo transfers.
4. Notification, 33 CFR 156.415
Regulation 42 of Annex I contains notification requirements for
vessels engaging in STS Operations, which are being proposed in subpart
D as Sec. 156.415, along with additional notification procedures in
force today that pertain to lightering operations. Regulation 42
requires that oil tankers engaging in STS Operations provide the
relevant MARPOL 73/78 party with 48 hours advance notice of STS
Operations. This includes information regarding the location, time, and
duration of the STS Operations, oil type and quantity, identification
of the STS Operations service provider, and confirmation that there is
a compliant STS Operations Plan. Providing this information to the
MARPOL 73/78 party helps to ensure that STS Operations are conducted
safely and that a suitable safety measure is in place to mitigate
environmental damage. The proposed regulatory text differs from
Regulation 42 for oil tankers planning to conduct STS Operations in
designated lightering areas, where a 24-hour advance notice of STS
Operations to the nearest Captain of the Port (COTP) specified in the
existing Sec. 156.215 would be used instead of the 48-hour notice
specified in Regulation 42. This is being done to recognize industry
best practices and the safety record under the existing notification
requirements for these specific areas.
The proposed regulatory text incorporating the notification
provisions of Regulation 42 differs further from the text of Annex I,
because it also contains some of the notification provisions from the
lightering requirements in subpart B, such as the expected number of
oil transfers, which are not included in the Annex I requirements.
Among these additional proposed requirements is that owners or
operators of a vessel that require a Certificate of Compliance (COC)
inspection, or other special Coast Guard inspections, request the
required inspections from the relevant COTP at least 72-hours prior to
commencement of STS Operations. Receiving this information helps the
Coast Guard better plan for STS Operations and schedule our inspection
workload. We are proposing to add this as Sec. 156.415(e). However,
despite the additions, all of the requirements from

[[Page 21365]]

Regulation 42 have been incorporated into the proposed regulatory text.
5. Reporting of Incidents, 33 CFR 156.420
The Coast Guard is proposing to add Sec. 156.420 to subpart D
relating to the reporting of incidents. This section would ensure that
the relevant COTP would be notified of incidents promptly so they may
respond to them quickly. This section is not based on Annex I, but we
believe that these provisions should be applied to STS Operations to
ensure safety and the most effective Coast Guard response to any
incident. They are derived from similar requirements found in Sec.
156.220, but now would apply to the STS Operations as well.

G. Requirements for Sea Chest Permanently Connected to Cargo Lines, 33
CFR 157.08 and 157.11

The Coast Guard is also proposing requirements for oil tankers of
150 gross tons or more that have a sea chest permanently connected to
the cargo pipeline system. A sea chest is a compartment located on a
vessel's shell plating, below the waterline, through which seawater is
drawn in. The seawater may be used for cooling or ballast purposes.
These requirements were added to Annex I through MEPC.117(52), and are
located in Regulation 30, paragraph 7. To integrate them into the CFR,
we are proposing to add the sea chest requirements as subsection (h) of
Sec. 157.11. Additionally, we are proposing a conforming change to
Sec. 157.08, the applicability section, by adding a subsection (o) to
accommodate vessels delivered on or after January 1, 2010.
This proposal would require that the sea chest be equipped with
both a sea chest valve and an inboard isolation valve. It would apply
to oil tankers of 150 gross tons or more delivered on or after January
1, 2010. We are proposing to add these requirements to help ensure that
oil cargo does not backflow into the sea chest, and thus into the
surrounding water. Additionally, the sea chest would need to be capable
of isolation from the cargo pipeline system during the transfer or
transport of cargo by a positive means that is installed in the
pipeline system to prevent, under all circumstances, the section of
pipeline between the sea chest valve and the inboard valve from being
filled with oil cargo.

H. Pump-Room Bottom Protection, 33 CFR 157.14

We are proposing to incorporate Regulation 22, ``Pump-room bottom
protection,'' (added to Annex I by resolution MEPC.117(52) (October 15,
2004)) into our regulations by adding Sec. 157.14. Regulation 22
provides additional protection to the pump room by requiring double
bottoms to prevent flooding in the event of an incident. This is
necessary to ensure the continual functionality of the ballast and
cargo pumping systems. Regulation 22 also contains an exemption from
the double bottom requirement if flooding of the pump-room would not
render the ballast or cargo pumping system inoperative.
The proposed regulation, which would apply to oil tankers of 5,000
deadweight tons (a measure of the vessel's cargo capacity) or more
constructed on or after January 1, 2007, would establish a requirement
from Regulation 22 that pump-rooms be protected with a double bottom if
the flooding of the pump-room would render the ballast or cargo pumping
system inoperative. It would also establish minimum requirements for
the depth of the double bottom. Section 157.14 would adopt the Annex I
requirements directly by incorporating Regulation 22 by reference.

I. Accidental Oil Outflow Performance, 33 CFR 157.20

We also are proposing to adopt the oil outflow performance from
Annex I, Regulation 23, ``Accidental oil outflow performance.'' This
regulation, which applies to oil tankers delivered on or after January
1, 2010, establishes design requirements to protect against oil
pollution in the event of a collision or grounding. For vessels
delivered in 2010 or later, it replaces older requirements regulating
hypothetical outflow of oil, contained in Regulation 25, and limiting
cargo tank arrangement and size, contained in Regulation 26.
Regulations 25 and 26 continue to apply to vessels delivered before
2010. The new regulation provides detailed design and performance
specifications for oil tankers of all sizes. Section 157.20 would adopt
the Annex I requirements directly by incorporating Regulation 23 by
reference.

J. Limitation of Older Regulations to Tankers Delivered After January
2010, 33 CFR 157.19

We also are proposing an amendment to Sec. 157.19 that would limit
the requirements of Annex I, Regulation 25, ``Hypothetical outflow of
oil,'' and Regulation 26, ``Limitations of size and arrangement of
cargo tanks,'' to oil tankers delivered before January 1, 2010. These
requirements, currently found in Sec. 157.19, do not apply to new
tankers, which would comply with accidental oil outflow performance in
proposed section Sec. 157.20, described above. The proposed amendments
reflect paragraph 6 of Regulation 25 and paragraph 7 of Regulation 26,
which states these regulations apply to oil tankers built before 2010.

K. Implementation of SOLAS 1974 Requirements for Material Safety Data
Sheets (MSDS)

In this rulemaking, the Coast Guard is also proposing to implement
SOLAS 1974 amendments regarding MSDS for Annex I cargoes and oil fuels
for U.S. vessels and all vessels operating on the navigable waters of
the U.S. to which those SOLAS 1974 amendments apply. By aligning the
U.S. regulations with international standards, compliant U.S. vessels
would encounter fewer difficulties while engaged in international
trade.
MSDSs serve an important purpose in ensuring mariner safety, as
they focus on the hazards of working with oil products and other
hazardous cargos in an occupational setting. They are intended to
provide workers and emergency personnel with procedures for handling or
working with these substances in a safe manner, and include information
such as physical data (melting point, boiling point, flash point,
etc.), toxicity, health effects, first aid, reactivity, storage,
disposal, protective equipment, and spill-handling procedures.
The Coast Guard is proposing to incorporate the MSDS regulations as
a new subpart D of 46 CFR part 197, as Sec. Sec. 197.801 through
197.820. This subpart would apply to all vessels to which SOLAS 1974
applies, carrying the liquids listed in the Annex I List of Oils,
either as bulk cargo or as fuel. It would also adopt the tables from
the MSC.286(86) (June 5, 2009) as Appendices A and B to subpart D.

L. Standards Incorporated by Reference

Finally, the Coast Guard is proposing several updates of standards
incorporated by reference or otherwise discussed in the proposed
regulations. We are proposing to add Regulation 12A of Annex I to the
incorporation by reference paragraph in 33 CFR 155.140, to accommodate
the proposed revision of Sec. 155.250. We are proposing to amend Sec.
156.111 by updating the versions of the STS Transfer Guide and the
Guide to Helicopter/Ship Operations, referenced in 33 CFR 156.330(b)
and (c) respectively, as well as Sec. Sec. 156.410(c)(2) and (f), to
use the most recent versions of those standards, and we are proposing
to add the Manual on Oil

[[Page 21366]]

Pollution, Section I: Pollution, to Sec. 156.111, a document that is
also referenced in Sec. 156.410. Third, we propose adding Regulations
22 and 23 of Annex I to the incorporation by reference paragraph in
Sec. 157.02, to conform to the proposed revisions of Sec. Sec. 157.14
and 157.20, respectively. Fourth, we propose adding the International
Standards Organization (ISO) to the list of entities referenced in 46
CFR 197.205, as an ISO standard is listed in the proposed Appendix B to
subpart D of that part. Fifth, we propose adding the IMO to the list of
entities referenced in Sec. 197.205, as an IMO standard is listed in
Subpart D of that part. Finally, we propose adding Appendix 1 of Annex
I to an incorporation by reference paragraph in Sec. 197.810.

Table 1
------------------------------------------------------------------------
CFR Cite Amendment sources Subject
------------------------------------------------------------------------
33 CFR 151.05................... Annex I New definitions
Regulations 1, for oil residue
12, 13, 17 and 38 (sludge),
MEPC.187(59). requirements for
oil residue
(sludge) tanks.
33 CFR 151.13(a)................ Annex I Regulation Special Area
1.11.10 ``Southern South
MEPC.154(55). African waters.''
33 CFR 151.25................... Annex I Regulation Oil Record Book:
17.2.5 new entries for
MEPC.187(59). bunkering of fuel
or bulk lube oil.
33 CFR 155.140.................. Update Updates
incorporation by incorporated
reference. standards to
reflect proposed
changes to the
text.
33 CFR 155.250.................. Annex I Regulation Oil fuel tank
12A MEPC.141(54). protection.
33 CFR 155.360, 33 CFR 155.370.. Annex I Regulation Requirements for
12 MEPC.187(59); Oil Sludge Tanks,
Annex I Exemptions for
Regulation 14, High-Speed Craft.
MEPC.117(52).
33 CFR 156.111.................. Update Updates
incorporation by incorporated
reference. standards to
reflect proposed
changes to the
text.
33 CFR 156.200.................. Annex I Removal of STS
Regulations 40, Operations from
41, 42 subpart B
MEPC.186(59). Applicability.
33 CFR 156.205.................. Annex I Definitional
Regulations 40, change of
41, 42 Lightering or
MEPC.186(59). Lightering
Operations to
remove STS
Operations.
33 CFR 156.330.................. Update to most Updates regulatory
modern standards. text to reference
current versions
of the STS
Transfer Guide
and Helicopter/
Ship Operations
guide.
33 CFR 156 Subpart D; 156.400, Annex I Prevention of
405, 410, 415, 420. Regulations 40, pollution during
41, 42 lightering
MEPC.186(59). operations and
transfer of oil
cargo between oil
tankers at sea.
33 CFR 157.02................... Update Updates
incorporation by incorporated
reference. standards to
reflect proposed
changes to the
text.
33 CFR 157.08 and 157.11........ Annex I Regulation Requirements for
30.7 MEPC.117(52). sea chest
permanently
connected to
cargo lines.
New 33 CFR 157.14............... Annex I Regulation Pump-room bottom
22 MEPC.117(52). protection.
33 CFR 157.19................... Annex I Regulation Older regulations
25.6 MEPC.117(52). of hypothetical
outflow of oil
limited to
tankers delivered
before 2010.
33 CFR 157.19................... Annex I Regulation Older regulations
26.7 MEPC.117(52). of size and
arrangement of
cargo tanks
limited to
tankers delivered
before 2010.
New 33 CFR 157.20............... Annex I Regulation New requirements
23 MEPC.117(52). for accidental
oil outflow
performance for
tankers delivered
in 2010 or later.
46 CFR 197.205.................. Update standards Provide
availability. information for
ISO standards
referenced in
Appendix B to
Subpart D.
46 CFR 197 Subpart D; 197.801, MSC.286(86)....... Material Safety
810, 820. Data Sheets.
------------------------------------------------------------------------

V. Other Alternatives Considered

As stated in the III. Background section of the preamble, the
protection of the marine environment and maritime safety are two of the
primary missions of the Coast Guard. As an initiative in furthering our
primary missions, the Coast Guard is considering requiring new U.S.
non-oceangoing vessels to be equipped with tanks to prevent oily bilge
water discharges.
Unlike the provisions in this notice, any future proposal regarding
holding tanks for oily bilge water discharges would be pursuant to the
Coast Guard's authority to issue regulations establishing procedures,
methods, and equipment and other requirements for equipment to prevent
discharges of oil and hazardous substances from vessels (33 U.S.C.
1321(j)(1)(C)). This alternative would apply to U.S. non-oceangoing
ships 400 tons or greater delivered 3 years after the implementation of
a final rule.
The Coast Guard seeks additional data and other information related
to this provision. Although the Coast Guard welcomes all public
comments related to these potential requirements, the Coast Guard
specifically invites comments on the discussion below, and responses to
the following questions:
The Coast Guard requests information on any additional
sources of information on the number, size, composition, and resulting
damage to the environment of oily bilge water discharges from U.S. non-
oceangoing vessels.
The Coast Guard has identified requiring holding tanks as
a means for reducing the discharge of oily bilge water to the
environment. The Coast Guard requests information on the cost of
holding tanks for new vessels and existing U.S. non-oceangoing vessels.
The Coast Guard solicits any additional comments on the
potential requirements to control oily bilge water discharge from U.S.
non-oceangoing vessels, including alternatives that may provide a cost-
effective approach for reducing oily bilge water discharge.
To submit a comment on the changes proposed in this section, use
one of the methods specified under ADDRESSES.
The Coast Guard offers the following discussion regarding the
requirement for non-oceangoing ships 400 gross tons or

[[Page 21367]]

greater to install oily bilge water retention tanks.
The alternative considered to require a holding tank for oily
mixtures would be similar to requirements for certain oceangoing
vessels (over 400 gross tons) subject to MARPOL 73/78 that remain at or
near facilities where oily mixtures can be discharged. U.S. non-
oceangoing vessels of this same size category (over 400 gross tons)
have similar operational characteristics as those covered under MARPOL
73/78.
The purpose of such a requirement would be to reduce maritime oil
pollution by preventing the discharge of oily bilge water into the
marine environment. During the operations of a vessel, oily bilge water
accumulates in the lowest part of a vessel from a variety of sources
including engines, piping, and other mechanical and operational sources
found throughout the machinery spaces of vessels. Oily bilge water is a
mixture of water, oily fluids, lubricants, cleaning fluids and other
similar wastes.
While U.S. non-oceangoing ships are not required to have oil
filtering equipment, Sec. 155.330 prohibits persons from operating
these ships in the navigable waters in the U.S. unless the ship can
retain all oily mixtures onboard and discharge them to a reception
facility. Under Sec. 155.330(b), those ships may currently retain
those oily mixtures in the ship's bilges. However, the Coast Guard
believes that retaining these mixtures in the ship's bilges has
contributed to the risk of oil pollution from inadvertent discharge of
substantial quantities of oil into the marine environment. Even small
amounts of oil pollution (including oily bilge water discharge) have
the potential to seriously damage the terrestrial and aquatic
environments. The Coast Guard believes that the risk of oil pollution
from inadvertent discharges of oily bilge water from ships would be
reduced by requiring ships to have a holding tank with a volume
adequate to hold all of a ship's oily bilge water, thereby discouraging
ships from holding oily bilge water in their bilges.
This alternative is similar to the requirements in Annex I that
provide the option of using holding tanks to reduce the risk of oil
pollution. As an Annex I measure, the Coast Guard believes that oily
bilge water holding tanks would be effective at combating the risk of
oil pollution and that the design of this equipment is well known to
the maritime community. While Annex I requires that most oceangoing
vessels be fitted with oil filtering equipment (see Regulation 14.1),
Annex I allows vessels that remain close to discharge facilities, such
as stationary vessels or ferries, to store oily bilge water in special
holding tanks (see Regulation 14.3, Regulation 14.5.3.1). Holding tanks
provide a less expensive means to mitigate inadvertent discharges of
oily water than oil filtering equipment. Nonetheless, they would
function well as these vessels, unlike oceangoing vessels, would
consistently operate in close proximity to a discharge facility.
We believe that the application of these types of holding tanks to
U.S. non-oceangoing vessels would prevent oily bilge water discharges
in the most efficient cost-effective manner, for the reasons stated
above. Unlike oceangoing ships, non-oceangoing ships operate relatively
close to shore and can discharge oily bilge water from the holding
tanks to reception facilities. Therefore, they can take advantage of
the use of oily bilge water storage tanks, which do not require
maintenance and are much less expensive to install and operate.
In order to minimize the cost to comply with this alternative, we
are considering a proposal in which the effective date for this
alternative would be three years after the publication of a final rule
and limit the requirement to new vessels. This would provide a notice
period similar to those granted by the MARPOL 73/78 and SOLAS 1974
amendments, which are typically published several years before the
provisions are effective. The three year delayed implementation period
would help to reduce the costs to ship owners and operators by allowing
them to integrate these holding tanks into ship designs.
The Coast Guard welcomes public comments on this information and
questions presented above in relation to installing oily bilge water
retention tanks on new, non-oceangoing ships 400 gross tons or greater.
As noted, after considering this additional information, the Coast
Guard would later request public comment on specific regulatory text if
it seeks to implement such requirements.

VI. Incorporation by Reference

Material proposed for incorporation by reference appears in 33 CFR
155.140, 156.111, 157.02, and 46 CFR 197.810. You may inspect this
material at U.S. Coast Guard Headquarters where indicated under
ADDRESSES. Copies of the material are available from the sources listed
in 33 CFR 155.140, 156.111, 157.02, and 46 CFR 197.810.
Before publishing a binding rule, we will submit this material to
the Director of the Federal Register for approval of the incorporation
by reference.

VII. Regulatory Analyses

We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on 13 of these statutes or executive orders.

A. Executive Order 12866 (Regulatory Planning and Review) and Executive
Order 13563 (Improving Regulation and Regulatory Review)

This rulemaking is not a significant regulatory action under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
as supplemented by Executive Order 13563, and does not require an
assessment of potential costs and benefits under section 6(a)(3) of
that Order. The Office of Management and Budget (OMB) has not reviewed
it under that Order. Nonetheless, we developed an analysis of the costs
and benefits of the proposed rule to ascertain its probable impacts on
industry. This preliminary assessment (``Regulatory Analysis'') is
available in the docket where indicated in section A of this preamble.
We consider all estimates and analysis in this Regulatory Analysis (RA)
to be draft and subject to change in consideration of public comments.
A summary of the draft Regulatory Analysis follows:
The proposed rule contains provisions to codify the 2004, 2006 and
2009 Amendments to Annex I in the Code of Federal Regulations (CFR) and
to require vessels to carry a Material Safety Data Sheet (MSDS) for
each Annex I cargo and ship fuel carried in bulk. These provisions are
designed to harmonize U.S. regulations with international standards.
Table 1 in the Discussion of Proposed Rule section of the preamble
provides a summary of the proposed changes to the CFR referencing the
applicable Annex I Amendments and the subject of the proposed changes.
Detailed descriptions of the proposed CFR changes are described in
Section IV Discussion of Proposed Rule of this preamble. A summary of
the regulatory analysis is shown in Table 2.

[[Page 21368]]

Table 2--Summary of the Regulatory Analysis
----------------------------------------------------------------------------------------------------------------
Category Summary (harmonization)
----------------------------------------------------------------------------------------------------------------
Total Affected Population *................. ~4,029 current and future U.S. flag ships with 1,768 U.S. current
owners or operators.
Costs (7% discount rate).................... $1.8 mil (annualized)
$18.2 mil (10-year)
Unquantified Benefits....................... Compliance with internationally enforced standards where non-
compliance could result in Port State Control interventions and
detentions or delays.
General reduction of the risk of oil discharges in the marine
environment. 33 CFR 151.25 improves the availability of
information on certain processes and equipment.
33 CFR 151.360-370 prevents the direct discharge of oily sludge
residue and indirect discharge through oily bilge water.
33 CFR 151.400-420 helps to ensure STS Operations are conducted
safely and that an apparatus is in place to mitigate
environmental damage.
----------------------------------------------------------------------------------------------------------------
* The total affected population shown in this table refers to the sum of the affected population for each
individual requirement. An individual ship may be subject to multiple requirements. If there is no overlap of
requirements, the affected population would be a maximum of 4,029 new and existing ships. If there is overlap
of requirements, the total affected population could be less.

1. The Affected Population
The individual provisions of the proposed rule affect different
populations of U.S. flag ships. A summary of the affected population is
shown in Table 3.

Table 3--Affected Populations U.S. Flag Ships
----------------------------------------------------------------------------------------------------------------
New ships
Current delivered
Provision Population affected affected during the 10- Total number
population year period of ships
of analysis
----------------------------------------------------------------------------------------------------------------
Additional Oil Record Book entry All inspected ships 1,672 273 1,945
requirements. bunkering fuel or
lubricating oil.
Valve separating the sludge tank Oceangoing Ships 400 1,044 225 1,269
drains from the bilge system. gross tons and over.
Preparation of STS Operations Plans Tankers and Tank ships.. 512 303 815
and STS Reporting.
----------------------------------------------------------------------------------------------------------------
Source: USCG MISLE database.

2. Costs
The primary cost estimate of the proposed rule is displayed in
Table 4 and results in a total cost of $23.2 million (undiscounted) for
the ten year period of analysis. This cost estimate was prepared
assuming no ships currently comply with any of the provisions of the
proposed rule because there are no data on the degree of current
compliance. The Coast Guard believes that there is current compliance
with many of the provisions and is aware that this assumption may
overstate the actual cost of the proposed rule. In present value terms,
the total cost estimate is $20.8 million using a 3-percent discount
rate and $18.2 million using a 7-percent discount rate. Annualized
costs are $2.1 million per year at 3 percent and $1.8 million per year
at 7 percent.

Table 4--Costs Summary by Year ($ Millions) to U.S. Flag Ships
----------------------------------------------------------------------------------------------------------------
Discounted
Undiscounted -------------------------------------
7 percent 3 percent
----------------------------------------------------------------------------------------------------------------
Year 1................................................. $10.2 $9.6 $9.9
Year 2................................................. 1.2 1.1 1.2
Year 3................................................. 1.3 1.1 1.2
Year 4................................................. 1.4 1.0 1.2
Year 5................................................. 1.4 1.0 1.2
Year 6................................................. 1.4 1.0 1.2
Year 7................................................. 1.5 0.9 1.2
Year 8................................................. 1.6 0.9 1.2
Year 9................................................. 1.6 0.9 1.2
Year 10................................................ 1.7 0.8 1.2
--------------------------------------------------------
Total.............................................. 23.3 18.2 20.8
--------------------------------------------------------
Annualized..................................... ................. 1.8 2.1
----------------------------------------------------------------------------------------------------------------

[[Page 21369]]

Costs by provision using a 7-percent discount rate are shown in
Table 5.

Table 5--Costs Summary of Individual Provisions at 7-Percent Discount
(Millions of $) to U.S. Flag Ships
------------------------------------------------------------------------
Percentage of
Total cost total cost (using
Provision million $ (at 7% 7% discounted
discounted) costs)
------------------------------------------------------------------------
Additional Oil Record Book entry $5.9 32.24
requirements.....................
Valve separating the sludge tank 6.7 36.61
drains from the bilge system.....
Preparation of STS Operations 5.7 31.15
Plans and STS Reporting..........
-------------------------------------
Total......................... 18.2 100.0
------------------------------------------------------------------------
Note: numbers may not add due to rounding.
Source: USCG Office of Operating and Environmental Standards.

The provisions of this rulemaking are estimated to cost $18.2
million, annualized at a 7-percent discount rate. Please refer to
Appendices B through E in the Regulatory Analysis for the annual costs.
Costs are broken out by section and by population.
Table 6 displays the unit costs per vessel.

Table 6--Unit Costs (Undiscounted) for U.S. Flag Ships
------------------------------------------------------------------------
Cost per affected Cost per affected
Provision ship non- ship recurring
recurring costs costs
------------------------------------------------------------------------
Additional Oil Record Book entry ................. $396
requirements \1\.................
Valve separating the sludge tank $6,140 .................
drains from the bilge system \2\.
Preparation of STS Operations $5,880 $230
Plans and STS Reporting \3\......
------------------------------------------------------------------------
Source: USCG Office of Operating and Environmental Standards.

Table 6 outlines the per vessel costs for the provisions. The
provisions include both non-recurring and recurring costs.
---------------------------------------------------------------------------

\1\ This is the incremental cost of the additional record book
entries for both current and new ships above the costs currently
required.
\2\ Valve costs vary between $5,400 per ship for ships between
400GT and 10,000 GT and $8,700 per ship for ships over 10,000 GT.
The $6,140 represents a weighted average based on current and future
ships in each volume class.
\3\ The two non-recurring costs per ship are: the preparation of
the STS plan of approximately $5,023 per ship and the initial
training cost of $857 which together total $5,880.
---------------------------------------------------------------------------

3. Benefits
The benefits of the proposed rule include harmonization and
compliance with internationally enforced standards and the reduction of
risks of oil pollution, as well as improved mariner safety.
Functional benefits of each provision of the proposed rule are
shown in Table 7.

Table 7--Functional Benefits
------------------------------------------------------------------------
Beneficial impact on oil spill
Provision risk reduction
------------------------------------------------------------------------
33 CFR 151.25--This provision would This provision will reduce the
establish new record keeping risk of oil spills by
requirements for the Oil Record Book: improving the availability of
a requirement to make an entry for the information on certain
bunkering of fuel or bulk lubricating processes and equipment. For
oil; a requirement to make an entry example, the additional entry
for any failure of oil filtering for the bunkering of fuel or
equipment; and a requirement to make bulk lubricating oil would
an entry for any failure of the oil help to track the use and
discharge monitoring and control disposal of oil and oil
system. residues. The other two
additional entries would
capture equipment failures for
all ships with an Oil Record
Book.
33 CFR 155.360-370--This provision This provision will reduce the
requires that these ships have a risk of oil spills by insuring
separate designated pump for the oil segregation of oily sludge
residue tank (sludge tank) and that residue from the bilge system.
this sludge disposal system (pump and These measures prevent the
tank) must be segregated from the direct discharge of oily
bilge system except for manually sludge residue and the
operated drains with visual monitoring indirect discharge through
of settled water that lead to an oily oily bilge water.
bilge water tank or a bilge well. Any
nonconformity would require a ship in
this group to purchase and install
appropriate equipment.

[[Page 21370]]

33 CFR 156.400-420--This provision This provision will reduce the
requires that oil tankers transferring risk of oil spills by
oil cargoes between ships at sea (Ship- requiring that oil tankers
to-Ship (STS) transfers of oil) have engaging in STS Operations
an STS Operations Plan meeting provide the relevant MARPOL 73/
specific IMO standards. 78 party with 48 hours notice
of STS Operations. This
includes information regarding
the location, time, and
duration of the STS
Operations, oil type and
quantity, identification of
the STS Operations service
provider, and confirmation
that there is a compliant STS
Operations Plan. Providing
this information helps to
ensure that STS Operations are
conducted safely and that an
apparatus is in place to
mitigate environmental damage.
------------------------------------------------------------------------

The purpose of the proposed rule is to harmonize Coast Guard
regulations with new provisions of MARPOL 73/78 and SOLAS 1974 to which
the United States is a signatory. Compliance with these Conventions is,
in itself, a benefit to all ships on international routes because the
failure to comply with these international standards for pollution
prevention and safety would subject the non-compliant ship to PSCs.
Coast Guard incorporation of these provisions is also a requirement of
U.S. law, the Act to Prevent Pollution from Ships (APPS) 33 U.S.C.
1901-1915 (2002), which implements and codifies the MARPOL agreements
into U.S. law.
Port State Controls may include detention of a ship in a foreign
port until the identified deficiencies are rectified. Delays of this
type can be costly to the owner/operator of a ship. For example, the
Paris Memorandum on Port State Control Annual Report (Paris Memorandum)
for 2009 indicated that 27 oil tankers were detained worldwide under
PSCs; 17 of these tankers (63 percent) were detained for violations of
Annex I or SOLAS. With charter rates for oil tankers averaging $31,700
per day, even short delays under PSCs can result in substantial costs.
None of these deficient ships were U.S. flag vessels because of the
adherence to international standards enforced by the Coast Guard. With
this proposed rule the Coast Guard intends to ensure that no
ambiguities exist between MARPOL 73/78/SOLAS and the regulatory
requirements of the CFR.
The Paris Memorandum for 2009, the latest year for which there are
data, also indicated that 3,764 ships that were inspected worldwide
under PSCs had deficiencies regarding Annex I requirements.
Additionally, 15,800 ships were found deficient regarding safety and
firefighting standards (SOLAS requirements). As with oil tankers (noted
above) none of these deficient ships were U.S. flag vessels because of
the adherence to international standards enforced by the Coast Guard.
We examined the risk reduction in terms of oil spill prevention
that would equal the total regulatory cost of this proposed rule. From
historical data,\4\ we determined there was an average of 5,583 barrels
of oil spilled annually from U.S. flagged SOLAS ships over the 2001-
2010 period. To calculate the annual monetary value of remediating
damages from oil spills, we used a cost of $10,700 per barrel of oil
based on an analysis of expenditures from the Oil Spill Liability Trust
Fund. Consequently, the costs of oil spill damages averaged $59.7
million (undiscounted) over the 2001-2010 period. Please refer to the
Regulatory Analysis for further details.
---------------------------------------------------------------------------

\4\ U.S. Coast Guard MISLE data, 2001 to 2010, oil spilled from
U.S. flagged, SOLAS vessels.
---------------------------------------------------------------------------

The undiscounted costs of the provisions of the proposed rule over
the ten year period of examination are approximately $23.2 million (or
$2.3 million per year on average). The proposed regulations would have
to reduce the annual volume of oil spills approximately 3.9 percent
($2.3 million/$59.7 million--both undiscounted) in order to achieve a
breakeven between the regulatory costs and the benefit from reduced oil
discharge.

B. Small Entities

Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000.
An Initial Regulatory Flexibility Analysis discussing the impact of
this proposed rule on small entities is available in the docket
indicated under Section A of this preamble. There are an estimated
1,768 U.S. entities that would be affected by this proposed rule and
these entities operate a maximum of 3,228 existing ships. We chose a
random sample of 510 entities and evaluated these against the
applicable standard for determining whether the entity was small (i.e.,
SBA size standards for businesses and RFA standards for governments and
not-for-profits). We found that 213 entities were not small according
to applicable standards. The remaining 297 entities (approximately 58.2
percent of the sample size) are considered small; 175 of these had
revenue or personnel data confirming their small business status using
the Small Business Administration size standards and the remaining 125
businesses had no revenue or personnel data and were assumed to be
small. None of the small entities was either a governmental or not-for-
profit entity. We analyzed revenue impacts for the first year and for
the annual recurring costs of this proposed rule. First year costs
include costs for additional required Oil Record Book entries,
equipment purchase and installation costs, and costs associated with
the STS Operations Plan preparation and crew training. As all equipment
is either stationary (tanks) or minimal maintenance (valves which only
require periodic lubrication in conjunction with other shipboard
equipment); we have not considered any additional maintenance expenses.
Likewise, the expected life-cycle of the equipment extends beyond the
timeframe of the ten year period of analysis, so no inclusion of
replacement costs for newly installed equipment was required.
There are three provisions that affect small businesses: Additional
Oil Record Book entry requirements; Valves separating the sludge tank
drains from the bilge system; and Preparation of STS Operations Plans
oil record book entry requirements. Of the costs to small businesses,
53.5 percent are associated with the separator valves with 35.3 percent
of the costs for additional oil record book entries and 11.2 percent
associated with STS plan requirements. This proposed rule has many
provisions that would affect different types of

[[Page 21371]]

vessels and therefore, businesses' revenue impacts would vary according
to the number and type of vessel owned. If vessels are subject to all
provisions, we determined that approximately 7.3 percent of the small
businesses would incur a cost impact of more than 1 percent of revenue
during the first year.
For the annual recurring economic impact, we determined that 1.6
percent of small businesses would incur a cost more than 1 percent of
revenue. Recurring costs include recordkeeping and costs related to the
STS Operations Plan (maintenance and training new crew).
Based on the above information, the Coast Guard certifies under 5
U.S.C. 605(b) that this proposed rule would not have a significant
economic impact on a substantial number of small entities. If you think
that your business, organization, or governmental jurisdiction
qualifies as a small entity and that this rule would have a significant
economic impact on it, please submit a comment to the Docket Management
Facility at the address under ADDRESSES in the Notice of Proposed
Rulemaking, [USCG-2010-0194]. In your comment, explain why you think it
qualifies and how and to what degree this rule would economically
affect it.

C. Assistance for Small Entities

Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking. If the
proposed rule would affect your small business, organization, or
governmental jurisdiction and you have questions concerning its
provisions or options for compliance, please consult Scott Hartley,
U.S. Coast Guard Office of Operating and Environmental Standards, (CG-
5222); telephone (202) 372-1437, e-mail Scott.E.Hartley@uscg.mil. The
Coast Guard will not retaliate against small entities that question or
complain about this rule or any policy or action of the Coast Guard.

D. Collection of Information

This proposed rule would not require a new Collection of
Information (COI) request under the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520) but would increase the burden hours under two
existing COI reports. An additional breakdown of these information and
reporting costs are presented in the section `Costs' in VI. Regulatory
Analyses of this preamble.
The information collected under the proposed rule is addressed in
the existing COIs: OMB control number 1625-0009 (Oil Record Book for
Ships (33 CFR 151.25)), which was reviewed by the OMB on September 9,
2009 and will expire after the 2-year approval period ends on September
9, 2011, unless renewed; and OMB control number 1625-0041, Various
International Agreement Pollution Prevention Certificates and
Documents, and Equivalency Certificates which was reviewed by the OMB
on November 19, 2008, and will expire after the 3-year approval period
ends on November 30, 2011, unless renewed.
As defined in 5 CFR 1320.3(c), ``collection of information'' (COI)
comprises reporting, recordkeeping, monitoring, posting, labeling, and
other, similar actions. The title and description of the information
collections, a description of those who must collect the information,
and an estimate of the total annual burden follow. The estimate covers
the time for reviewing instructions, searching existing sources of
data, gathering and maintaining the data needed, and completing and
reviewing the collection.
Regarding OMB control number 1625-0009, Oil Record Book for Ships
(33 CFR 151.25); the current authorized annual burden is 19,425 hours
and the proposed rule would increase the annual burden by approximately
9,111 hours (46.9 percent). Information about this Information
Collection Renewal (ICR) is shown in Table 6.
Regarding OMB control number 1625-0041, Various International
Agreement Pollution Prevention Certificates and Documents, and
Equivalency Certificates (33 CFR 156.400 through 156.420 Subpart D-
Prevention of Pollution During Transfer of Oil Cargo Between Oil
Tankers at Sea), the current authorized annual burden for all
collections in this control number is 2,067 hours and the proposed rule
would increase the burden by a single non-recurring burden of 69,120
hours, and a recurring annual burden of 7,168 hours. The annual burden
would increase from 2,067 hours to 9,235 hours which equals
approximately 347 percent. The increase in burden hours from the
proposed rule represents a non-recurring burden of 135 hours per ship
and an additional recurring annual burden of 14 hours per ship.
This information collection request involves the preparation of a
STS Operations Plan for all oil tankers and tank barges of 150 gross
tons and above that engage in transfers of oil at sea. This would
require a non-recurring development burden of 135 hours per vessel for
each of the 512 ships affected. This ICR would also require recurring
annual burden for training (5 hours per ship) and plan revisions (9
hours per ship). Information on this ICR is shown in Table 7 (non-
recurring burden) and Table 8 (recurring burden).
The increases in the annual burdens are not considered material or
substantive. To confirm this, the Coast Guard has submitted a change
worksheet (OMB Form 83-C) to the Office of Information and Regulatory
Affairs (OIRA) noting the change in the annual burden.
Details of the two information collection requests are as follows:

1. Information Collection Request: OMB control number 1625-0009
(Oil Record Book for Ships).
Title: Oil Record Book for Ships (33 CFR 151.25).
Summary of the Information Collection Request: The Coast Guard
uses the information recorded in the Oil Record Book to verify
sightings of actual violations of the APPS, to determine the level
of compliance with MARPOL 73/78, and as a means of reinforcing the
discharge provisions. The actual recording of discharge information
reinforces the intent of the regulations. Unless this information is
recorded, the Coast Guard would have to rely solely on actual
sightings of oil discharges for enforcement. Violation of the law
could go undetected resulting in continued pollution of the sea by
oil. The Coast Guard would have no method of determining the level
of compliance with regulations.
Need for Information: The Act to Prevent Pollution from Ships
and MARPOL 73/78 require that information about oil cargo or fuel
operations be entered into an Oil Record Book. The requirement is
codified in 33 CFR 151.25. MARPOL 73/78 requires that the
information be retained onboard a ship so that it is available for
inspection, therefore, the electronic transmission of this
information to the Coast Guard is not possible.
Proposed Use of Information: The Coast Guard uses the
information recorded in the Oil Record Book to verify sightings of
actual violations of the APPS, to determine the level of compliance
with MARPOL 73/78, and as a means of reinforcing the discharge
provisions. The actual recording of discharge information reinforces
the intent of the regulations. Unless this information is recorded,
the Coast Guard would have to rely solely on actual sightings of oil
discharges for enforcement. Violation of the law could go
undetected, resulting in continued oil pollution of the sea.
Description of the Respondents: Oil tankers and tank barges of
150 gross tons and above; ships 400 gross tons and above other than
oil tankers (including freight barges equipped to discharge oil or
oil mixtures); manned fixed or floating drilling rigs, except those
that are not equipped to discharge oil or oil mixtures or rigs that
are in compliance with the National Pollutant Discharge Elimination

[[Page 21372]]

System permit; and manned fixed or floating drilling platforms over
400 gross tons, primarily Mobile Offshore Drilling Units over 400
gross tons.
Number of Respondents: The current number of respondents is
1,546. This proposed rule would affect 1,672 respondents. This
increase would coincide with an increased number of ships in each
category listed above in the Description of Respondents. No new
categories of respondents would be added.
Frequency of Response: The frequency of response is occasional
reports for recordkeeping and reporting. The current number of
annual responses authorized is 466,200. This proposed rule would
increase the number of annual responses to 684,784. Of the increase
of 218,584 responses, 199,504 (91 percent) would result from the
increased reporting entries per ship and 19,080 (9 percent) of the
reporting entries would result from an increase in the number of
ships reporting.
Burden of Response: The burden of this proposed rule would
require additional entries to the Oil Record Book to record seven
types of events not currently recorded: (i) Disposal of oil residue;
(ii) discharge overboard or disposal otherwise of bilge water that
has accumulated in machinery spaces; (iii) bunkering of fuel or bulk
lubricating oil; (iv) any failure of the oil filtering equipment;
(v) closing of valves necessary for isolation of dedicated clean
ballast tanks from cargo and stripping lines after slop tank
discharge operations; (vi) disposal of oil residue; (vii) and any
failure of the oil discharge monitoring and control system. The
Coast Guard estimates that these additional entries would occur with
the same frequency as the 17 events which currently require an Oil
Record Book entry. Therefore, the increase in burden hours is 41.2
percent or from the current estimated 540 entries per ship per year
for oil tankers and tank barges to 762 entries per year; and from
180 entries per ship per year for non-oil ships to 254 entries per
year.
Estimate of Total Annual Burden: The current annual burden for
this collection is 19,424 hours. The proposed rule would increase
the total annual burden by approximately 9,105 hours. The
calculation of the annual burden increase for the Oil Record Book
entries is shown in Table 6.
2. Information Collection Request: OMB control number 1625-0041
MARPOL 73/78 Related Documents STS Operations Plan.
Title: Various International Agreement Pollution Prevention
Certificates and Documents, and Equivalency Certificates (33 CFR
156.400 through 156.420, Subpart D-Prevention of Pollution During
Transfer of Oil Cargo Between Oil Tankers at Sea).
Summary of the Information Collection Request: The Coast Guard
is requiring oil tankers and tank barges of 150 gross tons and above
that engage in transfers of oil at sea to comply with an
international agreement (MARPOL 73/78), to which the U.S. is a
signatory, in order to reduce the possibility of an accidental oil
spill/discharge during a STS transfer operation.
Need for Information: These provisions of the proposed rule
incorporate the new Chapter 8 of the 2009 Amendments to Annex I
adopted in MEPC.186(59) adopted in the 2009 Amendments to Annex I.
The 2009 Amendments to Annex I relate to regulations covering STS
operations. This Amendment entered into force on January 1, 2011 for
all nations that are signatory to MARPOL 73/78.
Proposed Use of Information: The Coast Guard uses this
information to confirm that each ship involved in STS Operations is
in compliance with the new Chapter 8 of the 2009 Amendments to
MARPOL 73/78. This procedural information documents that each ship
involved in STS Operations is compliant with industry guidelines
designed to ensure against oil discharges in STS Operations.
Description of the Respondents: This ICR would apply to oil
tankers and tank barges who engage in STS Operations.
Number of Respondents: The current approval number of responses
is 1,210, which represents 842 non-tank vessels and 368 tank ships
and barges. The proposed rule would require additional reporting
from tank ships and barges whose population is currently 512. The
increase in the number of respondents would be 144 ships (512-368).
Frequency of Response: The frequency of response is a non-
recurring burden for the initial preparation of an STS Operations
Plan and the recurring annual burden for updates to the plan and
familiarization (training) of responsible persons.
Burden of Response: The preparation of the STS Operations Plan
involves the development of twelve procedures and we have estimated
that most procedures would take approximately twelve hours to
complete. The general requirements of the STS Operations Plan
involve definitions of the responsibilities of the person in overall
advisory control; descriptions of the required notifications to
authorities; and general procedures for submitting radio
navigational warnings and where copies of the STS Operations Plan
should be located. The recurring burden of the plan has two
components: training of 5 hours per vessel per year; and plan
revisions of 9 hours per vessel per year. The calculations for the
non-recurring costs of plan preparation are shown in Table 7 and the
calculations for the recurring annual costs are shown in Table 8.
Estimate of Total Annual Burden: The current annual burden for
this collection is 2,067 hours. The proposed rule would increase the
total burden by a non-recurring requirement of approximately 69,120
hours for preparation of the STS Operations Plan and a recurring
burden of approximately 7,168 hours.

[[Page 21373]]

Table 6--Recurring Annual Burden--Oil Record Book Entries
[OMB control number 1625-0009]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Current Collection of Information Amended Collection of Information Change from
------------------------------------------------------- Total ------------------------------------------------------- Total proposed rule
Annual annual Annual annual cost ---------------------
Oil Record Book entries Entries Burden Number of Burden cost to cost to Entries Burden Number of Burden cost to to
per ship hours per ships hours industry industry per ship hours per ships hours industry industry Change in Change in
per year entry per hour per year entry per hour hours cost
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Oil Tankers......................... 540 0.04167 61 1,372 $99.00 $135,890 762 0.04167 51 1,619 $99.00 $160,320 247 $24,430
Tank Barges......................... 540 0.04167 461 10,372 72.00 746,880 762 0.04167 461 14,638 72.00 1,053,930 4,264 307,050
Non-Oil Vessels..................... 180 0.04167 1,024 7,680 72.00 553,000 254 0.04167 1,160 12,278 72.00 883,990 4,593 330,990
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Totals.......................... ......... ......... 1,546 19,425 ......... 1,435,770 ......... ......... 1,672 28,535 ......... 2,098,240 9,105 662,470
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

[[Page 21374]]

Table 7--Burden of Reporting From STS Operations Plan Requirements: Non-Recurring Burden
[OMB control number 1625-00090041]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Amended requirement--plan preparation (non-
recurring burden)
Ship type Number of Current requirement ------------------------------------------------ Total change
ships Burden hours Total non- in hours
per ship Cost per hour recurring cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Oil Tanker............................... 51 ............................. 135 $36.00 $247,860 6,885
Tank Barge............................... 461 ............................. 135 36.00 2,240,460 62,235
--------------------------------------------------------------------------------------------------------------
Total................................ 512 ............................. .............. .............. 2,448,320 69,120
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

Table 8--Burden of Reporting From STS Operations Plan Requirements: Recurring Burden
[OMB control number 1625-00090041]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Amended requirement--STS operations plan Amended requirement--STS operations plan
training (recurring burden) revision (recurring burden)
--------------------------------------------------------------------------------------- Total Total
Ship type Number of Current Total recurring change in
ships requirement Burden hours Cost per Total Burden hours recurring costs hours
per ship hour recurring per ship Cost per hour cost--plan
cost--training revision
--------------------------------------------------------------------------------------------------------------------------------------------------------
Oil Tanker......... 51 ........... 5 $43.70 $11,144 9 $36.00 $16,524 $27,668 714
Tank Barge......... 461 ........... 5 43.70 100,729 9 36.00 149,364 250,093 6,454
------------------------------------------------------------------------------------------------------------------------------------
Total.......... 512 ........... .............. ......... 111,873 .............. .............. 165,888 277,761 7,168
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

If you submit comments on the COI, submit them both to OMB and to
the Docket Management Facility where indicated under ADDRESSES in the
Notice of Proposed Rulemaking [USCG-2010-0194], by the date under
DATES.

E. Federalism

A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. The U.S. Supreme Court has long
recognized the field preemptive impact of the Federal regulatory regime
for inspected vessels. See, e.g., Kelly v. Washington ex rel Foss Co.,
302 U.S. 1 (1937) and the consolidated cases of United States v. Locke
and Intertanko v. Locke, 529 U.S. 89, 113-116 (2000). Therefore the
Coast Guard's view is that regulations issued under the authority of 33
U.S.C. 1903 and 46 U.S.C. 3306 in the areas of design, construction,
alteration, operation, hulls, fittings, equipment, appliances,
propulsion machinery, auxiliary machinery, piping, and material safety
labeling have preemptive effect over State regulation in these fields,
regardless of whether the Coast Guard has issued regulations on the
subject or not, and regardless of the existence of conflict between the
State and Coast Guard regulation. For this reason, we do not believe
that this rule has Federalism implications.
While it is well settled that States may not regulate in categories
in which Congress intended the Coast Guard to be the sole source of a
vessel's obligations, as these categories are within a field foreclosed
from regulation by the States (see U.S. v. Locke, above), the Coast
Guard recognizes the key role State and local governments may have in
making regulatory determinations. Additionally, Sections 4 and 6 of
Executive Order 13132 require that for any rules with preemptive
effect, the Coast Guard shall provide elected officials of affected
State and local governments and their representative national
organizations the notice and opportunity for appropriate participation
in any rulemaking proceedings, and to consult with such officials early
in the rulemaking process. Therefore, we invite affected State and
local governments and their representative national organizations to
indicate their desire for participation and consultation in this
rulemaking process by submitting comments to the docket using one of
the methods specified under ADDRESSES. In accordance with Executive
Order 13132, the Coast Guard will provide a federalism impact statement
to document (1) the extent of the Coast Guard's consultation with State
and local officials that submit comments to this proposed rule, (2) a
summary of the nature of any concerns raised by State or local
governments and the Coast Guard's position thereon, and (3) a statement
of the extent to which the concerns of State and local officials have
been met.

F. Unfunded Mandates Reform Act

The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more
(adjusted for inflation) in any one year. Though this proposed rule
would not result in such expenditure, we do discuss the effects of this
rule elsewhere in this preamble and in the Regulatory Analysis.

G. Taking of Private Property

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

H. Civil Justice Reform

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

I. Protection of Children

We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety

[[Page 21375]]

Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

J. Indian Tribal Governments

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

K. Energy Effects

We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

L. Technical Standards

The National Technology Transfer and Advancement Act (15 U.S.C. 272
note) directs agencies to use voluntary consensus standards in their
regulatory activities unless the agency provides Congress, through the
OMB, with an explanation of why using these standards would be
inconsistent with applicable law or otherwise impractical. Voluntary
consensus standards are technical standards (e.g., specifications of
materials, performance, design, or operation; test methods; sampling
procedures; and related management systems practices) that are
developed or adopted by voluntary consensus standards bodies.
This proposed rule uses the following voluntary consensus
standards:

1. Ship to Ship Transfer Guide, Petroleum,
2. Manual on Oil Pollution, Section I: Pollution,
3. Guide to Helicopter/Ship Operations, and
4. ISO 8217:2005, Petroleum products.

The proposed sections that reference these standards and the
locations where these standards are available are listed in 33 CFR
155.140, 33 CFR 156.111, 33 CFR 157.02, and 46 CFR 197.810.
If you disagree with our analysis of the voluntary consensus
standards listed above or are aware of voluntary consensus standards
that might apply but are not listed, please send a comment to the
docket using one of the methods under ADDRESSES. In your comment,
please explain why you disagree with our analysis and/or identify
voluntary consensus standards we have not listed that might apply.

M. Environment

We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a preliminary determination that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. A preliminary environmental analysis
checklist supporting this determination is available in the docket
where indicated under the ``Public Participation and Request for
Comments'' section of this preamble. This rule involves regulations
which are editorial or procedural; regulations concerning manning,
documentation, admeasurement, inspection, and equipping of vessels; and
congressionally mandated regulations. This rule falls under section
2.B.2, figure 2-1, paragraphs 34(a) and (d) of the Instruction and
under section 6(b) of the ``Appendix to National Environmental Policy
Act: Coast Guard Procedures for Categorical Exclusions, Notice of Final
Agency Policy'' (67 FR 48244, July 23, 2002). We seek any comments or
information that may lead to the discovery of a significant
environmental impact from this proposed rule.

List of Subjects

33 CFR Part 151

Administrative practice and procedure, Oil pollution, Penalties,
Reporting and recordkeeping requirements, Water pollution control.

33 CFR Part 155

Alaska, Hazardous substances, Incorporation by reference, Oil
pollution, Reporting and recordkeeping requirements.

33 CFR Part 156

Hazardous substances, Incorporation by reference, Oil pollution,
Reporting and recordkeeping requirements, Water pollution control.

33 CFR Part 157

Cargo vessels, Incorporation by reference, Oil pollution, Reporting
and recordkeeping requirements.

46 CFR Part 197

Benzene, Diving, Incorporation by reference, Marine safety,
Occupational safety and health, Reporting and recordkeeping
requirements, Vessels.

For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR parts 151, 155, 156, and 157, and 46 CFR part 197, as
follows:

Title 33--Navigation and Navigable Waters

PART 151--VESSELS CARRYING OIL, NOXIOUS LIQUID SUBSTANCES, GARBAGE,
MUNICIPAL OR COMMERCIAL WASTE, AND BALLAST WATER

1. The authority citation for part 151 continues to read as
follows:

Authority: 33 U.S.C. 1321, 1903, 1908; 46 U.S.C. 6101; Pub. L.
104-227 (110 Stat. 3034); E.O. 12777, 3 CFR, 1991 Comp. p. 351;
Department of Homeland Security Delegation No. 170.1.

2. Amend Sec. 151.05 as follows:
a. Remove the second definition for ``Oily mixture'' that reads
``Oily mixture means a mixture with any oil content, including bilge
slops, oily wastes, oil residues (sludge), oily ballast water, and
washings from cargo oil tanks'';
b. Relocate, in alphabetical order, the definitions for ``Oil-like
NLS'' and ``Oil tanker'';
c. Revise the definition for ``Oil residue'' as set out below; and
d. Add new definitions, in alphabetical order, for ``Oil residue
(sludge)'', ``Oil residue (sludge) tank'', ``Oily bilge water'', and
``Oily bilge water holding tank'', as set out below.

Sec. 151.05 Definitions.

* * * * *
Oil residue means oil cargo residue.
Oil residue (sludge) means the residual waste oil products
generated during the normal operation of a ship such as those resulting
from the purification of fuel or lubricating oil for main or auxiliary
machinery, separated waste oil from oil filtering equipment, waste oil
collected in drip trays, and waste hydraulic and lubricating oils.
Oil residue (sludge) tank means a tank which holds oil residue
(sludge) from which sludge may be disposed directly through the
standard discharge

[[Page 21376]]

connection or any other approved means of disposal.
* * * * *
Oily bilge water means water which may be contaminated by oil
resulting from things such as leakage or maintenance work in machinery
spaces. Any liquid entering the bilge system including bilge wells,
bilge piping, tank top or bilge holding tanks is considered oily bilge
water.
Oily bilge water holding tank means a tank collecting oily bilge
water prior to its discharge, transfer or disposal.
* * * * *
3. In Sec. 151.13, revise paragraph (a) to read as follows:

Sec. 151.13 Special areas for Annex I of MARPOL 73/78.

(a) For the purposes of Sec. Sec. 151.09 through 151.25 of this
subpart, the special areas are the Mediterranean Sea area, the Baltic
Sea area, the Black Sea area, the Red Sea area, the Gulfs area, the
Gulf of Aden, the Antarctic area, the North West European waters, the
Oman area of the Arabian Sea, and the Southern South African Waters,
which are described in Sec. 151.06 of this subpart. The discharge
restrictions are effective in the Mediterranean Sea, Baltic Sea, Black
Sea, and the Antarctic area.
* * * * *
4. In Sec. 151.25, revise paragraphs (d)(3), (d)(4), (e)(9), and
(e)(10), and add paragraphs (d)(5), (d)(6), and (e)(11) to read as
follows:

Sec. 151.25 Oil Record Book.

* * * * *
(d) * * *
(3) Disposal of oil residue;
(4) Discharge overboard or disposal otherwise of bilge water that
has accumulated in machinery spaces;
(5) Bunkering of fuel or bulk lubricating oil; and
(6) Any failure, and the reasons for, of the oil filtering
equipment.
(e) * * *
(9) Closing of valves necessary for isolation of dedicated clean
ballast tanks from cargo and stripping lines after slop tank discharge
operations;
(10) Disposal of oil residue; and
(11) Any failure, and the reasons for, of the oil discharge
monitoring and control system.
* * * * *

PART 155--OIL OR HAZARDOUS MATERIAL POLLUTION PREVENTION
REGULATIONS FOR VESSELS

5. The authority citation for part 155 continues to read as
follows:

Authority: 33 U.S.C. 1231, 1321(j), 1903; 46 U.S.C. 3703; E.O.
12777, 56 FR 54757, 3 CFR, 1991 Comp., p. 351; Department of
Homeland Security Delegation No. 0170.1. Sections 155.100 through
155.130, 150.350 through 155.400, 155.430, 155.440, 155.470,
155.1030(j) and (k), and 155.1065(g) are also issued under 33 U.S.C.
1903(b). Section 155.490 also issued under section 4110(b) of Pub.
L. 101-380. Sections 155.1110 through 155.1150 also issued under 33
U.S.C. 2735.

6. In Sec. 155.140, add paragraph (d)(3) to read as follows:

Sec. 155.140 Incorporation by reference.

* * * * *
(d) * * *
(3) MARPOL 73/78, Annex I, regulation 12A, incorporation by
reference approved for Sec. 155.250.
* * * * *
7. Add Sec. 155.250 to read as follows:

Sec. 155.250 Oil fuel tank protection.

Each ship with an aggregate oil fuel capacity of 600 cubic meters
or more that is delivered on or after August 1, 2010, must meet the
minimum standard of oil fuel tank protection required by Annex I,
regulation 12A (incorporated by reference, see Sec. 155.140).
8. In Sec. 155.360, revise paragraph (a)(1), add paragraph (a)(3),
revise paragraph (b) introductory text, and add paragraph (b)(3) to
read as follows:

Sec. 155.360 Oily mixture (bilge slops) discharges on oceangoing
ships of 400 gross tons and above but less than 10,000 gross tons,
excluding ships that carry ballast water in their fuel oil tanks.

(a)(1) Except as provided in paragraph (a)(3) of this section, no
person may operate an oceangoing ship of 400 gross tons and above but
less than 10,000 gross tons, excluding a ship that carries ballast
water in its fuel oil tanks, unless it is fitted with approved 15 parts
per million (ppm) oily-water separating equipment for the processing of
oily mixtures from bilges or fuel oil tank ballast.
* * * * *
(3) Any ship certified under the International Code of Safety for
High-Speed Craft engaged on a scheduled service with a turn-around time
not exceeding 24 hours and covering also non-passenger/cargo-carrying
relocation voyages for these ships need not be provided with oil
filtering equipment. These ships must be fitted with an oily bilge
water holding tank having a volume adequate for the total retention
onboard of the oily bilge water. All oily bilge water must be retained
onboard for subsequent discharge to reception facilities.
(b) No person may operate a ship under this section unless it is
fitted with an oil residue (sludge) tank or tanks of adequate capacity
to receive the oil residue that cannot be dealt with otherwise.
* * * * *
(3) Ships subject to this section must--
(i) Be provided with a designated pump for disposal that is capable
of taking suction from the oil residue (sludge) tank(s); and
(ii) Have no discharge connections to the bilge system, oily bilge
water holding tank(s), tank top or oily water separators except that
the tank(s) may be fitted with drains, with manually operated self-
closing valves and arrangements for subsequent visual monitoring of the
settled water, that lead to an oily bilge water holding tank or bilge
well, or an alternative arrangement, provided such arrangement does not
connect directly to the bilge piping system.
* * * * *
9. In Sec. 155.370, revise paragraph (a) introductory text, add
paragraph (a)(5), revise paragraph (b) introductory text and add
paragraph (b)(3) to read as follows:

Sec. 155.370 Oily mixture (bilge slops)/fuel oil tank ballast water
discharges on oceangoing ships of 10,000 gross tons and above and
oceangoing ships of 400 gross tons and above that carry ballast water
in their fuel oil tanks.

(a) Except as provided in paragraph (a)(5) of this section, no
person may operate an oceangoing ship of 10,000 gross tons and above,
or any oceangoing ship of 400 gross tons and above, that carries
ballast water in its fuel oil tanks, unless it has--
* * * * *
(5) Any ship certified under the International Code of Safety for
High-Speed Craft engaged on a scheduled service with a turn-around time
not exceeding 24 hours and covering also non-passenger/cargo-carrying
relocation voyages for these ships need not be provided with oil
filtering equipment. These ships must be fitted with an oily bilge
water holding tank having a volume adequate for the total retention
onboard of the oily bilge water. All oily bilge water must be retained
onboard for subsequent discharge to reception facilities.
* * * * *
(b) No person may operate a ship under this section unless it is
fitted with an oil residue (sludge) tank or tanks of adequate capacity
to receive the oil residue that cannot be dealt with otherwise.
* * * * *
(3) Ships subject to this section must--

[[Page 21377]]

(i) Be provided with a designated pump for disposal that is capable
of taking suction from the oil residue (sludge) tank(s); and
(ii) Have no discharge connections to the bilge system, oily bilge
water holding tank(s), tank top or oily water separators except that
the tank(s) may be fitted with drains, with manually operated self-
closing valves and arrangements for subsequent visual monitoring of the
settled water, that lead to an oily bilge water holding tank or bilge
well, or an alternative arrangement, provided such arrangement does not
connect directly to the bilge piping system.
* * * * *

PART 156--OIL OR HAZARDOUS MATERIAL POLLUTION PREVENTION
REGULATIONS FOR VESSELS

10. The authority citation for part 156 continues to read as
follows:

Authority: 33 U.S.C. 1231, 1321(j); 46 U.S.C. 3703a, 3715, 6101;
E.O. 11735, 3 CFR 1971-1975 Comp., p. 793. Section 156.120(bb) is
also issued under 46 U.S.C. 3703.

11. Revise Sec. 156.111 to read as follows:

Sec. 156.111 Incorporation by reference.

(a) Certain material is incorporated by reference into this part
with the approval of the Director of the Federal Register under 5
U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that
specified in this section, the Coast Guard must publish notice of
change in the Federal Register and the material must be available to
the public. All approved material is available for inspection at the
U.S. Coast Guard, Office of Compliance (CG-543), 2100 2nd Street SW.,
Washington, DC 20593-0001, telephone 202-372-1251, and is available
from the sources listed below. It is also available for inspection at
the National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, call 202-741-
6030 or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
(b) Oil Companies International Marine Forum (OCIMF), 15th Floor,
96 Victoria Street, London SW1E 5JW, England, telephone +44(0)20 7654
1200, http://www.ocimf.com/.
(1) Ship to Ship Transfer Guide, Petroleum, Fourth Edition, 2005,
incorporation by reference approved for Sec. 156.330(b), Sec.
156.410(c)(2), and Sec. 156.410(f).
(2) [Reserved]
(c) International Maritime Organization (IMO), 4 Albert Embankment,
London SE1 7SR, United Kingdom, telephone +44(0)20 7735 7611, http://www.imo.org/.
(1) Manual on Oil Pollution, Section I: Prevention, as amended,
incorporation by reference approved for Sec. 156.410(c)(2), and Sec.
156.410(f).
(2) [Reserved]
(d) International Chamber of Shipping, 12 Carthusian Street, London
EC1M 6EB, England, telephone +44 20 7417 8844, http://www.marisec.org/.
(1) Guide to Helicopter/Ship Operations, Fourth Edition, 2009,
incorporation by reference approved for Sec. 156.330(c).
(2) [Reserved]

Sec. 156.200 [Amended]

12. In Sec. 156.200 after the words ``when conducting response
activities'' add the words ``, or to tank vessels of 150 gross tons or
more engaged in the transfer of oil cargo between tank vessels at sea
on or after April 1, 2012.''.

Sec. 156.205 [Amended]

13. In Sec. 156.205 revise the definition of Lightering or
Lightering operation to read as follows:

Sec. 156.205 Definitions.

* * * * *
Lightering or Lightering operation means the transfer of a cargo of
oil in bulk from one oil tanker less than 150 gross tons to another oil
tanker less than 150 gross tons, or a cargo of hazardous material in
bulk from one vessel to another, including all phases of the operation
from the beginning of the mooring operation to the departure of the
service vessel from the vessel to be lightered, except when that cargo
is intended only for use as fuel or lubricant aboard the receiving
vessel.
14. In Sec. 156.330, revise paragraphs (b) and (c) to read as
follows:

Sec. 156.330 Operations.

* * * * *
(b) Lightering operations should be conducted in accordance with
the Oil Companies International Marine Forum (OCIMF) Ship to Ship
Transfer Guide, Petroleum, Fourth Edition, 2005 (incorporated by
reference, see Sec. 156.111) to the maximum extent practicable.
(c) Helicopter operations should be conducted in accordance with
the International Chamber of Shipping Guide to Helicopter/Ship
Operations, Fourth Edition, 2009 (incorporated by reference, see Sec.
156.111) to the maximum extent practicable.
* * * * *
15. Add subpart D, consisting of Sec. Sec. 156.400 through
156.420, to read as follows:
Subpart D--Prevention of Pollution During Transfer of Oil Cargo Between
Oil Tankers at Sea
Sec.
156.400 Applicability.
156.405 Definitions.
156.410 General.
156.415 Notification.
156.420 Reporting of Incidents.

Sec. 156.400 Applicability.

Subpart D--Prevention of Pollution During Transfer of Oil Cargo
Between Oil Tankers at Sea

(a) This subpart applies to oil tankers engaged in the ship-to-ship
transfer of oil cargo between oil tankers (STS Operations), and to
their STS Operations conducted on or after April 1, 2012, when at least
one of the oil tankers is of 150 gross tonnage and above. These rules
are in addition to the rules of subpart A of this part, as well as the
rules in the applicable sections of parts 151, 153, 155, 156, and 157
of this chapter.
(b) This subpart does not apply to STS Operations--
(1) If the oil cargo is intended only for use as a fuel or
lubricant aboard the receiving vessel (bunker operations);
(2) When the oil transfer operation is for the purpose of securing
the safety of a ship, saving life at sea, or addressing specific
pollution incidents to minimize damage from pollution; or
(3) When at least one of the ships involved in the oil transfer
operation is a warship or a naval auxiliary or other ship owned or
operated by a nation and used, at the time of the transfer, in
government noncommercial service only.
(4) When the STS Operations are necessary for the purpose of
securing the safety of a ship or saving life at sea, or for combating
specific pollution incidents in order to minimize the damage from
pollution; except that such vessels are subject to the requirements of
Sec. 156.420.

Sec. 156.405 Definitions.

(a) In addition to the definitions specifically stated in this
section, the definitions in Sec. 154.105 of this chapter apply to this
subpart except definitions for Tank Barge, Tank Ship and Tank Vessel.
(b) Definitions specific to this part--
Authorized Classification Society means a recognized classification
society that has been delegated the authority to conduct certain
functions

[[Page 21378]]

and certifications on behalf of the Coast Guard.
Flag State means the authority under which a country exercises
regulatory control over the commercial vessel which is registered under
its flag. This involves the inspection, certification, and issuance of
safety and pollution prevention documents.
Marine environment means--
(1) The navigable waters of the United States;
(2) The waters of an area over which the United States asserts
exclusive fishery management authority; and
(3) The waters superjacent to the Outer Continental Shelf of the
United States.
Oil tanker means a vessel that is constructed or adapted primarily
to carry crude oil or products in bulk as cargo. This includes a tank
barge, a tankship, and a combination carrier, as well as a vessel that
is constructed or adapted primarily to carry noxious liquid substances
in bulk as cargo and which also carries crude oil or products in bulk
as cargo.
STS Operations means the transfer of oil cargo carried in bulk from
one oil tanker to another at sea, when at least one of the oil tankers
is of 150 gross tonnage and above.

Sec. 156.410 General.

(a) After April 1, 2012, oil tankers subject to this subpart, and
for each U.S. oil tanker, wherever located, subject to this subpart,
shall carry onboard an STS Operations Plan that prescribes how that
vessel will conduct STS Operations.
(b) Any oil tanker subject to this subpart must carry onboard an
STS Operations Plan, prescribing how to conduct STS Operations, no
later than the date of the first annual, intermediate, or renewal
survey of the oil tanker, which must be carried out on or after January
1, 2011.
(c) The STS Operations Plan must be--
(1) Written in the working language of the oil tanker's crew;
(2) Developed using the information contained in the best practice
guidelines for STS Operations identified in the IMO Manual on Oil
Pollution, Section 1: Prevention, as amended, and in the ICS and OCIMF
Ship to Ship Transfer Guide (Petroleum), fourth edition, 2005 (both
documents are incorporated by reference, see Sec. 156.111); and
(3) Approved by the vessel's Flag State for oil tankers operated
under the authority of a country other than the United States. For U.S.
oil tankers, the STS Operations Plan must be approved by the Commandant
(CG-5431) or an Authorized Classification Society.
(d) When chapter IX of the International Convention for the Safety
of Life at Sea, 1974, as amended is applicable to the vessel, the STS
Operations Plan may be incorporated into an existing required Safety
Management System.
(e) Any oil tanker subject to this subpart must comply with the
vessel's approved STS Operations Plan while engaging in STS Operations.
(f) The person in overall advisory control of STS Operations must
be qualified to perform all relevant duties, taking into account the
qualifications found in the best practice guidelines for STS Operations
identified in the IMO Manual on Oil Pollution, Section I: Prevention,
as amended, and in the ICS and OCIMF Ship to Ship Transfer Guide
(Petroleum), fourth edition, 2005 (both documents are incorporated by
reference, see Sec. 156.111).
(g) In addition to any records required by the vessel's approved
STS Operations Plan, each STS operation must be recorded in the oil
tanker's Oil Record Book, required by Sec. 151.25 of this chapter.
(h) All records of STS Operations shall be retained onboard for 3
years and be readily available for inspection.
(i) No oil tanker may transfer oil in a port or place subject to
the jurisdiction of the United States, if the oil cargo has been
transferred by an STS Operation in the marine environment beyond the
baseline, unless:
(1) Both oil tankers engaged in the STS Operation have, onboard, at
the time of transfer all certificates required by this chapter for
transfer of oil cargos, including a valid Certificate of Inspection or
Certificate of Compliance, as applicable to any transfer of oil taking
place in a port or place subject to the jurisdiction of the United
States;
(2) Both oil tankers engaged in the STS operation have onboard at
the time of transfer, evidence that each vessel is operating in
compliance with the National Response System as described in section
311(j) of the Federal Water Pollution Control Act (33 U.S.C. 1321(j)).
Additionally, the vessels must comply with the Declaration of
Inspection requirements delineated in Sec. 156.150 and a vessel
response plan if required under part 155 of this chapter; and
(3) Both oil tankers engaged in STS Operations have onboard, at the
time of transfer, an International Oil Pollution Prevention (IOPP)
Certificate or equivalent documentation of compliance with Annex I, as
would be required by part 151 of this chapter for vessels in navigable
waters of the United States. The IOPP Certificate or documentation of
compliance shall be that prescribed by Sec. Sec. 151.19 and 151.21 of
this chapter, and shall be effective under the same timetable as
specified in Sec. 151.19.
(j) In an emergency, the Captain of the Port (COTP), upon request,
may authorize a deviation from any requirement in this part if the COTP
determines that its application will endanger persons, property, or the
environment.

Sec. 156.415 Notification.

(a) Except as provided for in paragraph (g) of this section, the
master, owner or agent of each oil tanker subject to this subpart
planning to conduct STS Operations in the territorial sea or exclusive
economic zone of the United States must give at least 48 hours advance
notice to the COTP nearest the geographic position chosen to conduct
these operations. This advance notice must include:
(1) The oil tanker's name, call sign or official number, and
registry;
(2) The cargo type and approximate amount onboard;
(3) The number of transfers expected, the amount of cargo expected
to be transferred during each transfer, and whether such transfer will
be conducted at anchor or underway;
(4) The date, estimated time of arrival, and geographical location
at the commencement of the planned STS Operations;
(5) The estimated duration of STS Operations;
(6) Whether STS operations are to be conducted at anchor or
underway;
(7) The name and destination of receiving oil tanker(s);
(8) Identification of STS Operations service provider or person in
overall advisory control and contact information; and
(9) Confirmation that the oil tanker has onboard an approved STS
Operations Plan.
(c) If the estimated arrival time of an oil tanker to the reported
geographic location for the commencement of STS operation changes by
more than 6 hours, the master, owner, or agent of that oil tanker must
provide a revised estimated time of arrival to the COTP.
(d) Where STS Operations are conducted as a result of collision,
grounding, tank rupture or any similar emergency, the master, owner, or
agent of a vessel must give immediate notice to the Coast Guard office.
(e) In addition to the other requirements in this section, the
master, owner, or agent of a vessel that requires a Certificate of
Compliance (COC) or other special Coast Guard inspection in

[[Page 21379]]

order to conduct STS Operations must request the COC or other
inspection from the cognizant Officer in Charge, Marine Inspection
(OCMI) at least 72 hours prior to commencement of STS Operations.
(f) The STS Operation advanced notice is in addition to the
Notification of Arrival requirements in 33 CFR Part 160.
(g) The master, owner or agent of each oil tanker subject to this
subpart planning to conduct STS Operations in a designated lightering
zone must give at least 24 hours advance notice to the COTP nearest the
geographic position chosen to conduct these operations. This advance
notice must include the items listed in paragraph (a) of this section.
(h) If STS operations are conducted under exigent circumstances to
secure the safety of a ship, save life at sea, or combat specific
incidents in order to minimize the damage from pollution within the
territorial sea or exclusive economic zone of the United States, the
master, owner, or agent of each oil tanker subject this subpart shall
provide notice with adequate explanation, as soon as practicable, to
the COTP nearest the geographic position where the exigent STS
operation took place.

Sec. 156.420 Reporting of incidents.

(a) Any vessel affected by fire, explosion, collision, grounding,
or any similar emergency that poses a threat to the vessel(s) engaged
in STS Operations must report the incident to the nearest Coast Guard
office.
(b) The receiving vessel in an STS operation must report, in
accordance with the procedures specified in Sec. 151.15 of this
chapter, any incident of discharge of oil into the water.
(c) Immediately after the addressing of resultant safety concerns,
all marine casualties must be reported to the nearest COTP, Sector
Office, Marine Inspection Office, or OCMI in accordance with 46 CFR
part 4.

PART 157--RULES FOR THE PROTECTION OF THE MARINE ENVIRONMENT
RELATING TO TANK VESSELS CARRYING OIL IN BULK

16. The authority citation for part 157 continues to read as
follows:

Authority: 33 U.S.C. 1903; 46 U.S.C. 3703, 3703a (note);
Department of Homeland Security Delegation No. 0170.1. Subparts G,
H, and I are also issued under section 4115(b), Pub. L. 101-380, 104
Stat. 520; Pub. L. 104-55, 109 Stat. 546.
17. In Sec. 157.02, add paragraphs (b)(9) and (b)(10) to read as
follows:

Sec. 157.02 Incorporation by reference: Where can I get a copy of the
publications mentioned in this part?

* * * * *
(b) * * *
(9) MARPOL 73/78, Annex I, regulation 22, incorporation by
reference approved for Sec. 157.14.
(10) MARPOL 73/78, Annex I, regulation 23, incorporation by
reference approved for Sec. 157.20.
* * * * *
18. In Sec. 157.08, add paragraph (o) to read as follows:

Sec. 157.08 Applicability of subpart B.

* * * * *
(o) Section 157.11(h) applies to every oil tanker delivered on or
after January 1, 2010, meaning an oil tanker--
(1) For which the building contract is placed on or after January
1, 2007;
(2) In the absence of a building contract, the keel of which is
laid or which is at a similar stage of construction on or after July 1,
2007;
(3) The delivery of which is on or after January 1, 2010; or
(4) That has undergone a major conversion--
(i) For which the contract is placed on or after January 1, 2007;
(ii) In the absence of a contract, the construction work of which
is begun on or after July 1, 2007; or
(iii) That is completed on or after January 1, 2010.
19. In Sec. 157.11, add paragraph (h) to read as follows:

Sec. 157.11 Pumping, piping and discharge arrangements.

* * * * *
(h) Every oil tanker of 150 gross tons or more delivered on or
after January 1, 2010, as defined in Sec. 157.08(o), that has
installed a sea chest that is permanently connected to the cargo
pipeline system, must be equipped with both a sea chest valve and an
inboard isolation valve. The sea chest must be able to be isolated from
the cargo piping system by use of a positive means while the tanker is
loading, transporting, or discharging cargo. This positive means must
be installed in the pipeline in such a way as to prevent, under all
circumstances, the section of pipe between the sea chest valve and the
inboard valve from being filled with cargo.
20. Add Sec. 157.14 to read as follows:

Sec. 157.14 Pump-room bottom protection.

Each oil tanker of 5,000 tons deadweight or more constructed on or
after January 1, 2007, must meet the minimum standard of pump room
bottom protection required by MARPOL 73/78, as amended, Annex I,
regulation 22 (incorporated by reference, see Sec. 157.02).
21. Amend Sec. 157.19 as follows:
a. Revise paragraph (a) introductory text to read as set out below;
b. Redesignate paragraphs (b) through (e) as paragraphs (c) through
(f), respectively; and
c. Add new paragraph (b) to read as follows:

Sec. 157.19 Cargo tank arrangement and size.

(a) With the exception of those vessels listed in paragraph (b) of
this section, this section applies to:
* * * * *
(b) This section does not apply to U.S. or foreign oil tankers
delivered on or after January 1, 2010.
* * * * *
22. Add Sec. 157.20 to read as follows:

Sec. 157.20 Accidental oil outflow performance.

Each oil tanker which is delivered on or after January 1, 2010 must
meet the minimum standard of accidental oil outflow performance
required by MARPOL 73/78 Annex I, regulation 23 (incorporated by
reference, see Sec. 157.02).

Title 46--Shipping

PART 197--GENERAL PROVISIONS

23. The authority citation for part 197 continues to read as
follows:

Authority: 33 U.S.C. 1509; 43 U.S.C. 1333; 46 U.S.C. 3306, 3703,
6101; Department of Homeland Security Delegation No. 0170.1.

24. Revise Sec. 197.205 by adding paragraph (b)(3) and (b)(4) to
read as follows:

Sec. 197.205 Availability of standards.

* * * * *
(b) * * *
(3) International Standards Organization, ISO Central Secretariat,
1, ch. de la Voie-Creuse, CP 56, CH-1211 Geneva 20, Switzerland.
(4) International Maritime Organization, 4 Albert Embankment,
London SE1 7SR, United Kingdom.
25. Add subpart D, consisting of Sec. Sec. 197.801 through
197.820, to read as follows:
Subpart D--Hazard Notification
Sec.
197.801 Applicability.
197.805 Definitions.
197.810 Incorporation by reference.
197.820 MSDS Certificates.
Appendix A to Subpart D--Recommendations for Material Safety Data
Sheets (MSDS) for Marine Use That Meet the Particular Needs of the
Marine Industry and Contain Safety, Handling, and Environmental
Information To Be

[[Page 21380]]

Supplied to a Ship Prior to the Loading of Annex I Type Oil as Cargo
in Bulk and the Bunkering of Oil Fuel
Appendix B to Subpart D--Guidelines for the Completion of MSDS for
the Annex I Type Oil as Cargo in Bulk and Oil Fuel

Subpart D--Hazard Notification

Sec. 197.801 Applicability.

This subpart applies to all vessels subject to SOLAS 1974,
including tank ships and barges that are carrying the liquids listed in
MARPOL 73/78, Annex I List of Oils, in bulk as cargo or as oil fuel.

Sec. 197.805 Definitions.

As used in this subpart:
MARPOL 73/78 means the International Convention for the Prevention
of Pollution from Ships, 1973 (done at London, November 2, 1973),
modified by the Protocol of 1978 relating to the International
Convention for the Prevention of Pollution from Ships, 1973 (done at
London, February 17, 1978).
Oil means petroleum, whether in solid, semi-solid, emulsified, or
liquid form, including, but not limited to, crude oil, fuel oil,
sludge, oil refuse, oil residue, and refined products. This term also
includes the substances listed in Appendix I of Annex I of MARPOL 73/
78. This term does not include animal- and vegetable-based oil or
noxious liquid substances (NLS) designated under Annex II of MARPOL 73/
78.
Oil fuel means oil used as fuel for machinery in the vessel in
which it is carried.
SOLAS 1974 means the International Convention for the Safety of
Life at Sea, as amended.

Sec. 197.810 Incorporation by reference.

(a) Certain materials are incorporated by reference into this part
with the approval of the Director of the Federal Register in accordance
with 5 U.S.C. 522(a) and 1 CFR part 51. To enforce any edition other
than the one (b) in this section, the Coast Guard must publish notice
of change in the Federal Register and the material must be available to
the public. All approved material is available for inspection at U.S.
Coast Guard, Office of Operating and Environmental Standards (CG-522),
2100 Second Street SW., Washington, DC 20593-0001 and is available from
the sources listed below. It is also available for inspection at the
National Archives and Records Administration (NARA). For information on
the availability of this material at NARA, call 202-741-6030, or go to:
http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html. All approved material is available
from the sources indicated in paragraph (b) of this section.
(b) International Maritime Organization (IMO) Publications Section,
International Maritime Organization, 4 Albert Embankment, London SE1
7SR, United Kingdom
(1) Appendix 1 to Annex I of the International Convention for the
Prevention of Pollution from Ships, 1973, as modified by the Protocol
of 1978 relating to that convention (MARPOL 73/78), incorporation by
reference approved for Sec. Sec. 197.805 and 197.820.
(2) [Reserved]

Sec. 197.820 MSDS Certificates.

(a) Each vessel subject to SOLAS 1974 must carry a Material Safety
Data Sheet (MSDS) for each Annex I cargo and ship fuel carried in bulk
after January 1, 2011.
(b) The data in the MSDS may be either specific to the individual
cargo or fuel oil or it may be generic for that cargo or fuel oil.
(c) Due to the human health hazards from benzene and hydrogen
sulfide, and to the fact that sulfur can form hydrogen sulfide, the
MSDS must contain the benzene, hydrogen sulfide, and sulfur
concentration ranges and their related health hazards.
(d) The MSDS information must be in the English language. However,
if the crew cannot understand English, the MSDS must also be in the
working language or languages of the ship.
(e) Appendix A to Subpart D contains a non-mandatory example of one
format for the MSDS.
(f) Appendix B to Subpart D contains guidelines for completing the
MSDS Appendix A to Subpart D.

Appendix A to Subpart D--Recommendations for Material Safety Data
Sheets (MSDS) for Marine Use That Meet the Particular Needs of the
Marine Industry and Contain Safety, Handling, and Environmental
Information To Be Supplied to a Ship Prior to the Loading of Annex I
Type Oil as Cargo in Bulk and the Bunkering of Oil Fuel

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Section Heading Content
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1...................... Identification of the substance Name of the category. See guidance in Annex
or mixture and of the supplier. II for Annex I type oil cargoes and oil fuels.
The name of the substances.
Trade name of the substances.
Description on Bill of Lading (B/L), Bunker
Delivery Note or other shipping document.
Other means of identification.
Suppliers details (including name, address,
telephone number, etc.).
Emergency telephone number.
2...................... Hazards identification........... GHS* classification of the substance/
mixture and any regional information.
Other hazards which do not result in
classification (e.g., hydrogen sulphide) or are not
covered by the GHS. See Guidelines in Annex II.
3...................... Composition/information on Common name, synonyms, etc.
ingredients.
Impurities and stabilizing additives which
are themselves classified and which contribute to
the classification of the substances.
The chemical identity and concentration or
concentration ranges of all ingredients which are
hazardous within the meaning of GHS and are present
above their cut-off levels. Cut-off level for
reproductive toxicity, carcinogenicity and category
1 mutagenicity is 0.1%. Cut-off level for all other
hazard classes is 1%. See Guidelines in Annex II.
4...................... First aid measures............... Description of necessary measures,
subdivided according to the different routes of
exposure, i.e. inhalation, skin and eye contact,
and ingestion.
Most important symptoms/effects, acute and
delayed.
Indication of immediate medical attention
and special treatment, if necessary.

[[Page 21381]]

5...................... Fire-fighting measures........... Suitable extinguishing media.
Specific hazards arising from the chemical
(e.g., nature of any hazardous combustion
products).
Special protective equipment and
precautions for fire-fighters.
6...................... Accidental release measures...... Personal precautions, protective equipment
and emergency procedures.
Environmental precautions.
Methods and materials for containment and
clean-up.
7...................... Handling and storage............. Precautions for safe handling.
Conditions for safe storage, including any
incompatibilities.
8...................... Exposure controls/personal Control parameters (e.g., occupational
protection. exposure limit values).
Appropriate technical precautions.
Individual protection measures, such as
personal protective equipment.
9...................... Physical and chemical Properties. See Guidelines in Annex II.
10..................... Stability and reactivity......... Chemical stability.
Possibility of hazardous reactions.
Conditions to avoid (e.g., static
discharge).
11..................... Toxicological information........ Concise but complete and comprehensible
description of the various toxicological (health)
effects and the available data used to identify
those effects, including:
[ssquf] Information on the likely routes of
exposure (inhalation, ingestion, skin and eye
contact); Symptoms related to the physical,
chemical and toxicological characteristics;
[ssquf] Delayed and immediate effects and also
chronic effects from short- and long-term
exposure.
Numerical measures of toxicity (such as
acute toxicity estimates).
See Guidelines in Annex II.
12..................... Ecological information........... Ecotoxicity (aquatic and terrestrial, where
available).
Persistence and degradability.
Bioaccumulation potential.
Mobility in soil.
Other adverse effects.
See Guidelines in Annex II.
13..................... Disposal considerations.......... Description of waste residues and information on
their safe handling and methods of disposal, in
line with MARPOL 73/78 requirements.
14..................... Transport information............ UN number, where applicable.
UN Proper shipping name, where applicable.
Transport Hazard class(es), where
applicable.
Special precautions that a user needs to be
aware of or needs to comply with in connection with
transport (e.g., heating and carriage
temperatures).
Note that this product is being carried.
15..................... Regulatory information........... Safety, health and environmental regulations
specific for the product in question.
16..................... Other information, including Version No.
information on preparation and Date of issue.
revision of the MSDS. Issuing source.
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Globally Harmonized System of Classification and Labeling of
Chemicals (GHS), United Nations (2007 edition, as revised).

Appendix B to Subpart D--Guidelines for the Completion of MSDS for the
Annex I Type Oil as Cargo in Bulk and Oil Fuel

1 Categories of Liquids

The following categories subdivide the full scope of substances
covered by Annex I of MARPOL 73/78 and set in groups specific
products for general identification purposes.
.1 Crude oils;
.2 Fuel and residual oils, including ship's bunkers*;
.3 Unfinished distillates, hydraulic oils and lubricating oils;
.4 Gas oils, including ship's bunkers**;
.5 Kerosenes;
.6 Naphthas and condensates;
.7 Gasoline blending stocks;
.8 Gasoline and spirits; and
.9 Asphalt solutions.

2 Properties and Information

In addition to properties and information specified in Annex 1,
the following properties and information should be reported:

.1 For the following provide appropriate hazards identification in
section 2, composition/information on ingredients in section 3, and
toxicological information in section 11 of the MSDS:
.1 Benzene. If present >=0.1% by weight (even if naturally
occurring ingredient of the material);
.2 Hydrogen sulphide. If present at any concentration, in liquid
and vapor phases, or if possible to accumulate in a tank's vapor
space; and
.3 Total Sulphur. If present >=0.5% by weight, identify in
section 3 and warn of potential for hydrogen sulphide evolution in
sections 2 and 11;
.2 For physical and chemical properties in section 9 of the MSDS:
.1 Appearance (physical state, color, etc.);
.2 Odor;
.3 Pour point;
.4 Boiling range;
.5 Flashpoint;
.6 Upper/lower flammability or explosive limits;
.7 Vapor pressure (Reid vapor pressure (RVP) when appropriate);
.8 Vapor density;
.9 Density;
.10 Auto-ignition temperature; and
.11 Kinematic viscosity; and
.3 For ecological information in section 12 of the MSDS: Persistent
or non-persistent oil as per the International Oil Pollution
Compensation (IOPC) Fund definition*.
* Refer to standard ISO 8217:2005, Petroleum products. Fuels
(class F). Specifications of marine fuels, table 2.
** Refer to standard ISO 8217:2005, Petroleum products. Fuels
(class F). Specifications of marine fuels, table 1.

Dated: March 1, 2012.
F.J. Sturm,
Acting Director of Commercial Regulations, and Standards, U.S. Coast
Guard.
[FR Doc. 2012-7919 Filed 4-6-12; 8:45 am]
BILLING CODE 9110-04-P