
[Federal Register Volume 81, Number 150 (Thursday, August 4, 2016)]
[Notices]
[Pages 51499-51510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18404]


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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

[Docket No. OSHA-2012-0008]


Newport News Shipbuilding; Grant of a Permanent Variance

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Notice.

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SUMMARY: In this notice, OSHA grants a permanent variance to Newport 
News

[[Page 51500]]

Shipbuilding from the OSHA shipyard-employment standards that prohibit 
shipyard employers from permitting workers to ride the hook or the 
load, from swinging or suspending loads over the heads of workers, and 
placing employees in a hazardous position between a swinging load and a 
fixed object while engaged in the construction and assembly of modular 
ship sections.

DATES: The permanent variance specified by this notice becomes 
effective on August 4, 2016 and shall remain in effect until it is 
modified or revoked.

FOR FURTHER INFORMATION CONTACT: Information regarding this notice is 
available from the following sources:
    Press inquiries: Contact Mr. Frank Meilinger, Director, OSHA Office 
of Communications, U.S. Department of Labor, 200 Constitution Avenue 
NW., Room N-3647, Washington, DC 20210; telephone: (202) 693-1999; 
email: meilinger.francis2@dol.gov.
    General and technical information: Contact Mr. Kevin Robinson, 
Director, Office of Technical Programs and Coordination Activities, 
Directorate of Technical Support and Emergency Management, Occupational 
Safety and Health Administration, U.S. Department of Labor, 200 
Constitution Avenue NW., Room N-3655, Washington, DC 20210; phone: 
(202) 693-2110 or email: robinson.kevin@dol.gov.

SUPPLEMENTARY INFORMATION:
    Copies of this Federal Register notice. Electronic copies of this 
Federal Register notice are available at http://www.regulations.gov. 
This Federal Register notice, as well as news releases and other 
relevant information, also are available at OSHA's Web page at http://www.osha.gov.

I. Notice of Application

    Northrop Grumman Shipbuilding 4101 Washington Ave., Newport News, 
Virginia 23607, submitted on October 6, 2009, an application for a 
permanent multi-state variance under Section 6(d) of the Occupational 
Safety and Health Act of 1970 (``OSH Act''; 29 U.S.C. 655) and 29 CFR 
1905.11 (``Variances and other relief under section 6(d)'') (Exhibit 1: 
Northrop Grumman Shipbuilding's original variance application dated 10/
26/2009). On September 6, 2011, Newport News Shipbuilding (NNS), a 
division of Huntington Ingalls Industries, the successor to Northrop 
Grumman Shipbuilding, submitted an amended application for a permanent 
variance for the Newport News, Virginia, facility only (Exhibit 2: 
NNS's amended variance application).1 2 3
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    \1\ Unless stated otherwise, the terms ``variance application'' 
or ``application'' used subsequently in this notice refers to both 
the original (2009) and amended (2011) applications submitted by 
NNS.
    \2\ This address also is the place of employment described in 
the application.
    \3\ Virginia operates its own OSHA-approved occupational safety 
and health plan under Section 18 of the Occupational Safety and 
Health Act (29 U.S.C. 667). Thus, Virginia generally adopts and 
enforces its own occupational safety and health standards. However, 
the Virginia plan does not cover private-sector maritime facilities. 
Accordingly, Federal OSHA retains its authority over occupational 
safety and health matters not covered by the Virginia plan (see 29 
CFR 1952.375(b)(1)), including granting variances from OSHA 
standards applicable to such facilities.
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    NNS seeks a permanent variance from the provisions in OSHA 
shipyard-employment standards that regulate gear and equipment used for 
rigging and materials handling, specifically paragraphs (i), (j), and 
(q) of 29 CFR 1915.116. These provisions prohibit shipyard employers 
from permitting workers to ride the hook or the load, swinging or 
suspending loads over the heads of workers, or placing workers in a 
hazardous position between a swinging load and a fixed object. These 
paragraphs specify the following requirements:
     29 CFR 1915.116(i): Employees shall not be permitted to 
ride the hook or the load.
     29 CFR 1915.116(j): Loads (tools, equipment or other 
materials) shall not be swung or suspended over the heads of employees.
     29 CFR 1915.116(q): At no time shall an employee be 
permitted to place himself in a hazardous position between a swinging 
load and a fixed object.
    In its application, NNS contends that the permanent variance 
provides its workers with a place of employment that is at least as 
safe and healthful as they are able to obtain under these standards. 
NNS certifies that it (1) provided the union representative \4\ with a 
copy of its variance application, and (2) notified its workers of the 
variance request by posting a summary of the application at a prominent 
location where it normally posts notices to its workers, and specifying 
where the workers can examine a complete copy of the application. In 
addition, NNS states that it informed workers and the union 
representative of their right to petition the Assistant Secretary of 
Labor for Occupational Safety and Health for a hearing on this variance 
application.
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    \4\ Mr. Arnold D. Outlaw, President, Local 8888, United 
Steelworkers (USW), Newport News, VA.
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    OSHA considered NNS' application for a permanent variance and on 
July 29, 2015, OSHA published a preliminary Federal Register notice 
announcing NNS' application and request for comments (80 FR 45238). The 
comment period expired on August 28, 2015, and OSHA received no 
comments.

II. Supplementary Information

A. Overview

    NNS operates a shipyard in Newport News, Virginia, where it 
designs, builds, overhauls, and repairs a wide variety of ships for the 
U.S. government and navies of other countries. In the course of 
shipbuilding operations, NNS performs many operations that require the 
use of cranes or hoists during the course of vessel construction. Work 
processes include the erection of large modular units that, when 
assembled, comprise a vessel. In exceptional cases, workers may be 
beneath a portion of the unit for brief periods of time. Workers who 
work beneath units primarily remove interferences and ensure proper 
alignment of the units, as discussed below.
    As noted above, Sec.  1915.116(i), (j), and (q) prohibit workers 
from riding the hook or load, working on or under a suspended load, or 
working between a swinging load and a fixed object. However, the 
procedures and equipment used in shipbuilding today differ 
substantially from the procedures and equipment used when OSHA adopted 
these standards in 1982. Shipbuilding is no longer the ``stick 
construction'' industry it was when the standards were promulgated. 
With technological advancements, shipyards today build vessels using 
modular-production methods. Using these methods, shipyards completely 
construct major units of a vessel in modules. These modules include all 
components such as piping, electrical equipment, wiring, machinery, and 
ventilation. Modular-ship sections typically weigh 25 to 400 tons, but 
can weigh more. Generally, NNS uses cranes/hoists to lift and move ship 
sections during the following phases of modular production:
    Phase 1: Fabrication shop/area. In the fabrication shop/area, NNS 
uses cranes/hoists to lift and rotate ship sections to various 
orientations to optimize work quality and productivity.
    Phase 2: Travel from the fabrication shop/area to the ship-assembly 
staging area. In this phase, NNS typically uses one or more cranes/
hoists to move a ship section from the fabrication shop/area, through 
the shipyard, and to the ship-assembly staging area.
    Phase 3: Lifting from the staging area to the ship-assembly 
location (such as a dry dock or marine railway). This phase

[[Page 51501]]

consists of using cranes/hoists for end-to-end installation (involving 
horizontal assembly), stacking installation (involving vertical 
assembly), or inserting installation (involving both horizontal and 
vertical assembly).
     End-to-end installation. This installation involves using 
cranes/hoists to move ship sections for end-to-end mating (horizontal 
assembly) of the sections, with brief worker exposure on or under a 
suspended load, or between a swinging load and a fixed object.
     Stacking installation. In this phase, which involves using 
a crane/hoist to place a ship module on top of another module (vertical 
assembly), it is necessary to have workers work briefly on or under a 
suspended load, or between a swinging load and a fixed object, to 
identify and remove interferences (or obstructions) that preclude 
proper alignment and mating of the sections.
     Inserting installation. These installations involve a 
combination of end-to-end and stacking installations in which NNS uses 
cranes/hoists to both lower and move horizontally ship sections into 
their mating position. For inserting installations, it is necessary to 
have workers work briefly on or under a suspended load, or between a 
swinging load and a fixed object, to identify and remove interferences 
for properly aligning and mating the sections.
    NNS argues that OSHA should grant a variance from 29 CFR 
1915.116(i), (j), and (q) because modular shipbuilding occasionally 
requires workers to work briefly on or under a suspended load, or 
between a swinging load and a fixed object.
    NNS points to OSHA's past approval of an alternative standard for 
the National Aeronautics and Space Administration (NASA) for work 
performed under a suspended load (see Ex. 1, Appendix A). This 
alternative standard, NASA-STD-8719.9, establishes a specific set of 
controls when no alternative to working under a section or module is 
available. The NASA document provides 15 safety and engineering 
requirements that NASA uses in lieu of compliance with 29 CFR 
1910.179(n)(3)(vi), 29 CFR 1910.180(h)(3)(vi), and 29 CFR 
1910.180(h)(4)(ii).

B. Variance Paragraphs .116(i), (j), and (q) of 29 CFR 1915

    As part of its variance application, NNS proposed an alternative 
means of compliance with the provisions prohibiting work on or under a 
suspended modular-ship section, or between a swinging modular-ship 
section and a fixed object. In its variance request, NNS states that 
``[m]odular ship construction and repair techniques require, in rare 
cases, personnel to be under, in, or on such a load as the final fit-up 
of a modular section is made'' (Exhibit 2: NNS's amended variance 
application). NNS asserts that its alternative means of compliance 
provide equivalent protection with the provisions of the standard from 
which it seeks a variance.
    NNS's application includes a description of the alternate means of 
compliance that it intends to implement during modular-ship 
construction and structural-repair operations. The protection of 
workers from exposure to the crushing hazards associated with work on 
or under a suspended load, or between a swinging load and a fixed 
object during the lifting phase of modular-ship sections includes the 
application of significant engineering, administrative, coordination, 
and supervisory controls. The variance application further describes 
ship construction and ship-repair operations as: highly engineered; 
involving tested and certified equipment; and including continuous 
communication and monitoring between the workers involved. Hazard 
analysis, rigging procedures, rigging-lifting-plan with associated 
drawings, and crew briefings are among existing modular-ship-section 
lifting requirements adopted by the industry. All workers performing 
various jobs (e.g., supervisors, operators, riggers) receive special 
training and obtain necessary qualifications or certifications. 
Accordingly, NNS included the following conditions for its alternative 
means of compliance:
1. General Conditions and Definition of Suspended Load Operation
    NNS defines a ``suspended-load operation'' as an operation that 
meets the following three criteria:
    (a) Involves the use of a crane or hoist that supports the weight 
of a suspended load, whether the load is static or dynamic, including 
the rigging (i.e., slings, Hydra Sets, lifting fixtures, shackles, 
straps) when attached to the hook (Note: This condition does not apply 
to loads supported entirely by a holding fixture, or blocks, even 
though still attached to the crane and hoist hook);
    (b) When workers involved in the operation have any part of their 
body directly under the suspended load (Note: This condition does not 
apply when workers have their hands on the sides of a load, e.g., to 
guide the load); and
    (c) In the event of a crane or hoist failure, the falling load 
could contact workers working directly under it, with injury or death a 
possible result (Note: This condition does not apply when the falling 
load would push a worker's hand away such that no injury could result, 
or the load would come to rest on a holding fixture or block before 
injuring a worker).
2. Suspended-Load Operations
    NNS proposed to meet the following conditions prior to performing 
suspended-load operations:
    (a) A Registered Professional Engineer familiar with the type of 
equipment used for the suspended-load operations, prepares and signs a 
written hazard analysis for each operation. The hazard analysis is to 
provide the following information:
    (i) Justification of why NNS cannot perform the operation without 
workers on or under a suspended load, or between a swinging load and a 
fixed object, including procedural and design options investigated to 
determine if NNS could perform the operation without workers working on 
or under a suspended load, or between a swinging load and a fixed 
object.
    (ii) Detailed description of the precautions taken to protect 
workers should the load shift, move inadvertently or drop. This 
description includes an evaluation of the secondary support system, 
i.e., equipment designed to assume support of (i.e., catch) the load to 
prevent injury to workers should the crane/hoist fail; this description 
includes a determination of the feasibility of using this system under 
the planned lifting conditions. NNS is to construct the secondary 
support system in accordance with recognized engineering practices and 
designed with a minimum safety factor of 2 to yield.
    (iii) The maximum number of exposed workers allowed under a load 
suspended from a crane/hoist. In this regard, NNS limits the number of 
workers working under a load suspended from a crane/hoist. NNS allows 
only those workers absolutely necessary to perform the operation to 
work in the safety-controlled access area. The rigging-lifting-plan 
drawing(s) identifies the name and exact location of each individual 
worker involved in the suspended-load operation and the drawing ensures 
that each worker is in the safest location.
    (iv) The time of exposure. NNS ensures that workers' exposures 
under suspended loads are brief and that they do not remain under the 
load any longer than necessary to complete the work.

[[Page 51502]]

    (b) The most senior manager at the site for crane operations and a 
qualified representative of NNS's health and safety department must 
review and approve in writing the suspended-load operation based on a 
detailed hazard analysis and rigging-lifting-plan drawing(s).
    (c) NNS maintains written, up-to-date procedures that specify the 
minimum requirements for suspended loads. Accordingly, NNS is to revise 
the written hazard analysis and the Operational Procedures Document (or 
Lift Plan) (e.g., Operations and Maintenance Instruction, Technical 
Operating Procedure, Work-Authorization Document) to specify the 
necessary additional requirements identified by the hazard analysis 
discussed in Condition 2(b). The procedures are to be readily available 
on-site for inspection by workers during the operation at locations 
normally used to post worker information.
    (d) Each suspended-load operation is to have a separate hazard 
analysis and rigging-lifting-plan drawing performed and approved. A 
separate hazard analysis is not needed for a limited number of routine 
and repetitive operations for which a rigging-lifting-plan drawing(s) 
and procedures already exist and for which no new hazards are present.
    (e) NNS is to design, test, inspect, maintain, and operate each 
crane/hoist used in a suspended-load operation in accordance with OSHA 
standards and internal written procedures.\5\ Registered professional 
engineers are to review and certify all aspects of crane/hoist 
operations. NNS is to maintain the results of the annual inspections 
and all related documents and make them available to OSHA on request.
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    \5\ NNS designated its internal written suspended-load 
operational procedures as proprietary.
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    (f) Each crane/hoist involved in suspended-load operations is to 
undergo a system safety review that uses all documentation available on 
the suspended-load operation, including the hazards analysis and the 
rigging-lifting-plan drawing, and with approval based on a detailed 
analysis of the potential hazards and rationale for acceptance. The 
review is to determine single failure points (SFPs) in all critical 
mechanical functional components and support systems in the drive 
trains and critical electrical components.
    (i) For cranes/hoists identified as having no SFPs, but for which 
failure can result in inadvertent movement of the load, the total 
weight of the suspended load must not exceed the device's rated load.
    (ii) For cranes/hoists identified as having SFPs the failure of 
which can result in inadvertent movement of the load, the most senior 
manager at the site for crane operations and a qualified representative 
of NNS's health and safety department is to approve the use of that 
device for suspended-load operations.
    (g) Before lifting a load during a suspended-load operation, the 
crane/hoist is to undergo a visual inspection (without major 
disassembly) of components instrumental in controlling the lift (e.g., 
primary and secondary brake systems, hydraulics, mechanical linkages, 
and wire ropes). The most senior manager at the site for crane 
operations must resolve any potential problems before the operation 
begins. This pre-lift inspection is to be in addition to the 
inspections required in Sec.  1910.179(j) and 180(d).
    (h) A trained and qualified operator (e.g., 29 CFR 1926.1427) is to 
remain at the crane/hoist controls while workers are under the load.
    (i) Safety-controlled access areas are to be established with 
appropriate barriers (rope, cones, safety watches etc.). All non-
essential employees are required to remain outside the barriers.
    (j) Prior to initiating any suspended-load operation, the most 
senior manager at the site for crane operations or designee (e.g., 
supervisor controlling the lift) is to hold a face-to-face meeting of 
all workers involved in the operation to plan and review the approved 
lift plan (operational procedural document), including procedures for 
entering and leaving the safety-controlled access area and the written 
hazard analysis.
    (k) The most senior manager at the site for crane operations or 
designee (e.g., supervisor controlling the lift) is to ensure 
communications (i.e., voice, radio, hard-wired, or visual) are 
maintained between the crane/hoist operator(s), signal person(s), and 
any worker on or under the suspended modular-ship section, or between 
the swinging modular-ship section and a fixed object.
    (l) Workers on or under a suspended modular-ship section, or 
between a swinging modular-ship section and a fixed object, are to 
remain in continuous sight of the operator(s) and/or the signal 
person(s) when feasible. When NNS demonstrates that maintaining 
continuous sight is not feasible, these workers must remain in 
continuous communications with the operator and/or signal person.
    (m) Workers are not altering their planned access/egress travel 
path without approval from the most senior manager at the site for 
crane operations or designee (e.g., supervisor controlling the lift), 
and then only after the most senior manager at the site for crane 
operations communicates this change to all workers involved in the 
operation.
    (n) NNS is to provide a list of approved suspended-load operations, 
a list of cranes/hoists used for suspended-load operations, and copies 
of the associated hazards analysis to OSHA's Office of Technical 
Programs and Coordination Activities (OTPCA) and the Norfolk Area 
Office within 15 working days after developing these documents.

III. Decision

    After reviewing NNS's amended application, OSHA finds that NNS 
developed and intends to implement engineering and administrative 
controls that are designed to effectively control the hazards 
associated with work performed on or under a suspended modular-ship 
section, or between a swinging modular-ship section and a fixed object 
for brief periods.
    NNS also developed and intends to implement an alternative means of 
compliance that provides workers with protection that is equivalent to 
the protection afforded to them by the OSHA standards that regulate 
work on or under a suspended load, or between a swinging load and a 
fixed object (see, respectively, 29 CFR 1915.116(i), (j), and (q)). 
This alternative incorporates key elements of a job hazard analysis and 
lift planning, review, and approval to proceed (i.e., permitting). The 
alternative informs essential and affected employees of the steps 
required to complete suspended-load operations safely, including the 
hazards associated with these operations and the methods NNS applies 
during each step to control the hazards (e.g., secondary support 
systems, inspection of hoisting and rigging equipment, use of safety-
controlled access areas, and specially trained and qualified workers).
    In addition, NNS developed and proposes to implement a worker-
training program to instruct affected and essential employees in the 
hazards associated with performing lifting and rigging operations.
    OSHA recognized and addressed the need to work on or under a 
suspended load, or between a swinging load and a fixed object, when it 
granted NASA an alternative standard (Ex. 1). The alternative standard 
permitted NASA to expose its workers to these conditions when it 
complied with specific OSHA standards such as the construction hoisting 
and rigging standard (29 CFR 1926.753) and the conditions of the 
alternate standard (see Appendix A of

[[Page 51503]]

NASA-STD-8719.9, NASA Standard for Lifting Devices and Equipment (in 
Ex. 1). NNS is committed to adopt and implement the conditions of 
NASA's alternate standard for its suspended-load operations.
    Based on a review of available information and NNS's variance 
application, OSHA made a number of additions and revisions to the 
application that it believes are necessary to protect NNS's workers 
involved in suspended-load operations. The following items describe 
these additions and revisions:
    1. OSHA bases the scope of the revised variance application 
primarily on the scope specified in NNS's application. OSHA expanded 
the scope to include the types of modular-section lifts made from the 
Lift Staging Area (described earlier in this notice as Phase 3 of 
modular ship section lifts) to a ship and to describe the types of 
lifting operations excluded from the scope of the application. The 
expanded scope serves to increase worker protection from exposure to 
crushing hazards associated with work on or under a suspended modular-
ship section, or between a swinging modular-ship section and a fixed 
object, by providing precise identification and description of the 
limited circumstances under which the variance conditions apply.
    2. OSHA added a section to the application that defined the terms 
``essential employee,'' ``modular-ship section,'' ``safety-controlled 
access area,'' and ``suspended-load operation'' based on NNS's use of 
these terms in its variance application (Exhibit 2: NNS's amended 
variance application). OSHA defined the terms ``competent person'' and 
``qualified person, employee, or worker'' based on existing OSHA 
standards. OSHA added a definition for ``lift incident'' based on 
conditions the Agency added to the variance. Further, OSHA added a 
definition of ``on-site variance monitoring inspection,'' based on 
existing inspection procedures described in the Field Operations Manual 
(FOM).\6\ OSHA added a definitions section because it believes the 
definitions enhance NNS's and its workers' understanding of the 
conditions specified by the variance, thereby enhancing worker safety 
and health.
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    \6\ See chapter 3: Inspection Procedures of OSHA's Field 
Operations Manual (CPL 02-00-159; Effective Date: October 1, 2015) 
accessible @ http://www.osha.gov/OshDoc/Directive_pdf/CPL_02-00-159.pdf.
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    3. OSHA defines a number of abbreviations to the variance 
application. OSHA added these definitions to clarify the abbreviations 
and standardize their usage, thereby enhancing NNS's and its workers' 
understanding of the conditions specified by the variance application 
and to enhance their safety and health.
    4. OSHA added a condition requiring the use of properly engineered 
lashing material to ensure that suspended loads do not inadvertently 
move or fall from cranes/hoists. This addition enhances worker safety 
and health by ensuring that lashing material is strong enough to 
prevent the load from dropping and injuring workers.
    5. As part of the safety and engineering criteria, NNS proposed the 
development of a written hazard analysis in its application, and OSHA 
added a condition to this proposal that NNS perform a Failure Modes and 
Effects Analysis (FMEA) and approval to identify potential single point 
failures. Such analysis serves to further minimize the potential for 
inadvertent movement of the suspended load during modular-ship section 
lifts. This addition minimizes worker exposure to crushing hazards 
during modular-ship section lifts.
    6. OSHA added a condition that the most senior manager at the site 
for crane operations approve in writing the written hazard analysis and 
rigging-lifting-plan drawings to ensure that these documents are 
technically accurate and reflect the knowledge and best practices of 
those responsible for supervising suspended-load operations.\7\
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    \7\ The hazard analysis and rigging-lifting-plan drawings 
protect worker safety and health by making NNS plan suspended-load 
operations, anticipate hazards beforehand, and place workers at 
locations to minimize their exposure to hazards.
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    7. NNS proposed to implement a system-safety review to determine 
SFPs. OSHA added the clarification to the variance application that a 
registered professional engineer (PE) must perform this review using a 
FMEA. This addition ensures that NNS conducts the system-safety review 
according to professional standards. OSHA also clarified that the FMEA 
include any weight calculations or structural analysis performed during 
the review. The FMEA protects worker safety and health by accurately 
and reliably identifying potential crane/hoist failures that might 
result in inadvertent movement of the suspended load, thereby 
endangering workers near this equipment.
    8. NNS proposed in its application to develop an Operational 
Procedural Document. OSHA added a condition to the application 
requiring that the most senior manager at the site for crane operations 
(for example, the supervisor controlling the lift) review the Lift Plan 
with essential employees to ensure that these workers are familiar with 
and thoroughly understand the procedures governing the suspended-load 
operations. The Lift Plan enhances worker safety and health by ensuring 
that suspended-load operations occur according to procedures planned in 
advance to minimize hazards.
    9. OSHA added a condition requiring that NNS implement procedures 
to control hazards from unplanned or unforeseen activities that were 
not included in the initial planning of the modular-ship section lift 
operations and not covered by the initial procedural documents (such as 
lift plan, hazard analysis, and rigging/lifting drawing(s)). This 
condition requires NNS to develop the Operational Procedural Document 
to cover the unplanned activities in order to protect worker safety and 
health by reducing the probability of worker exposure to unanticipated 
hazards.
    10. NNS proposed a case-by-case review of planned suspended-load 
operations that follow the set of safety and engineering criteria 
(described by this condition). OSHA added to this condition that a 
senior crane operations manager and a health and safety representative 
must perform this review following development of the Operational 
Procedural Document. This addition enhances worker safety and health by 
ensuring that knowledgeable company officials responsible for 
suspended-load operations conduct the review.
    11. NNS proposed a condition addressing use of the Operational 
Procedural Document, and OSHA added to this condition requirements that 
NNS: Comply with a program operated by an accredited agency under 
OSHA's Gear Certification Program (29 CFR part 1919); use registered 
PE-designed pad-eye connection points; comply with nationally 
recognized non-destructive testing methods; \8\ and provide drawings to 
document hoisting and rigging equipment design specifications. These 
additions protect worker safety and health by ensuring all equipment 
used for suspended-load operations are of suitable quality and design.
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    \8\ For example, ASTM E164-13 Standard Practice for Contact 
Ultrasonic Testing of Weldments.
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    12. NNS proposed a pre-lift inspection in its application. OSHA 
added a condition to this proposal requiring that safety devices be 
operational during any lifts conducted during the pre-lift inspections. 
This addition increases worker protection during pre-lift inspections.
    13. OSHA added a condition specifying that NNS develop a written

[[Page 51504]]

checklist to document the identification and removal of interferences 
to proper mating and unnecessary or unsecured items. The inspection 
using this checklist must be conducted by a qualified employee(s) 
before the suspended-load operation begins. This condition protects 
worker safety and health by reducing the time workers spend under the 
suspended load removing interferences to proper mating, and eliminating 
the need for workers to remove unsecured items while exposed to a 
suspended load.
    14. Another condition added by OSHA requires that NNS conduct a 
test lift before beginning each suspended-load operation. The test lift 
protects worker safety and health by ensuring that equipment, including 
the rigging and crane/hoist systems, is in working order for the lift, 
thus minimizing the possibility of worker harm resulting from equipment 
failure.
    15. NNS proposed a condition specifying that a trained and 
qualified operator remain at the crane/hoist controls while workers are 
on or under a suspended load, or between a swinging load and a fixed 
object. OSHA added a condition requiring that the operator not initiate 
movement while workers are on or under a suspended load, or between a 
swinging load and a fixed object, and that NNS use safety devices such 
as brakes, dogs or stops to further ensure that no such movement takes 
place. This added condition protects workers from the hazards 
associated with inadvertent movement of suspended loads.
    16. In its application, NNS proposed the use of safety-controlled 
access areas where all non-essential employees must remain outside the 
safety-controlled access areas during modular-ship section lift 
operations. This requirement protects by minimizing the number of 
workers exposed to this hazard.
    17. OSHA added the prohibition of working under, in or on suspended 
loads requirement to limit the presence of essential employees in the 
safety-controlled access areas. Essential employees may enter the 
safety-controlled access areas for the purpose of adjusting chain 
falls, making initial connections or confirming clearances between hull 
structures and outfitting systems. Further, essential employees must 
not enter safety controlled access areas under suspended loads until 
the load is placed in the fit-up position and at the lowest point in 
the lift in order to minimize the potential drop distance and 
instability of the suspended load. This requirement protects workers by 
minimizing worker exposure to the hazards of working under, in, or on 
suspended loads.
    18. OSHA added a condition that requires NNS to train its workers 
(including, but not limited to current and newly assigned workers to be 
involved in modular-ship section load operations, qualified, and 
essential employees). The training provided is to include the means 
workers are to use to recognize hazards associated with work under, in 
or on suspended modular-ship section loads and application of 
associated hazard-control methods which minimize their risk of harm 
during construction and assembly of the modular ship sections. This 
added condition includes refresher training to ensure that workers 
retain knowledge of the hazards and associated control methods or 
update this knowledge as changes occur in hazard-control technology, 
methods, and procedures. The added condition also requires NNS to 
document the training, provide a means of tracking the training 
received by its workers, and prompt the updating of that training if 
necessary. The training documentation requirement allows NNS to 
accurately identify when to update the training and to identify the 
workers to receive such updated and/or refresher training.
    19. NNS proposed a pre-job briefing requirement in its variance 
application, and OSHA clarified this condition by specifying that: The 
pre-job briefing include all workers involved in the suspended-load 
operation, both essential and non-essential employees; NNS document 
worker attendance at the briefing using a signed roster; and the 
briefing address the rigging-lifting drawing(s). This clarification 
protects workers by refreshing their knowledge of procedures just 
before the suspended-load operation begins.
    20. NNS proposed having continuous communication during suspended-
load operations, and OSHA revised the condition by specifying that 
suspended-load operations must cease upon loss of communications. This 
requirement protects workers by minimizing their exposure to hazards 
during communications failure.
    21. In its application, NNS proposed that workers remain in 
continuous sight of the operator(s) and/or signal person(s) when 
feasible during suspended-load operations. OSHA clarified this 
condition by specifying that all essential employees must remain in 
continuous sight and/or be in communication with the most senior 
manager at the site for crane operations or designee (e.g., supervisor 
controlling the lift) because this manager must account for all workers 
involved in the operation to ensure that no worker is in harm's way.
    22. OSHA added a condition that if NNS postpones or discontinues a 
lift, the crane/hoist operator must lower the suspended load to the 
ground or other supporting structure. Alternatively, if a lift is 
postponed or discontinued, the most senior manager at the site for 
crane operations or designee (e.g., supervisor controlling the lift) 
must cordon off the site of the crane/hoist operation and ensure that 
all essential employees remain outside the safety-controlled access 
area. Otherwise, if it is operationally necessary that the load remains 
suspended after postponing or discontinuing a lift: (1) The crane/hoist 
operator must remain on duty until the lift is either completed; or (2) 
lowered to the ground or other supporting structure. This condition 
reduces workers' exposure to the suspended-load hazard by ensuring that 
the crane/hoist operator remains in control of the suspended load 
should workers be in the vicinity of the load.\9\
---------------------------------------------------------------------------

    \9\ While the discussion of this condition was included in the 
preliminary Federal Register notice, (80 FR 45243), the text of the 
condition was inadvertently omitted. In this final variance, it 
appears as condition 0.3-0.5.
---------------------------------------------------------------------------

    23. Another condition added by OSHA requires a post-lift review of 
the suspended-load operation. This condition protects workers by 
assisting NNS in identifying and correcting shortcomings in the 
suspended-load program.
    24. NNS proposed to develop a listing of the modular-ship section 
lift operations (suspended-load operations) scheduled to be performed 
during each quarter. OSHA is clarifying this condition by specifying 
that by the 15th calendar day of each new quarter NNS must prepare a 
list of planned modular-ship section lifts to be performed during the 
upcoming quarter (including the cranes/hoists used for suspended-load 
operations, the date and time of the operation, associated hazard 
analysis completed, and the calculated weight of each lift), and update 
the list when significant changes occur. OSHA also specified that 
workers and their representatives must have access to the list and that 
by the 15th calendar day of each new quarter NNS must provide a copy of 
the list to the Norfolk Area Office, Region 3 Regional Office, and 
OSHA's Office of Technical Programs and Coordination Activities. 
Further OSHA included a requirement that by January 15th of each year, 
NNS must provide to the Norfolk Area Office, Region 3 Regional Office, 
and OTPCA, a copy of the list of approved suspended-load operations 
completed

[[Page 51505]]

the previous year. The lists requirements enhance worker safety by 
ensuring that NNS and workers have the most recent information on each 
modular-ship section lift in advance of its being performed so they 
have an opportunity to review and become familiar with the operation's 
potential hazards and planned hazard mitigation strategies.
    25. OSHA added a condition requiring that NNS conduct an 
investigation of all lift incidents related to suspended-load 
operations. This condition is intended to protect workers by ensuring 
that NNS investigates such incidents and takes actions necessary to 
prevent a recurrence.
    26. OSHA included a records-management condition that is intended 
to assist the Agency in monitoring and enforcing the variance 
conditions. This requirement protects workers by ensuring that NNS 
implements and maintains these conditions.
    27. OSHA added a new condition that requires NNS to permit OSHA 
compliance safety and health officers to enter its Newport News, VA 
establishment or site without delay and at reasonable times for the 
purpose of conducting an on-site variance monitoring inspection. It 
should be noted that as a corollary to this new condition, NNS is not 
to require that the CSHOs seek an inspection warrant prior to entering 
its Newport News, VA establishment or site for the purpose of 
conducting an on-site variance monitoring inspection. This new 
condition is significant because as an OSHA Voluntary Protection 
Program participant, NNS is removed from OSHA's programmed inspection 
lists, thereby allowing OSHA to focus its limited inspection resources 
on establishments in greater need of agency oversight and intervention. 
Consequently, OSHA added this new condition in order to enable its 
CSHOs to effectively monitor and enforce the conditions of the granted 
variance.
    28. OSHA also added a condition that requires NNS to provide the 
Agency with up-to-date information regarding its corporate status. This 
information permits OSHA to monitor and enforce the conditions to the 
benefit of NNS's workers.

IV. Specific Conditions of the Permanent Variance

    After reviewing the evidence described above, OSHA determined that 
the conditions included in this order provide a place of employment as 
safe and healthful as that provided by the standards from which NNS 
requested a variance, notably 29 CFR 1915.116(i), (j), and (q). As 
noted earlier, on July 29, 2015, OSHA published a preliminary Federal 
Register notice announcing NNS' application and request for comments 
(80 FR 45238). The comment period expired on August 28, 2015, and OSHA 
received no comments.
    Additionally, under the terms of this variance, NNS must provide a 
copy of this Federal Register notice to all employees affected by the 
conditions, including the affected employees of other employers (if 
any), using the same means it used to inform these employees of its 
application for a permanent variance. Therefore, pursuant to the 
provisions of Section 6(d) of the Occupational Safety and Health Act of 
1970 (29 U.S.C. 655(d)), and 29 CFR 1905.11(c), OSHA is issuing this 
final order authorizing Newport News Shipbuilding (``NNS'' or ``the 
applicant''), to comply with the following conditions instead of 
complying with the requirements of paragraphs 29 CFR 1915.116(i), (j), 
and (q). This final order applies to Newport News Shipbuilding at 4101 
Washington Ave., Newport News, Virginia 23607. These conditions are:

A. Application

    Except for the requirements specified by Sec.  1915.116(i), (j), 
and (q), Newport News Shipbuilding must comply fully with all other 
safety and health provisions that are applicable to shipyard employment 
when implementing the permanent variance.

B. Scope

    1. The variance applies to operations that satisfy all of the 
following:
    (a) The operations are performed by Newport News Shipbuilding 
employees during modular-ship section construction and structural-
repair operations at the company's Newport News, Virginia, facility;
    (b) the operations involve lifting modular-ship sections from the 
lift-staging area to a ship during one of the following assembly 
phases:
    (i) ``End-to-End'' (horizontal) assembly of modular-ship sections;
    (ii) ``Stacking'' (vertical) assembly of modular-ship sections; or
    (iii) ``Inserting'' (combined vertical/horizontal) assembly of 
modular-ship sections.
    (c) the workers exposed to the hazards of the lift are those 
supporting modular-ship section lifts and essential employees working 
on or under a suspended modular-ship section, or between a swinging 
modular-ship section and a fixed object, during vessel assembly, 
repair, overhaul, and removal of interferences (or obstructions) that 
preclude proper alignment and mating of sections (fit-up); and
    (d) Workers are exposed to the hazards of the lift only for a brief 
period of time.
    2. The variance does not cover:
    (a) Lifting modular-ship sections in the fabrication (assembly) 
shop or area;
    (b) Transporting modular-ship sections from the fabrication 
(assembly) shop or area to the lift-staging area;
    (c) Lifting structures or equipment onto a ship's deck; and
    (d) Loads consisting of tools, equipment, or other materials.\10\
---------------------------------------------------------------------------

    \10\ In sum, Condition B.2 specifies that there must be no 
instances of workers working on or under a suspended modular-ship 
section, or between a swinging modular-ship section and a fixed 
object, at the assembly shop or area, or while traveling with a 
suspended load through the shipyard.

    Note: Under Condition B.1.c, if engineering calculations show 
that failure of the crane/hoist or rigging during the lifting 
process could dislodge the ship from its supporting blocks (e.g., 
keel blocks, bilge blocks), then all workers, other than those 
essential to the modular-ship section alignment and mating 
operation, must vacate the ship while the modular ship-section is 
suspended during the lifting process. Example: When lifting a 
superstructure onto the main deck of a vessel under construction, 
should the load fall between the dry dock and ship, then the ship 
could dislodge from the supporting blocks; therefore, all workers 
other than those essential to the lift must vacate the vessel during 
---------------------------------------------------------------------------
the suspended-load operation.

C. Definitions

    The following definitions apply to the permanent variance, and do 
not necessarily apply in other contexts:
    1. Affected employee--a Newport News Shipbuilding employee having a 
direct or supporting role in completing a suspended modular-ship 
section lift operation (including workers performing tasks such as 
crane operator, signal person, supervisor).
    2. Brief period of time--a limited period of very short duration 
that is necessary for employees to work under, in or on the load for 
the purposes of alignment or positioning only. This is limited to the 
amount of time necessary to perform the alignment or positioning and 
mating operation, or 15 minutes, whichever is less.
    3. Competent person--one who is capable of identifying existing and 
predictable hazards in the surrounding or working conditions that are 
unsanitary, hazardous, or dangerous to employees, and who has authority 
to take prompt corrective measures to eliminate them.\11\
---------------------------------------------------------------------------

    \11\ Adapted from 29 CFR 1926.32(f).
---------------------------------------------------------------------------

    4. Essential employee--a Newport News Shipbuilding employee 
required

[[Page 51506]]

to work under, in or on a suspended modular-ship section, or between a 
swinging modular-ship section and a fixed object, while ensuring the 
proper alignment and mating of modular-ship sections. Examples of work 
activities performed by essential employees include, but are not 
limited to: Adjusting chain falls; confirming clearances between hull 
structures and outfitting systems; identifying and removing 
interferences; and aligning and mating the section to a ship.
    5. Lift incident--an unplanned event or series of events that 
resulted in a work-related recordable injury or illness, or caused or 
could cause harm to a worker (includes near-miss events).\12\
---------------------------------------------------------------------------

    \12\ See 29 CFR 1904 (Recording and Reporting Occupational 
Injuries and Illnesses) (http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=STANDARDS&p_id=9631); recordkeeping 
forms and instructions (http://www.osha.gov/recordkeeping/RKform300pkg-fillable-enabled.pdf*); and updates to OSHA's 
recordkeeping rule and Web page ((79 FR 56130); (http://www.osha.gov/recordkeeping/index.html).
---------------------------------------------------------------------------

    6. Lift Plan--a set of written documents that specify the core 
requirements for completing a suspended modular-ship section lift. The 
following are examples of documents included in a lift plan: 
Engineering design; engineering hazard analysis; rigging and lifting 
drawings; crane, rigging and other lift support equipment inspection; 
operation and maintenance instructions; technical operating procedures; 
and work review, justification, and authorization documents. The 
documents included in a lift plan are collectively also known as the 
operational procedural document.
    7. Modular-ship section--a ship block, section, or module that 
includes a portion of two or more of the following structures: Deck, 
bulkhead, overhead, or hull.
    8. On-site variance monitoring inspection--a visit to the 
applicant's establishment or site by an OSHA compliance safety and 
health officer (CSHO) to determine whether the applicant complies with 
the applicable standards from which the variance is granted or to 
determine whether the applicant complies with the alternate conditions 
specified by the granted variance.\13\
---------------------------------------------------------------------------

    \13\ See footnote 6.
---------------------------------------------------------------------------

    9. Qualified person--one who, by possession of a recognized degree, 
certificate, or professional standing, or who by extensive knowledge, 
training, and experience, successfully demonstrated an ability to solve 
or resolve problems relating to the subject matter, the work, or the 
project.\14\
---------------------------------------------------------------------------

    \14\ Adapted from 29 CFR 1926.32(m).
---------------------------------------------------------------------------

    10. Rigging-lifting-plan drawing--a sketch of the rigging used 
whenever essential employees perform a suspended modular-ship section 
lift by working under, in or on a suspended load, or between a swinging 
load and a fixed object. The sketch is required to include the 
following essential information concerning the planned lift: (1) The 
number and location of essential employees that are to be on or under 
the load; (2) a pictorial illustration of the rigging configuration 
with size of all rigging components including load attachment points; 
(3) load identification, unit number or description; (4) weight of the 
load; (5) gear capacity and asset (crane) number/hook capacity; and (6) 
approval line.
    11. Safety-controlled access area--a work area with controlled 
access. The periphery of the safety-controlled access area must:
    (a) Be well defined and easily recognizable;
    (b) Have means to keep unauthorized personnel out of the zone such 
as appropriate barriers (e.g., rope, cones, safety watches);
    (c) Extend a safe distance beyond the radius of the crane when at 
its maximum extended lifting position as determined by a hazard 
analysis; and
    (d) Monitored and controlled by a competent person.
    12. Single failure point (SFP)--identification of the critical 
components of the crane/hoist system involved in a suspended-load 
operation such that malfunction of any single component provokes a 
total systems failure.
    13. Suspended modular-ship-section operation--an operation that 
meets all three of the following criteria:
    (a) The operation involves the use of a crane/hoist or cranes/
hoists that support the weight of a suspended modular-ship section, 
with no distinction made between static and dynamic loads. The load 
consists of all associated rigging equipment, including slings, Hydra 
Sets, lifting lugs, shackles, and straps, when attached to the crane 
hook; \15\
---------------------------------------------------------------------------

    \15\ This condition does not apply to loads supported entirely 
by a holding fixture or blocks even though still attached to the 
crane and hoist hook.
---------------------------------------------------------------------------

    (b) When workers involved in the operation have any part of their 
body directly under the suspended load; \16\ and
---------------------------------------------------------------------------

    \16\ This condition does not apply when workers have their hands 
on the sides of a load, e.g., to guide the load.
---------------------------------------------------------------------------

    (c) In the event of a crane or hoist failure (including a rigging 
failure), the falling load could contact workers working directly 
beneath it, with injury or death as a possible result.\17\
---------------------------------------------------------------------------

    \17\ This condition does not apply when the falling load would 
push a worker's hand away such that no injury could result, or the 
load would come to rest on a holding fixture or block before 
injuring a worker.
---------------------------------------------------------------------------

D. Abbreviations

    Abbreviations used throughout the permanent variance include:
1. CSHO--Compliance safety and health officer
2. CSP--Certified safety professional
3. FMEA--Failure modes and effects analysis
4. JHA--Job-hazard analysis
5. NASA--National Aeronautics and Space Administration
6. NNS--Newport News Shipbuilding
7. OSHA--Occupational Safety and Health Administration
8. PE--Professional engineer
9. SFP--Single failure point

E. Engineering-Review Requirements

    1. Hazard-avoidance protocol. Using a hazard-avoidance protocol, 
NNS must design hazards out of the suspended-load operations covered by 
the permanent variance to the greatest extent possible. Accordingly, 
NNS must:
    (a) Engineer, design, install, and operate all future systems, 
hardware, and equipment associated with these operations to prevent 
exposing workers to the hazards associated with working under, in or on 
a suspended modular-ship section, or between a swinging modular-ship 
section and a fixed object, unless NNS demonstrates that doing so is 
technically infeasible;
    (b) Perform an operation in which employees work under, in or on a 
suspended modular-ship section, or work between a swinging modular-ship 
section and a fixed object, only under specifically approved and 
controlled conditions; and
    (c) Perform the operation specified under Condition E.1.b above 
only after meeting all the review, approval, documentation, and special 
requirements.
    2. Use of properly engineered lashing materials.
    (a) When the operation specified under Condition E.1.b above 
involves the use of a crane/hoist that supports the weight of a 
modular-ship section, NNS must use properly engineered lashing 
materials \18\ capable of lifting, moving, and suspending the entire 
weight of the load; and
---------------------------------------------------------------------------

    \18\ Used in accordance with the applicable provisions of 29 CFR 
1915 Subpart G--Gear and Equipment for Rigging and Material 
Handling.
---------------------------------------------------------------------------

    (b) NNS must conduct a detailed weight calculation in determining

[[Page 51507]]

whether the lashing material can support the requisite weight of the 
load, considering the duration of maintaining the load in a safe 
condition in the event of loss of continuous communication, and paying 
special consideration to environmental factors that may affect the load 
(e.g., water retention, snow, ice).
    3. Engineering-hazard analysis.
    (a) The most senior manager at the site for crane operations 
specified in paragraph E.1.b above must approve suspended modular-ship 
section load operations in writing based on: a detailed written hazard 
analysis, a rigging-lifting-plan, and a supporting drawing of the 
operation;
    (b) NNS must ensure that the:
    (i) Responsible crane-operations organization prepares the written 
engineering-hazards analysis under the direction of the most senior 
manager at the site for crane operations; and
    (ii) Qualified representatives of NNS' engineering offices and the 
health and safety department review this analysis and indicate approval 
by signing the analysis;
    (c) The engineering-hazard analysis must be in writing and include:
    (i) A justification specifying why NNS cannot conduct the operation 
without its employees working under, in, or on suspended modular-ship 
sections, or between a swinging modular-ship section and a fixed 
object, with this justification describing the procedures and design 
options NNS considered in determining that it could not conduct the 
operation without its employees working under, in, or on a suspended 
modular-ship section, or working between a swinging modular-ship 
section and a fixed object;
    (ii) Details of the engineering controls taken to prevent the 
modular-ship sections from moving or shifting when employees are under, 
in, or on a suspended modular-ship section or between a swinging 
modular-ship section and a fixed object, including the evaluation of 
testing and safety devices used for this purpose;
    4. Secondary support systems. NNS must design any secondary support 
systems used during the operation specified in Condition E.1.b above in 
accordance with recognized engineering practices and designed with a 
minimum safety factor of 2 to yield.

F. Limiting Employee Hazard Exposure

    NNS must limit employee exposure to the hazards of working under, 
in, or on a suspended modular-ship section, or between a swinging 
modular-ship section and a fixed object by:
    1. Establishing a safety-controlled access area, taking into 
account the swing radius of the crane;
    2. Allowing only essential personnel in the safety-controlled 
access area;
    3. Ensuring that the rigging-lifting-plan drawings identify by name 
the exact location of each essential employee allowed in the safety-
controlled access area and the location of that employee in the area;
    4. Ensuring that each essential employee allowed in the safety-
controlled access area is in the safest location possible for 
performing the work;
    5. Ensuring that each essential employee moves to and from the work 
location using the safest route possible, and remains at that location 
only long enough to complete the work;
    6. Verifying in writing that procedures are in place to prevent 
movement or shifting of the suspended modular-ship section when 
essential employees are under, in, or on a suspended modular-ship 
section, or between a swinging modular-ship section and a fixed object; 
and
    7. Ensuring that a crane operator who meets the requirements of 29 
CFR 1926.1427 and 1926.1430 is operating the crane used to suspend the 
modular-ship section while essential employees are working under, in, 
or on a suspended modular-ship section, or between a swinging modular-
ship section and a fixed object.

G. Job-Hazard Analysis and Rigging-Lifting Drawings

    Each operation specified under Condition E.1.b above must have a 
separate written job-hazard analysis that includes a detailed rigging 
specification drawing(s) and a detailed lifting plan drawing(s) 
approved and signed by the most senior manager at the site for crane 
operations. A separate hazard analysis is not needed for routine and 
repetitive operations where a rigging-lifting-plan drawing(s) and 
procedures already exist and where no new hazards are present.

H. Failure-Modes and Effects Analysis (FMEA) and Approval

    1. Each crane involved in an operation specified under Condition 
E.1.b above must undergo a FMEA approved in writing by a Registered 
Professional Engineer.
    2. The FMEA must:
    (a) Determine SFPs by assessing the rigging equipment and all 
critical mechanical functional components and support systems in the 
drive trains and critical electrical components of the crane; and
    (b) Include weight calculations and any structural analysis deemed 
necessary by the Registered Professional Engineer responsible for 
approving the FMEA.
    3. For cranes and rigging equipment identified as not having any 
SFPs, the failure of which can result in movement of the modular-ship 
section, the total weight of the suspended modular-ship section load 
must not exceed the crane's rated load.
    4. For those cranes and rigging equipment identified as having an 
SFP, the failure of which can result in movement of the modular-ship 
section, the most senior manager at the site for crane operations and a 
qualified representative of the health and safety department must have 
to approve in writing use of the crane and rigging equipment for an 
operation specified under Condition E.1.b above after reviewing all the 
documentation required by this order that addresses the operation, 
including the FMEA.

I. Operational Procedural Document (Lift Plan)

    NNS must:
    1. Develop and maintain written procedures that specify the 
requirements for an operation specified under Condition E.1.b above.
    2. Revise the written detailed job-hazard analysis, rigging-
lifting-plan drawing(s), and the operational-procedures documents 
(e.g., operations and maintenance instruction, technical operating 
procedure, work authorization document, FMEA) to specify any additional 
requirements identified by the job-hazard analysis.
    3. Review any revisions made under Condition I.2 above with 
essential employees and make these revisions available on-site during 
an operation specified by Condition E.1.b above for inspection by 
affected employees, employee representatives, or OSHA personnel.

J. New or Unforeseen Work Activity

    During an operation under Condition E.1.b above, if a new or 
unforeseen work activity or circumstance not covered by the original 
operational-procedural documents (e.g., job-hazard analysis, rigging-
lifting-plan drawing(s), operations and maintenance instruction, 
technical operating procedure, work authorization document, FMEA) 
arises, then NNS must:
    1. Immediately stop the lift and lower the modular-ship section to 
the ground or other supporting structure;
    2. Before continuing the operation, obtain approval in writing from 
the most senior manager at the site for crane

[[Page 51508]]

operation and the health and safety department to revise the 
operations; and
    3. Before repeating the operation on a subsequent occasion, prepare 
revised operational-procedures documents (e.g., job-hazard analysis, 
rigging-lifting-plan drawing(s), operations and maintenance 
instruction, technical operating procedure, work authorization 
document, and FMEA) and obtain the approvals required of these 
documents.

K. Operational Requirements

    1. A Registered Professional Engineer must develop and approve 
inspection, testing, and maintenance procedures and competent persons 
must perform the procedures and resolve noted discrepancies.
    2. An independent third-party such as an accredited agency under 
OSHA's Gear Certification Program (29 CFR 1919) must inspect all cranes 
and rigging equipment not more than one year before the modular-ship 
section lift being performed, and NNS must maintain the inspection 
results, and make them available to OSHA upon request.
    3. The engineers who design the modular-ship section subject to the 
operation specified under Condition E.1.b above must design or approve 
the pad-eye (lifting-lugs) connection points on the section, and 
specify the size (length and diameter) of wire-rope slings that lift, 
move, and handle the section.
    4. Before using lifting pad-eyes and other welded lifting 
connection points in the operation, NNS must perform non-destructive 
tests on these pad-eyes and connections according to nationally 
recognized non-destructive testing methods.\19\
---------------------------------------------------------------------------

    \19\ See footnote 8.
---------------------------------------------------------------------------

    5. NNS must:
    (a) Document the design specifications pertinent to the operation 
on engineering drawings;
    (b) Ensure that these drawing accompany the modular-ship section 
during an operation specified under Condition E.1.b above; and
    (c) Make the drawings available to the crane foreman/supervisor.

L. Pre-Lift Inspections and Test Lift 20
---------------------------------------------------------------------------

    \20\ NNS must perform the pre-lift inspections specified below 
in addition to the inspections required by Sec. Sec.  1910.179(j), 
.180(d), and 1915.111, which apply to cranes in maritime facilities 
(see 1910.5). The pre-lift inspection and test is in addition to the 
inspections and/or testing required by other safety procedures or 
daily operator checks specified under these conditions.
---------------------------------------------------------------------------

    1. Before lifting the modular-ship section involved in an operation 
specified under Condition E.1.b above, the components of the crane and 
rigging equipment involved in lifting the load must undergo a visual 
inspection (without major disassembly, and documented with a written 
checklist).
    2. NNS must resolve any discrepancies identified in this visual 
inspection before initiating an operation.
    3. Before lifting modular-ship sections for assembly with the ship, 
a qualified person(s) must:
    (a) Perform an inspection to identify and remove interferences to 
proper mating; and
    (b) Use a written checklist to document the inspection, including 
the removal of litter, tools, and any other unnecessary or unsecured 
equipment or items.
    4. Before initiating an operation specified under Condition E.1.b 
above, NNS must:
    (a) Conduct a test lift that consists of lifting the modular-ship 
section one to three feet above the lift staging area for five minutes; 
and
    (b) Ensure that all safety devices identified in the modular-ship 
section lift plan are operational during the test lift.

M. Crane Operator

    1. NNS must ensure that the crane operator who meets the 
requirements of 29 CFR 1926.1427 and 1926.1430 remains at the crane 
controls at all times during an operation specified under Condition 
E.1.b above.
    2. Unless specifically authorized and required by the lift plan, 
the operator must:
    (a) Not initiate movement of the suspended modular-ship section 
while an employee(s) is under, in, or on a modular-ship section, or 
between a swinging load and a fixed object, and
    (b) Engage all safety devices such as brakes, dogs, or stops in 
accordance with the lifting plan when an employee(s) is under, in, or 
on a modular-ship section, or between a swinging load and a fixed 
object.

N. Safety-Controlled Access Areas

    NNS must:
    1. Establish safety-controlled access areas for all operations 
specified by Condition E.1.b above.
    2. Ensure that all non-essential personnel remain outside the 
safety-controlled access areas.

    Note: When engaged in an operation specified under Condition 
E.1.b above, if engineering calculations show that a failure of the 
crane or rigging during the lifting process could result in 
dislodging the ship from its supporting blocks (e.g., keel blocks, 
bilge blocks), then all personnel, other than essential employees 
necessary for aligning and mating the modular-ship section, must 
vacate the ship during the operation and remain outside the safety-
controlled access area. Example: When lifting a superstructure onto 
the main deck of a vessel under construction, dropping the load 
between the dry dock and ship could knock the ship off of the 
supporting blocks; therefore, all workers other than essential 
employees required to align and mate the modular-ship section to the 
ship must vacate the vessel and remain outside the safety-controlled 
access area during the operation.

O. Working Under, In, or On Suspended Modular-Ship Section, or Working 
Between a Swinging Modular-Ship Section and a Fixed Object

    1. NNS's essential employees may be under, in, or on a suspended 
modular-ship section, or between a swinging modular-ship section and a 
fixed object, while ensuring the proper alignment and mating of 
modular-ship sections. Examples of work activities include, but are not 
limited to: Adjusting chain falls, confirming clearances between hull 
structures and outfitting systems, and identifying and removing 
interferences. Further, essential employees must not enter safety 
controlled access areas under suspended loads until the load is placed 
in the fit-up position and at the lowest point in the lift in order to 
minimize the potential drop distance and instability of the suspended 
load.
    2. Only essential employees authorized by the most senior manager 
at the site for crane operations (e.g., rigging foreman or supervisor) 
may be under, in, or on a suspended modular-ship section, or between a 
swinging modular-ship section and a fixed object for a brief period of 
time for the purpose of completing the final alignment or positioning 
and mating.
    3. If NNS postpones or discontinues a lift, the crane/hoist 
operator must lower the suspended load to the ground or other 
supporting structure.
    4. If NNS postpones or discontinues a lift and finds that the 
suspended load cannot be lowered to the ground or other supporting 
structure, the most senior manager at the site for crane operations or 
designee (e.g., supervisor controlling the lift) must review the status 
of the lift and make a determination that it is operationally necessary 
to maintain the load in suspension.
    5. NNS must document such a determination and ensure that: (1) The 
crane/hoist operator remains on duty until the lift is either completed 
or lowered to the ground or other supporting structure; or (2) the most 
senior manager at the site for crane operations or designee cordons off 
the

[[Page 51509]]

site of the suspended load operation and ensures that all essential 
employees remain outside the safety-controlled access area.

P. Training

    1. NNS must develop and implement a worker training program to 
instruct affected employees in the:
    (a) Hazards associated with performing work under, in, or on 
suspended modular-ship section, or between a swinging modular-ship 
section and a fixed object; and
    (b) The controls mandated to protect affected employees from these 
hazards.
    2. NNS must train and instruct the crane foreman/supervisor to 
strictly adhere to the lift plan and the rigging specifications on the 
approved drawings.
    3. NNS must develop and implement a refresher training program, 
conducted periodically and as necessary, for all employees working 
under, in, or on suspended modular-ship section, or between a swinging 
modular-ship section and a fixed object. At a minimum, the refresher 
training must:
    (a) Consist of a lift briefing;
    (b) Review each employee's responsibilities; and
    (c) Take place before initiating the operation.
    4. NNS must document all training provided under the permanent 
variance, and maintain training records as specified below under 
Condition U.2.a.

Q. Briefing

    Prior to conducting an operation in which its employees work under, 
in, or on suspended modular-ship section, or between a swinging 
modular-ship section and a fixed object, NNS must:
    1. Hold the briefing with all affected employees having a direct or 
supporting role in the operation (including workers and/or contractors 
performing tasks such as crane operator, signal person, essential 
employees, supervisors), to review the operational procedures involved 
in the operation, including procedures for entering and leaving the 
safety-controlled access area;
    2. Use the written job-hazard analysis and rigging-lifting-plan 
drawing(s) during the briefing to supplement the information;
    3. Cover all safety considerations;
    4. Ensure that the employees understand the information provided at 
the briefing; and
    5. Document the briefing using a signed roster of attendees, and 
maintain the roster as specified at Condition U.2.a.

R. Continuous Communication

    NNS must:
    1. Maintain communications (voice, radio, hard wired, or visual) 
between the crane/hoist operator(s), signal person(s), and employees 
working under, in, or on the suspended modular-ship section, or between 
a swinging modular-ship section and a fixed object, at all times;
    2. Upon losing communications, stop the operation immediately, 
inform employees of the problem, ensure that the employees exit the 
safety-controlled access area, and that the modular-ship section is in 
a safe condition (e.g., prevented from inadvertent movement or shifting 
while suspended or returned to the lift staging area if restoring 
communications takes longer than the load can remain safely suspended 
as determined in Condition E.2.b above); and
    3. Commence the operation only after restoring communications and 
informing the affected employees about what action NNS is taking to 
avoid a reoccurrence.

S. Continuous Visual Observation

    The most senior manager at the site for crane operations or 
designee (e.g., supervisor controlling the lift) must have continuous 
sight of and be in constant visual communication with, any essential 
employees working under, in, or on a suspended modular-ship section, or 
between a swinging modular-ship section and a fixed object.

T. Post-Lift Review and Incident Investigations

    1. Post-lift review. NNS must conduct and document a post-lift 
review for each operation involving a suspended modular-ship section, 
including the identification of any incident that occurred during the 
operation.
    2. Lift-incident investigation. NNS must investigate each lift 
incident. In doing so, NNS must:
    (a) Initiate the investigation within 8 hours of the lift incident 
or 8 hours after becoming aware of the incident;
    (b) Have a competent person(s) with expertise in the hazards 
associated with the operations involved in the incident conduct the 
investigation;
    (c) Have the investigator(s) prepare a written report at the 
conclusion of the investigation which includes, at a minimum, the date 
of the incident, the date the investigation began, the date of the 
report, the location of the incident, the equipment or processes 
involved, a description of the incident, the root cause, the 
contributing factors, and any corrective actions resulting from the 
investigation (the completed OSHA 301 Incident Report form may be used 
for this purpose); \21\
---------------------------------------------------------------------------

    \21\ See footnote 11.
---------------------------------------------------------------------------

    (d) Provide a copy of the report to OSHA's Norfolk Area Office and 
OTPCA at OSHA's National Office within 15 calendar days of the incident 
or 15 calendar days after becoming aware of the incident;
    (e) Within 15 calendar days of completing the incident report, 
address the findings of the report and implement corrective actions;
    (f) Document in writing the corrective actions taken;
    (g) Review the findings of the report and corrective actions taken 
with all affected workers; and
    (h) Provide certification to OSHA's Norfolk Area Office and OTPCA 
at OSHA's National Office within 15 calendar days of completing the 
incident report, that the employer informed affected workers of the 
incident and the results of the incident investigation (including the 
root cause determination and preventive and corrective actions 
identified and implemented).

U. Records

    1. By the 15th calendar day of each new quarter, NNS must prepare a 
list of planned modular-ship section lifts to be performed during the 
upcoming quarter (including the cranes/hoists used, the date and time 
of the operation, associated hazard analysis completed, and the 
calculated weight of the lift), and update the list when significant 
changes occur. NNS must:
    (a) Make this document available for inspection by affected 
employees, employee representatives, and send a copy of this document 
to the OSHA Regional Office, Norfolk Area Office and OTPCA; and
    (b) By January 15th of each year, NNS must provide to the Regional 
Office, Norfolk Area Office and OTPCA, a copy of the list of approved 
suspended-load operations completed the previous year.
    2. NNS must:
    (a) Retain all records required by the permanent variance for five 
years from the time it generates each such record (except when 
applicable regulations define a longer records-retention period); and
    (b) Make all records and related documents available for inspection 
by affected employees, employee representatives, and OSHA upon request.

V. Onsite Variance Monitoring Inspection

    NNS must permit CSHOs to enter its Newport News, VA establishment 
or site

[[Page 51510]]

without delay and at reasonable times for the purpose of conducting an 
on-site variance monitoring inspection.

W. Notice to OSHA

    NNS must:
    1. Inform OTPCA as soon as it has knowledge that it will:
    (a) Cease to do business; or
    (b) Transfer the activities covered by this permanent variance to a 
successor company.
    2. Submit to the Norfolk Area Office and OTPCA, a copy of any 
incident-investigation report and associated corrective-action plan 
within 15 working days of the incident.
    3. Submit to OTPCA annually, a written certification indicating 
whether the conditions of the permanent variance are effective and 
remain relevant and necessary, and any recommendations for modifying 
these conditions.

Authority and Signature

    David Michaels, Ph.D., MPH, Assistant Secretary of Labor for 
Occupational Safety and Health, 200 Constitution Avenue NW., 
Washington, DC 20210, authorized the preparation of this notice. 
Accordingly, the Agency is issuing this notice pursuant to Section 29 
U.S.C. 655(6)(d), Secretary of Labor's Order No. 1-2012 (77 FR 3912, 
Jan. 25, 2012), and 29 CFR 1905.11.

    Signed at Washington, DC, on July 29, 2016.
David Michaels,
Assistant Secretary of Labor for Occupational Safety and Health.
[FR Doc. 2016-18404 Filed 8-3-16; 8:45 am]
BILLING CODE 4510-26-P


