
[Federal Register Volume 78, Number 250 (Monday, December 30, 2013)]
[Proposed Rules]
[Pages 79363-79388]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-31046]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 171, 173, 178, and 180

[Docket Number PHMSA-2010-0019 (HM-241)]
RIN 2137-AE58


Hazardous Materials: Adoption of ASME Code Section XII and the 
National Board Inspection Code

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: PHMSA is proposing to amend the Hazardous Materials 
Regulations applicable to the design, construction, certification, 
recertification and maintenance of cargo tank motor vehicles, cryogenic 
portable tanks and multi-unit tank car tanks (ton tanks) in response to 
petitions for rulemaking from the American Society of Mechanical 
Engineers (ASME), the National Board of Boiler and Pressure Vessel 
Inspectors (National Board), and the Pressure Vessel Manufacturers 
Association (PVMA). Specifically, this NPRM proposes to allow the use 
of the 2013 edition of the ASME's Boiler and Pressure Vessel Code, 
Section XII (Section XII) for the design, construction, and 
certification of cargo tank motor vehicles, cryogenic portable tanks 
and ton tanks. PHMSA also proposes to authorize the use of the 2013 
edition of the National Board of Boiler and Pressure Vessel Inspectors' 
National Board Inspection Code (NBIC), as it applies to the continuing 
qualification and maintenance of ASME constructed cargo tank motor 
vehicles, cryogenic portable tanks, and ton tanks constructed to 
standards in ASME's Section XII, and existing cargo tank motor vehicles 
and portable tanks constructed to Section VIII, Division 1. If adopted, 
these amendments will allow for regulatory flexibility, without 
compromising safety.

DATES: Submit comments by March 31, 2014. To the extent possible, PHMSA 
will consider late-filed comments as we determine whether additional 
rulemaking is necessary.

ADDRESSES: You may submit comments identified by the docket number 
(PHMSA-2010-0019; HM-241) by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
     Fax: 1-202-493-2251.
     Mail: Docket Operations, U.S. Department of 
Transportation, West Building, Ground Floor, Room W12-140, Routing 
Symbol M-30, 1200 New Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: To Docket Operations, Room W12-140 on the 
ground floor of the West Building, 1200 New Jersey Avenue SE., 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal Holidays.
    Instructions: All submissions must include the agency name and 
docket number for this notice at the beginning of the comment. Note 
that all comments received will be posted without change to the docket 
management system, including any personal information provided.
    Docket: For access to the dockets to read background documents or 
comments received, go to http://www.regulations.gov, or DOT's Docket 
Operations Office (see ADDRESSES). To access ASME's Boiler and Pressure 
Vessel Code, Section XII (Section XII) go to: https://shop.asme.org/PublicReview/. To access the National Board Inspection Code (NBIC), 
Part 2, Supplement 6: Continued Service and Inspection of DOT Transport 
Tanks, and Part 3, Supplement 6: Repair, Alteration, and Modification 
of DOT Transport Tanks go to: https://www.nationalboard.org/SiteDocuments/NBIC/DOT_NBIC_supplements.pdf.
    Privacy Act: Anyone is able to search the electronic form of any 
written communications and comments received into any of our dockets by 
the name of the individual submitting the document (or signing the 
document, if submitted on behalf of an association, business, labor 
union, etc.). You may review DOT's complete Privacy Act Statement in 
the Federal Register published on April 11, 2000 (65 FR 19477) or you 
may visit http://www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: Lisa O'Donnell, Hazardous Materials 
Standards and Rulemaking Division, (202) 366-8553, or Stanley 
Staniszewski, Engineering and Research

[[Page 79364]]

Division, (202) 366-4492, Office of Hazardous Materials Safety, 
Pipeline and Hazardous Materials Safety Administration, 1200 New Jersey 
Avenue SE., Washington, DC 20590.

SUPPLEMENTARY INFORMATION: 

Contents

I. Executive Summary
II. Abbreviations and Terms Used in This Document
III. Background
IV. Petitions for Rulemaking
    A. P-1459
    B. P-1474
    C. P-1502
V. ASME Section XII
VI. NBIC
VII. Comparison of Section XII and Section VIII, Division 1 
Supplemented by the Current HMR
    A. Design Margin
    B. Rational Design
    C. Design and Construction of CTMVs: Identified Differences 
Between HMR and Section XII Requirements
    D. Continued Service of CTMVs, Portable Tanks, and Ton Tanks: 
Roles of Inspectors HMR
    E. Summary and Supporting Research Initiatives
VIII. ANPRM Comment Summary Discussion and Proposed Amendments
    A. Comments in Favor of Adopting Section XII and NBIC
    B. Comments in Opposition to Adopting Section XII and NBIC
    C. Miscellaneous Comments
    D. Proposed Amendments
    E. Section by Section Review
IX. Regulatory Analyses and Notices
    A. Statutory/Legal Authority for the Rulemaking
    B. Executive Order 12866, Executive Order 13610, Executive Order 
13563 and DOT
    C. Executive Order 13132
    D. Executive Order 13175
    E. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Procedures and Policies
    F. Paperwork Reduction Act
    G. Regulatory Identifier Number (RIN)
    H. Unfunded Mandates Reform Act
    I. Environmental Assessment
    J. Privacy Act
    K. Executive Order 13609 International Trade Analysis

I. Executive Summary

    In this NPRM, PHMSA (also ``we'' or ``us'') proposes to amend the 
Hazardous Materials Regulations (HMR; 49 CFR parts 171-180) in response 
to petitions submitted by industry representatives to incorporate 
Section XII and the 2013 edition of the NBIC as alternatives to Section 
VIII, Division 1 and the current HMR requirements in part 178, for the 
design of cryogenic portable tanks and CTMVs, part 179 for the design 
of ton tanks, and part 180 for the continuing qualification and 
maintenance of CTMVs, cryogenic portable tanks and ton tanks. Section 
XII sets forth standards for construction \1\ and continued service \2\ 
of pressure vessels for transporting hazardous materials by highway, 
rail, air or water at pressures from close to 15 psig external pressure 
to 3,000 psig and volumes greater than 120 gallons. The 2013 edition of 
the NBIC provides rules and guidelines for installing, inspecting, 
repairing and altering boilers, pressure vessels and pressure relief 
devices. Section XII may be used for the following tanks:
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    \1\ ``Construction'' is an all-inclusive term comprising 
materials, design, fabrication, examination, inspection, testing, 
certification, and over-pressure protection.
    \2\ ``Continued service'' is an all-inclusive term referring to 
inspection, testing, repair, alteration, and recertification of a 
transport tank that has been in service.

          Table 1--Proposed Tanks Authorized Under Section XII
------------------------------------------------------------------------
                 Tank type                          Specification
------------------------------------------------------------------------
Cargo Tank Motor Vehicles (CTMVs).........  MC331, 338, 406, 407, and
                                             412.
Cryogenic Portable Tanks..................  UN T75.
Ton Tanks.................................  DOT-106A and 110AW.
------------------------------------------------------------------------

    If the proposed amendments are adopted, manufacturers could choose 
to build their tanks using either the specifications set forth in 
Section XII or those set forth in Section VIII, Division 1. While 
Section VIII, Division 1 applies to construction of new tanks only, 
Section XII applies to both new construction and continued service. 
Further, as proposed, a manufacturer who builds a tank to Section VIII, 
Division 1 would be authorized to use either the 1992 edition of the 
NBIC that is currently incorporated by reference or the 2013 edition of 
the NBIC; whereas manufacturers who choose to build tanks to Section 
XII would be required to use the 2013 edition of the NBIC.
    Section XII and the 2013 edition of the NBIC include advancements 
in design, material, construction, repair and inspection of transport 
tanks. Incorporating Section XII and the 2013 edition of the NBIC by 
reference in the HMR, would allow manufacturers and owners of transport 
tanks to be flexible in the materials they use to build tanks, how they 
build tanks, and how they test and inspect tanks, while providing the 
same level of safety as that provided by Section VIII, Division 1 for 
new construction and the HMR for continued qualification and 
maintenance.
    The 2013 edition of the NBIC was developed in conjunction with 
Section XII to provide consistent, up-to-date standards for the 
lifespan of transport tanks. Both the NBIC and Section XII were 
developed as international standards, and were written to be compatible 
with UN recommendations. Further, these standards were developed by 
voluntary consensus standards-development organizations comprised of 
all stakeholders involved in the design, certification, continued 
qualification and maintenance of transport tanks, including 
manufacturers of tanks and PHMSA engineers. These individuals have 
expert knowledge of how to design, construct and maintain tanks to 
withstand the unique dynamic conditions and stresses of a 
transportation environment.
    Several research and development projects support the adoption of 
both the 2013 edition of NBIC and Section XII (See Table 11 of Section 
VII of this document). These projects include studies on CTMV 
rollovers, design margins, and puncture resistance. They are discussed 
in Sections V and VII in this NPRM.\3\ Furthermore, by providing the 
2013 edition of the NBIC and Section XII as options, PHMSA would allow 
the regulated industry to choose from various materials of 
construction, that we believe provide equivalent safety, to accommodate 
each entity's preference (see part TM of Section XII, which specifies 
authorized materials). Use of the proposed voluntary standards could 
enable U.S. manufacturers to better compete internationally.
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    \3\ See www.regulations.gov, Docket Nos. PHMSA-2010-0019-0010, 
PHMSA-2010-0019-0012, PHMSA-2010-0019-0013, PHMSA-2010-0019-0014, 
PHMSA-2010-0019-0015, PHMSA-2010-0019-0016, PHMSA-2010-0019-0017, 
PHMSA-2010-0019-0018, and PHMSA-2010-0019-0019.
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    Manufacturers, tank owners and users, maintenance and repair 
entities, third-party inspectors, and public sector inspectors would 
incur costs under the proposed adoption of Section XII and the 2013 
edition of the NBIC. Manufacturers who choose to build tanks to Section 
XII may have to purchase new equipment to manufacture tanks to 
accommodate the different metals authorized in Section XII and would 
have to purchase the standard; however, they would also have more 
flexibility in the materials they use to build the tank, and take 
advantage of the lower priced materials at the time of purchase. Tank 
owners would incur the initial cost of the new tank. However, users, 
most likely also the owners, in many cases, would be able to haul more 
material in one tank, which would reduce fuel costs. Entities that 
repair tanks and third-party inspectors would have to be trained in

[[Page 79365]]

and purchase both Section XII and the NBIC. Public sector inspectors 
would have to be trained, and state and local governments would have to 
purchase both Section XII and the NBIC. Due to PHMSA's three-year 
training cycle, all employees and inspectors will have been trained 
within three years, regardless of when or if they transition to HM-241. 
Once an entity converts to Section XII tanks, PHMSA assumes that the 
incremental training would be incorporated into regular training, and 
no further incremental expense would be incurred in future years. 
Annual benefits would continue to accrue.
    Benefits associated with the use of Section XII and the 2013 
edition of the NBIC include a savings in the cost to manufacture tanks. 
Various economic factors cause the cost of types of materials to 
fluctuate. Because Section XII allows a variety of newer materials to 
be used to build tanks, manufacturers may choose materials with the 
lowest cost to construct their tanks. Also, certain tanks built to 
Section XII would provide lower costs per mile due to the use of 
lighter-weight materials of construction and increased capacity to 
transport product. A review of previous research by PHMSA's Engineering 
and Research Division, as well as the independent research studies that 
are summarized in Section V and Table 11 of Section VII of this NPRM 
and can be found in the docket file (see www.regulations.gov, Docket 
Nos. PHMSA-2010-0019) indicated the Section XII standards provide an 
equivalent level of safety to the current standards. Section XII 
provides updated specifications for transport tanks. In most cases, due 
to substitution of material of construction, the thickness of the tanks 
would be reduced, permitting more material to be hauled, and reducing 
the number of tanks needed to handle the same volume of product.
    These costs and benefits of Section XII and the 2013 edition of the 
NBIC would affect only individuals who choose to use the standards. 
Therefore, PHMSA does not believe adoption of Section XII would impose 
costs because each entity will choose to continue to use the existing 
Section VIII or convert to Section XII as their economic interests 
dictate. For example a manufacturer would not use Section XII to build 
a tank unless it believes it is net beneficial to do so. Since Section 
XII would allow manufacturers the flexibility to purchase the raw 
material that is least expensive at the time, this may reduce the cost 
to the manufacturer, who can then pass that discount on to the buyer of 
the tank. Manufacturers will only elect to utilize Section XII if it 
makes business sense.

II. Abbreviations and Terms Used in This Document

    The table below provides a list of abbreviations or acronyms for 
the terms used in this NPRM.

         Table 2--Abbreviations and Terms Used in This Document
------------------------------------------------------------------------
 
------------------------------------------------------------------------
AI:                                   Authorized Inspector
ANSI:                                 American National Standards
                                       Institute
ASME:                                 American Society of Mechanical
                                       Engineers
BPVC:                                 Boiler and Pressure Vessel Code
CI:                                   Certified Individual
CTMV:                                 Cargo Tank Motor Vehicle
DCE:                                  Design Certifying Engineer
FMCSA:                                Federal Motor Carrier Safety
                                       Administration
HMR:                                  Hazardous Materials Regulations
                                       (49 CFR parts 171-180)
IMDG                                  International Maritime Dangerous
                                       Goods
IACS                                  International Association of
                                       Classification Societies Ltd
MAWP:                                 Maximum Allowable Working Pressure
NBIC:                                 National Board Inspection Code
PHMSA:                                Pipeline and Hazardous Materials
                                       Safety Administration
PVMA:                                 Pressure Vessel Manufacturers
                                       Association
QI:                                   Qualified Inspector
RI:                                   Registered Inspector
Section VIII, Division 1              American Society Mechanical
                                       Engineers, Boiler and Pressure
                                       Vessel Code, Section VIII,
                                       Division 1
Section XII:                          American Society Mechanical
                                       Engineers, Boiler and Pressure
                                       Vessel Code, Section XII
------------------------------------------------------------------------

III. Background

    The Federal hazardous materials transportation law (49 U.S.C. 5101 
et seq.; Federal hazmat law) authorizes the Secretary of Transportation 
to regulate the safe and secure transportation of hazardous materials 
in commerce. In accordance with its delegated authority from the 
Secretary, PHMSA has established packaging requirements for the safe 
transportation of hazardous materials in commerce, including 
requirements for the design, construction, qualification, maintenance, 
certification and repair of bulk packagings such as CTMVs, portable 
tanks, and certain tank car tanks referred to as ton tanks.
    Under 49 CFR 1.96, PHMSA is delegated the responsibility to enforce 
the HMR. In addition, under 49 CFR 1.88 and 1.86, the Federal Railroad 
Administration (FRA) and the Federal Motor Carrier Safety 
Administration (FMCSA) are delegated authority to enforce the HMR with 
particular emphasis on railroad and highway transportation, 
respectively. PHMSA, FRA and FMCSA work closely with the regulated 
industry through educational assistance activities and FRA's and 
FMCSA's compliance and enforcement programs.
    Within the United States, the most common modes of transportation 
for the tanks affected by this NPRM are highway and rail. To clearly 
identify the differences and unique characteristics of the tanks 
addressed by this NPRM, we provide the following definitions.

                      Table 3--Tank Type Definition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Cargo tank motor vehicle (CTMV)...  Means a motor vehicle with one or
                                     more cargo tanks permanently
                                     attached to or forming an integral
                                     part of the motor vehicle.

[[Page 79366]]

 
Portable tank \4\.................  Means a bulk packaging (except a
                                     cylinder having a water capacity of
                                     1000 pounds or less) designed
                                     primarily to be loaded onto, or on,
                                     or temporarily attached to a
                                     transport vehicle or ship and
                                     equipped with skids, mountings, or
                                     accessories to facilitate handling
                                     of the tank by mechanical means. It
                                     does not include a CTMV, tank car,
                                     multi-unit tank car tank, or
                                     trailer carrying 3AX, 3AAX, or 3T
                                     cylinders.
UN portable tank..................  Means an intermodal tank having a
                                     capacity of more than 450 liters
                                     (118.9 gallons). It includes a
                                     shell fitted with service equipment
                                     and structural equipment, including
                                     stabilizing members external to the
                                     shell and skids, mountings or
                                     accessories to facilitate
                                     mechanical handling. A UN portable
                                     tank must be capable of being
                                     filled and discharged without the
                                     removal of its structural equipment
                                     and must be capable of being lifted
                                     when full. Cargo tanks, rail tank
                                     car tanks, non-metallic tanks, non-
                                     specification tanks, bulk bins, and
                                     IBCs and packagings made to
                                     cylinder specifications are not UN
                                     portable tanks.
Multi-unit tank car tank or ton     Means a flatcar railcar or flatbed
 tank.                               trailer with up to 15 large
                                     cylindrical pressure tanks (DOT-
                                     106A and 110A tank car
                                     specification, see Part 179).
------------------------------------------------------------------------

    In this NPRM, PHMSA is proposing to amend the HMR applicable to the 
design, construction, certification, recertification and maintenance of 
cargo tank motor vehicles, cryogenic portable tanks ton tanks, to allow 
the use of Section XII for the design, construction, and certification 
of CTMVs, cryogenic portable tanks and ton tanks. PHMSA is also 
proposing to authorize the use of the 2013 edition of the NBIC, as it 
applies to Section VIII, Division 1 or Section XII. These proposals are 
in response to petitions for rulemaking from ASME, the National Board 
of Boiler and Pressure Vessel Inspectors, and PVMA. This NPRM could 
affect the following entities that choose to follow Section XII and 
establishes the following requirements:
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    \4\ Only cryogenic portable tanks are involved in this NPRM.

                       Table 4--Affected Entities
------------------------------------------------------------------------
           Affected entities                    Proposed revisions
------------------------------------------------------------------------
 Manufacturers of CTMVs,          Provides alternative
 cryogenic portable tanks and ton tanks.  design, construction,
 Repairers of CTMVs, cryogenic    certification, recertification
 portable tanks and ton tanks.            and maintenance to Section
                                          VIII, Division 1 and HMR.
 Testers of CTMVs, cryogenic      Establishes new
 portable tanks and ton tanks.            alternative ``T'' stamp for
                                          transport tanks
 Carriers of bulk liquid          Establish different
 hazardous materials.                     levels of inspectors as set
 Inspectors of CTMVs, cryogenic   forth in Section XII.
 portable tanks and ton tanks.
 Owners of CTMVs, cryogenic
 portable tanks and ton tanks.
 Federal, state and local
 enforcement officials.
------------------------------------------------------------------------

IV. Petitions for Rulemaking

    The Administrative Procedure Act (APA) requires Federal agencies to 
give interested persons the right to petition an agency to issue, 
amend, or repeal a rule (5 U.S.C. 553(e)). 49 CFR 106.95, provides the 
process and procedures for persons to petition PHMSA to add, amend, or 
delete a regulation. In this NPRM, PHMSA is considering petitions for 
rulemaking from ASME, the National Board, and PVMA.
    The following table provides a brief summary of the petitions 
addressed in this NPRM and affected sections:

                                            Table 5--Petition Summary
----------------------------------------------------------------------------------------------------------------
                Petition                   Party submitting petition                    Summary
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P-1459..................................  ASME.......................  Requests PHMSA incorporate by reference
                                                                        the ASME Boiler and Pressure Vessel
                                                                        Code, Section XII, Transport Tanks--2004
                                                                        edition (Sec.  Sec.   172.102; 173.5b;
                                                                        173.24b; 173.32; 173.306; 173.315;
                                                                        173.318; 173.420; 178.245-1; 178.245-3;
                                                                        178.245-4; 178.245-6; 178.245-7; 178.255-
                                                                        1; 178.255-2; 178.255-14; 178.255-15;
                                                                        178.270-2; 178.270-3; 178.270-7; 178.270-
                                                                        9; 178.270-11; 178.270-12; 178.271-1;
                                                                        178.272-1; 178.273; 178.274; 178.276;
                                                                        178.277; 178.320; 178.337-1; 178.337-2;
                                                                        178.337-3; 178.337-4; 178.337-6; 178.337-
                                                                        16; 178.337-18; 178.338-1; 178.338-2;
                                                                        178.338-3; 178.338-4; 178.338-5; 178.338-
                                                                        6; 178.338-13; 178.338-16; 178.338-18;
                                                                        178.338-19; 178.345-1; 178.345-2;
                                                                        178.345-3; 178.345-4; 178.345-7; 178.345-
                                                                        14; 178.345-15; 178.346-1; 178.347-1;
                                                                        178.348-1; 179.400-3; 180.407).

[[Page 79367]]

 
P-1474..................................  PVMA.......................  Requests PHMSA incorporate by reference
                                                                        the ASME Boiler and Pressure Vessel
                                                                        Code, Section XII, Transport Tanks--2004
                                                                        edition (Sec.  Sec.   172.102; 173.5b;
                                                                        173.24b; 173.32; 173.306; 173.315;
                                                                        173.318; 173.420; 178.245-1; 178.245-3;
                                                                        178.245-4; 178.245-6; 178.245-7; 178.255-
                                                                        1; 178.255-2; 178.255-14; 178.255-15;
                                                                        178.270-2; 178.270-3; 178.270-7; 178.270-
                                                                        9; 178.270-11; 178.270-12; 178.271-1;
                                                                        178.272-1; 178.273; 178.274; 178.276;
                                                                        178.277; 178.320; 178.337-1; 178.337-2;
                                                                        178.337-3; 178.337-4; 178.337-6; 178.337-
                                                                        16; 178.337-18; 178.338-1; 178.338-2;
                                                                        178.338-3; 178.338-4; 178.338-5; 178.338-
                                                                        6; 178.338-13; 178.338-16; 178.338-18;
                                                                        178.338-19; 178.345-1; 178.345-2;
                                                                        178.345-3; 178.345-4; 178.345-7; 178.345-
                                                                        14; 178.345-15; 178.346-1; 178.347-1;
                                                                        178.348-1; 179.400-3; 180.407).
P-1502..................................  National Board.............  Requests PHMSA incorporate by reference
                                                                        the National Board Inspection Code--2007
                                                                        Edition in Sec.   180.413.
----------------------------------------------------------------------------------------------------------------

P-1459

    On May 10, 2005, ASME petitioned PHMSA to revise the HMR to 
incorporate by reference the ASME Boiler and Pressure Vessel Code, 
Section XII, Transport Tanks--2004 edition. Section XII of the BPVC 
provides requirements for construction and continued service of ASME 
pressure vessels for the transportation of dangerous goods with volumes 
greater than 450 liters (120 gallons) and design pressures appropriate 
for the particular transportation mode, i.e., highway, railway, air, 
and water. The construction requirements cover materials, design, 
fabrication, examination, inspection, testing, certification, and over-
pressure protection. The requirements for continued service cover 
inspection, testing, repair, alteration, and recertification of in-
service ASME constructed transport tanks. These transportation tank 
requirements include the pressure vessel, appurtenances, and additional 
components that are covered by Modal Appendices for the specific 
transport modes and unique service conditions of the specific 
application. The 2004 edition contains one Modal Appendix for portable 
tanks carrying cryogenic liquids. The 2007 edition was expanded to 
include the Modal Appendix for CTMVs. The 2010 edition was expanded to 
include the Modal Appendix for ton tanks. We are proposing to 
incorporate the latest edition, which was published in 2013. [This 
petition can be found at www.regulations.gov under Docket No. PHMSA-
2005-21351].

P-1474

    On February 27, 2006, PVMA also petitioned PHMSA to revise the HMR 
to incorporate by reference the ASME Boiler and Pressure Vessel Code, 
Section XII, Transport Tanks--2004 edition. PVMA is a trade association 
representing pressure vessel manufacturers, related component materials 
suppliers and regulatory organizations. Several of PVMA's member 
companies participated in the development of Section XII, which 
contains design requirements for tanks and pressure vessels that 
several of its members manufacture. PVMA reasoned that adoption of 
Section XII into the HMR would encourage uniform design requirements 
and manufacturing standards for these tanks, and support the safe 
construction practices of this industry. [This petition can be found at 
www.regulations.gov under Docket No. PHMSA-2006-24712].

P-1502

    On July 12, 2007, the National Board of Boiler and Pressure Vessel 
Inspectors petitioned PHMSA to revise the HMR to incorporate by 
reference the National Board Inspection Code--2007 Edition. The NBIC 
contains rules for continued service inspections, repairs, and 
modifications of transport tanks, including methods to be used and 
criteria for inspections, reports, document control, and inspector 
duties and responsibilities. The term ``inspector'' includes Authorized 
Inspector (AI), Qualified Inspector (QI), Certified Individual (CI) or 
Registered Inspector (RI) to address all aspects of continued 
service.\5\ While the petition asked that we incorporate the 2007 
edition of the NBIC, we propose to incorporate the most up-to-date 
version, which is the 2013 edition. [This petition can be found at 
www.regulations.gov under Docket No. PHMSA-2007-28809].
---------------------------------------------------------------------------

    \5\ The NBIC has updated the 2007 edition with a 2013 edition.
---------------------------------------------------------------------------

V. ASME Section XII

    Currently, the HMR incorporate by reference the 1998 edition of 
Section VIII, Division 1 as part of the standards for the design and 
construction of cryogenic portable tanks and CTMVs. Section VIII, 
Division 1 sets forth detailed criteria for the design, construction, 
certification, and marking of stationary boilers and pressure vessels. 
Tanks constructed and certified in accordance with Section VIII, 
Division 1 are marked with a ``U'' stamp.
    While stationary tanks and transportation tanks are both subject to 
many of the same influences, such as pressure, temperature changes, and 
atmospheric conditions, transportation tanks are subject to additional, 
unique dynamic load conditions and stresses; Section VIII, Division 1 
alone does not address the transportation conditions. To address these 
additional influences on tanks that are used in transportation, general 
operational requirements for CTMVs, portable tanks, and ton tanks, such 
as outage and filling limits and self-closing stop valves, are 
prescribed in 49 CFR part 173 subpart B. In addition, 49 CFR part 178, 
subpart H for specification 60, steel portable tanks, includes 
requirements for material construction (see Sec.  178.255-2), expansion 
domes (see Sec.  178.255-3), closures for manholes and domes (see Sec.  
178.255-4), loading and unloading accessories (see Sec.  178.255-6), 
tank repair (see Sec.  178.255-13, marking (see Sec.  178.255-14), and 
reporting (see Sec.  178.255-15). Subpart J for CTMVs and 49 CFR part 
178, includes general requirements for all DOT specification cargo tank 
motor vehicles (see Sec.  178.320), and then more specific requirements 
for types of CTMVs. For specification MC-331 tanks, requirements 
include, but are not limited to, structural integrity (see Sec.  
178.337-3), closures for manholes (see Sec.  178.337-6), and accident 
damage protection (see Sec.  178.337-10). For MC-338 insulated cargo 
tank motor vehicles, requirements include, but are not limited to, 
material (see Sec.  178.338-2),

[[Page 79368]]

structural integrity (see Sec.  178.338-3), and accident damage 
protection (see Sec.  178.338-10). For ton tanks, 49 CFR part 179 
subpart E prescribes additional design and construction requirements 
than those required for stationary tanks in Section VIII, Division 1, 
including but not limited to, protection of fittings (see Sec.  
179.300-12), more stringent welding (see Sec.  178.300-9), and 
inspection (see Sec.  179.300-19). Furthermore, continuing 
qualification and maintenance requirements, which include periodic 
tests and inspections, repairs, modifications, alterations, and 
conversions, are specified in 49 CFR part 180, subpart E for CTMVs, 
subpart F for ton tanks, and subpart G for portable tanks. It should be 
noted that design, construction and qualification of rail tank cars (49 
CFR part 179 and part 180, subpart F) and non-specification cargo tanks 
(i.e., nurse tanks) are not being considered in this NPRM.
    ASME is a not-for-profit membership professional organization that 
enables collaboration, knowledge-sharing, and skill development across 
all engineering disciplines. ASME is recognized globally for its 
leadership in providing the engineering community with technical 
content and a forum for information exchange. The Boiler and Pressure 
Vessel Committees of ASME meet quarterly; however, most of the work is 
done throughout the year through working groups and an electronic 
balloting process. The National Board meets biannually and also works 
throughout the year through working groups and the electronic balloting 
process. These committees consider revisions to the ASME codes and 
standards based on safety concerns, technological advances, new data, 
and changing environmental and industry needs. All meetings are free-
of-charge and open to public participation. ASME subcommittees consider 
correspondence from the general public in the form of requests for 
interpretation and revision to existing codes, requests for code cases, 
and requests to develop new standards.
    In 1995 the ASME Board on Pressure Technology Codes and Standards 
formed a committee on transport tanks (SC XII) to develop new standards 
to specifically address transport tanks. PHMSA actively participated in 
the committee. SC XII currently consists of a main committee and four 
subgroups identified as: (1) General Requirements, (2) Fabrication, 
Inspection and Continued Service, (3) Design and Materials, and (4) 
Non-Mandatory Appendices. SC XII developed and published in July of 
2004 the ASME BPVC Section XII, Rules for Construction and Continued 
Service of Transport Tanks to address pressure vessels that are used in 
transportation. Section XII is based on the existing and long-
established Section VIII, Division 1. Section XII consists of ten 
parts, four modal appendices written to address different tank types, 
sixteen mandatory appendices, and eight non-mandatory appendices. 
Transport tanks are divided into categories comparable to existing DOT 
specifications; for example, a DOT 406 CTMV is a Category 406 tank in 
Article 1 of Modal Appendix 1. The newest edition contains modal 
appendices for CTMVs, cryogenic portable tanks, and ton tanks.\6\
---------------------------------------------------------------------------

    \6\ A rail tank car appendix may be developed in the future, and 
consequently, is not part of the scope of this NPRM.
---------------------------------------------------------------------------

    Section XII contains ten parts, in the following order:

                    Table 6--Section XII Part Summary
------------------------------------------------------------------------
              Part heading                      Part requirements
------------------------------------------------------------------------
TG.....................................  General
TM.....................................  Material
TD.....................................  Design
TW.....................................  Tanks Fabricated by Welding
TF.....................................  Fabrication
TE.....................................  Examination
TT.....................................  Testing
TR.....................................  Pressure-relief Device
TS.....................................  Stamping, Marking,
                                          Certification Reports, and
                                          Records
TP.....................................  Repair, Alteration, Testing,
                                          and Inspection for Continued
                                          Service
------------------------------------------------------------------------

    Section XII requires newly constructed transport tanks to bear a 
``T'' stamp. The ``T'' stamp is essentially equivalent to the current 
``U'' stamp required for certain DOT CTMVs designed and constructed to 
Section VIII, Division 1 standards, currently incorporated by reference 
in the HMR.
    PHMSA is proposing to adopt Section XII, in its entirety, as an 
alternative to Section VIII, Division 1 for the design and construction 
requirements for DOT specification tanks. A copy of Section XII, 2013 
edition, is available for review at www.regulations.gov under Docket 
Number PHMSA-2010-0019 or DOT's Docket Operations Office (see 
ADDRESSES). The current price of Section XII in hard copy is $380.\7\
---------------------------------------------------------------------------

    \7\ See: http://www.asme.org/products/codes---standards/bpvc-xii---2013-bpvc-section-xii-rules-for-constru (Accessed: March 27, 
2013).
---------------------------------------------------------------------------

VI. NBIC

    The National Board of Boiler and Pressure Vessel Inspectors was 
formed in 1921 and is an American National Standards Institute (ANSI) 
accredited standards development organization. The National Board 
follows an approved set of standards development procedures (NB-240, 
National Board Inspection Code Procedures; http://www.nationalboard.org) and is subject to regular audits by ANSI.
    First published in 1946, the NBIC was established by the National 
Board to provide rules and guidelines for the repair, alteration, 
inspection, installation, maintenance, and testing of boilers, pressure 
vessels, and other pressure retaining items. The NBIC is developed and 
maintained by a consensus committee comprised of industry experts (the 
NBIC Committee). The NBIC Committee consists of a main committee, 
subcommittees, subgroups, and task groups of industry experts and has 
Federal representation by PHMSA. Participants meet biannually to 
consider revisions to the NBIC based on safety concerns, technological 
advances, new data, and industry needs. All meetings are free-of-charge 
and open to public participation. The NBIC subcommittees consider 
correspondence from the general public in the form of requests for 
interpretation, revision of existing standards, and requests to develop 
new standards. The standards-writing subcommittees, subgroups, and task 
groups are open to participation by representatives of groups that are 
materially affected by the code. Such groups include manufacturers, 
repair firms, authorized inspection agencies, and representatives of 
government agencies. Each year the NBIC Committee updates the NBIC and 
presents the updates on the National Board's Web site for public review 
in April-May and August-September. Updated editions are published 
biannually.
    Section XII requires all alterations and repairs to the pressure 
vessel of a transport tank to be performed in accordance with the NBIC 
and requires an inspection to be performed by a National Board 
inspector. The NBIC Committee established a task group to develop 
requirements for continued service, repair, and alteration of Section 
XII transport tanks. The task group included PHMSA and industry 
representatives. The Committee's efforts culminated in the issuance of 
two new supplements to the NBIC code. While the NBIC code applies to 
boilers, pressure vessels, and pressure relief devices, these 
supplements were added to specifically address transport tanks. The 
first is NBIC Part 2, Section 6, Supplement 6, ``Continued Service and 
Inspection of DOT Transport Tanks.'' This document describes inspection 
of in-service transport tanks. The second is

[[Page 79369]]

NBIC Part 3, Section 6, Supplement 6, ``Repair, Alteration, and 
Modification of DOT Transport Tanks.'' This document contains general 
requirements that apply to welding, repairs, alterations, 
modifications, examinations, etc., made to DOT transport tanks used for 
the transportation of hazardous materials. These supplements also 
specify the type of inspection to be performed and establish the 
criteria for inspections, reports, document maintenance, and inspector 
duties and responsibilities.
    A copy of the 2013 edition of the NBIC is available for review at 
www.regulations.gov under Docket Number PHMSA-2010-0019 or DOT's Docket 
Operations Office (see ADDRESSES appearing earlier in this notice). The 
current cost of the complete NBIC set is $265 for either the hard copy 
or the Flash Drive edition.\8\
---------------------------------------------------------------------------

    \8\ See: http://www.nationalboard.org/Index.aspx?pageID=14&ID=20 
(Accessed March 27, 2013).
---------------------------------------------------------------------------

VII. Comparison of Section XII and Section VIII, Division 1 
Supplemented by the Current HMR

    Currently, the HMR incorporates Section VIII, Division 1 of the 
ASME Code, which specifies the design and construction of stationary 
tanks. The HMR supplements Section VIII, Division 1, with added design, 
construction, certification, which are found in parts 178 and 179, and 
recertification and maintenance requirements, found in part 180, 
specific to transport tanks. Section XII and the 2013 edition of the 
NBIC have been developed specifically for design, construction, 
certification, recertification and maintenance of transport tanks. A 
review of differences between Section VIII, Division 1 and Section XII 
can be very specific. However in this section we examine the broader 
philosophical differences between the way in which tanks may be 
designed in Section VIII, Division 1 and the way tanks may be designed 
in Section XII. Two overarching differences in the two versions of the 
ASME standard are design margin allowances and design methodology; they 
are discussed below. Another difference between the current HMR and the 
Section XII is that when designing and constructing a tank to the 
requirements of Section XII, you must use the requirements in the 2013 
edition of the NBIC for continued service of those tanks; whereas if 
you are using the HMR and Section VIII, Division 1 you may use the 
NBIC, but are not required to do so.

Design Margin

    The design margin, also known as factor of safety, is defined as 
the structural capacity of a system beyond the expected loads or actual 
loads. For the purposes of construction of transport tanks, the design 
margin is how much stronger than necessary we would require a tank to 
be built for an intended load. For example, a design margin of 3.5:1 
means a tank must be built to withstand forces 3.5 times what it would 
be expected to endure in transportation. Meeting the required design 
margin exactly implies that the design meets the minimum allowable 
strength; however, a tank may be built to withstand greater forces than 
the design margin. Building a tank to withstand forces well over the 
required design factor sometimes implies ``over-engineering'' which can 
result in greater weight and/or cost.
    Since the 1940's ASME's design margin for tanks has traditionally 
been 4.0:1 and, as far back as the 1950's, the HMR has incorporated 
Section VIII, Division 1 and required the 4.0:1 design margin for 
transport tanks. In 1996, the ASME Pressure Vessel Research Committee 
instituted a research study in which it reviewed burst tests, failure 
data, failure modes--particularly fatigue and fracture and related 
toughness requirements, fabrication practices, improved materials, 
advances in welding, examination and testing. Notably, fracture 
mechanics did not exist as an engineering discipline when the design 
margin of 4 was established. Today, fracture mechanics allows an 
engineer to establish the minimum toughness required in a material 
based on the stress applied and the maximum credible size flaw.\9\ The 
results of the 1996 study indicated that the design margin for pressure 
vessels could be safely reduced from 4.0:1 to 3.5:1.\10\ Based on this 
study, and other research and data specific to transport tanks, ASME 
adopted a design margin of 3.5 on ultimate tensile strength in Section 
XII for the economic advantage of using higher allowable stresses and 
consequently thinner vessels.
---------------------------------------------------------------------------

    \9\ ``Reduction of Design Margin in the ASME Boiler and Pressure 
Vessel Code in the 1999 Addenda,'' Walter J. Sperko, P.E., available 
at: http://freepdfz.com/pdf/reduction-of-asme-design-margin-sperko-engineering-service-inc-5156113.html (last accessed 9/30/13).
    \10\ See www.regulations.gov docket number PHMSA-2010-0019-0016.
---------------------------------------------------------------------------

    The revised design margins under Section XII may have an effect on 
newly constructed transport tanks. For those tanks where the minimum 
thicknesses are controlled by pressure, they may be thinner and lighter 
than those constructed using a design margin of 4.0. PHMSA has issued 
several special permits allowing a 3.5:1 or a 3.0:1 design margin.\11\ 
PHMSA has reviewed the incident data for these tanks and has not 
identified any incidents that would indicate a reduction in safety. 
Furthermore, PHMSA thoroughly evaluates the safety of any special 
permit before it is issued, and will only issue a permit if the level 
of safety provided is found to be equivalent to the HMR.
---------------------------------------------------------------------------

    \11\ See DOT-SP 12628 and DOT-SP 14492 for 3.5:1 design margin; 
see DOT-SP 14483, DOT-SP 14572, DOT-SP 14578, DOT-SP 14616 and DOT-
SP 15220 for 3.0:1 design margin.
---------------------------------------------------------------------------

Rational Design

    Section VIII, Division 1 and the HMR prescribe tank designs 
intended for a variety of situations. This approach may be attractive 
to the designer of a tank, as the same design may be used in a variety 
of situations; however, generally, this approach to design results in 
large built-in, design margins, over-design, and use of excess 
material. Rational design involves the application of a systematic 
method for determining the design variables that optimize a specific 
objective while satisfying the constraints.\12\ PHMSA, ASME, and 
industry have determined through cooperative research and development 
that tanks constructed using rational design methodology provide an 
equivalent level of safety to currently authorized tank designs, but 
are more efficient than currently authorized tanks. For this reason, 
Section XII incorporates the rational design method. When using the 
rational method of design, a tank designer seeks to determine, as 
comprehensive and rigorously as possible, the factors affecting the 
safety and performance throughout the life of the tank, to determine 
the most efficient safe design. This process involves more calculations 
than previous Section VIII design methodologies and can incorporate 
highly sophisticated computer modeling in developing tank designs. 
Rational design methodology enables tanks to be designed with greater 
efficiency and less need for high margins of safety. Rational design 
under Section XII, Appendix VIII has enabled non-circular shell and 
heads to be made of material with thicknesses up to 15% less than what 
tank manufacturers currently use. Such a difference results in a tank 
with at least 2% more payload capacity.
---------------------------------------------------------------------------

    \12\ See ``A Practical Methods for the Rational Design of Ship 
Structures; Hughes, Mistree and Zanic; Journal of Ship Research, Vol 
24, No. 2, June 1980, pp. 101-113.''

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

[[Page 79370]]

Design and Construction of CTMVs: Identified Differences Between HMR 
and Section XII Requirements

    This section highlights some specific differences between the 
currently incorporated Section VIII that is supplemented by the HMR and 
Section XII. This is not an all-encompassing list of differences, and 
it is only meant to highlight areas in which Section XII has improved 
upon the current combination of Section VIII and the HMR.
Special Materials Testing and Fabrication Requirements for MC 331 Tanks
    Section XII Modal Appendix 1--``Cargo Tanks'' discontinues certain 
obsolete requirements for construction of MC 331 cargo tanks that are 
still required in Sec. Sec.  178.337-2 and 178.337-4. This revision 
modernizes material specification designations and eliminates obsolete 
material specifications. It also eliminates certain obsolete material 
impact test requirements, especially for quenched and tempered 
materials. PHMSA has issued several special permits allowing the use of 
the newer material specifications in the ASME Code for construction and 
repair. A review of historical incident data shows an acceptable safety 
history with no reported incidents.
Standardization of Allowable Peak Secondary Stresses for MC 331 Cargo 
Tanks
    The requirements in Modal Appendix 1-3.5.5 and 1-3.5.1(a)(1)(b) of 
Section XII standardize the allowable peak secondary stress levels 
resulting from short interval, non-persistent loads to that permitted 
for lading surge loads for MC 331 cargo tanks by Sec.  178.337-3(d). 
The Appendix also aligns the MC 331 cargo tank design with the design 
standard of the DOT 400-series cargo tanks for short interval peak 
loads.
Defined Incident Provisions Relating to Pressure Boundaries
    Currently the HMR specifically requires defined incident protection 
(accident protection) for specification tanks throughout Part 178 
subpart J. The Modal Appendix 1 Article 1-1.5 of Section XII specifies 
that tank attachment points shall be designed for accident protection 
and leakage prevention. ASME asserts that inclusion of these 
requirements in Section XII clarifies and improves the accident 
protection requirements.
New Requirements To Account for Fatigue Loading in MC 331 Tanks
    Section XII includes a new requirement to account for fatigue 
loading due to dynamic loading and full pressure cycles in design of MC 
331 cargo tanks. This consideration is a safety enhancement from the 
previous Section VIII and HMR combination and provides explicit 
criteria for fatigue failure avoidance. This requirement compensates 
for slightly reduced stiffness and increased elastic deflection due to 
thinner tank walls authorized by Section XII. Accounting for fatigue 
loading is also intended to provide specific design guidance that will 
help avoid the potential for stress corrosion cracking in tanks made of 
quenched and tempered steels.
Consolidation of DOT's Special Design Requirements for MC 331 Tanks
    In Section XII, the Modal Appendix 1-3.11.1 [Construction 
Requirements for Cargo Tank Vessels Used to Transport Specific 
Hazardous Materials]; and 1-3.11.2 [Equivalent Material Thickness] 
consolidate special DOT design requirements \13\ for certain MC 331 
cargo tanks designed for certain specific ladings into a single place.
---------------------------------------------------------------------------

    \13\ The consolidated 49 CFR requirements are: Sec.  178.337-
1(c)(2); Sec.  178.337-1(e)(2); Sec.  178.337-1(f); Sec.  178.337-
2(b); Sec.  178.337-2(c); Sec.  178.337-8(a)(5)(iii); Sec.  178.337-
8(b); Sec.  178.337-8(c); Sec.  178.337-9(a); Sec.  173.24b(b); 
Sec.  173.315.
---------------------------------------------------------------------------

    The benefit resulting from consolidating design and construction 
requirements for each special lading tank vessel into its own 
subparagraph is that it will prevent the cargo tank designer from 
overlooking design requirements essential to DOT compliance. 49 CFR 
Sec.  178.337 distributes these requirements throughout that section 
according to the particular design feature. Many DOT requirements 
essential to vessel construction are not found in Sec.  178.337, but in 
Sec.  173.315, which in turn references other 49 CFR sections. 
Specifically, the requirements for construction to an equivalent metal 
thickness criterion are found several places. Modal Appendix 1-3.11.2 
converts these specific requirements into a generic form where it can 
be conveniently located. The consolidation of these requirements in 
Section XII is viewed as a safety enhancement as it will provide easier 
understanding of the requirements.
Standardized Pressure Relief Devices for Both Portable and Cargo 
Cryogenic Tankage
    Both cryogenic portable tanks and cargo tanks are similar in design 
and construction. Their pressure relief devices have the same function 
in protecting the pressure vessel against over pressure for all 
conditions of operation. They should be similarly specified, and this 
has been done in Section XII, with the exception of the pressure relief 
valve setting and the tag stamping of the burst disc for portable 
tanks.
Uniformity of Piping and Valving Requirements for Cargo and Portable 
Cryogenic Tankage
    As has been done for the Pressure Relief Devices, piping, filling 
and discharge openings together with valve requirements have been 
standardized for portable and cargo cryogenic transport tanks in 
Section XII. The standardization of these requirements in Section XII 
is viewed as a safety enhancement.

Continued Service of CTMVs, Portable Tanks, and Ton Tanks: Roles of 
Inspectors

    Part 180 of the HMR specifies continued service requirements for 
DOT and UN portable tanks and DOT specification and certain non-
specification CTMVs. Specific requirements for the qualification, 
maintenance, repair, and testing of packagings are located in 49 CFR 
part 180: subpart E for CTMVs, subpart F for ton tanks, and subpart G 
for portable tanks.
    Incorporating Section XII and the NBIC as an alternative for 
continued service requirements for these ASME stamped bulk packagings 
may impact the roles and responsibilities of persons who perform tests, 
inspections, modifications, alterations, and repairs.
    To ensure that DOT specification CTMVs are designed, constructed, 
and maintained in accordance with the applicable specification, the HMR 
require that each person who certifies CTMV design, construction, 
repair, or testing meet certain minimum qualifications. The 
qualification criteria are based on the function performed. 
Professionals who meet the qualifications set forth currently in the 
HMR for Design Certifying Engineer (DCE), Authorized Inspector (AI), 
and Registered Inspector (RI) perform continued service functions that 
are specified in the table below.

[[Page 79371]]



            Table 7--Types of Inspectors Currently in the HMR
------------------------------------------------------------------------
         Type of Inspector                     Qualifications
------------------------------------------------------------------------
A Design Certifying Engineer (DCE)   Is a person registered with
                                     the U.S. DOT in accordance with
                                     subpart F of part 107 of the HMR
                                     who has the knowledge and ability
                                     to perform stress analysis of
                                     pressure vessels and otherwise
                                     determine whether a cargo tank
                                     design and construction meets the
                                     applicable DOT specification.
                                     Certifies each
                                     specification cargo tank or CTMV
                                     design type, including its required
                                     accident damage protection; the
                                     design of a modified, stretched, or
                                     rebarrelled CTMV; or mounting of a
                                     cargo tank on a motor vehicle
                                     chassis involving welding on the
                                     cargo tank head or shell or any
                                     change or modification of the
                                     methods of attachment.
                                     Must fulfill the knowledge
                                     and ability requirements by meeting
                                     any one of the following
                                     qualifications:
                                      [cir] Have an engineering degree
                                    and one year of work experience in
                                    cargo tank structural or mechanical
                                    design;
                                      [cir] Be currently registered as a
                                    professional engineer by appropriate
                                    authority of a state of the United
                                    States or a province of Canada; or
                                      [cir] Have at least three years'
                                    experience in performing the duties
                                    of a DCE prior to September 1, 1991.
An Authorized Inspector (AI)......   Is regularly employed by an
                                     ASME-accredited Authorized
                                     Inspection Agency (AIA), who has
                                     been qualified to ASME-developed
                                     criteria to perform inspections
                                     under the rules of any jurisdiction
                                     that has adopted the ASME Code.
                                     Is not employed by the
                                     manufacturer.
                                     Holds a valid Certificate
                                     of Competency (where required), as
                                     defined in National Board Rules for
                                     Commissioned Inspectors, and a
                                     valid National Board Commission
                                     with an ``A'' endorsement.
                                     Has satisfactory expertise,
                                     experience, and background for the
                                     inspection of boilers and pressure
                                     vessels and demonstrate the ability
                                     to perform shop and field (on-site)
                                     inspections to the satisfaction of
                                     the AIA.
                                     Has knowledge of applicable
                                     sections of the ASME Code, Quality
                                     Control Programs, and requirements
                                     for the maintenance and retention
                                     of in-transit and permanent
                                     records.
                                     Has received a passing
                                     grade on an examination given by
                                     the National Board that evaluates
                                     the individual's knowledge of, and
                                     familiarity with, the ASME Code,
                                     and complies with the National
                                     Board's rules for commissioned
                                     inspectors.
An Authorized Inspection Agency      Is a jurisdiction that has
 (AIA).                              adopted and administers one or more
                                     sections of the ASME Boiler and
                                     Pressure Vessel Code as a legal
                                     requirement and has a
                                     representative serving as a member
                                     of the ASME Conference Committee;
                                     or
                                     Is an insurance company
                                     that has been licensed or
                                     registered by the appropriate
                                     authority of a State of the United
                                     States or a Province of Canada to
                                     underwrite boiler and pressure
                                     vessel insurance in such State or
                                     Province.
A Registered Inspector (RI).......   Is a person registered with
                                     the Department in accordance with
                                     subpart F of part 107 of this
                                     chapter who has the knowledge and
                                     ability to determine whether a
                                     cargo tank conforms to the
                                     applicable DOT specification. A
                                     Registered Inspector meets the
                                     knowledge and ability requirements
                                     of this section by meeting any one
                                     of the following requirements:
                                     Has an engineering degree
                                     and one year of work experience
                                     relating to the testing and
                                     inspection of cargo tanks;
                                     Has an associate degree in
                                     engineering and two years of work
                                     experience relating to the testing
                                     and inspection of cargo tanks;
                                     Has a high school diploma
                                     (or General Equivalency Diploma)
                                     and three years of work experience
                                     relating to the testing and
                                     inspection of cargo tanks; or
                                     Has at least three years'
                                     experience performing the duties of
                                     a Registered Inspector prior to
                                     September 1, 1991.
------------------------------------------------------------------------

    Section XII requires all alterations and repairs to the pressure 
vessel of a transport tank to be performed in accordance with the NBIC 
and requires an inspection to be performed by a National Board 
inspector. The inspector, depending on the class designation of the 
transport tank, must be an Authorized Inspector (AI), Qualified 
Inspector (QI), or Certified Individual (CI). The different levels of 
inspectors and their required qualifications are shown in the table 
below.

        Table 8--Types of Inspectors in Section XII and the NBIC
------------------------------------------------------------------------
         Type of Inspector                     Qualifications
------------------------------------------------------------------------
An Authorized Inspector (AI)......   Is regularly employed by an
                                     ASME-accredited Authorized
                                     Inspection Agency (AIA), who has
                                     been qualified to ASME-developed
                                     criteria to perform inspections
                                     under the rules of any jurisdiction
                                     that has adopted the ASME Code.
                                     Is not employed by the
                                     manufacturer.
                                     Holds a valid Certificate
                                     of Competency (where required), as
                                     defined in National Board Rules for
                                     Commissioned Inspectors, and a
                                     valid National Board Commission
                                     with an ``A'' endorsement.
                                     Has satisfactory expertise,
                                     experience, and background for the
                                     inspection of boilers and pressure
                                     vessels and demonstrate the ability
                                     to perform shop and field (on-site)
                                     inspections to the satisfaction of
                                     the AIA.
                                     Has knowledge of applicable
                                     sections of the ASME Code, Quality
                                     Control Programs, and requirements
                                     for the maintenance and retention
                                     of in-transit and permanent
                                     records.

[[Page 79372]]

 
                                     Has received a passing
                                     grade on an examination given by
                                     the National Board that evaluates
                                     the individual's knowledge of, and
                                     familiarity with, the ASME Code,
                                     and complies with the National
                                     Board's rules for commissioned
                                     inspectors.
A Qualified Inspector (QI)........   Is an inspector regularly
                                     employed by an ASME Qualified
                                     Inspection Organization (QIO) who
                                     has been qualified to ASME-
                                     developed criteria by a written
                                     examination, to perform inspections
                                     under the rules of any jurisdiction
                                     that has adopted the ASME Code.
                                     May not be in the employ of
                                     the manufacturer.
                                     Holds a valid Certificate
                                     of Competency (where required), as
                                     defined in National Board Rules for
                                     Commissioned Inspectors, and a
                                     valid National Board certification
                                     as a Qualified Inspector.
                                     Has satisfactory expertise,
                                     experience, and background for the
                                     inspection of boilers and pressure
                                     vessels and demonstrate the ability
                                     to perform shop and field (on-site)
                                     inspections to the satisfaction of
                                     the QIA.
                                     Has knowledge of applicable
                                     sections of the ASME Code, Quality
                                     Control Programs, and requirements
                                     for the maintenance and retention
                                     of in-transit and permanent
                                     records.
                                     Has received a passing
                                     grade on an examination given by
                                     the National Board that evaluates
                                     the individual's knowledge of, and
                                     familiarity with, the ASME Code.
                                     The Qualified Inspector must comply
                                     with the National Board's rules for
                                     qualified inspectors.
A Certified Individual (CI).......   Is an individual certified
                                     by an ASME accredited organization
                                     authorized to use ASME marks, as
                                     either a full-time or part-time
                                     employee or contractor to the ASME
                                     certificate holder.
                                     Is neither an AI nor a QI
                                     and must be certified and qualified
                                     to perform inspections by the CI's
                                     employer.
                                     May be employed by the
                                     manufacturer or assembler.
                                     Has the following minimum
                                     qualifications:
                                    [cir] Knowledge of the requirements
                                     of Section XII for application of
                                     the appropriate Code Symbol stamp;
                                    [cir] Knowledge of the
                                     Manufacturer's or Assembler's
                                     Quality System Program; and
                                    [cir] Training commensurate with the
                                     scope, complexity, or special
                                     nature of the activities to which
                                     oversight is to be provided.
                                     Has a record maintained and
                                     certified by the manufacturer or
                                     assembler, containing objective
                                     evidence of the qualifications of
                                     the CI and training provided the
                                     CI's qualifications and duties are
                                     as required in the latest edition
                                     and addenda of ASME QA1-1,
                                     Qualifications for Authorized
                                     Inspection.
------------------------------------------------------------------------

    For continued service, under both the current HMR and Section XII, 
the NBIC authorizes owner/users who meet the requirements of NB-371, 
``Accreditation of Owner, User, and Inspection Organizations'' to 
perform service inspections, including repairs and alterations, if the 
owner/user possesses a valid National Board Owner/User Certificate of 
Authorization. Inspectors employed by the Owner/User may perform 
continued service inspections, including repairs and alterations, if 
the individual possesses a National Board Owner/User commission. 
Currently, under the HMR and as proposed in this NPRM, motor carriers 
or CTMV owner/operators may perform annual external visual inspections 
and leakage tests, with certain limitations (see 49 CFR 180.409).
    While Section VIII, Division 1 does not distinguish between types 
of tanks and levels of inspectors, Section XII assigns transport tanks 
to three separate classes depending on the design of the tank. Each 
class includes transport tank designs that generally correspond to 
existing DOT specifications. The NBIC inspection requirements 
correspond to the class of transport tank as assigned in the Modal 
Appendices.
    In the table below, PHMSA lists each class of transport tank to be 
constructed or repaired and the type of inspector required to perform 
the inspection. Currently there are no specifications in either Section 
VIII, Division 1 or Section XII for Class 2 tanks, which is the 
designation that the committee set aside originally for rail car tanks 
and non-cryogenic portable tanks. While the specifications for Class 2 
tanks are expected to be developed and incorporated into future 
editions of Section XII and the NBIC, the current editions do not 
include them.

                                      Table 9--ASME Transport Tank Classes
----------------------------------------------------------------------------------------------------------------
                                                                                 Type of inspector
                                       Current specification in  -----------------------------------------------
               Class                             HMR               Section VIII and the
                                                                            HMR            Proposed section XII
----------------------------------------------------------------------------------------------------------------
Class 1............................  UN cryogenic portable tanks  Authorized Inspector..  Authorized Inspector.
                                      (See Sec.   178.277) DOT
                                      407 MAWP > 35 psi (See
                                      Sec.   178.347) DOT 412
                                      MAWP > 15 psi (See Sec.
                                      178.348) MC 338 (See Sec.
                                       178.338) MC 331 (See Sec.
                                        178.337) DOT 106A and
                                      110AW (See Sec.   179.300).
Class 2............................  To be developed in future    N/A...................  N/A.
                                      editions.
Class 3............................  DOT 406 (See Sec.            Authorized Inspector..  Certified Individual,
                                      178.346) DOT 407 MAWP <=                             Authorized Inspector,
                                      35 psi (See Sec.                                     or Qualified
                                      178.347) DOT 412 MAWP <=                             Inspector.
                                      15 psi (See Sec.
                                      178.348).
----------------------------------------------------------------------------------------------------------------

    Repairs and alterations must be performed by organizations holding 
a valid National Board ``TR'' certificate of Authorization and in 
possession of the appropriate National Board Code symbol stamp. 
Alternatively, organizations employing Owner/User/Inspectors and in 
possession of a valid Owner/User Certificate of Authorization

[[Page 79373]]

issued by the National Board may repair and perform alterations on 
transport tanks owned and operated by the Owner/User Certificate of 
Authorization holder.
    The periodic inspection and test frequencies for cargo tanks are 
specified in Modal Appendix 1 of Section XII. Periodic inspection and 
test frequencies for cryogenic portable tanks are specified in Modal 
Appendix 3 of Section XII. The periodic inspection and test frequencies 
are consistent with those specified currently in the HMR for cargo 
tanks and portable tanks.

Summary and Supporting Research Initiatives

    In this NPRM, PHMSA proposes to amend the HMR in response to 
petitions submitted by industry representatives to incorporate Section 
XII and the 2013 edition of the NBIC as alternatives to Section VIII, 
Division 1 and the current HMR requirements in part 178, for the design 
of cryogenic portable tanks and CTMVs, part 179 for the design of ton 
tanks, and part 180 for the continuing qualification and maintenance of 
CTMVs, cryogenic portable tanks and ton tanks.
    As mentioned previously, Section XII and the 2013 edition of the 
NBIC will be optional, and industry could choose to continue to use 
Section VIII, Division 1 and the current HMR requirements. The table 
below provides an overview of the options available to design, 
construct, repair and inspect tanks for use should the proposals in 
this NPRM be finalized.

                         Table 10--Summary of Standards Options as Proposed in This NPRM
----------------------------------------------------------------------------------------------------------------
                                                                   Standard used for:
                Stamp                 --------------------------------------------------------------------------
                                                Build                    Repair                  Inspect
----------------------------------------------------------------------------------------------------------------
Specification, Non-Stamped Transport   ASME Section VIII with   1992 Edition of the      1992 Edition of the
 tanks.                                 49 CFR Parts 173 and     NBIC with 49 CFR Part    NBIC with 49 CFR Part
                                        178.                     180 or 2013 Edition of   180 or 2013 Edition of
                                                                 the NBIC without         the NBIC without
                                                                 Supplement 6 and 49      Supplement 6 and 49
                                                                 CFR Part 180.            CFR Part 180
``U'' Stamp..........................  ASME Section VIII with   1992 Edition of the      1992 Edition of the
                                        49 CFR Parts 173 and     NBIC with 49 CFR Part    NBIC with 49 CFR Part
                                        178.                     180 or 2013 Edition of   180 or 2013 Edition of
                                                                 the NBIC without         the NBIC without
                                                                 Supplement 6 and 49      Supplement 6 and 49
                                                                 CFR Part 180.            CFR Part 180
``T'' Stamp..........................  ASME Section XII as      2013 Edition of the      2013 Edition of the
                                        authorized by proposed   NBIC with Supplement 6.  NBIC with Supplement 6
                                        173.14.
----------------------------------------------------------------------------------------------------------------

    In developing Section XII, the SC XII committee on transport tanks, 
as well as other stakeholders, commissioned studies on materials used 
in the construction of tanks, components of tanks, and tanks 
themselves, to aid in developing safe specifications for transport 
tanks. The table below highlights studies that address issues relevant 
to this NPRM. This table is not meant to be a definitive list of the 
body of research available and serves as a supplement to this 
rulemaking effort. The following table summarize these studies and 
others that relate to this NPRM, and the results of these studies:

          Table 11--Summary of Supporting Research Initiatives
------------------------------------------------------------------------
                                                      Relation to ASME
   Study Title/Docket No.         Study summary          Section XII
------------------------------------------------------------------------
DOT sponsored research        The study analyzed    Results showed that
 project PO--TRS56-02-P-7004   DOT 407/412 CTMVs     most severe dynamic
 Dynamic Analysis of DOT 407/  subjected to          stress conditions
 412 Cargo Tank Motor          dynamic loads. The    occur rarely enough
 Vehicles.                     loads were            that fatigue may
PHMSA-2010-0019-0010, PHMSA-   harmonically          not be a
 2010-0019-0017, PHMSA-2010-   analyzed to           contributing factor
 0019-0018.                    determine critical    and that current
                               factors to the        DOT regulations
                               dynamic design of     (Section VIII and
                               the CTMVs.            the HMR) may be too
                                                     conservative. It
                                                     was determined that
                                                     more realistic
                                                     allowable stress
                                                     values for dynamic
                                                     loads should be
                                                     used as an
                                                     alternative to the
                                                     HMR. The results of
                                                     this study were
                                                     used in developing
                                                     Section XII.
ASME Standards Technical      This study used a     The results of this
 Report, STP-PT-032,           full-scale trailer    study noted that
 Buckling of Cylindrical,      truck tank to         new specific
 Thin Wall Trailer Truck       develop rules         criteria for
 Tanks.                        specific to the       fabrication such as
PHMSA-2010-0019-0013........   design of DOT         straightness, out
                               cylindrical, thin     of roundness, weld
                               wall tanks.           location, and use
                               Specifically, this    of actual material
                               study focused on      properties,
                               buckling of           incorporated in
                               cylindrical           Section XII,
                               pressure vessels      improves upon
                               under axial           Section VIII,
                               compression and       Division 1 and the
                               examined bending.     HMR, and provides
                               These issues are      acceptable design
                               normally evaluated    basis for
                               using the axial       establishing
                               compression stress    buckling design
                               evaluation design     criteria and shell
                               methods in ASME       stiffening details
                               Section VIII,         for transport
                               Division 1.           tanks.
                               However, this study
                               sought to define
                               new methods for
                               determining
                               allowable
                               compressive
                               stresses.

[[Page 79374]]

 
Evaluation of the Puncture    This study conducted  The study indicated
 Resistance for Stainless      a series of           that SST heads had
 Steel and Carbon Steel Tank   puncture resistance   greater puncture
 Heads.                        tests on various      resistance compared
PHMSA-2010-0019-0012........   tank heads. The       with CS heads. The
                               head sections         results of this
                               tested fabricated     study were used in
                               of stainless steel    developing Section
                               (SST) and carbon      XII specifically
                               steel (CS) with       determining types
                               nominal wall          of materials
                               thickness of \1/4\    authorized and
                               inch, \3/8\ inch      additional safety
                               and \1/2\ inch. The   requirements for
                               objective of the      materials
                               puncture resistance   authorized in
                               tests was to          Section XII.
                               demonstrate that
                               SST heads are more
                               puncture resistant
                               than CS heads.
Evaluation of the Puncture    This study conducted  The results of this
 Resistance for Bare and       a series of           study indicated
 Insulated Stainless Steel     puncture resistance   that \3/8\-inch-
 (ISO) Tank Heads.             tests on various      thick SST heads are
PHMSA-2010-0019-0015........   types of ISO tank     equal to or more
                               head sections with    puncture resistant
                               and without           than \1/4\-inch-
                               insulation and        thick SST heads
                               jackets. The head     with 4\1/4\-inch-
                               sections tested       thick insulation
                               were SST with         and a 20-gage
                               nominal wall          aluminum jacket.
                               thickness of \1/4\    Section XII
                               inches to \3/8\       authorizes the use
                               inches. The           of \3/8\-inch-thick
                               objectives of the     SST heads; whereas,
                               puncture resistance   Section VIII and
                               tests were to         the HMR does not.
                               demonstrate that \3/
                               8\-inch-thick SST
                               heads are equal to
                               or more puncture
                               resistant than \1/
                               4\-inch-thick SST
                               heads with 4\1/4\-
                               inch-thick
                               insulation and a 20-
                               gage aluminum
                               jacket.
Evaluation of Design Margins  This report examines  This study concludes
 for ASME Code Section VIII,   vessels designed to   that a reduction in
 Davison 1.                    Section VIII,         the present design
PHMSA-2010-0019-0016........   Division 1. The       margins from 4 to
                               main issues           about 3.5 at
                               affecting the         temperatures below
                               safety of those       the creep range
                               vessels are ductile   would be justified
                               rupture and brittle   based on the
                               fracture. Tests on    improvements in the
                               vessels with          Code rules and
                               different strain      excellent past
                               hardening exponents   experience with
                               have demonstrated     vessels built to
                               that ductile          the Code rules.
                               rupture is highly
                               unlikely with
                               reduced margin of
                               3.5 on ultimate
                               tensile strength.
3.5 Material Design Factor    ASME Pressure Vessel  The results of the
 and other Recent Changes to   Research Committee    study indicated
 the ASME Boiler and           instituted a          that the design
 Pressure Code.                research study in     margin for pressure
PHMSA-2010-0019-0014........   which it reviewed     vessels could be
                               burst tests,          safely reduced from
                               failure data,         4.0:1 to 3.5:1.
                               failure modes--       This study observed
                               particularly          that most failures
                               fatigue and           were the results of
                               fracture and          poor notch
                               related toughness     toughness, service
                               requirements,         degradation and
                               fabrication           operating problems.
                               practices, improved   The biggest change
                               materials, advances   that justifies the
                               in welding,           change in design
                               examination and       margin is
                               testing.              advancements in
                                                     materials and more
                                                     thorough
                                                     understanding of
                                                     materials behavior.
WYKE Laboratories--Test       In this study a       The results of the
 Report.                       Cargo Tank was        study were used to
PHMSA-2010-0019-0017........   subjected to          develop design
                               Mobility Testing.     criteria for
                               Specifically, CTMV    transport tanks in
                               was driven on         Section XII that
                               public roads, and     had not been
                               subjected to          considered in
                               dynamic forces in     developing Section
                               transport. The        VIII.
                               study collected
                               data under a broad
                               range of transport
                               conditions.
Report of Cargo Tank          In this study, MC305  The results
 Rollover Test on an MC 305    cargo tanks were      demonstrated the
 Aluminum Trailer.             rolled over and       weaknesses in the
PHMSA-2010-0019-0019........   dragged over a        tank structure as a
                               concrete surface.     result of a roller.
                               This study was        These results were
                               designed to measure   used to develop
                               the cargo tanks       built-in rollover
                               response to such an   protection in
                               incident.             transport tanks in
                                                     Section XII.
A Practical Methods for the   Studies the use of    Demonstrates that
 Rational Design of Ship       Rational design in    rational design
 Structures; Hughes, Mistree   shipbuilding and      methodology often
 and Zanic; Journal of Ship    examines the          provides an
 Research, Vol. 24, No. 2,     application of a      equivalent or
 June 1980, pp. 101-113.       systematic method     greater level of
                               for determining the   safety to typically
                               design variables      used practical
                               that optimize a       design methods
                               specific objective
                               while satisfying
                               the constraints.
------------------------------------------------------------------------

Discussion of Proposed Amendments and Applicable Comments

    In the ANPRM that was published on December 23, 2010, titled 
``Hazardous Materials: Adoption of ASME Code Section XII and the 
National Board Inspection Code'' (Docket No. PHMSA-2010-0019, (HM-241), 
75 FR 80765), we asked a number of questions pertaining to the 
potential costs, burdens, or safety concerns associated with 
incorporating Section XII and the 2011 edition of the NBIC for the 
construction and continued service of cargo tank motor vehicles, 
cryogenic portable tanks and ton tanks. Specifically, in the ANPRM we 
asked for comments on the following:
     What are the differences between Section XII and the HMR 
requirements?
     What is the potential safety and economic impacts of 
adopting the new Section XII requirement allowing a 3.5:1 design 
margin?
     What are the safety and economic impacts of adopting the 
new Section XII requirements for the testing and fabrication of special 
materials for construction and repair of MC 331 cargo tanks?
     What are the safety and economic impacts of adopting the 
Section XII requirement for allowable peak secondary stresses for MC 
331 cargo tanks?
     What are the safety and economic impacts of using minimum 
allowed thickness for pressure parts instead of

[[Page 79375]]

nominal thickness and corrosion allowance?
     Are there substantial differences between the construction 
and continued service requirements of the HMR and Section XII for cargo 
tanks? If so, what are the potential costs, burdens, or safety problems 
associated with incorporating Section XII and the NBIC for the 
construction and continued service of these tanks?
     For existing cargo tanks designed, constructed and stamped 
with Section VIII, Division 1 ``U'' stamp, are there substantial 
differences between the continued service requirements of the HMR and 
the most recent edition of the NBIC? If so, what are the potential 
costs and burdens associated with incorporating the NBIC for existing 
``U'' stamped bulk packagings?
     Should PHMSA adopt through incorporation by reference 
Section XII and the most recent edition of the NBIC for construction 
and continued service of cargo tanks? If so, which existing 
requirements of the HMR should be replaced with references to these 
consensus standards?
     Would incorporation of Section XII and the NBIC for 
construction and continued service of cargo tanks positively affect 
transportation safety, and/or reduce industry costs?
     If PHMSA incorporates Section XII and the NBIC for the 
construction and continued service of cryogenic portable tanks, how 
long of a transition period would be needed to train employees to use 
these consensus standards? What are the associated costs of training?
     Are Section XII and the NBIC rules of construction and 
continued service of cryogenic portable tanks consistent with current 
HMR requirements? If not, should PHMSA consider general adoption of the 
consensus standards while taking exception to specific portions of the 
standards?
     Are there any potential compliance issues related to 
incorporating by reference Section XII and the newest edition of the 
NBIC in the HMR for the construction and continued service of cryogenic 
portable tanks?
     Are there substantial differences between the construction 
and continued service requirements of the HMR and Section XII for 
multi-unit tank car tanks? If so, what are the potential costs, 
burdens, or safety problems associated with incorporating Section XII 
and the NBIC for the construction and continued service of these tanks?
     For existing multi-unit tank car tanks designed and 
constructed in accordance with the HMR, are there substantial 
differences between current continued service requirements and the 
NBIC? If so, what are the potential costs and burdens associated with 
incorporating the latest edition of the NBIC?
     Should PHMSA adopt through incorporation by reference 
Section XII and the most recent edition of the NBIC for construction 
and continued service of multi-unit tank car tanks? If so, which 
existing requirements of the HMR should be replaced with references to 
these consensus standards?
     Would incorporation of Section XII and the latest edition 
of the NBIC for construction and continued service of multi-unit tank 
car tanks positively affect transportation safety, and/or reduce 
industry costs?
     Are Section XII and the NBIC rules of construction and 
continued service of multi-unit tank car tanks consistent with current 
HMR requirements? If not, should PHMSA consider general adoption of the 
consensus standards while taking exception to specific portions of the 
standards?
     Are there any potential compliance issues related to 
incorporating by reference Section XII and the newest edition of the 
NBIC in the HMR for the construction and continued service of multi-
unit tank car tanks?
    The ANPRM generated comments from 32 stakeholders, many of whom 
submitted multiple comments-some on the length of the comment period 
and most on the substance of the ANPRM. The majority of the comments--
40 different comments from 21 commenters--were in opposition to 
incorporating by reference the two sets of standards into the HMR.\14\ 
The ANPRM was not specific as to potential future course of action. 
Specifically, the ANPRM did not explicitly state whether PHMSA was 
going to propose to replace Section VIII, Division 1 and the HMR with 
Section XII and the NBIC, or if we were going to propose to allow 
Section XII and the NBIC to be used as alternatives. In the ANPRM, 
there were no proposals set forth regarding the method of incorporation 
into the regulations of Section XII and the NBIC (e.g. outright 
replacement of Section VIII, Division 1 with Section XII and the NBIC 
or incorporation of Section XII and the NBIC as an alternative in 
addition to Section VIII, Division 1). For that reason, it was the 
assumption of many commenters that Section XII would outright replace 
Section VIII, Division 1 and the HMR, and these commenters voiced their 
opposition to Section XII with the understanding that they would not 
have an option as to what requirements they would be able to use.
---------------------------------------------------------------------------

    \14\ The 21 commenters in opposition were: Alloy Custom 
Products, Altom Transport, ATA, Asian Tank Container Organization, 
Baltimore Cargo Tank Services, Inc., C & R Fleet Services, Inc, 
CVSA, DGAC, David Fulbright/WRG, Eurotainer U.S. Inc., International 
Tank Container Organisation, J & S Transport Co, Inc., James K. 
Victory, Jerry White, NPGA, NTTC, Silver/CIMS LLC, Steigerwalt 
Associates Inc., Stolt Nielsen USA Inc., TTMA, and Vulcraft of New 
York.
---------------------------------------------------------------------------

    The comments are accessible by docket number at the following URL: 
http://www.regulations.gov. A listing of the commenters, including the 
docket number associated with the comment, is provided below (company 
or organization abbreviations used throughout the document are also 
provided):

                                              Table 12--Commenters
----------------------------------------------------------------------------------------------------------------
               Commenter                        Abbreviation                          Docket No.
----------------------------------------------------------------------------------------------------------------
Alloy Custom Products..................  ..........................  PHMSA-2010-0019-0049
Altom Transport........................  ..........................  PHMSA-2010-0019-0003
American Society of Mechanical           ASME......................  PHMSA-2010-0019-0032
 Engineers.
American Trucking Associations.........  ATA.......................  PHMSA-2010-0019-0043
Asian Tank Container Organization......  ..........................  PHMSA-2010-0019-0060
Baltimore Cargo Tank Services, Inc.....  ..........................  PHMSA-2010-0019-0046
Bulk Truck & Transport Service, Inc....  ..........................  PHMSA-2010-0019-0004
C & R Fleet Services, Inc..............  ..........................  PHMSA-2010-0019-0022
C & R Fleet Services, Inc..............  ..........................  PHMSA-2010-0019-0037
Commercial Vehicle Safety Alliance.....  CVSA......................  PHMSA-2010-0019-0056
Compressed Gas Association.............  CGA.......................  PHMSA-2010-0019-0025
Compressed Gas Association.............  CGA.......................  PHMSA-2010-0019-0048

[[Page 79376]]

 
Container Technology Inc...............  CTI.......................  PHMSA-2010-0019-0059
Dangerous Goods Advisory Council.......  DGAC......................  PHMSA-2010-0019-0050
Dangerous Goods Advisory Council.......  DGAC......................  PHMSA-2010-0019-0061
David Fulbright/WRG....................  ..........................  PHMSA-2010-0019-0023
Eurotainer U.S. Inc....................  ..........................  PHMSA-2010-0019-0054
Gardner Cryogenics.....................  ..........................  PHMSA-2010-0019-0057
Heil Trailer International.............  ..........................  PHMSA-2010-0019-0036
International Tank Container             ..........................  PHMSA-2010-0019-0055
 Organisation.
J & S Transport Co, Inc................  ..........................  PHMSA-2010-0019-0034
James K. Victory.......................  ..........................  PHMSA-2010-0019-0033
Jerry White............................  ..........................  PHMSA-2010-0019-0029
John Counts............................  ..........................  PHMSA-2010-0019-0007
Monte Ward.............................  ..........................  PHMSA-2010-0019-0040
Monte Ward.............................  ..........................  PHMSA-2010-0019-0041
National Board of Boiler and Pressure    National Board............  PHMSA-2010-0019-0051
 Vessel Inspectors.
National Propane Gas Association.......  NPGA......................  PHMSA-2010-0019-0028
National Propane Gas Association.......  NPGA......................  PHMSA-2010-0019-0053
National Tank Truck Carriers, Inc......  NTTC......................  PHMSA-2010-0019-0002
National Tank Truck Carriers, Inc......  NTTC......................  PHMSA-2010-0019-0058
Nicholas Paulick.......................  ..........................  PHMSA-2010-0019-0039
Nicholas Paulick.......................  ..........................  PHMSA-2010-0019-0052
Pressure Sciences Incorporated.........  PSI.......................  PHMSA-2010-0019-0047
Silver/CIMS LLC........................  ..........................  PHMSA-2010-0019-0044
Steigerwalt Associates Inc.............  ..........................  PHMSA-2010-0019-0042
Stolt Nielsen USA Inc..................  ..........................  PHMSA-2010-0019-0062
Truck Trailer Manufacturers Association  TTMA......................  PHMSA-2010-0019-0009
Truck Trailer Manufacturers Association  TTMA......................  PHMSA-2010-0019-0045
Vulcraft of New York...................  ..........................  PHMSA-2010-0019-0006
----------------------------------------------------------------------------------------------------------------

Comments in Favor of Adopting Section XII and NBIC

    Comments received to the HM-241 ANPRM in favor of incorporating 
Section XII and the latest NBIC can be grouped generally into three 
categories: (1) Use of the standards would be economically beneficial; 
(2) adoption of Section XII and the 2013 edition of the NBIC will 
enhance safety; and (3) the standards are internationally compatible. 
The categories in support of adopting the standards, comments that 
reflect the nature of the support, and our responses to the comments 
are as follows.

The Use of Section XII and the 2013 Edition of the NBIC Would Be 
Economically Beneficial

    Comments received from Gardner Cryogenics and Pressure Sciences 
Incorporated (PSI) indicated that adoption of the two standards would 
be economically beneficial. Gardener Cryogenics comment pertained to 
benefits to industry and provided a list of examples of improvements 
provided in Section XII, including:

    Adoption of reference steel thickness and equivalent thickness 
gives design engineers the freedom to utilize the material 
properties like modulus of elasticity, tensile strength and 
poisson's ratio to optimize the design for tank wall/vacuum jacket 
wall penetration.

    We agree with Gardner Cryogenics that adopting Section XII will 
provide flexibility in design and material construction of tanks that 
would enable U.S. manufacturers to compete internationally without 
compromising safety.
    PSI also spoke to the benefits to manufacturers under Section XII, 
indicating that the standards, if adopted, would allow manufacturers 
the flexibility to purchase the raw material that is least expensive at 
the time. This flexibility may reduce the cost to the manufacturer, who 
can pass those reduced costs on to the buyer of the tank. We agree with 
PSI and believe that manufacturers would choose to build Section XII 
tanks only if it is economically beneficial.

Adoption of the Section XII Will Increase Safety

    Both Thompson Tank, Inc. and Gardener Cryogenics indicated that 
tanks designed to Section XII would increase the safety of portable and 
cargo tanks. Thompson Tank, Inc. states that:

    ASME is an international non-profit organization of the best and 
brightest professional engineers who volunteer their time to protect 
public safely through good engineering and design practices. DOT 
presently refers to ASME Section VIII and requires ASME 
certification of the most dangerous and complicated DOT 
specification cargo tanks. ASME Section XII will specifically help 
address the additional loads and stresses encountered when traveling 
over the highway.

    PHMSA agrees with Thompson Tank and Gardener Cryogenics that 
portable and cargo tanks designed to Section XII provide at least an 
equivalent level of safety to portable tanks and cargo tanks designed 
to Section VIII. Cargo tanks that are partially loaded with liquid 
cargo may become unstable during sudden starts or stops, on rough 
terrain, or when the vehicle is turning. The liquid will slosh and make 
the tank more likely to roll over. Further, cargo tanks that are 
frequently loaded and unloaded--called cyclic loading--such as cargo 
tanks used to transport hazardous materials, are more likely to become 
``fatigued \15\'' and crack. The design incorporated in Section XII, 
slightly reduces stiffness and increases elastic deflection with 
thinner tank walls. Section XII also provides specific design guidance 
to help mitigate the potential for stress corrosion cracking in tanks 
made of quenched and tempered steels.
---------------------------------------------------------------------------

    \15\ Fatigue is the progressive and localized structural damage 
that occurs when a material is subjected to cyclic loading. (Kim, 
W.H; Laird, C. (1978). Crack Nucleation and State I Propagation in 
High Strain Fatigue-II Mechanism. Acta Metallurgica. p. 789-799.)
---------------------------------------------------------------------------

    Additionally, in Section XII, design stress criteria is the same 
for different cargo tank specifications, provided the tanks are to 
subjected to identical loads. This consistent criteria potentially 
reduces the added cost and weight of

[[Page 79377]]

certain additional accident protection devices. As a result, it allows 
for use of thinner materials and enables tanks to have greater 
capacities than those built to the Section VIII, Division 1 standards. 
As such, this could result in fewer tanks carrying hazardous materials 
on U.S. highways, which should translate to fewer hazardous materials 
incidents. Further, the research sponsored by the U.S. DOT and ASME, 
that is summarized in Section V and Table 11 of Section VII of this 
NPRM indicates that tanks built according to Section XII are as safe as 
tanks authorized currently.

The Standards Are Compatible Internationally

    PSI indicated that tanks designed to Section XII would increase 
harmonization with international standards. They state:

    Section XII is written using terminology compatible with 
international standards such as UN standards and International 
Maritime Dangerous Goods Code (IMDG). Its intent is to be useable 
internationally; and several foreign manufacturers already possess 
the T-symbol stamp certifying their capability to manufacture 
vessels using the new code.

    We agree with PSI that Section XII and the NBIC may be used 
internationally and are consistent with other international standards, 
including UN-based standards and regulations. Several foreign 
manufacturers already possess the T-symbol stamp certifying their 
capability to manufacture vessels using the new code.

Comments in Opposition to Adopting Section XII and NBIC

    Comments in opposition to adopting the standards ranged in subject 
matter and can be grouped into five categories: (1) The costs are too 
high; costs include the cost of purchasing the standards, and training 
inspectors and enforcement personnel; (2) it would be difficult to 
comply with the standards; (3) it would be difficult to enforce the 
standards; (4) adopting the standards would not be in the interest of 
harmonization; and (5) adoption of the standards would be unsafe. The 
categories in opposition to adopting the standards, comments that 
reflect the nature of the support, and our responses to the comments 
are as follows.

The Cost of Purchasing Section XII and the NBIC Is Too High

    Sixteen commenters \16\ expressed concern with the costs of 
purchasing Section XII and the NBIC. Altom Transport indicated that 
they have 500 trailers maintained at 12 sites. They stated that ``We 
would not be able to afford to buy the manuals required to get 
maintenance and repair information.'' International Tank Container 
Organisation stated that ``the cost of ASME and NBIC codes is 
prohibitive in the international community as in certain locations that 
handle UN and IMO portable tanks, the combined cost of the two codes 
would exceed an individual's annual earnings.'' DGAC stated:

    \16\ Altom Transport, ATA, Asian Tank Container Organization, 
CVSA, DGAC, David Fulbright/WRG, International Tank Container 
Organisation, James K. Victory, Jerry White, NPGA, NTTC, Silver/CIMS 
LLC, Steigerwalt Associates, Inc., Stolt Nielsen USA, Inc., TTMA, 
Vulcraft of New York.
---------------------------------------------------------------------------

    We believe the cost of these documents, would limit their 
availability to those who are subject to and use the regulations, 
including tank manufacturers, shippers, and carriers, as well as, 
those in the enforcement community. While the requirements are now 
readily available in 49 CFR, which can be obtained at no cost 
electronically, adopting the requirements by reference would mean 
that anyone wishing to comply with the regulations would be required 
to purchase publications (and updates) that would cost in the range 
of $650.

    NPGA's echoes other commenters on this subject. They state:

    NPGA believes that purchasing the ANPRM's referenced codes 
creates a hardship and financial barrier on small businesses and an 
impediment to the review of PHMSA's proposed regulations. Further, 
the initial cost of approximately $1.8 million associated with 
purchasing the ANPRM's referenced codes could actually double before 
a final rule is promulgated as these codes are in constant change by 
the very nature of the rules and regulations which govern their 
revision cycles.

    As PHMSA is not proposing to require manufacturers to use Section 
XII and the 2013 edition of the NBIC, and to do so is completely 
voluntary, PHMSA is not imposing any additional costs on manufacturers. 
A manufacturer will not use Section XII to build a tank unless it 
believes it is net beneficial to do so. Those who choose to use Section 
XII and the 2013 edition of the NBIC will incur some cost and realize 
some benefits from the use of the new standard.

Cost of Training and Inspecting Tanks Too High

    David Fulbright/WRG, NPGA, and Steigerwalt Associates Inc., 
commented on the costs incurred for training and inspections. NPGA 
stated:

    NPGA can estimate initial costs to our industry as follows. If 
approximately 2800 members of NPGA are retail marketers and only 
two-thirds of these marketers employ their own Registered Inspector, 
this represents approximately 1875 individuals who need to obtain 
NBIC certification. Testing costs, the frequency of testing, or an 
estimate of the cost to train employees on non-commodity specific 
transport maintenance is not provided. Given these uncertainties, 
NPGA estimates an initial cost to our members based solely on a test 
cost of $200 per R.I. would be in excess of $375,000.

    Silver CIMS LLC commented and C & R Fleet Services, Inc., on the 
cost of training to comply with the new standards. Silver CIMS LLC 
states:

    Anyone that's already developed training and quality plans would 
redundantly be forced to prescribe to NBIC's training and 
certification scheme's (at great cost due to the redundant training, 
training fees charged and loss of earnings during the non-revenue 
generating man hours needed to complete the redundant training). As 
a small business, this would be an unnecessary financial burden.

    And C & R Fleet Services, Inc., states:

    The purpose of the HMRs is to enhance the safe transportation of 
hazardous materials. Motor carrier compliance with the HMRs is 
necessary to protect the public. To ensure this compliance, motor 
carriers must be aware of the requirements set forth in the HMRs. 
Requiring motor carriers to purchase Industry Standards to ensure 
compliance is a serious safety breach, as some carriers may not be 
able to purchase copies of these regulations for each driver, 
maintenance professional, and operations staff. Over ninety-six 
percent of the trucking industry qualifies as a small business.

    As stated previously, in this NPRM we are not proposing to require 
motor carriers to use or purchase tanks built to Section XII, so an 
owner or user of tanks would only choose to purchase or use a tank 
built to Section XII if it makes business sense to do so.
    The cost of enforcing Section XII and the NBIC was a concern to 
also ATA, John Counts and TTMA. ATA states:

    PHMSA is dependent on literally hundreds of state troopers to 
enforce the HMRs during roadside inspections. How many states have 
the extra funds in their budget to purchase the copyrighted 
standards for each of their inspectors? If the cargo tank standards 
are copyrighted and not made available to these enforcement 
officials, how will they be upheld? The inability to enforce aspects 
of the HMRs could create a serious safety risk.

    ATA is correct in that PHMSA regulations are enforced by hundreds 
of state troopers throughout the country. We understand that the cost 
of purchasing the standards for each inspector would be prohibitive for 
many state governments. It is our understanding that during roadside 
inspections, state officials are most often only concerned with 
identifying that the ASME mark is intended for the packaging on which 
it is stamped. This

[[Page 79378]]

would not require state governments to purchase copies of Section XII 
for every state trooper. Rather, the most in-depth inspection performed 
on a tank is handled by an independent third-party inspector, typically 
a National Board Commission Inspector from an insurance company. This 
would also apply to the repair of the ASME packaging using the NBIC, 
which also requires a marking. Furthermore, as engineers at PHMSA were 
instrumental in developing Section XII and the 2013 edition of the 
NBIC, they understand them and are available to help interpret the 
standards. As with other highly technical or scientific standards that 
we incorporate in the HMR, PHMSA's Hazardous Materials Information 
Center staff will have access to the engineers who helped develop the 
standards. Furthermore, ASME issues written replies to inquiries 
concerning interpretation of technical aspects of the Code.
    PHMSA acknowledges the purchase of copies of Section XII may be 
cost prohibitive to certain entities. Therefore, PHMSA seeks comets on 
whether state and local governments will need to purchase the copies of 
Section XII for all applicable personnel or if interpretations issued 
by ASME or PHMSA will be sufficient.

Incorporating Section XII and the Latest NBIC Is Contrary to 
International Harmonization

    The commenters who voiced their opposition to incorporating the 
standards for reasons pertaining to international harmonization, 
supply, use, or represent users or suppliers of cryogenic portable 
tanks. The commenters indicated that the vast majority of portable 
tanks are built and inspected in accordance with the IMDG, and the 
industry believes that switching to Section XII and the latest NBIC may 
impede international trade.
    Asian Tank Container Organization stated:

    Adopting ASME XII and/or NBIC for in service or Continued Use 
Inspection would be counter to the efforts made internationally over 
the past 12 years by representatives of the various countries 
Competent Authorities. The UN Model Regulations for the Transport of 
Dangerous Goods is the international consensus standard for UN 
Portable tanks. This document now forms the basis for UN Portable 
tank regulations in IMDG, RID, ADR and 49 CFR parts 100[middot]180, 
as applicable.

    The comments provided by Eurotainer, a company that leases portable 
tanks to manufacturers for import and export bulk shipments of 
liquefied and cryogenic gases, characterize the comments provided by 
other portable tank stakeholders. Eurotainer ``would like to see a more 
harmonized adoption of global regulatory requirements for the design, 
construction and certification of UN and IM Portable tanks . . .'' They 
state:

    As Section XII is being proposed to apply to the Cryogenic 
Portable tank segment (IM 7 & UN T 75), Eurotainer sees this action 
as segregating an equipment type and applying specialized rules that 
hinder the equipment in international trade. Current construction of 
the UN T 75 tanks in the U.S. is governed by the 49 CFR sections 
which include the requirement of ASME Section VIII Division I and as 
such section is applied currently we feel SECTION XII would be 
another layer of regulation that is adding no additional margin of 
safety but would add another layer of regulatory burden to the 
global community.

    The International Tank Container Organization states:

    We consider that any deviation away from the aforementioned 
International consensus standard would be a step backwards and a 
move away from the long desired goal of International Harmonization. 
Adopting ASME XII and/or NBIC for in-service or Continued Use 
Inspection would, we believe, be counter to the efforts made 
internationally over the past 12 years. The international consensus 
standards for UN Portable tanks is the aforementioned UN Model 
Regulations, which provides the basis for UN Portable tank 
requirements in set down RID, ADR, IMDG and 49 CFR parts 100-180, as 
applicable and not ASME XII or NBIC.

    As with Section VIII, Division 1, the 1992 edition of the NBIC and 
the HMR, which are the current requirements for design and construction 
of transport tanks, Section XII and the 2013 edition of the NBIC are 
compatible with international recommendations and standards. PHMSA 
fully supports the goal of international harmonization through its work 
with stakeholders at the UN and IMDG. PHMSA also incorporates both of 
these international standards by reference within the HMR. Currently 
there is no universally agreed upon pressure vessel code that is 
recognized by the committee of experts represented at the UN; however, 
the UN Model Regulations defer to Competent Authorities to determine 
what pressure vessel code is to be used for the design and construction 
requirements. The United States has recognized the ASME Code (Section 
VIII, Division 1) as the pressure vessel code for design and 
construction through its incorporation by reference in the HMR since 
inception of the UN Model Regulations. As stated earlier in this NPRM, 
Section XII is being proposed as an alternative to existing 
requirements.
    Eurotainer asked if a foreign approval agency \17\ that tests a 
non-U-stamped IM or UN portable tank would be required to carry an NBIC 
registration and wondered, if so, whether the DOT or NBIC would be able 
to police those agencies. 49 CFR part 107, authorizes certification 
agencies to witness testing and examination of portable tanks on behalf 
of the DOT. They further questioned whether the owner or user of non-U-
stamped portable tanks would be responsible for maintaining the NBIC 
registration of inspectors to meet the requirements of the NBIC code in 
foreign countries on tanks that may be imported into or exported out of 
the United States. The answer is no. As is currently required in the 
HMR, the Designated Approval Agency (DAA) (see 49 CFR part 107) would 
continue to authorize repairs and witness inspections (see 49 CFR part 
180). If it needs to be repaired, the facility doing the repair would 
need authorization from the DAA for the repair (see 49 CFR 180.605(j)), 
with the appropriate Authorized Inspector verifying the repair is done 
in accordance with the NBIC, and the DAA witnesses the final 
hydrostatic or pneumatic test (see 49 CFR 180.605(h)(3)), in accordance 
with criteria set forth in the NBIC. For the ``T'' stamped tanks, this 
process is similar to that in the HMR, and is specified in the 2013 
edition of the NBIC.
---------------------------------------------------------------------------

    \17\ A foreign approval agency is an entity outside of the U.S. 
that PHMSA has granted authority to perform a certain function 
required under the HMR. In this case, a foreign approval agency 
would test and certify that certain transport tanks meet the NBIC 
(see 49 CFR 107.402).
---------------------------------------------------------------------------

    Eurotainer asked if owners and operators of the equipment would be 
allowed to perform their own inspections and testing per the CFR 49 
Sec.  180.605 with a staff member that is a registered NBIC inspector. 
If so, Eurotainer feels that ``the NBIC adoption will lower the safety 
margin that is now in place using uninterested third parties instead of 
a staff member to the company owning or operating the equipment.''
    PHMSA is aware that there is always the potential that a person--
either a third-party or an employee--may not comply with a requirement 
stipulated in a regulation, either set forth directly in the HMR or 
incorporated by reference in the HMR; however, a person who has 
function-specific training in inspecting tanks, regardless of their 
employer, should be able to perform the task to ensure that the tank is 
safe. PHMSA conducts regulatory enforcement and issues civil penalties 
to entities that fail

[[Page 79379]]

to perform inspections as required by the HMR.

Adopting the Standards Would Be Unsafe

    Five commenters \18\ indicated that adopting the standards would be 
unsafe. Asian Tank Container Organization states:
---------------------------------------------------------------------------

    \18\ Asian Tank Container Organization, C & R Fleet Services, 
Inc, International Tank Container Organisation, Steigerwalt 
Associates Inc., and Stolt Nielsen USA Inc.

    The enforcement authorities and Port Authorities in most foreign 
countries ONLY recognize IACS [International Association of 
Classification Societies, Ltd.] member Approval Agencies due to 
their long standing involvement in the IMDG code. Speaking from 
recent Industry experience, tanks inspected by non-IACS members 
would be stopped in transit and dangerous goods would need to be 
trans-loaded to an approved portable tank. The trans-load costs and 
increased risks would make it impractical to ship product worldwide 
and this would prove a barrier to International trade which may harm 
---------------------------------------------------------------------------
both the USA and third party economies.

    Similarly, the International Tank Container Organisation states:

    We anticipate that UN Portable tanks inspected by other non-IACS 
members would be stopped in transit and dangerous goods would need 
to be trans-loaded (as has been the case) to an approved portable 
tank (increasing both cost and risk, exponentially, as most 
incidents happen during load/unload operations).

    PHMSA does not intend to change the established process of using 
IACS preferred member Approval Agencies \19\ with regard to portable 
tanks, nor the HMR process of authorization for foreign approval 
agencies (see 49 CFR 107.402). As stated above, under this NPRM the 
inspection of a cryogenic portable tank, whether ASME ``U'' or ``T'' 
marked, would follow current HMR requirements in that the manufacture 
or repair of the pressure vessel would be subject to an Authorized 
Inspector in addition to the involvement of an Approval Agency.
---------------------------------------------------------------------------

    \19\ IACS is a membership organization that endorses member 
foreign approval tank inspection agencies as ``preferred approval 
agencies.'' Foreign enforcement and port authorities recognize these 
inspection agencies over non- IACS preferred inspection agencies 
according to IACS.
---------------------------------------------------------------------------

    PHMSA, by proposing to incorporate Section XII and the 2013 edition 
of the NBIC as alternatives to the current regulatory system is not 
lessening safety, or creating barriers to international trade that 
would harm U.S. or third-party economies. On the contrary, PHMSA 
believes that the proposed rulemaking will help the U.S. economy by 
allowing the manufacture and repair of an internationally competitive 
product.
    Furthermore, the ASME standards have been deemed equivalent by 
PHMSA technical staff and have been proven to provide, through special 
permits, an equivalent level of safety to that of tanks constructed and 
designed according to the specifications currently provided in the HMR. 
For example, special permits SP-05749; SP-10481; and SP-12630, SP-
14710, SP-14467, 14437, providing similar flexibility in materials of 
construction as provided by Section XII, allow reduced shell thickness 
and alternatives to the materials of construction specified in the HMR 
for portable tanks and cargo tanks. These permits have been in use for 
decades with over 13,000 shipments and no reported incidents.

Voluntary Consensus Standards Are Inherently Inconsistent With the 
Administrative Procedures Act

    Nine additional commenters generally oppose the incorporation of 
voluntary consensus standards.\20\ NPGA opposes ``DOT reliance on a 
third (3rd) party to write regulations that have such a profound impact 
on our industry.'' This sentiment is representative of the many 
commenters opposed to incorporation of the standards because they are 
developed by voluntary consensus organizations. The commenters are 
concerned that they would no longer have a voice in changes to the 
regulations. They also are concerned that the changes made would no 
longer be transparent. Silver/CIMS LLC states:
---------------------------------------------------------------------------

    \20\ Baltimore Cargo Tank Services, Inc., Dangerous Goods 
Advisory Council, J & S Transport Company, Inc., Jerry White, 
National Propane Gas Association, National Tank Truck Carriers, 
Inc., Silver CIMS, LLC, Tank Truck Manufacturers Association, 
Vulcraft of New York.

    The UN and IMO Portable tank Industry have had NO input in the 
development of ASME or NBIC proposed rules. USDOT should NOT adopt 
ASME Chapter XII or NBIC for any other purpose as the publications 
are NOT International Consensus Standards for UN Portable tank 
construction or use. If USDOT were to replace 49 CFR 100-180 with 
ASME and NBIC, the UN Portable tank Industry stakeholders would be 
hamstrung in their abilities to influence future rules and 
---------------------------------------------------------------------------
regulations.

    While we understand the concerns regarding incorporating voluntary 
consensus standards, PHMSA and many other Federal agencies often 
incorporate by reference standards developed by industry experts. In 
fact, the National Technology Transfer and Advancement Act of 1995, 
Public Law 104-113, requires agencies to use technical standards that 
are developed or adopted by voluntary consensus standards bodies unless 
the use of such a standard is inconsistent with applicable law or is 
otherwise impractical. Public Law 104-113 requires Federal agencies to 
use industry consensus standards to the extent practical; it does not 
require Federal agencies to endorse a standard in its entirety. The law 
does not prohibit an agency from generally adopting a voluntary 
consensus standard while taking exception to specific portions of the 
standard if those provisions are deemed to be ``inconsistent with 
applicable law or otherwise impractical.'' Taking specific exceptions 
furthers the Congressional intent of Federal reliance on voluntary 
consensus standards because it allows the adoption of substantial 
portions of consensus standards without the need to reject the 
standards in their entirety because of limited provisions that are not 
acceptable to the agency.
    It has been PHMSA's practice to review new editions and addenda of 
the ASME BPVC and NBIC and periodically update Sec.  171.7 to 
incorporate newer editions and addenda by reference. New editions of 
the subject codes will be issued every two years. The BPVC was last 
incorporated by reference into the regulations under Docket No. RSPA-
99-6213 (HM-218) (August 18, 2000; 65 FR 50450). In that final rule, 
Sec.  171.7 was revised to incorporate by reference the 1998 edition of 
Sections II (Parts A and B), V, VIII (Division I) and IX, of the BPVC. 
The NBIC 1992 Edition was incorporated by reference under Docket HM-
183C (November 3, 1994; 59 FR 55162). We intend to continue to review 
these standards, and either incorporate them in their entirety, 
incorporate portions of these standards, or not incorporate them, 
depending on the outcome of our review. Furthermore, we intend to be 
active participants in the development of future editions of Section 
XII and the NBIC.
    Alloy Custom Products, NPGA and NTTC expressed concern that 
interpretations of the standards would not be readily available through 
PHMSA. As stated earlier, engineers at PHMSA were instrumental in the 
development of the standards, they understand them, and are available 
to help interpret them. As with other highly technical or scientific 
standards that we incorporate in the HMR, PHMSA's Hazardous Materials 
Information Center staff will have access to the engineers who helped 
develop the standards. PHMSA seeks comment on the availability of 
interpretations of Section XII and the NBIC, specifically, if

[[Page 79380]]

access to interpretations through ASME and PHMSA would be sufficient.
    Finally, as mentioned above the meetings of both ASME and the NBIC 
are free-of-charge and open to public participation. ASME subcommittees 
consider correspondence from the general public in the form of requests 
for interpretation and revision to existing codes, requests for code 
cases, and requests to develop new standards. The NBIC subcommittees 
consider correspondence from the general public in the form of requests 
for interpretation, revision of existing standards, and requests to 
develop new standards. The standards-writing subcommittees, subgroups, 
and task groups are open to participation by representatives of groups 
that are materially affected by the code. Each year the NBIC Committee 
updates the NBIC and presents the updates on the National Board's Web 
site for public review in April-May and August-September.

Miscellaneous Comments

    In addition to the comments in support and in opposition to the 
ANPRM some comments were neither in support or opposed and offered 
other insights and suggestions. These comments are categorized and 
discussed further below.

Separate Section XII from the NBIC

    CTI and Gardner stated that PHMSA should separate into two separate 
rulemakings the incorporation of the NBIC and that of Section XII. 
Gardner states that:

    Our reservations on NBIC are based on the difficulties in 
implementing two new items simultaneously. We would recommend that 
Section XII be adopted as soon as possible with the existing DOT 
Registered Engineers and Inspectors while giving the interested 
parties extended time to familiarize, discuss and comment on NBIC 
for eventual adoption in two to three years.

    Since Section XII was developed to be used in conjunction with the 
NBIC, and that there would be no provision for continued maintenance or 
inspections of tanks built to Section XII in the HMR if the latest NBIC 
is not incorporated at the same time, we cannot incorporate them at 
separate times.

Standards Are Not Accurate

    Alloy Custom Products voiced concern that ``the rules for ASME Sec 
XII and NBIC should not be adopted as presently written and they should 
be sent back to the respective organizations for correction and 
modification.'' There were no specific errors cited; however, the 
latest editions of both standards were published in 2013. They are up-
to-date and correct typographical errors, and clarify and simplify the 
previous editions. As with most in-depth, detailed publications, later 
editions of these standards include updates and corrections.

Replacing Standards Would Create a Monopoly

    James K. Victory and NTTC indicated that incorporating the 
standards would create a monopoly. Victory stated that ``the only 
profiteers from this being ASME and the National Board of Pressure 
Vessel Inspectors.'' PHMSA thanks James K. Victory and NTTC for their 
comments. We will take this view into consideration. However, as 
mentioned above, we are proposing to adopt Section XII and the 2013 
edition of the NBIC as alternatives to Section VIII, Division 1 and the 
HMR, stakeholders will be provided more options.
Adopt Standards As Alternative
    Four commenters suggested that if we do incorporate Section XII and 
the NBIC, we should only do so as an alternative, not a replacement to 
Section VIII, Division 1 and the HMR.\21\ TTMA explains that:
---------------------------------------------------------------------------

    \21\ Heil, International Tank Container Organisation, Silver/
CIMS LLC, and Truck Trailer Manufacturers Association.

    This approach will give the regulated community the option of 
employing the effective existing regulations, or these other 
publications. We anticipate the vast majority of industry 
stakeholders will choose the existing HMR for their code compliance 
---------------------------------------------------------------------------
basis.

    We agree, and in this NPRM, we are proposing to take this suggested 
approach, and we believe this will diffuse much of the opposition to 
the new codes and allow manufacturers greater flexibility.

Proposed Amendments

    In this NPRM, PHMSA is proposing to incorporate Section XII, with 
limited exceptions, as an alternative to existing standards for the 
following tanks: DOT Specification 331, 338, 406, 407, and 412 cargo 
tanks, cryogenic portable tanks, and ton tanks. Section VIII, Division 
1 applies to construction of new tanks only, and requires that they are 
marked with a ``U'' stamp to indicate that they constructed and 
certified in accordance with that section. Section XII applies to both 
new construction and continued service, and tanks constructed under 
this standard will be marked with a ``T.'' Tanks that are repaired 
under Section XII would be marked with the ``TR'' stamp. Further, PHMSA 
is proposing to adopt the 2013 edition of the NBIC for alterations, 
repairs and inspections performed on all ASME constructed tanks used 
for the transportation of hazardous materials as an alternative to the 
1992 edition that is currently incorporated by reference. The 2013 NBIC 
may be used for tanks constructed to the specifications set forth in 
Section VIII, Division 1. While the use of the 2013 edition of the NBIC 
would be optional under this proposed rulemaking, PHMSA believes that 
most manufacturers building to Section VIII, Division 1 would choose to 
use the 2013 edition of the NBIC as it is more current. Under this 
proposed rule, the 2013 edition of the NBIC must be used for tanks 
constructed to the specification set forth in Section XII.
    The research and development projects summarized in Section V and 
Table 11 of Section VII of this NPRM support the proposed codes and 
standards to be adopted in this rulemaking. These research and 
development projects are available in the public docket for this 
rulemaking. From the results of the studies and its own analysis, PHMSA 
has concluded that the proposed standards, as described in this NPRM, 
provide an equivalent level of safety to the current standards.
    Furthermore, by providing the 2013 edition of the NBIC and Section 
XII as options, industry may choose modern materials to fabricate 
tanks, enabling the use of different, equally safe, materials 
predicated on market value.\22\ The assortment of materials described 
in Section XII include different formulations of carbon steel and 
alloy/stainless steel, such as Chromium-Nickel Stainless Steel, 
Chromium-Molybdenum-Vanadium alloy steel, and titanium alloy. Section 
XII also includes specifications for steel fabrication and treatment, 
such as tempering, quenching, and forging (See Section XII Part TM). 
This variety of approved materials will enable U.S. manufacturers to 
better compete internationally. It will allow for greater capacity per 
tank, and reduce the number of tanks on highways in certain 
circumstances. This reduction of motor vehicles hauling hazardous 
materials on the highways would reduce the potential for hazardous 
material

[[Page 79381]]

incidents, and consequently, improve safety.
---------------------------------------------------------------------------

    \22\ PHMSA has authorized through special permit some of these 
new materials authorized in ASME Section XII specifically Heat 
Resting Chromium and Chromium-Nickel Stainless Steel Plate, Sheet 
and Strip for Pressure Vessels (DOT SP-14467) and Titanium and 
Titanium Alloy Strip, Sheet and Plate (DOT SP-14710) see http://phmsa.dot.gov/hazmat/permits-approvals/special-permits.
---------------------------------------------------------------------------

Section By Section Review

    The following is a section-by-section review of the amendments 
proposed in this rulemaking.

Part 107, Subpart F

    This subpart establishes a registration procedure for persons who 
are engaged in the manufacture, assembly, inspection and testing, 
certification, or repair of a cargo tank or a cargo tank motor vehicle 
manufactured in accordance with a DOT specification under subchapter C 
of this chapter or under terms of a special permit issued under this 
part. In this NPRM, we are not proposing to revise this subpart, but we 
are referring to it in section 173.14, where we propose to add the 
terminology ``inspectors or their employer must be registered with 
DOT.''

Part 171

Section 171.7
    This section lists material incorporated by reference into the HMR. 
This NPRM proposes to amend Sec.  171.7, Matter incorporated by 
reference, to list the 2013 edition of ASME Boiler and Pressure Vessel 
Code, Section XII and the 2013 edition of the National Board of Boiler 
and Pressure Vessel Inspectors' National Board Inspection Code (NBIC). 
Specifically, Sec.  171.7(g)(1) will be revised to include ASME Boiler 
and Pressure Vessel Code, Section XII in addition to the currently 
reference Section VIII, Division 1. The section references in this 
paragraph will remain the same. In addition, Sec.  171.7(x)(1) and (2) 
will be revised to include the 2013 edition of NBIC. The section 
references in this paragraph will remain the same.

Part 173

Section 173.14
    In this NPRM we are proposing to establish new Section 173.14 for 
authorization and conditions for the use of Section XII.
     This NPRM proposes to revise part 173 by adding Sec.  
173.14 to set forth the authorization for the use of Section XII of 
American Society of Mechanical Engineers Boiler and Pressure Vessel 
Code. Further, in proposed Sec.  173.14 we are setting forth conditions 
for the use of Section XII, specifically with respect to continued 
service of transport tanks, where Section XII conflicts with the NBIC. 
Conditions for all tanks will be specified in paragraph (a)(1) and 
include: The 2013 edition of the National Board Inspection Code (NBIC) 
must be used for the design, construction, and certification 
qualification and maintenance of cargo tank motor vehicles, cryogenic 
portable tanks and multi-unit tank car tanks (ton tanks)
     ASME Section XII includes use of ASME Sections II 
Materials, Section V Nondestructive Examination, Section VIII, Division 
1 for Parts only, Section VIII, Division 2 for fatigue analysis only, 
Section IX Welding and Brazing, and the NBIC Parts 1, 2 and 3, 
including Supplement 6 of Parts 2 and 3;
     Nameplate character markings must be a minimum 4 mm (5/
32''), markings directly on the tank must be a minimum 8 mm (5/16'');
     Periodic test information must not be allowed on the ASME 
nameplate. Marking must be in accordance with the NBIC Part 2 or Part 
3, Supplement 6;
     Inspection personnel must have qualifications as required 
by ASME Section XII, Article TG-4, and be qualified as evident by 
having a current NBIC commission with endorsement for the level/type of 
inspection to be performed or certification from their employer when 
applicable;
     Inspectors or their employer must be registered with DOT.
     Repairs must be performed by a facility holding a current 
NBIC certificate of authorization for the use of the National Board 
``TR'' Stamp.
    Conditions and requirements for cargo tanks will be specified in 
paragraph (a)(2) and must conform to all applicable requirements of 
part 173; and must meet ASME Section XII Modal Appendix 1, the 
appropriate Article for the category of cargo tank, all Mandatory 
Appendices and Non Mandatory Appendices A thru E and G thru H, except 
as follows:
     Repairs must be performed by a DOT-registered facility 
holding a current NBIC certificate of authorization for the use of the 
National Board ``TR'' Stamp.
     For Category 338 Cargo Tanks, ASME Section XII, Modal 
Appendix 1, Article 4, paragraph 1-4.4(g)(6) does not apply. A minimum 
jacketed thickness of 2.4 mm (0.0946 in) 12 gauge in the reference 
steel is permitted (IBR see Sec.  171.7).
    Conditions and requirements for cryogenic portable tanks will be 
set forth in paragraph (a)(3) and must conform to all applicable 
requirements of this Part; and must meet ASME Section XII Modal 
Appendix 3, Article 1, all Mandatory Appendices and Non Mandatory 
Appendices A thru E and G thru H, except as follows:
     External and internal visual inspection in accordance with 
NBIC Part 2 Supplement 6 are required in addition to ASME Section XII, 
Modal Appendix 3, Article 1, paragraph 3-1.10(b), and Article 1, 3-
1.10(b)(5) (IBR see Sec.  171.7);
     ASME Section XII, Modal Appendix 3, Article 1, paragraph 
3-1.10(b)(6) does not apply. Periodic test information must not be 
allowed on the ASME nameplate. Marking must be in accordance with the 
NBIC Part 2 or Part 3, Supplement 6 as applicable. (IBR see Sec.  
171.7);
     ASME Section XII, Modal Appendix 3, Article 1, paragraph 
3-1.10(d) must require inspection personnel to have qualifications as 
required by ASME Section XII, Article TG-4, as evident by having a 
current NBIC commission with endorsement for the level/type of 
inspection to be performed or certification from their employer when 
applicable. (IBR see Sec.  171.7); and
     ASME Section XII, Modal Appendix 3, Article 1, paragraph 
3-1.10 must require Repairs to be performed by a facility holding a 
current NBIC certificate of authorization for the use of the National 
Board ``TR'' Stamp. Records must be in accordance with the NBIC Part 2 
or Part 3, Supplement 6 as applicable.(IBR see Sec.  171.7).
    Conditions and requirements for ton tanks will be set forth in 
paragraph (a)(4). Ton tanks must conform to all applicable requirements 
of part 173 and must meet Modal Appendix 4, Article 1, all Mandatory 
Appendices and Non Mandatory Appendices A thru E and G thru H except as 
follows:
     ASME Section XII, Modal Appendix 4, Article 1, paragraph 
3-1.10 Manufacturer-certified fusible plugs, tested and qualified under 
the fuse plug manufacturers' written Quality Control system are 
required. (IBR see Sec.  171.7);
     ASME Section XII, Modal Appendix 4, Article 1, paragraph 
4-8 must allow non-ASME marked fusible plugs.;
     ASME Section XII, Modal Appendix 4, Article 1, paragraph 
4-12(a) must require external and internal visual inspection in 
accordance with NBIC Part 2 Supplement 6, S6.15. (IBR see Sec.  171.7);
     ASME Section XII, Modal Appendix 4, Article 1, paragraph 
4-12(a)) does not apply. Periodic test information must not be allowed 
on the ASME nameplate. Marking must be in accordance with the NBIC Part 
2 or Part 3, Supplement 6 as applicable.(IBR see Sec.  171.7);
     ASME Section XII, Modal Appendix 4, Article 1, paragraph 
4-12(e) must require records to be in accordance with the NBIC Part 2 
or Part 3, Supplement 6 (IBR see Sec.  171.7);

[[Page 79382]]

     Inspection personnel must have qualifications as required 
by ASME Section XII, Article TG-4, as evident by holding a current NBIC 
commission with endorsement for the level/type of inspection to be 
performed or certification from their employer when applicable;
     A ton tank that fails a prescribed test or inspection must 
be repaired as specified in the 2013 NBIC or removed from service;
     Repairs must be performed by a facility holding a current 
NBIC certificate of authorization for the use of the National Board 
``TR'' Stamp.

Part 178

Section 178.200
    In this NPRM we are proposing to establish a new Sec.  178.200 for 
the authorization for the use of Section XII and the NBIC for cryogenic 
portable tanks.
Section 178.300
    In this NPRM, we are proposing to establish a new Sec.  178.300 for 
the authorization for the use of Section XII and the NBIC for cargo 
tank motor vehicles.

Part 179

Section 179.300
    In this NPRM, we are proposing to revise Sec.  179.300 to establish 
paragraphs (a) and (b). Paragraph (a) would continue to require that 
multi-unit tank car tanks must meet the requirements set forth in the 
HMR and paragraph (b) would provide a new authorization for multi-unit 
tank car tanks to be designed, constructed and certified in accordance 
with Section XII with the conditions and limitations set forth in Sec.  
173.14.

Part 180

Section 180.402
    In this NPRM, we are proposing to add a new Sec.  180.402 for 
authorization for the use of the 2013 Edition of the NBIC with Section 
VIII, Division 1 for the qualification and maintenance of cargo tanks.
Section 180.502
    In this NPRM, we are proposing to add a new Sec.  180.502 for 
authorization for the use of the 2013 Edition of the NBIC with Section 
VIII, Division 1 for the qualification and maintenance of tank cars.
Section 180.602
    In this NPRM, we are proposing to add a new Sec.  180.602 for 
authorization for the use of the 2013 Edition of the NBIC with Section 
VIII, Division 1 for the qualification and maintenance of cryogenic 
portable tanks.

IX. Regulatory Analyses and Notices

A. Statutory/Legal Authority for This Rulemaking

    This NPRM is published under the authority of the Federal Hazardous 
Materials Transportation Law, 49 U.S.C. 5101 et seq. Section 5103(b) 
authorizes the Secretary to prescribe regulations for the safe 
transportation, including security, of hazardous material in 
intrastate, interstate, and foreign commerce. This NPRM provides an 
alternative to the current process for the design, fabrication, 
maintenance and continued service of CTMVs, cryogenic portable tanks 
and ton tanks, without compromising safety.
    The Administrative Procedure Act (APA) requires Federal agencies to 
give interested persons the right to petition an agency to issue, 
amend, or repeal a rule (5 U.S.C. 553(e)). 49 CFR 106.95, provides the 
process and procedures for persons to petition PHMSA to add, amend, or 
delete a regulation. In this NPRM, PHMSA is addressing this statutory 
requirement by considering petitions for rulemaking from ASME, the 
National Board, and PVMA.

B. Executive Order 13610, Executive Order 13563, Executive Order 12866, 
and DOT Regulatory Policies and Procedures

    This NPRM is not considered a significant regulatory action under 
section 3(f) Executive Order 12866 and, therefore, was not reviewed by 
the Office of Management and Budget (OMB). The proposed rule is not 
considered a significant rule under the Regulatory Policies and 
Procedures order issued by the U.S. Department of Transportation (44 FR 
11034).
    Executive Order 13563 is supplemental to and reaffirms the 
principles, structures, and definitions governing regulatory review 
that were established in Executive Order 12866 Regulatory Planning and 
Review of September 30, 1993. Executive Order 13563, issued January 18, 
2011, notes that our nation's current regulatory system must not only 
protect public health, welfare, safety, and our environment but also 
promote economic growth, innovation, competitiveness, and job 
creation.\23\ Further, this executive order urges government agencies 
to consider regulatory approaches that reduce burdens and maintain 
flexibility and freedom of choice for the public. In addition, federal 
agencies are asked to periodically review existing significant 
regulations, retrospectively analyze rules that may be outmoded, 
ineffective, insufficient, or excessively burdensome, and modify, 
streamline, expand, or repeal regulatory requirements in accordance 
with what has been learned.
---------------------------------------------------------------------------

    \23\ See http://www.whitehouse.gov/the-press-office/2011/01/18/improving-regulation-and-regulatory-review-executive-order.
---------------------------------------------------------------------------

    Executive Order 13610, issued May 10, 2012, urges agencies to 
conduct retrospective analyses of existing rules to examine whether 
they remain justified and whether they should be modified or 
streamlined in light of changed circumstances, including the rise of 
new technologies.\24\
---------------------------------------------------------------------------

    \24\ See http://www.gpo.gov/fdsys/pkg/FR-2012-05-14/pdf/2012-11798.pdf.
---------------------------------------------------------------------------

    By building off of each other, these three Executive Orders require 
agencies to regulate in the ``most cost-effective manner,'' to make a 
``reasoned determination that the benefits of the intended regulation 
justify its costs,'' and to develop regulations that ``impose the least 
burden on society.''
    PHMSA believes that if Section XII and the 2013 edition of the NBIC 
are incorporated as alternatives to Section VIII, Division 1 and the 
HMR, tank manufacturers would be given more flexibility in their choice 
of material and design, allowing carriers of bulk liquid hazardous 
materials to purchase lighter-weight, higher-capacity tanks capable of 
transporting more material per shipment. Tanks built to the design and 
construction requirements in Section XII have been tested by ASME to 
ensure that they withstand conditions and stresses unique to 
transportation, such as rollovers, bottom damage, or piping damage. The 
flexibility in selection of ASME standards will facilitate 
international competitiveness for the transport of hazardous materials 
and eliminate barriers to U.S. manufacturers transporting goods 
internationally that are created by the rigid material construction 
requirements in Section VIII, Division 1 and the HMR. Further, the ASME 
standards have been deemed equivalent by PHMSA technical staff and have 
been proven to provide, through special permits, an equivalent level of 
safety to that of tanks constructed and designed according to the 
specifications currently provided in the HMR.
    As PHMSA is not proposing to require manufacturers to use Section 
XII and the 2013 edition of the NBIC, and to do so is completely 
voluntary, PHMSA is not imposing any additional costs. A manufacturer 
will not use Section XII to build a tank unless it believes it is net 
beneficial to do so. Since Section XII

[[Page 79383]]

would allow manufacturers the flexibility to purchase the raw material 
that is least expensive at the time, this may reduce the cost to the 
manufacturer, who can then pass on that discount to the buyer of the 
tank. We know that any rational manufacturer will not avail itself to 
this option unless it makes business sense.
    While we don't believe that this rule imposes any new costs, we 
request comments, including specific data if possible, concerning the 
costs and benefits that may be associated with revisions to the HMR 
based on the issues presented in this notice.

C. Executive Order 13132

    This proposed rule has been analyzed in accordance with the 
principles and criteria contained in Executive Order 13132 
(``Federalism''), and the President's memorandum on ``Preemption'' 
published in the Federal Register on May 22, 2009 (74 FR 24693). This 
proposed rule will preempt State, local, and Indian tribe requirements 
but does not propose any regulation that has substantial direct effects 
on the States, the relationship between the national government and the 
States, or the distribution of power and responsibilities among the 
various levels of government. Therefore, the consultation and funding 
requirements of Executive Order 13132 do not apply.
    The Federal hazardous materials transportation law, 49 U.S.C. 5101-
5128, contains an express preemption provision (49 U.S.C. 5125(b)) that 
preempts State, local, and Indian tribe requirements on the following 
subjects:
    (1) The designation, description, and classification of hazardous 
materials;
    (2) The packing, repacking, handling, labeling, marking, and 
placarding of hazardous materials;
    (3) The preparation, execution, and use of shipping documents 
related to hazardous materials and requirements related to the number, 
contents, and placement of those documents;
    (4) The written notification, recording, and reporting of the 
unintentional release in transportation of hazardous material; and
    (5) The design, manufacture, fabrication, marking, maintenance, 
recondition, repair, or testing of a packaging or container 
represented, marked, certified, or sold as qualified for use in 
transporting hazardous material.
    This proposed rule addresses packaging for hazardous materials, 
covered in number 2 above. If adopted as final, this rule will preempt 
any State, local, or Indian tribe requirements concerning packaging for 
hazardous materials unless the non-Federal requirements are 
``substantively the same'' as the Federal requirements. Furthermore, 
this proposed rule is necessary to update, clarify, and provide relief 
from regulatory requirements.
    Incorporation of new consensus standards by reference in the HMR 
may impact state and local CTMV enforcement programs. Potential impacts 
include the cost of purchasing the new Section XII consensus standards 
and training employees in the use of this consensus standard. However, 
PHMSA notes that currently many of state enforcement personnel are not 
equipped with Section VIII, Division 1 and must use outside sources to 
reference this standard. It is our understanding that during roadside 
inspections, state officials are most often concerned with identifying 
that the ASME mark is intended for the packaging on which it is 
stamped. This would not require state governments to purchase copies of 
Section XII for every state trooper. Rather, the most in-depth 
inspection performed on a tank is handled by an independent third-party 
inspector, typically a National Board Commission Inspector from an 
insurance company. This would also apply to the repair of the ASME 
packaging using the NBIC, which also requires a marking. Furthermore, 
as engineers at PHMSA were instrumental in developing Section XII and 
the 2013 edition of the NBIC, they understand them and are available to 
help interpret the standards. As with other highly technical or 
scientific standards that we incorporate in the HMR, PHMSA's Hazardous 
Materials Information Center staff will have access to the engineers 
who helped develop the standards. We invite state and local governments 
with an interest in this rulemaking to comment on any effect that 
revisions to the HMR to address the issues outlined in this proposed 
rule may cause.

D. Executive Order 13175

    E.O. 13175 requires agencies to assure meaningful and timely input 
from Indian tribal government representatives in the development of 
rules that ``significantly or uniquely affect'' Indian communities and 
that impose ``substantial and direct compliance costs'' on such 
communities. PHMSA is not aware of any significant or unique effects or 
substantial direct compliance costs on the communities of the Indian 
tribal governments. Therefore, we conclude that the funding and 
consultation requirements of Executive Order 13175 do not apply. We 
invite Indian tribal governments to provide comments if they believe 
there will be an impact.

E. Regulatory Flexibility Act, Executive Order 13272, and DOT Policies 
and Procedures

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an 
agency to review regulations to assess their impact on small entities 
unless the agency determines that a rule is not expected to have a 
significant impact on a substantial number of small entities. This 
notice has been developed in accordance with Executive Order 13272 
(``Proper Consideration of Small Entities in Agency Rulemaking'') and 
DOT's procedures and policies to promote compliance with the Regulatory 
Flexibility Act to ensure that potential impacts of draft rules on 
small entities are properly considered.
    The adoption of Section XII should not have any impact on small 
businesses, given that the standard is optional. After reviewing the 
safety records of both current tanks and new models of tanks 
constructed under special permit, PHMSA analysts found no disparities 
between the safety records.
    We estimate that there are 5,166 businesses likely to be affected 
by this rule. The Small Business Administration (SBA) uses industry-
specific standards to estimate which of those are ``small businesses'', 
which could be based on employment or revenue. PHMSA assumes that a 
significant number of businesses within the regulatory scope (nearly 
all) are small.
    Based on our analysis, the three major industries--manufacturers, 
third party inspection agencies, and tank repair services--could, at 
their discretion--conform to the new standards. Manufacturers could 
introduce new materials. Third party inspectors would conduct tests 
under more current, meaningful testing relevant to more modern designs. 
Tank repair services could expand to accommodate the new standards.
    Given the expected service life of about 30 years, we assume that 
only 1/30 of all tanks will be replaced each year. Given the optional 
nature of the rule, the new tanks will consist of some newer Section 
XII tanks and some Section VIII tanks. Any manufacturer would build 
tanks according to the needs of the customer, including price. At the 
same time, the small number of Section XII tanks entering the market 
each year will allow repairers and inspectors to transition their 
workforce smoothly.

[[Page 79384]]

    Based upon the above estimates and assumptions, PHMSA certifies 
that the proposals in this NPRM will not have a significant economic 
impact on a substantial number of small entities. In this notice, PHMSA 
is soliciting comments on the preliminary conclusion that the proposals 
in this NPRM will not cause a significant economic impact on a 
substantial number of small entities.

F. Paperwork Reduction Act

    Section 1320.8(d), Title 5, Code of Federal Regulations requires 
that PHMSA provide interested members of the public and affected 
agencies an opportunity to comment on information collection and 
recordkeeping requests. The recordkeeping requirements in Section XII 
and the 2013 edition of the NBIC are analogous; the recordkeeping costs 
of complying with Section XII and the 2013 edition of the NBIC are not 
significantly different than those currently required under the current 
regulatory scheme.

G. Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN contained in the heading of 
this document can be used to cross-reference this action with the 
Unified Agenda.

H. Unfunded Mandates Reform Act

    This final rule does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It does not result in costs of 
$141,300,000 or more to either state, local, or tribal governments, in 
the aggregate, or to the private sector, and is the least burdensome 
alternative that achieves the objective of the rule.

I. Environmental Assessment

    The National Environmental Policy Act of 1969 (NEPA), as amended 
(42 U.S.C. 4321-4347), and implementing regulations by the Council on 
Environmental Quality (40 CFR part 1500) require Federal agencies to 
consider the consequences of Federal actions and prepare a detailed 
statement on actions that significantly affect the quality of the human 
environment.
    The Council on Environmental Quality (CEQ) regulations order 
Federal agencies to conduct an environmental review considering (1) the 
need for the proposed action, (2) alternatives to the proposed action, 
(3) probable environmental impacts of the proposed action and 
alternatives, and (4) the agencies and persons consulted during the 
consideration process (see 40 CFR 1508.9(b)).
Description of Action
    PHMSA is considering the following alternatives: Alternative 1 is 
to take no action; Alternative 2 is to incorporate ASME Section XII and 
NBIC 2013 by reference and remove Section VIII; Alternative 3 is to 
allow tank manufacture and use of Section XII as an alternative to 
Section VIII. Use of the 2013 NBIC for continued service under Section 
VIII is optional, while use of the 2013 NBIC with Section XII is 
required; and Alternative 4 is to withdraw the rulemaking action and 
allow use of the standards through Special Permit. Each alternative 
presented below represents different levels of adoption of the new 
Section XII code, from Alternative 1 (0%) to Alternative 2 (100%). 
Alternatives 3 and 4 may result in a proportion between and including 
these extremes--i.e., Alternative 3 may result in all or no 
manufacturers choosing to use the Section XII specifications. 
Similarly, reliance on the special permit process could result in all 
or none of the manufacturers requesting a special permit. At this 
point, it is difficult to find a basis to project future, based on 
market activity. However, PHMSA believes that the adoption of the new 
standard would yield substantial savings to both the manufacturer and 
the user of the tanks.
    Alternative 1: No action. This is not the preferred alternative. 
This would continue the incorporation by reference of Section VIII, 
Division 1 for design and construction of cryogenic portable tanks and 
CTMVs (The reference to NBIC 1992 for the continued use would also 
remain unchanged). Though Section VIII, Division 1 sets forth detailed 
criteria for the design, construction, certification, and marking of 
stationary boilers and pressure vessels, it does not address unique 
conditions and stresses encountered by tanks in the transportation 
environment. The HMR addresses this deficiency by adding requirements 
to account for conditions and stresses likely to occur in 
transportation. This alternative would not impose any costs, but it 
would prevent the opportunity to realize any efficiency benefits.
    Alternative 2: Incorporate ASME Section XII and NBIC 2013 by 
reference and remove Section VIII, Division 1. This is not the 
preferred alternative. It would promote more current design standards, 
by ridding the HMR of outdated information and incorporating standards 
that address modern manufacturing and welding methods. Efficiency 
improvements would provide manufacturers more flexibility in design, 
and allow for lighter-weight tanks that would use less fuel to 
transport, with larger capacities. Section XII would also provide for 
more uniform enforcement over time. However, it may preclude a normal 
market-based transition from one standard to another and force 
manufacturers to incur investments and staffing changes to comply with 
new standards. Many commenters expressed concern that they would be 
unduly burdened either immediately or in the future by ASME standards 
that they have no recourse to appeal. The costs would be the purchase 
of Section XII; the minimal facility transition costs discussed above; 
and the initial training that may occur before the usual three-year 
cycle.
    Alternative 3: Allow tank manufacture and use under Section XII as 
an alternative to Section VIII, Division 1 and the applicable NBIC for 
continued use. This option is the preferred alternative, because it 
would provide regulatory flexibility, without imposing burdensome 
costs. It would also leave the manufacturers and buyers to negotiate 
which design best meets their needs, in terms of cost, resilience, and 
operations. Lastly, it would authorize the use of the 2013 edition of 
the NBIC as it applies to existing tanks and would require its use for 
those tanks built to Section XII specifications. It may, however, 
create inefficiencies among in-house, third-party and state inspectors, 
because inspectors would have to be trained to two distinct standards. 
This alternative would provide regulatory flexibility, without 
diminishing safety from current levels. It would also leave the 
manufacturers and buyers to negotiate which design best meets their 
needs, in terms of cost, resilience, and operations.
    Alternative 4: Withdraw the Rulemaking Action and Allow Use of 
Standards through Special Permit. This is not the preferred 
alternative. This option would grant permission to produce, use, and 
maintain tanks manufactured to Section XII through a special permit. 
This would allow PHMSA to promote technological advancement while 
maintaining the ability to closely monitor performance. PHMSA has 
already issued one competent authority approval and one special permit 
related to Section XII. This option would require positive action by 
manufacturers to apply for a special permit and meet PHMSA's standards 
for fitness. While this may be a more cautious approach, each special

[[Page 79385]]

permit application, including technical drawings and costs associated 
with party-to applications, such as proof of fitness, would be incurred 
under this option. PHMSA estimates that the typical special permit 
application costs $45 to the applicant and $3,000 for PHMSA to 
evaluate. A full analysis of the advantages and disadvantages and the 
cost and benefits associated with each alternative can be found in the 
regulatory evaluation in the docket for this rulemaking.
    PHMSA is proposing Alternative 3, as it was found to be the most 
optimal. Benefits associated with the rule include lower manufacturing 
costs and higher capacities for shippers. Costs to industry are minimal 
and incurred only when the manufacturer decides to fabricate tanks to 
the Section XII standards.
Environmental Consequences
    When developing potential regulatory requirements, PHMSA evaluates 
those requirements to consider the environmental impact of each 
amendment. Specifically, PHMSA evaluates the: risk of release and 
resulting environmental impact; risk to human safety, including any 
risk to first responders; longevity of the packaging; and if the 
proposed regulation would be carried out in a defined geographic area, 
the resources, especially any sensitive areas, and how they could be 
impacted by any proposed regulations.
    Of the regulatory changes proposed in this rulemaking, the non-
editorial amendments are discussed in further detail and evaluated 
based on their overall environmental impact as follows.

Environmental benefits result from the fact that fewer CTMVs, ton tanks 
and cryogenic tanks will be required to transport the same quantities 
of hazardous materials. In most cases, due to substitution of material 
of construction, the thickness of the tanks would be reduced, 
permitting more material to be hauled, and reducing the number of tanks 
needed to handle the same volume of product.\25\ As supported by the 
studies referenced in Table 11 of Section VII and based on the analysis 
of both versions of the ASME codes, PHMSA's Engineering and Research 
Division asserts that despite the reduction in the design margin 
between Section VIII and Section XII, the standards provide an 
equivalent level of safety. As the proposed alternatives would provide 
the same level of safety as the currently authorized tanks, the risk of 
incidents is reduced proportionately to the reduction of the number of 
tanks in commerce.
---------------------------------------------------------------------------

    \25\ For example, a MC 331 propane tank manufactured according 
to the Section XII would have a 12.5% reduction in wall thickness 
when compared to Section VIII, Division 1. This reduction would lead 
to at least a 2% increase in product capacity while maintaining the 
current level of safety.
---------------------------------------------------------------------------

     Add a new section to part 173 that will provide 
authorization and conditions for the use of 2013 edition of the NBIC in 
conjunction with Section VIII, Division 1 as an alternative. The levels 
of inspectors set forth in the 2013 edition of the NBIC provide the 
same level of oversight as those set forth in the currently 
incorporated 1992 edition of the NBIC combined with the specifications 
set forth in the HMR. For that reason, PHMSA anticipates that use of 
the 2013 edition of the NBIC compared to use of the 1992 edition and 
the HMR will not result in any significant impact to the human 
environment.
Federal Agencies Consulted
    In an effort to ensure all appropriate federal stakeholders are 
provided a chance to provide input on potential rulemaking actions, 
PHMSA as part of its rulemaking development consults other federal 
agencies that could be potentially affected. In developing this 
rulemaking action PHMSA consulted the Federal Motor Carrier Safety 
Administration (FMCSA), Federal Railroad Administration (FRA), 
Environmental Protection Agency (EPA), and Occupational Safety and 
Health Administration (OSHA).
Conclusion
    This NPRM proposes to incorporate by reference Section XII and the 
NBIC as alternatives to Section VIII, Division 1 and the HMR. As 
discussed above PHMSA believes standards provide an equivalent level of 
safety and the proposals in this NPRM are environmentally neutral. In 
fact, dependent on the level of usage of Section XII and subsequent 
reduction of the number of tanks needed to handle the same volume of 
product this rule may prove environmentally beneficial over time. 
However, PHMSA welcomes any data, information, or comments related to 
environmental impacts that may result from the proposal discussed in 
this notice.

J. Privacy Act

    Anyone is able to search the electronic form of all 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 DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 
http://www.dot.gov/privacy.

K. International Trade Analysis

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing any standards or engaging in related 
activities that create unnecessary obstacles to the foreign commerce of 
the United States. For purposes of these requirements, Federal agencies 
may participate in the establishment of international standards, so 
long as the standards have a legitimate domestic objective, such as 
providing for safety, and do not operate to exclude imports that meet 
this objective. The statute also requires consideration of 
international standards and, where appropriate, that they be the basis 
for U.S. standards. PHMSA participates in the establishment of 
international standards in order to protect the safety of the American 
public, and we would assess the effects of any rule to ensure that it 
does not exclude imports that meet this objective. Section XII is 
written using terminology compatible with international standards such 
as UN standards and IMDG. Its intent is to be useable internationally; 
and several foreign manufacturers already possess the T-symbol stamp 
certifying their capability to manufacture vessels using the new code. 
Accordingly, incorporating Section XII and the NBIC as alternatives to 
Section VIII, Division 1 and the HMR would be consistent with PHMSA's 
obligations under the Trade Agreement Act, as amended.

List of Subjects

49 CFR Part 171

    Applicability, General Requirements, North American shipments, 
Exports, Hazardous materials transportation, Imports, Incorporated by 
reference, Definitions.

49 CFR Part 173

    Hazardous materials transportation, Packaging and containers, 
Reporting and recordkeeping requirements.

49 CFR Part 180

    Qualification and maintenance of cargo tanks, tank cars and 
portable tanks.
    In consideration of the foregoing, 49 CFR chapter I is amended as 
follows:

[[Page 79386]]

PART 171--GENERAL INFORMATION, REGULATIONS, AND DEFINITIONS

0
1. The authority citation for part 171 continues to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; Pub. L. 101-410 section 
4 (28 U.S.C. 2461 note); Pub. L. 104-134, section 31001; 49 CFR 1.81 
and 1.97.

Subpart A--Applicability, General Requirements, and North American 
Shipments

0
2. In Sec.  171.7, paragraphs (g)(1), (x)(1), and (x)(2) are revised to 
read as follows:


Sec.  171.7  Reference material.

* * * * *
    (g) * * *
    (1) `ASME Code'; ASME Code, Sections II (Parts A and B), V, VIII 
(Division 1), and IX of 1998 Edition of American Society of Mechanical 
Engineers Boiler and Pressure Vessel Code, into Sec. Sec.  172.102; 
173.5b; 173.24b; 173.32; 173.306; 173.315; 173.318; 173.420; 178.255-1; 
178.255-2; 178.255-14; 178.255-15; 178.272-1; 178.273; 178.274; 
178.276; 178.277; 178.320; 178.337-1; 178.337-2; 178.337-3; 178.337-4; 
178.337-6; 178.337-16; 178.337-18; 178.338-1; 178.338-2; 178.338-3; 
178.338-4; 178.338-5; 178.338-6; 178.338-13; 178.338-16; 178.338-18; 
178.338-19; 178.345-1; 178.345-2; 178.345-3; 178.345-4; 178.345-7; 
178.345-14; 178.345-15; 178.346-1; 178.347-1; 178.348-1; 179.400-3; 
180.407 and Section XII of the 2013 Edition of American Society of 
Mechanical Engineers Boiler and Pressure Vessel Code into Sec.  173.14, 
Sec.  178.200, Sec.  178.300, Sec.  179.301(b).
* * * * *
    (x) * * *
    (1) NB-23, National Board Inspection Code, A Manual for Boiler and 
Pressure Vessel Inspectors, 1992 Edition, into Sec.  180.413.
    (2) National Board Inspection Code, A Manual for Boiler and 
Pressure Vessel Inspectors, 2013 Edition, into Sec.  180.402; Sec.  
180.602, and Sec.  180.502.
* * * * *

PART 173--SHIPPERS--GENERAL REQUIREMENTS FOR SHIPMENTS AND 
PACKAGINGS

0
3. The authority citation for part 173 continues to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and 
1.97.

0
4. Add Sec.  173.14 to subpart A to read as follows:


Sec.  173.14  Authorization and conditions for the use of Section XII 
of American Society of Mechanical Engineers Boiler and Pressure Vessel 
Code.

    (a) This section authorizes, with certain conditions and 
limitations, the use of Section XII of American Society of Mechanical 
Engineers Boiler and Pressure Vessel Code (ASME Code Section XII) (IBR 
see Sec.  171.7) as an alternative to ASME Code Section VIII, Division 
1 (IBR, see Sec.  171.7).
    (b) Limitations on the use of the ASME Code Section XII for cargo 
tank motor vehicles, cryogenic portable tanks, and multi-unit tank car 
tanks (ton tanks) designed, constructed, and certified qualified and 
maintained in accordance with ASME Code Section XII authorized in 
paragraph (a) of this section--
    (1) Conditions and requirements for all tanks. (i) The 2013 edition 
of the National Board Inspection Code (NBIC) (IBR, see Sec.  171.7) 
must be used for the design, construction, and certification 
qualification and maintenance of cargo tank motor vehicles, cryogenic 
portable tanks and multi-unit tank car tanks (ton tanks).
    (ii) ASME Section XII must include use of ASME Sections II 
Materials, Section V Nondestructive Examination, Section VIII, Division 
1 for Parts only, Section VIII, Division 2 for fatigue analysis only, 
Section IX Welding and Brazing, and the NBIC Parts 1, 2 and 3, 
including Supplement 6 of Parts 2 and 3;
    (iii) Nameplate character markings must be a minimum 4 mm (5/32''), 
markings directly on the tank must be a minimum 8 mm (5/16'');
    (iv) Periodic test information is not permitted on the ASME 
nameplate. Marking must be in accordance with the NBIC Part 2 or Part 
3, Supplement 6;
    (v) Inspection personnel must have qualifications as required by 
ASME Section XII, Article TG-4, and be qualified as evident by holding 
a current NBIC commission with endorsement for the level/type of 
inspection to be performed or certification from their employer when 
applicable;
    (vi) Inspectors or their employer must be registered with DOT;
    (vii) Repairs must be performed by a facility holding a current 
NBIC certificate of authorization for the use of the National Board 
``TR'' Stamp.
    (2) Conditions and requirements for cargo tanks. Cargo tanks must 
conform to all applicable requirements of this Part; and must meet ASME 
Section XII Modal Appendix 1, the appropriate Article for the category 
of cargo tank, all Mandatory Appendices and Non Mandatory Appendices A 
thru E and G thru H, except as follows:
    (i) Repairs must be performed by a DOT-registered facility holding 
a current NBIC certificate of authorization for the use of the National 
Board ``TR'' Stamp.
    (ii) For Category 338 Cargo Tanks, ASME Section XII, Modal Appendix 
1, Article 4, paragraph 1-4.4(g)(6) does not apply. A minimum jacketed 
thickness of 2.4 mm (0.0946 in) 12 gauge in the reference metal is 
permitted (IBR see Sec.  171.7).
    (3) Conditions and requirements for cryogenic portable tanks. 
Cryogenic portable tanks must conform to all applicable requirements of 
this Part; and must meet ASME Section XII Modal Appendix 3, Article 1, 
all Mandatory Appendices and Non Mandatory Appendices A thru E and G 
thru H, except as follows:
    (i) External and internal visual inspection in accordance with NBIC 
Part 2 Supplement 6 are required in addition to ASME Section XII, Modal 
Appendix 3,Article 1, paragraph 3-1.10(b), and Article 1, 3-1.10(b)(5) 
(IBR see Sec.  171.7);
    (ii) ASME Section XII, Modal Appendix 3, Article 1, paragraph 3-
1.10(b)(6) does not apply. Periodic test information is not permitted 
on the ASME nameplate. Marking must be in accordance with the NBIC Part 
2 or Part 3, Supplement 6 as applicable. (IBR see Sec.  171.7);
    (iii) ASME Section XII, Modal Appendix 3, Article 1, paragraph 3-
1.10(d) requires inspection personnel to have qualifications set forth 
in ASME Section XII, Article TG-4, as evident by having a current NBIC 
commission with endorsement for the level/type of inspection to be 
performed or certification from their employer when applicable. (IBR 
see Sec.  171.7); and
    (iv) ASME Section XII, Modal Appendix 3, Article 1, paragraph 3-
1.10 requires repairs to be performed by a facility holding a current 
NBIC certificate of authorization for the use of the National Board 
``TR'' Stamp. Records must be in accordance with the NBIC Part 2 or 
Part 3, Supplement 6 as applicable. (IBR see Sec.  171.7).
    (4) Conditions and requirements for ton tanks. Ton tanks must 
conform to all applicable requirements of this Part and must meet Modal 
Appendix 4, Article 1, all Mandatory Appendices and Non Mandatory 
Appendices A thru E and G thru H except as follows:
    (i) ASME Section XII, Modal Appendix 4, Article 1, paragraph 3-
1.10) Manufacturer-certified fusible plugs, tested and qualified under 
the fuse plug manufacturers' written

[[Page 79387]]

Quality Control system are required. (IBR see Sec.  171.7);
    (ii) ASME Section XII, Modal Appendix 4, Article 1, paragraph 4-8 
must allow Non ASME marked fusible plugs;
    (iii) ASME Section XII, Modal Appendix 4, Article 1, paragraph 4-
12(a) must require external and internal visual inspection in 
accordance with NBIC Part 2 Supplement 6, S6.15. (IBR see Sec.  171.7);
    (iv) ASME Section XII, Modal Appendix 4, Article 1, paragraph 4-
12(a)) does not apply. Periodic test information is not allowed on the 
ASME nameplate. Marking must be in accordance with the NBIC Part 2 or 
Part 3, Supplement 6 as applicable (IBR see Sec.  171.7);
    (v) ASME Section XII, Modal Appendix 4, Article 1, paragraph 4-
12(e) must require records to be in accordance with the NBIC Part 2 or 
Part 3, Supplement 6 (IBR see Sec.  171.7);
    (vi) Inspection personnel must have qualifications as required by 
ASME Section XII, Article TG-4, as evident by having a current NBIC 
commission with endorsement for the level/type of inspection to be 
performed or certification from their employer when applicable;
    (vii) A ton tank that fails a prescribed test or inspection must be 
repaired or removed from service;
    (viii) Repairs must be performed by a facility holding a current 
NBIC certificate of authorization for the use of the National Board 
``TR'' Stamp.

PART 178--SPECIFICATIONS FOR PACKAGINGS

0
5. The authority citation for part 178 continues to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and 
1.97.

0
6. Add Sec.  178.200 to subpart H to read as follows:


Sec.  178.200  Authorization for the use of Section XII of American 
Society of Mechanical Engineers Boiler and Pressure Vessel Code and the 
National Board, National Board Inspection Code for cryogenic portable 
tanks.

    As alternative to ASME Code Section VIII, Division 1 (IBR, see 
Sec.  171.7) and the requirements of this subpart, UN T75 cryogenic 
portable tanks may be designed, constructed and certified in accordance 
with Section XII of American Society of Mechanical Engineers Boiler and 
Pressure Vessel Code (ASME Code Section XII) (IBR see Sec.  171.7), 
with the conditions and limitations set forth in Sec.  173.14.
0
7. Add Sec.  178.300 to subpart J to read as follows:


Sec.  178.300  Authorization for the use of Section XII of American 
Society of Mechanical Engineers Boiler and Pressure Vessel Code and the 
National Board, National Board Inspection Code for cargo tank motor 
vehicles.

    As alternative to ASME Code Section VIII, Division 1 (IBR, see 
Sec.  171.7) and the requirements of this subpart, DOT Specification 
cargo tank motor vehicles may be designed, constructed and certified in 
accordance with Section XII of American Society of Mechanical Engineers 
Boiler and Pressure Vessel Code (ASME Code Section XII) (IBR see Sec.  
171.7), with the conditions and limitations set forth in Sec.  173.14.

PART 179--SPECIFICATIONS FOR TANK CARS

0
7. The authority citation for part 179 continues to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and 
1.97.

0
8. Revise Sec.  179.300 to read as follows:


Sec.  179.300  General specifications applicable to multi-unit tank car 
tanks designed to be removed from car structure for filling and 
emptying (Classes DOT-106A and 110AW).

    (a) Multi-unit tank car tanks must meet the requirements set forth 
in this subpart; or
    (b) Multi-unit tank car tanks may also be designed, constructed and 
certified in accordance with Section XII of American Society of 
Mechanical Engineers Boiler and Pressure Vessel Code (ASME Code Section 
XII) (IBR see Sec.  171.7), with the conditions and limitations set 
forth in Sec.  173.14

PART 180--CONTINUING QUALIFICATION AND MAINTENANCE OF PACKAGINGS

0
9. The authority citation for part 180 is revised to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and 
1.97.

0
10. Add Sec.  180.402 to subpart E to read as follows:


Sec.  180.402  Authorization for the use of the 2013 Edition of the 
National Board, National Board Inspection Code with Section VIII, 
Division 1 of the American Society of Mechanical Engineers Boiler and 
Pressure Vessel Code.

    This section authorizes, with certain conditions and limitations 
set forth in Sec.  173.14, the use of the 2013 edition of the National 
Board Inspection Code (NBIC) (IBR, see Sec.  171.7) for the maintenance 
of cargo tanks constructed to Section VIII, Division 1 of the 1998 
Edition of the American Society of Mechanical Engineers Boiler and 
Pressure Vessel Code. DOT Specification cargo tanks constructed to the 
1998 Edition of the ASME Code Section VIII, Division 1 that bear a U 
Stamp may be examined, inspected, and tested under Part 180 Subpart E 
and the NBIC Parts 1, 2, and 3, excluding Supplement 6 of Parts 2 and 
3. The 2013 edition of the National Board Inspection Code (NBIC) (IBR, 
see Sec.  171.7) must be used for the maintenance of cargo tanks 
constructed to ASME Code Section XII as set forth in Sec.  178.300.
0
11. Add Sec.  180.502 to subpart F to read as follows:


Sec.  180.502  Authorization for the use of the 2013 Edition of the 
National Board, National Board Inspection Code with Section VIII, 
Division 1 of the American Society of Mechanical Engineers Boiler and 
Pressure Vessel Code.

    This section authorizes, with certain conditions and limitations 
set forth in Sec.  173.14, the use of the 2013 edition of the National 
Board Inspection Code (NBIC) (IBR, see Sec.  171.7) for the maintenance 
of ton tanks constructed to Section VIII, Division 1 of the 1998 
Edition of the American Society of Mechanical Engineers Boiler and 
Pressure Vessel Code. The 2013 edition of the National Board Inspection 
Code (NBIC) (IBR, see Sec.  171.7) must be used for the maintenance of 
ton tanks constructed to ASME Code Section XII as set forth in Sec.  
178.200.
0
12. Add Sec.  180.602 to subpart G to read as follows:


Sec.  180.602  Authorization for the use of the 2013 Edition of the 
National Board, National Board Inspection Code with Section VIII, 
Division 1 of the American Society of Mechanical Engineers Boiler and 
Pressure Vessel Code.

    This section authorizes, with certain conditions and limitations 
set forth in Sec.  173.14, the use of the 2013 edition of the National 
Board Inspection Code (NBIC) (IBR, see Sec.  171.7) for the maintenance 
of cryogenic portable tanks constructed to Section VIII, Division 1 of 
the 1998 Edition of the American Society of Mechanical Engineers Boiler 
and Pressure Vessel Code. Portable tanks designed, fabricated, 
examined, inspected, and tested to Section VIII, Division 1 of the ASME 
Code may be used with the NBIC Parts 1, 2 and 3, excluding Supplement 6 
of Parts 2 and 3. The 2013 edition of the National Board Inspection 
Code (NBIC) (IBR, see Sec.  171.7) must be used for the maintenance of 
cryogenic portable tanks constructed to ASME Code Section XII as set 
forth in Sec.  178.200.
* * * * *


[[Page 79388]]


    Issued in Washington, DC, under authority delegated in 49 CFR 
part 1.97(b).
Magdy El-Sibaie,
Associate Administrator for Hazardous Materials Safety, Pipeline and 
Hazardous Materials Safety Administration.
[FR Doc. 2013-31046 Filed 12-27-13; 8:45 am]
BILLING CODE 4910-60-P


