
[Federal Register Volume 81, Number 83 (Friday, April 29, 2016)]
[Proposed Rules]
[Pages 25627-25639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09919]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 107, 171, 173, 178, 179 and 180

[Docket No. PHMSA-2010-0019 (HM-241)]
RIN 2137-AE58


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

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

ACTION: Supplemental Notice of Proposed Rulemaking (SNPRM).

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SUMMARY: This SNPRM proposes to incorporate and allow the use of the 
2015 edition of the American Society of Mechanical Engineers (ASME) 
Boiler and Pressure Vessel Code, Section XII--Rules for Construction 
and Continued Service of Transport Tanks for the construction and 
continued service of cargo tank motor vehicles (CTMVs), cryogenic 
portable tanks, and multi-unit tank car tanks (``ton tanks''). The 
PHMSA also proposes to incorporate and authorize the use of the 2015 
edition of the National Board of Boiler and Pressure Vessel Inspectors 
National Board Inspection Code, in our regulations as it applies to the 
continued service of CTMVs, cryogenic portable tanks, and ton tanks 
constructed to ASME Section XII standards, as well as for existing 
CTMVs constructed in accordance with the current hazardous materials 
regulations. If adopted, these amendments will allow for flexibility 
regarding selection of authorized packaging, in addition to 
qualification and maintenance for continued service of the packaging, 
without compromising safety.

DATES: Submit comments by June 28, 2016. 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 and review ASME's Section 
XII--Rules for Construction and Continued Service of Transport Tanks; 
and the National Board's NBIC Parts 1, 2, and 3, and Part 2, Section 6, 
Supplement 6--Continued Service and Inspection of DOT Transport Tanks, 
and Part 3, Section 6, Supplement 6--Repair, Alteration, and 
Modification of DOT Transport Tanks, go to: http://go.asme.org/PHMSA-ASME-CFR.
    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 the 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: Dirk Der Kinderen, Hazardous Materials 
Standards and Rulemaking Division, (202) 366-8553, or Stanley 
Staniszewski, Engineering and Research 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: 

Table of Contents

I. Executive Summary
II. ASME and NBIC Background
    A. What is ASME?
    B. What is Section XII of the Boiler and Pressure Vessel Code?
    C. What is the National Board of Boiler and Pressure Vessel 
Inspectors?
    D. What is the National Board Inspection Code and Supplement 6?
III. Regulatory History and Response to Comments
    A. ANPRM
    B. NPRM
IV. SNPRM Summary
    A. Why are we issuing a supplemental notice?
    B. What are we proposing?
    C. Why incorporate by reference?
    D. Are there any major changes of note between the 2015 and 2013 
editions of Section XII and the NBIC (including Supplement 6)?
V. Section-by-Section Review
VI. Regulatory Analyses and Notices
    A. Statutory/Legal Authority for This Rulemaking
    B. Executive Order 12866, Executive Order 13563, Executive Order 
13610, and DOT Regulatory Policies and Procedures
    C. Executive Order 13132
    D. Executive Order 13175
    E. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Regulatory Policies and Procedures
    F. Paperwork Reduction Act
    G. Regulation Identifier Number (RIN)
    H. Unfunded Mandates Reform Act
    I. Environmental Assessment
    J. Privacy Act
    K. International Trade Analysis
VII. List of Subjects

I. Executive Summary

    The PHMSA (also ``we'' or ``us'') proposes to amend the Hazardous 
Materials Regulations (HMR; 49 CFR parts 171-180) to incorporate by 
reference and authorize the use of the following:
     The 2015 edition of American Society of Mechanical 
Engineers (ASME) Boiler and Pressure Vessel Code (BPVC), Section XII--
Rules for Construction and Continued Service of Transport Tanks 
(hereinafter referred to as ``Section XII''); and
     The 2015 edition of the National Board of Boiler and 
Pressure Vessel

[[Page 25628]]

Inspectors National Board Inspection Code (NBIC), Parts 1, 2, and 3, 
and Supplement 6 (hereinafter referred to as ``NBIC'' and ``Supplement 
6,'' respectively);
    The proposal is structured to provide an alternative to the 1998 
editions of ASME Section VIII, Division 1 (currently incorporated by 
reference (IBR) and hereinafter referred to as ``Section VIII, Division 
1'') and the HMR requirements in Part 178 for the construction of cargo 
tank motor vehicles (CTMVs) and cryogenic portable tanks, Part 179 for 
the construction of multi-unit tank car tanks (hereinafter referred to 
as ``ton tanks''), and Part 180 for the continuing qualification and 
maintenance of CTMVs, cryogenic portable tanks, and ton tanks. We 
previously responded to petitions submitted by industry representatives 
by publishing a notice of proposed rulemaking (NPRM) \1\ to incorporate 
the 2013 editions of Section XII and the NBIC (including Supplement 6). 
Section XII sets forth standards for construction \2\ and continued 
service \3\ of pressure vessels used for transporting hazardous 
materials by various modes of transportation. The NBIC and Supplement 6 
provide rules and guidelines for inspecting, repairing, and altering 
transport tanks. Table 1 lists the packagings for which Section XII may 
be used for construction.
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    \1\ December 30, 2013 [78 FR 79363].
    \2\ ``Construction'' is an all-inclusive term comprising 
materials, design, fabrication, examination, inspection, testing, 
certification, and over-pressure protection.
    \3\ ``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--Authorized Transport Tanks Under Section XII
------------------------------------------------------------------------
                 Tank type                          Specification
------------------------------------------------------------------------
Cargo Tank Motor Vehicles (CTMVs).........  MC 331, 338, and DOT 406,
                                             407, and 412.
Cryogenic Portable Tanks..................  UN T75.
Ton Tanks.................................  DOT-106A and 110AW.
------------------------------------------------------------------------

    If the proposed amendments are adopted, manufacturers will have the 
option to either build tanks to Section XII or continue using Section 
VIII, Division 1. While Section VIII, Division 1 applies to 
construction only and must be used in conjunction with HMR Parts 178-
180 for construction and continued service, Section XII covers 
construction of new tanks and continued service of existing tanks. 
Further, as proposed, CTMVs and portable tanks built to Section VIII, 
Division 1 would be authorized for qualification and continued service 
using the more current edition of the NBIC in addition to Part 180; 
whereas CTMVs and portable tanks built to Section XII would be required 
to use NBIC (and Supplement 6) for qualification and continued service. 
Table 2 describes the framework available to manufacturers and owners 
of transport tanks with regard to IBR of Section XII and NBIC.

                Table 2--Framework for Continued Service
------------------------------------------------------------------------
                                Is built to . . .
      If a Table 1 . . .                                   Then,
------------------------------------------------------------------------
CTMV..........................  Section XII......  The 2015 NBIC and
                                                    Supplement 6 must be
                                                    used.
CTMV..........................  Section VIII,      Part 180 of the HMR
                                 Division 1.        must be used along
                                                    with the 2015 NBIC
                                                    or the 1992 NBIC
                                                    already in the HMR.
Cryogenic Portable Tank.......  Section XII......  The 2015 NBIC and
                                                    Supplement 6 must be
                                                    used.
Cryogenic Portable Tank.......  Section VIII,      Part 180 of the HMR
                                 Division 1.        must be used along
                                                    with the 2015 NBIC
                                                    or the 1992 NBIC
                                                    already in the HMR.
Ton Tank......................  Section XII......  The 2015 NBIC and
                                                    Supplement 6 must be
                                                    used.
Ton Tank......................  Part 179 and FRA   Part 180 and FRA
                                 approval.          approval must be
                                                    used.
------------------------------------------------------------------------

    The 2015 editions of the respective codes include advancements in 
design, material, fabrication, repair, and inspection of transport 
tanks. Incorporation by reference would provide manufacturers and 
owners with flexibility, while providing an equivalent level of safety 
to the current use of Section VIII, Division 1 and the HMR.
    The NBIC (including Supplement 6) was updated in conjunction with 
Section XII to provide up-to-date standards for the qualification and 
continued service of pressure vessels, including transport tanks. Both 
Section XII and the NBIC were developed as global standards and were 
written to be compatible with the United Nations Recommendations on the 
Transport of Dangerous Goods. Moreover, these standards were developed 
by voluntary consensus standards-development organizations \4\ 
comprised of 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.
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    \4\ i.e., The American Society of Mechanical Engineers and the 
National Board of Boiler and Pressure Vessel Inspectors.
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    Manufacturers, tank owners, users, maintenance and repair entities, 
and third-party inspectors (including potentially public sector 
inspectors) could incur costs under the scope of our proposed 
amendments. Manufacturers who opt for Section XII tanks would have to 
purchase the updated standards and most likely attend additional 
training. Entities that repair tanks and third-party inspectors opting 
to provide Section XII repairs or inspections may have to acquire new 
certificates of authorization and purchase and be trained in both 
updated codes, although it is likely that many already have the most 
current codes in order to maintain their ``U'' or ``R'' stamp in 
accordance with obligations under the ASME.
    Benefits associated with the use of Section XII and the NBIC 
include greater efficiencies in the manufacture of tanks, as well as 
the mitigation of the fluctuating cost of materials. Because Section 
XII allows for the use of a broader range of materials of construction, 
manufacturers now have more ways to lower the cost of tank 
construction, while still maintaining safety. Also, CTMVs built to 
Section XII could achieve lower transport costs due to reduced fuel 
costs from weight savings and/or fewer miles traveled from increased 
capacity.
    The costs and benefits of this rulemaking would predominantly 
impact only those entities opting to use the 2015 codes. Therefore, 
PHMSA does

[[Page 25629]]

not believe the authorization to use and IBR Section XII and the NBIC 
(including Supplement 6) would impose substantial costs on affected 
entities. That is, we do not believe a manufacturer would opt to use 
Section XII to build a tank unless it believes an economic advantage 
will be gained.

II. ASME and NBIC Background

A. What is ASME?

    The American Society of Mechanical Engineers (ASME) is an 
international developer of codes and standards associated with the art, 
science, and practice of mechanical engineering. The organization 
develops and revises codes and standards that cover topics including 
pressure technology, construction, engineering design, standardization, 
and performance testing. Engineers, scientists, government officials, 
and others contribute their technical expertise to this enterprise.
    Codes and standards such as Section XII of the Boiler and Pressure 
Vessel Code are developed based on market needs through a consensus 
(committee) process that is open to all members of the public. The ASME 
consensus committees are made up of volunteer subject matter experts, 
ranging from manufacturers to users to government officials. Standards 
and subsequent revisions are based on review of technical data by the 
consensus committee and its subcommittees. The development and revision 
process includes a public review for all actions. Any interested member 
of the general public may review and comment on proposed ASME standards 
or revisions. Refer to the following ASME Web site for the Section XII 
committee and associated publication information: https://cstools.asme.org/csconnect/CommitteePages.cfm?Committee=N20150000. We 
note that a PHMSA official participated on the committee that developed 
the Section XII standards.

B. What is Section XII of the Boiler and Pressure Vessel Code?

    Section XII provides standard requirements for construction and 
continued service of pressure vessels for the transportation of 
hazardous material by highway, rail, air, or water at pressures from 
full vacuum to 3,000 psig (207 bar) and volumes greater than 120 
gallons (450 liters). ``Construction'' is an all-inclusive term 
comprising materials, design, fabrication, examination, inspection, 
testing, certification, and over-pressure protection. ``Continued 
service'' refers to inspection, testing, repair, alteration, and 
recertification of a transport tank that has been in service. Section 
XII also contains modal appendices containing requirements for 
packagings used in specific transport modes and service applications. 
Finally, rules pertaining to the use of the ASME ``T'' product 
certification marks are also included.

C. What is the National Board of Boiler and Pressure Vessel Inspectors?

    The National Board of Boiler and Pressure Vessel Inspectors 
(hereinafter called the National Board) is a member organization that 
promotes uniformity in the construction, installation, repair, 
maintenance, and inspection of pressure equipment. The National Board, 
which is comprised of the chief boiler inspectors representing much of 
North America, oversees adherence to laws, rules, and regulations 
relating to boilers and pressure vessels. Functions of the National 
Board include the following: Commissioning inspectors through a 
comprehensive examination process; accrediting qualified repair and 
alteration companies; and developing installation, inspection, repair, 
and alteration standards (i.e., the NBIC). Furthermore, as it is an 
American National Standards Institute (ANSI) accredited standards 
development organization, the National Board follows an approved set of 
standards development procedures and is subject to regular audits by 
ANSI.

D. What is the National Board Inspection Code and Supplement 6?

    The National Board Inspection Code (NBIC) provides rules and 
guidelines for the repair, alteration, inspection, installation, 
maintenance, and testing of boilers, pressure vessels, and other 
pressure-retaining items. Supplement 6 provides rules for continued 
service inspections of transport tanks (i.e., CTMVs, portable tanks, 
and ton tanks) that transport hazardous material subject to the HMR and 
the United Nations Recommendations on the Transport of Dangerous 
Goods--Model Regulations. Supplement 6 is intended to be used in 
conjunction with other applicable parts of the NBIC and Section XII of 
the ASME Boiler and Pressure Vessel Code.

III. Regulatory History and Response to Comments

    All associated rulemaking actions, supporting documentation, and 
comments on the rulemaking are available for review at the docket to 
this rulemaking [PHMSA-2010-0019].

A. ANPRM

    The PHMSA published an Advanced Notice of Proposed Rulemaking 
(ANPRM) on December 23, 2010 [75 FR 80765], in which 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 CTMVs, 
cryogenic portable tanks, and ton 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 the IBR of the two sets of standards 
into the HMR. In the ANPRM, there were no specific proposals set forth 
regarding the method of incorporation into the regulations of Section 
XII and the NBIC (e.g., replacement of Section VIII, Division 1 with 
Section XII and the NBIC or incorporation by reference of Section XII 
and the NBIC as an alternative to Section VIII, Division 1). For that 
reason, it was assumed by many commenters that Section XII would 
outright replace Section VIII, Division 1 and the HMR, and these 
commenters voiced their opposition with the belief that they would not 
have an option to select the standard(s) to use.

B. NPRM

    The PHMSA published an NPRM on December 30, 2013 [78 FR 79363] in 
which we proposed to IBR the 2013 edition of Section XII, with limited 
exceptions, as an alternative to existing standards for CTMVs, 
cryogenic portable tanks, and ton tanks. Section VIII, Division 1, as 
currently authorized in the HMR, applies to new construction only and 
requires that tanks are marked with a ``U'' stamp to indicate 
construction and certification in accordance with that section of the 
ASME Code. Section XII is structured such that it addresses new 
construction and continued service (e.g., repairs). Tanks constructed 
under this standard will require a ``T'' stamp; whereas tanks that are 
repaired under Section XII would be marked with either an ``R'' or a 
``TR'' stamp to indicate a repair, dependent on whether the tank was 
originally constructed and certified according to Section VIII, 
Division 1 or Section XII, respectively. Further, PHMSA proposed to IBR 
the 2013 edition of the NBIC (including Supplement 6) for alterations, 
repairs, and inspections performed on all

[[Page 25630]]

ASME-constructed tanks used for the transportation of hazardous 
materials. This proposed IBR is intended as an alternative to the 
current IBR edition of the NBIC and conditions and limitations in HMR 
Part 180 used for tanks constructed to Section VIII, Division 1. 
Further, as proposed, use of the updated NBIC would be optional for 
Section VIII, Division 1 CTMVs but required for Section XII authorized 
transport tanks. The PHMSA provided a comparison of Section XII and 
Section VIII, Division 1 (supplemented by the current HMR). Readers can 
review this comparison in its entirety in the NPRM [Docket No. PHMSA-
2010-0019 (HM-241)]. Moreover, research and development projects 
summarized in the NPRM supported the proposed codes and standards to be 
adopted under this rulemaking docket. From the results of the studies 
as well as our own analysis, PHMSA concluded that the proposed 
standards provide an equivalent level of safety to the current 
structure of standards in the HMR.
    The NPRM generated comments from 20 stakeholders. The majority of 
the comments were in opposition to IBR the two sets of standards into 
the HMR; two commenters supported the proposals; and three commenters 
supported the proposals with modification. Several commenters posed 
questions or proposed additional modifications. Commenters in support 
of the proposals generally indicated: (1) The need to incorporate 
Section XII to reflect present-day improvements, especially the new 
definitions of authorized inspection agencies; and (2) providing for an 
alternative as reasons for support. Commenters opposing the proposals 
generally indicated: (1) Lack of public input and inaccessibility to 
current and future versions of Section XII and the NBIC; (2) 
inefficient and excessive cost to the industry; and (3) no actual 
improvement in hazardous materials transportation safety as reasons for 
opposition. Commenters also raised questions about how continued 
service requirements of Section XII will affect small industry 
stakeholders and what role DOT/PHMSA may have in oversight of that 
process. Commenter concerns are summarized and discussed further below.
1. Lack of Public Input in Future Versions of Section XII and the NBIC
    Commenters expressed concern that decisions relative to the 
development of the code are heavily weighted to those participating in 
committee meetings, especially third-party inspection agencies who may 
be biased by self-interest. Commenters also stated that the process 
provides no assurance of public input for future revisions to the codes 
because the National Board, for example, has no legal mandate to 
provide for future participation by the general public or interested 
parties.
    The PHMSA disagrees. Information about the Section XII and NBIC 
development and revision process is made available online to the 
public, and draft revisions are made available for public review and 
input.\5\ ASME and the National Board are accredited standards 
developing organizations that meet due process requirements as defined 
by the non-governmental American National Standards Institute. 
Furthermore, committee participation is open to anyone with an interest 
in a particular subject area and with the requisite technical 
expertise. It may appear that decisions are weighted towards certain 
committee members, yet committee membership is made up of more than 
just third-party inspection agencies, as evidenced by the listing of 
members for the various committees and subcommittees of both ASME and 
the National Board. This information is also made available to the 
public.
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    \5\ For example, public comments may be submitted on proposed 
new ASME Standards drafts and on proposals to revise existing ASME 
Standards. All ASME public review proposals are available in hard 
copy at no cost and some are available electronically also at no 
cost. See https://cstools.asme.org/csconnect/PublicReviewpage.cfm.
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2. Inefficient and Excessive Cost to the Industry
    Commenters stated Section XII would necessitate purchase of new 
equipment and increased training for both the installation of the 
equipment and its operation. Furthermore, commenters stated that 
purchasing new publications from ASME and the National Board, while 
also maintaining the existing editions and sections, will increase 
direct costs along with the aforementioned equipment. In addition to 
purchasing the codes, the cost and maintenance of welding 
certifications will increase dramatically.
    While there may be increased costs to industry, PHMSA does not 
agree with commenters indicating inefficient or excessive costs for 
adopting Section XII and NBIC codes. The PHMSA is proposing to IBR the 
Section XII and NBIC codes as an alternative to current requirements 
for the construction and continued service of certain CTMVs, cryogenic 
portable tanks, and ton tanks (see Table 2 above). Use of Section XII 
and the NBIC will not be mandated, so it will not necessitate equipment 
purchase, employee training, or code purchase unless it is in the 
interest of a manufacturer, non-manufacturer, or inspector to do so. 
Although costs to each type of industry stakeholder will vary, we 
believe the overall cost burden will be lower because of an expected 
lower usage rate. It will remain a business decision to construct 
pressure vessels to Section VIII, Division 1, to Section XII, or to 
both. The PHMSA sees this as no different than making a determination 
to construct all authorized DOT-specification CTMVs or specialize in 
DOT 400 series CTMVs, for example. Furthermore, we believe it is very 
likely that many in this industry already have the most current codes 
in order to maintain their ``U'' or ``R'' stamps. We do however 
acknowledge that those who enforce compliance with these standards will 
incur a cost (e.g., training) regardless of the usage rate of the new 
standard.
3. No Improvement in Safety
    Commenters opposed to the NPRM generally indicated the lack of 
safety improvements as a basis for the opposition. The PHMSA does not 
agree with commenters indicating that adoption of Section XII and NBIC 
would provide no improvements in hazardous material transportation 
safety. The 2015 editions of Section XII and the NBIC include 
advancements in design, material, construction, repair, and inspection 
of transport tanks, and Section XII was specifically developed with the 
transport environment in mind. Furthermore, IBR of these codes provides 
the public with a more flexible approach to achieve the safety 
transportation of hazardous material. Specifically, it would allow 
manufacturers and owners of transport tanks flexibility in the 
materials they use to build tanks, how they build tanks, and how they 
test and inspect tanks, while providing at the very least the same 
level of safety as currently provided by the HMR and Section VIII, 
Division 1 for new construction and the HMR for continued qualification 
and maintenance.
    In response to comments and questions about PHMSA's role in 
continuing service requirements and ensuring compliance with industry 
standards, from design and manufacturing to repairs, PHMSA is proposing 
to amend 49 CFR 107.307(a) to reiterate existing authority to enforce 
compliance with industry standards incorporated by reference.

[[Page 25631]]

IV. SNPRM Summary

A. Why are we issuing a supplemental notice?

    The PHMSA is issuing an SNPRM rather than a final rule for three 
basic reasons:
    (1) To provide stakeholders the opportunity to comment on the 
safety improvements and updates reflected in the revised 2015 editions 
of Section XII and the NBIC (and Supplement 6);
    (2) To synchronize the timing of our rulemaking action with the 
biennial updates of Section XII and NBIC by ASME and the National 
Board, respectively; and
    (3) To minimize or relieve the public and the government of 
possible administrative burdens (e.g., special permit applications) 
that would be associated with incorporating by reference the 2013 
editions, as previously proposed, when 2015 editions have been 
published.

B. What are we proposing?

    In this SNPRM, PHMSA is proposing the following:
    (1) IBR the 2015 edition of Section XII, (instead of the 2013 
edition, as previously proposed for incorporation under the NPRM 
published December 30, 2013 [78 FR 79363]);
    (2) IBR the 2015 edition of the NBIC and Supplement 6 (instead of 
the 2013 editions, as previously proposed for incorporation under the 
December 2013 NPRM);
    (3) Authorize construction and continued service of CTMVs, 
cryogenic portable tanks, and ton tanks in accordance with Section XII. 
The following transport tanks would be eligible for construction and 
continued service under Section XII:

          Table 3--Authorized Transport Tanks Under Section XII
------------------------------------------------------------------------
                 Tank type                          Specification
------------------------------------------------------------------------
Cargo Tank Motor Vehicles (CTMVs).........  MC331, 338, and DOT 406,
                                             407, and 412.
Cryogenic Portable Tanks..................  UN T75.
Ton Tanks.................................  DOT-106A and 110AW.
------------------------------------------------------------------------
Note: Tanks listed in this table that are already constructed under
  Section VIII are not eligible for continued services using Section
  XII.

    (4) Require the use of the 2015 NBIC, and Supplement 6 where 
applicable, for the qualification, requalification, and maintenance of 
transport tanks (constructed under Section XII) listed in Table 3 
above;
    (5) Authorize the use of the 2015 NBIC for the continued service, 
inspection, and repair of those CTMVs currently in service and 
constructed to Section VIII, Division 1 and the HMR.

C. Why incorporate by reference?

    Section 12(d) of Public Law 104-113, the National Technology 
Transfer and Advancement Act of 1995, 15 U.S.C. 272 (hereinafter ``the 
Act''), directs agencies to use voluntary consensus standards in lieu 
of government-unique standards except where inconsistent with law or 
otherwise impractical. ``Use'' means inclusion of a standard in whole, 
in part, or by reference in regulation(s). We believe the use of 
Section XII and the NBIC is consistent with the Act and serves PHMSA's 
program needs by helping to improve safety through authorized use of 
standards developed specifically with transportation in mind. The use 
of such standards, whenever practicable and appropriate, is intended to 
achieve the following goals:
    (1) Eliminate the cost to the Government of developing its own 
standards and decrease the cost of the burden of complying with agency 
regulation.
    (2) Provide incentives and opportunities to establish standards 
that serve national needs.
    (3) Promote efficiency and economic competition through 
harmonization of standards.

D. Are there any major changes of note between the 2015 and 2013 
editions of Section XII and the NBIC (including Supplement 6)?

    The PHMSA's review of the 2015 edition of the codes did not reveal 
any major substantive differences between the two editions, especially 
with regard to the NBIC and Supplement 6. Below we highlight some of 
the more notable changes to Section XII from the 2013 edition to the 
2015 edition:
     Revised the general requirements for welding so that the 
Modal Appendices are used to provide direction for construction;
     Revised Code Case 1750 to include Section XII to allow use 
of additional materials for valves;
     Updated Section XII regarding pressure relief devices for 
consistency with updates to Section VIII, Division 1 and developed a 
new Mandatory Appendix XIX based on these updates;
     Updated Modal Appendix 1 (cargo tanks) for allowable 
stress criteria.

V. Section-by-Section Review

    The following is a section-by-section review of the amendments 
proposed in this SNPRM:

A. Part 107

Section 107.307
    Section 107.307 is the process for compliance orders and civil 
penalties (i.e., enforcement). In this SNPRM, we are proposing to 
revise paragraph (a) to reiterate PHMSA's existing authority to enforce 
compliance with industry standards incorporated by reference into the 
HMR.
Subpart F
    Subpart F establishes a registration procedure for persons who are 
engaged in the manufacture, assembly, inspection and testing, 
certification, or repair of a cargo tank/CTMV manufactured in 
accordance with a DOT specification or under terms of a special permit 
issued under Part 107. In this SNPRM, we are not proposing to revise 
this subpart, but we note for general awareness that the new Sec.  
173.14, as discussed below, will reference the registration requirement 
in this subpart by noting that ``inspectors'' and ``repairers'' of 
these packagings must be registered with the DOT.

B. Part 171

Section 171.7
    Section 171.7 lists IBR material. This SNPRM proposes to amend 
Sec.  171.7, Reference material, to list the 2015 edition of Section 
XII and the 2015 edition of the NBIC and Supplement 6. Specifically, a 
new paragraph (g)(2) will be added to include an entry for `ASME Code 
Section XII' in addition to the currently referenced sections of the 
1998 edition of the `ASME Code', e.g., Section VIII, Division 1. We 
will make a conforming amendment to redesignate current paragraph 
(g)(2) as (g)(3) for ASME B31.4-1998 Edition, Pipeline Transportation 
Systems for Liquid Hydrocarbons and other Liquids, Chapters II, III, 
IV, V, and VI, November 11, 1998. In addition, we propose to amend 
Sec.  171.7 to include the 2015 editions of the NBIC and Supplement 6. 
Specifically, paragraph (x)(2) will be revised to include an entry for 
`NBIC 2015,' and a new paragraph (x)(3) will be added for `NBIC 2015, 
Supplement 6.'

C. Part 173

Section 173.14
    In this SNPRM, we are proposing to add a new Sec.  173.14 for 
authorization of and conditions on the use of Section XII

[[Page 25632]]

for the construction and continued service of certain types of 
transport tanks discussed above, as follows:
    For All Tank Types. Conditions for all authorized tank types will 
be specified in paragraph (a)(1) as follows:
     Authorized IBR material includes ASME Section XII Modal 
Appendices, Mandatory Appendices, and Non Mandatory Appendices; and use 
of ASME Section II materials, Section V Nondestructive Examination, 
Section VIII, Division 1 for parts only, Section VIII, Division 2 for 
Fatigue Analysis only, Section IX for welding and brazing in accordance 
with Section XII requirements; authorized IBR material also includes 
the NBIC Parts 1, 2, and 3, and Supplement 6 of Parts 2 and 3;
     The NBIC and Supplement 6 must be used for the design, 
repair, alteration, certification, qualification, and maintenance of 
cargo tank motor vehicles, cryogenic portable tanks, and multi-unit 
tank car tanks (ton tanks) constructed to Section XII;
     Nameplate character markings must be a minimum 4 mm (5/
32''); markings directly on the tank must be a minimum 8 mm (5/16'');
     Marking must be in accordance with Supplement 6. Periodic 
test information is prohibited on the ASME nameplate;
     Inspection personnel must have qualifications as required 
by Section XII, Article TG-4, and as evident by having a current 
National Board commission with endorsement for the level and type of 
inspection (Transport Tank Class) to be performed, or certification 
from their employer when applicable;
     Inspectors or their employer must be registered with DOT; 
and
     Repairs must be performed by a facility holding a current 
National Board certificate of authorization for the use of the National 
Board ``TR'' or ``R'' stamp.
    For CTMVs. Conditions and requirements specific to CTMVs will be 
specified in paragraph (a)(2). The CTMVs must also conform to all 
applicable requirements of Part 173 of the HMR and must meet: Section 
XII, Modal Appendix 1 and the appropriate Article of the appendix for 
the category of CTMV; all Mandatory Appendices; and applicable Non 
Mandatory Appendices, except as follows:
     Repairs must be performed by a DOT-registered facility 
holding a current National Board certificate of authorization for the 
use of the ``TR'' or ``R'' stamp; and
     For Category 338 Cargo Tanks (synonymous with DOT MC 338 
CTMVs), 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 allowed.
    For Cryogenic Portable Tanks. Conditions and requirements specific 
to cryogenic portable tanks will be set forth in paragraph (a)(3). 
These portable tank types must also conform to all applicable 
requirements of Part 173 of the HMR and must meet: Section XII, Modal 
Appendix 3, Article 1; all Mandatory Appendices; and applicable Non 
Mandatory Appendices, except as follows:
     External and internal visual inspections in accordance 
with Supplement 6 are required in addition to Section XII, Modal 
Appendix 3, Article 1, paragraph 3-1.10(b) and Article 1, 3-1.10(b)(5); 
and
     Section XII, Modal Appendix 3, Article 1, paragraph 3-1.10 
requires repairs to be performed by a facility holding a current 
National Board certificate of authorization for the use of the ``TR'' 
or ``R'' stamp. Records must be in accordance with the Supplement 6, as 
applicable.
    For Ton Tanks. Conditions and requirements specific to 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 applicable Non Mandatory 
Appendices, except as follows:
     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;
     Section XII, Modal Appendix 4, Article 1, paragraph 4-8. 
Non-ASME marked fusible plugs are allowed;
     Section XII, Modal Appendix 4, Article 1, paragraph 4-
12(a). External and internal visual inspections must be in accordance 
with Supplement 6;
     Section XII, Modal Appendix 4, Article 1, paragraph 4-
12(e). Records must be kept in accordance with Supplement 6; and
     A ton tank that fails a prescribed test or inspection must 
be repaired as specified in the NBIC or removed from service.

D. Part 178

Section 178.278
    We propose a new Sec.  178.278 authorizing the use of Section XII 
and the NBIC (and Supplement 6) for construction and qualification of 
cryogenic portable tanks.
Section 178.300
    We propose a new Sec.  178.300 authorizing the use of Section XII 
and the NBIC (and Supplement 6) for construction and qualification of 
cargo tank motor vehicles.

E. Part 179

Section 179.302
    We propose a new Sec.  179.302 authorizing the use of Section XII 
and the NBIC (and Supplement 6) for construction and qualification of 
ton tanks.

F. Part 180

Section 180.402
    We propose a new Sec.  180.402 authorizing use of the NBIC for the 
continuing qualification and maintenance of CTMVs.
Section 180.413
    We propose to revise Sec.  180.413 to authorize use of the NBIC 
with Section VIII, Division 1 for the continued service of CTMVs.
Section 180.502
    We propose a new Sec.  180.502 authorizing use of the NBIC for the 
continuing qualification and maintenance of ton tanks constructed to 
Section XII.
Section 180.602
    We propose a new Sec.  180.602 authorizing use of the NBIC for the 
continuing qualification and maintenance of cryogenic portable tanks 
constructed to Section XII.

VI. Regulatory Analyses and Notices

A. Statutory/Legal Authority for This Rulemaking

    This SNPRM 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 SNPRM provides an 
alternative to the current process for the construction 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)). Section 106.95 of the HMR, 
provides the process and procedures for persons to petition PHMSA to 
add, amend, or delete a regulation. In this SNPRM, PHMSA is

[[Page 25633]]

addressing this statutory requirement by considering petitions for 
rulemaking from ASME, the National Board, and the Pressure Vessels 
Manufacturers Association.

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

    This SNPRM is not considered a significant regulatory action under 
Section 3(f) of Executive Order 12866 (``Regulatory Planning and 
Review'') 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 (``Improving Regulation and Regulatory 
Review'') supplements and reaffirms the principles, structures, and 
definitions governing regulatory review that were established in 
Executive Order 12866, published 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.\6\ 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.
---------------------------------------------------------------------------

    \6\ See http://www.whitehouse.gov/the-press-office/2011/01/18/improving-regulation-and-regulatory-review-executive-order.
---------------------------------------------------------------------------

    Executive Order 13610 (``Identifying and Reducing Regulatory 
Burdens''), issued May 10, 2012, urges agencies to conduct 
retrospective analyses of existing rules to examine whether they remain 
justified or whether they should be modified or streamlined in light of 
changed circumstances, including the rise of new technologies.\7\
---------------------------------------------------------------------------

    \7\ 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.''
    The PHMSA believes that if the 2015 editions of Section XII and the 
NBIC are incorporated as alternatives to Section VIII, Division 1 and 
the HMR, transport tank manufacturers and owners would be provided with 
more flexibility and freedom of choice regarding material of 
construction and design for new construction, allowing for lighter-
weight, higher-capacity tanks capable of transporting more material per 
shipment. Transport tanks built to Section XII will have been examined 
by certified inspectors to ensure that they withstand conditions and 
stresses unique to transportation, such as rollovers, bottom damage, or 
piping damage. Furthermore, we believe the flexibility in selection of 
the ASME standard of construction will facilitate international 
competitiveness for the transport of hazardous materials; this 
flexibility will also eliminate barriers for U.S. manufacturers 
transporting goods internationally that have been caused by the 
inflexible 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 transport 
tanks constructed and designed according to the specifications 
currently provided in the HMR.
    The overall costs and benefits associated with this SNPRM and the 
supporting calculations are included in the supplement to the NPRM 
regulatory impact analysis (RIA) provided in the docket for this 
rulemaking. For specific responses to comments received to the NPRM 
please see Section III of this document. Below is a brief summary of 
the affected entities, as well as the costs and benefits of this SNPRM:
Costs
    The majority of the new costs that would result from the optional 
use of the IBR of the 2015 edition of ASME Section XII and the NBIC are 
due to training and certification of stakeholders on the requirements 
of the updated codes. There are three primary groups of affected 
entities: (1) Manufacturers of tanks; (2) non-manufacturers (e.g., 
repair firms); and (3) inspectors. Using industry employment and wage 
data from the U.S. Department of Labor, we estimated the number of 
transport tank manufacturing firms, non-manufacturing firms involved in 
the repair and maintenance of tanks, and tank inspectors in the United 
States. The new costs to each of the three stakeholder groups are 
described below.
1. Manufacturers
    Using data from the Bureau of Labor Statistics (BLS), the Steel 
Tank Institute (STI), the Pressure Vessel Manufacturers Association 
(PVMA), and ASME's Pressure Vessel Manufacturer Members, we estimate 
that there are 290 manufacturers of portable tanks, ton tanks, and 
CTMVs. Collectively, these firms employ approximately 8,889 individuals 
directly involved in production and maintenance of transport tanks 
(e.g., boilermakers, mechanical engineers, production occupations, 
mechanical drafters, industrial production managers, commercial and 
industrial designers, and mechanical engineering technicians).\8\ Each 
manufacturer would be required to purchase a copy of the Section XII 
code and manufacturing employees would need to take ASME's online 
training course, both of which would impose costs.
---------------------------------------------------------------------------

    \8\ U.S. Bureau of Labor Statistics, Occupational Employment 
Statistics, May 2011. http://www.bls.gov/oes/current/oes111021.htm.
---------------------------------------------------------------------------

    New vessels manufactured under Section XII would be required to 
hold an ASME ``T'' stamp of authorization, and repairs or alterations 
to these vessels must be performed by a holder of a ``TR'' Certificate 
of Authorization (although ASME may opt to not utilize this ``TR'' 
stamp and just require the current ``R'' stamp that is required). This 
is an alternative to manufacturing, repairing, and altering under the 
Section VIII code, where transport tanks have ASME ``U'' stamps and 
repairs and authorizations are made by holders of an ``R'' Certificate 
of Authorization. Purchase of this stamp is another source of costs. 
The costs and the calculations supporting them are included in the 
supplement to the NPRM RIA provided in the docket for this rulemaking.
2. Non-Manufacturers
    Using data from the BLS, we estimate there are 3,863 non-
manufacturers, collectively employing 6,839 individuals directly 
engaged in the repair, maintenance, and alteration of transport tanks 
or performing associated design and supervision tasks. Non-
manufacturers include repair and maintenance firms of pressure vessels. 
All repair firms would be required to purchase a copy of both ASME 
Section XII and the NBIC which would impose a cost. In addition, non-
manufacturers that repair or alter tanks would be required to change 
the scope of their existing ``R'' Certificate of Authorization or 
obtain a ``TR'' certificate from the National Board, which would impose 
a cost. These costs and the calculations

[[Page 25634]]

supporting them are included in the supplement to the NPRM RIA provided 
in the docket for this rulemaking.
3. Inspectors
    Tank inspectors include third-party inspectors, owner-user 
inspectors, chief boiler inspectors, and public inspectors. Data from 
the National Board of Boiler and Pressure Vessel Inspectors indicate 
that there are 41 authorized third-party agencies.\9\ Assuming there is 
an average of 10 inspectors at each agency, we estimate that there are 
approximately 410 third-party inspectors in the United States. In 
addition, the National Board of Boiler and Pressure Vessel Inspectors 
show that there are 69 owner-user inspector organizations, which are 
defined as ``owner-user[s] of pressure equipment that [maintain] an 
established inspection program and whose organization and inspection 
procedures meet the requirements of NB-371, Accreditation of Owner-User 
Inspection Organization.'' \10\ Also, using data from the Department of 
Labor, we estimate that there are 549 public inspectors by applying the 
average figure for boiler inspectors per 100,000 capita from the 2010 
economic census to estimate the number of public boiler inspectors in 
each state. Incorporating by reference Section XII and the NBIC will 
require inspection services to use the NBIC classifications of 
Authorized Inspectors (AIs) and Certified Individuals (CIs). Third-
party and chief boiler inspectors would need to complete NBIC training 
to become familiar with the Section XII standards. These 
classifications and trainings would impose some costs on inspectors. 
These costs and the calculations supporting them are included in the 
supplement to the NPRM RIA provided in the docket for this rulemaking.
---------------------------------------------------------------------------

    \9\ The National Board of Boiler and Pressure Vessel 
Inspectors--New Construction Authorized Inspection Agencies Listing 
http://www.nationalboard.org/Index.aspx?pageID=66&ID=122 and The 
National Board of Boiler and Pressure Vessel Inspectors--Inservice 
Authorized Inspection Agencies Listing http://www.nationalboard.org/Index.aspx?pageID=66&ID=123.
    \10\ National Board of Boiler and Pressure Vessel Inspectors--
Owner-User Inspection Organizations http://www.nationalboard.org/Index.aspx?pageID=67.
---------------------------------------------------------------------------

Benefits
    Based on the information presented in the ``Section XII Code 
Differences'' document, there are several opportunities for cost 
savings if the 2015 editions of Section XII and the NBIC are 
incorporated. There are three differing aspects of tank design 
requirements between Section VIII, Division 1 and Section XII: (1) The 
required tensile strength margin is reduced from 4.0 to 3.5; (2) a new 
rational design to reduce shell and head thickness is allowed; and (3) 
tanks are allowed to be used until they reach the minimum allowed 
thickness, which increases tanks' useful lives. These benefits and the 
calculations supporting them are included in the supplement to the NPRM 
RIA provided in the docket for this rulemaking.
Conclusion
    As this SNPRM authorizes the voluntary use of the 2015 editions of 
Section XII and the NBIC, a range of costs and benefits (as seen in 
Table 4 below) were derived based on differing percentages of 
implementation. The overall costs and benefits, and the calculations 
supporting them, are included in the supplement to the NPRM RIA 
provided in the docket for this rulemaking. In addition, this document 
also includes a sensitivity analysis that varies a number of factors.

                                         Table 4--Net Benefit Estimates
----------------------------------------------------------------------------------------------------------------
                                                                         Estimate
----------------------------------------------------------------------------------------------------------------
                                          Annualized Benefits and Costs
----------------------------------------------------------------------------------------------------------------
Estimated Benefits.....................  $18,006,640 (low) to $21,598,728.37 (high).
Estimated Costs........................  $10,167,783 (low) to $15,480,558 (high).
                                        ------------------------------------------------------------------------
    Net................................  $2,526,082 (low) to $11,430,946 (high).
----------------------------------------------------------------------------------------------------------------
                                     Annualized per Tank Benefits and Costs
----------------------------------------------------------------------------------------------------------------
Estimated Benefits.....................  $76 (low) to $91 (high).
Estimated Costs........................  $43 (low) to $77 (high).
                                        ------------------------------------------------------------------------
    Net................................  $10 (low) to $48 (high).
----------------------------------------------------------------------------------------------------------------

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 (``Preemption'') that 
was 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. If 
adopted as final, this rule will preempt any State, local, or Indian 
tribe

[[Page 25635]]

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 standards and the 
training of employees. However, PHMSA notes that many state enforcement 
personnel are not currently 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-
commissioned 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 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 
revisions to the HMR in hopes to address the issues that this proposed 
rule may cause.

D. Executive Order 13175

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13175 (``Consultation and 
Coordination with Indian Tribal Governments''). The PHMSA is not aware 
of any significant or unique affects or substantial direct compliance 
costs on the communities of the Indian tribal governments from 
proposals in this rulemaking. Therefore, we conclude that the funding 
and consultation requirements of Executive Order 13175 do not apply. 
However, we invite Indian tribal governments to provide comments should 
they believe there will be an impact.

E. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Regulatory 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 Policies and Procedures 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 will not have a significant impact on a 
substantial number of small entities, or even any foreseeable impact on 
small businesses, given that the provisions proposed under this 
supplemental notice are optional. Furthermore, PHMSA reviewed the 
safety records of both transport tanks constructed under the current 
method of construction authorized under the HMR and transport tanks 
constructed to ASME Section XII under special permits and found no 
differences in the safety record between the two methods of 
construction.
    We estimate that there are approximately 5,200 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.'' The 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 could conduct more 
current, meaningful tests that are relevant to more transport specific 
designs; and tank repair services could expand to accommodate the new 
standards.
    Based on the expected service life of a transport tank of 30 years, 
we assume that only 1/30 of all transport tanks will be replaced each 
year. Given the optional nature of this rule, the newly constructed 
tanks will consist of some combination of Section XII transport tanks 
and some Section VIII, Division 1 transport tanks. A manufacturer will 
build tanks according to demand, including price. At the same time, we 
believe repairers and inspectors will be able to adjust and accommodate 
the small number of Section XII transport tanks entering the market 
each year.
    Based upon our above-mentioned 5,200 estimated businesses and 
assumptions, PHMSA certifies that the proposals in this SNPRM will not 
have a significant economic impact on a substantial number of small 
entities. In this notice, PHMSA is soliciting further comment on this 
conclusion that the proposals in this SNPRM 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 NBIC are analogous; thus, the recordkeeping costs of complying 
with Section XII and the NBIC are no different than those required 
under the current regulatory scheme. Moreover, we believe the 
recordkeeping requirements of Section XII and NBIC (specifically 
Supplement 6) are more straightforward.

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 proposed 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 it 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 (CEQ) (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 CEQ regulations order Federal agencies to conduct an 
environmental

[[Page 25636]]

assessment considering the following: (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)).
1. Need for the Proposal
    The PHMSA is proposing this rulemaking to IBR the 2015 editions of 
Section XII and the NBIC to provide greater flexibility in the 
manufacture and repair of authorized transport tanks by authorizing 
manufacture-to-industry standards (i.e., ASME Section XII developed 
specifically with transportation in mind).
2. Alternatives Considered
    The PHMSA is considering the following alternatives:

--Alternative 1 is to take no action;
--Alternative 2 is to IBR Section XII and NBIC (including Supplement 6) 
and mandate its use by removing Section VIII, Division 1;
--Alternative 3 is to IBR Section XII and allow use of Section XII as 
an alternative construction standard to Section VIII, Division 1 and 
the HMR. Use of the NBIC for continued service Section VIII, Division 1 
would be optional, while use of the NBIC for continued service of 
Section XII transport tanks would be required; and
--Alternative 4 is to allow use of the Section XII standards through 
Special Permit.

    Each alternative presented represents different levels of adoption 
of Section XII, from Alternative 1 (0%) to Alternative 2 (100%). 
Alternatives 3 and 4 may result in a distribution of use between these 
extremes. It is difficult to find a firm basis to project future market 
activity--i.e., to calculate the expected distribution of transport 
tank manufacture between the two standards. However, PHMSA believes 
that the IBR of Section XII would provide an opportunity for savings to 
both the manufacturer and the user of the tanks.
    Alternative 1: No action. For this alternative, the HMR would 
remain unchanged. This is not the preferred alternative. This 
alternative maintains the status quo both for the construction and 
design of Section VIII, Division 1 CTMVs, cryogenic portable tanks, and 
ton tanks and for the continued service transport under Part 180 
(including the 1992 edition of the NBIC for CTMVs). 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 account for the unique conditions and 
stresses encountered 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 gains in efficiency.
    Alternative 2: IBR and require use of both Section XII and NBIC and 
remove Section VIII, Division 1. This is not the preferred alternative 
either. This alternative would require transport tanks to be built to 
transport-specific design standards, thus improving efficiencies 
through greater design flexibility and variety in material of 
construction. This alternative would likely lead to less fuel 
consumption because of larger tank capacities, and Section XII would 
also provide for more uniform enforcement over time. However, 
implementing this alternative may preclude a normal market-based 
transition from one standard to another, and complying with new 
standards would effectively force manufacturers to make such a 
transition regardless of costs associated with equipment investments 
and personnel changes. Many commenters expressed concern that imposing 
new ASME construction standards would unduly burden them either 
immediately or in the future, and without recourse. Costs would include 
the purchase of Section XII and the NBIC, stamp certification, and 
familiarization training.
    Alternative 3: IBR and authorize use of Section XII as an 
alternative to Section VIII, Division 1, and use of the NBIC for 
continued service, as applicable. This option is the preferred 
alternative because it would provide regulatory flexibility without 
diminishing current safety standards or imposing burdensome costs. 
Specifically, it would provide more freedom for the marketplace with 
respect to the construction of transport tanks, while at the same time 
providing for pressure vessel options geared towards the transport 
environment. Furthermore, this alternative would authorize the use of 
the 2015 edition of the NBIC as it applies to existing tanks and would 
require its use for those transport tanks built to Section XII, as 
required by Section XII.
    Alternative 4: Allow use of Section XII through special permit 
application. For this alternative, the HMR would also remain unchanged. 
This is not the preferred alternative. This alternative presents the 
option to produce, use, and maintain transport tanks manufactured to 
Section XII through a special permit. The PHMSA would allow 
technological advancement yet also maintain some oversight over the 
manufacture of these transport tanks. The PHMSA has already issued two 
special permits related to Section XII. This option would require 
positive action by manufacturers to apply for a special permit. While 
this may be a more cautious approach, under this option each special 
permit application would require technical drawings and incur the costs 
and administrative burdens associated with special permit requests, 
including the factual analysis required and ``party-to'' applications. 
The PHMSA estimates that the typical special permit application costs 
$45 to the applicant and $3,000 for us to evaluate.
    The PHMSA is proposing Alternative 3, as it was found to be 
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 build tanks to the 
Section XII standards.
3. Environmental Consequences
    When developing potential regulatory requirements, PHMSA evaluates 
the requirements to consider the environmental impact. Specifically, 
PHMSA evaluates the following: The risk of release and resulting 
environmental impact; the risk to human safety, including any risk to 
first responders; the longevity of the packaging; and the circumstances 
in which the regulations would be carried out (i.e., the defined 
geographic area, the resources, any sensitive areas) and how they could 
thus be impacted.
    The non-editorial proposed provisions of this SNPRM are discussed 
in further detail and evaluated based on their overall environmental 
impact, as follows:
    Environmental benefits result from fewer trips for CTMVs, cryogenic 
portable tanks, and ton tanks used to transport the same quantities of 
hazardous materials, because of greater capacities. In most cases, due 
to alternative materials of construction, the thickness of the tank 
shells can be reduced, permitting more material to be hauled and 
reducing the number of trips needed to handle the same volume of 
product. For example, an MC 331 propane tank manufactured according to 
Section XII would have a 12.5 percent reduction in wall thickness when 
compared to Section VIII, Division 1. This reduction would lead to at 
least a 2 percent increase in product capacity while maintaining the 
current level of

[[Page 25637]]

safety. As supported by the studies referenced in the December 30, 2013 
NPRM and based on the analysis of both sections of the ASME code, PHMSA 
asserts that despite the reduction in the design margin, the standards 
provide an equivalent level of safety. Because the proposed 
alternatives would provide the same level of safety, the expectation is 
that the risk of incidents is reduced proportionally to the reduction 
of vehicle trips to move authorized packaging.
4. 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).
5. Conclusion
    This SNPRM proposes to IBR Section XII and the NBIC as alternatives 
to Section VIII, Division 1 and the HMR. As discussed above, PHMSA 
believes these standards provide an equivalent level of safety and the 
proposals in this SNPRM are environmentally neutral. In fact, depending 
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 the 
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. The PHMSA participates in the establishment of 
international standards in order to protect the safety of the American 
public, and we 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 the 
UN Recommendations and International Maritime Dangerous Goods Code. The 
intent is for the standards to be used globally, and several foreign 
manufacturers already possess the ``T'' stamp certification indicating 
the ability to manufacture transport tanks in accordance with the 
updated section of the code. Furthermore, one of the transport tanks 
that can be constructed in accordance with Section XII is a UN T75 
cryogenic portable tank. Accordingly, incorporating Section XII, and 
the companion 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 107

    Administrative practice and procedure, Hazardous materials 
transportation, Packaging and containers, Penalties, Reporting and 
recordkeeping requirements.

49 CFR Part 171

    Exports, Hazardous materials transportation, Hazardous waste, 
Imports, Incorporation by reference, Reporting and recordkeeping 
requirements.

49 CFR Part 173

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

49 CFR Part 178

    Hazardous materials transportation, Motor vehicle safety, Packaging 
and containers, Reporting and recordkeeping requirements.

49 CFR Part 179

    Hazardous materials transportation, Railroad safety, Reporting and 
recordkeeping requirements.

49 CFR Part 180

    Hazardous materials transportation, Motor carriers, Motor vehicle 
safety, Packaging and containers, Railroad safety, Reporting and 
recordkeeping requirements.

    In consideration of the foregoing, 49 CFR Chapter I is amended as 
follows:

PART 107--HAZARDOUS MATERIALS PROGRAM PROCEDURES

0
1. The authority citation for part 107 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. 104-121 sections 212-213; Pub. L. 
104-134 section 31001; Pub. L. 112- 141 section 33006, 33010; 49 CFR 
1.81 and 1.97.

0
2. In Sec.  107.307, revise the paragraph (a) introductory text to read 
as follows:


Sec.  107.307  General.

    (a) When the Associate Administrator and the Office of Chief 
Counsel have reason to believe that a person is knowingly engaging or 
has knowingly engaged in conduct which is a violation of the Federal 
Hazardous Material Transportation Law or any provision of this 
subchapter or subchapter C of this chapter, or any standard 
incorporated by reference in subchapter C of this chapter, or any 
exemption, special permit, or order issued thereunder, for which the 
Associate Administrator or the Office of Chief Counsel exercise 
enforcement authority, they may--
* * * * *

PART 171--GENERAL INFORMATION, REGULATIONS, AND DEFINITIONS

0
3. 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.

0
4. In Sec.  171.7,
0
a. Redesignate paragraph (g)(2) as (g)(3);
0
b. Add new paragraph (g)(2); and
0
c. Revise paragraph (x)(2).
    The amendments read as follows:


Sec.  171.7  Reference material.

* * * * *
    (g) * * *
    (2) 2015 ASME Boiler and Pressure Vessel Code (ASME Code Section 
XII), 2015 Edition, July 1, 2015 (as follows), into Sec. Sec.  173.14, 
178.278, 178.301, 179.302:

[[Page 25638]]

    (i) Section XII--Rules for Construction and Continued Service of 
Transport Tanks.
    (3) ASME B31.4-2012, Pipeline Transportation Systems for Liquids 
and Slurries, November 12, 2012, into Sec.  173.5a.
* * * * *
    (x) * * *
    (2) 2015 National Board Inspection Code (NBIC), A Manual for Boiler 
and Pressure Vessel Inspectors, 2015 Edition, into Sec. Sec.  173.14, 
178.278, 178.301, 179.302, 180.402, 180.502, 180.602:
    (i) Supplement 6, Continued Service and Inspection of DOT Transport 
Tanks, 2015 Edition.
* * * * *

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

0
5. 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
6. Add Sec.  173.14 to read as follows:


Sec.  173.14  Authorization and conditions for the use of ASME Code 
Section XII.

    This section authorizes, with certain conditions and limitations, 
the use of ASME Code Section XII (IBR, see Sec.  171.7) for the 
construction and continued service of cargo tank motor vehicles, 
cryogenic portable tanks, and multi-unit tank car tanks (ton tanks). 
The following table presents the transport tanks authorized for 
construction using ASME Code Section XII.

          Authorized Specification Packaging Using Section XII
------------------------------------------------------------------------
                 Tank type                          Specification
------------------------------------------------------------------------
Cargo Tank Motor Vehicles (CTMVs).........  MC 331, 338, and DOT 406,
                                             407, and 412.
Cryogenic Portable Tanks..................  UN T75.
Ton Tanks.................................  DOT-106A and 110AW.
------------------------------------------------------------------------

    Conditions and limitations on the use of the ASME Code Section XII 
for design, construction, qualification and certification, and 
maintenance are as follows--
    (a) All tank types. (1) Use of ASME Code Section XII for design, 
construction, qualification, and certification of authorized packaging 
includes use of ASME Code Sections II (Materials), Section V 
(Nondestructive Examination); Section VIII (Rules for Construction of 
Pressure Vessels), Division 1 for parts only, and Division 2 for 
fatigue analysis only; and Section IX, (Welding, Brazing, and Fusing 
Qualifications);
    (2) Continuing qualification and maintenance of cargo tank motor 
vehicles, cryogenic portable tanks, and ton tanks must be in accordance 
with the NBIC and Supplement 6 (IBR, see Sec.  171.7) in conjunction 
with ASME Code Section XII as authorized in part 180 of this 
subchapter;
    (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'');
    (4) Periodic test information is not permitted on the ASME 
nameplate. Marking must be in accordance with the Supplement 6;
    (5) A person performing a certification inspection (i.e., an 
inspector) must be qualified in accordance with ASME Code Section XII 
under its general rules for inspection (Article TG-4), and hold either 
a current National Board of Boiler and Pressure Vessel Inspectors 
(National Board) commission and endorsement of the ASME tank class 
(e.g., Class 3 for DOT 406 cargo tanks) for the type of inspection to 
be performed or, when applicable, a certification (in accordance with 
the NBIC) from his or her employer. Inspectors of cargo tanks, or their 
employer, must be registered with DOT in accordance with 49 CFR part 
107, subchapter F; Inspectors of cryogenic portable tanks and ton tanks 
need to be registered with DOT through approval by the Associate 
Administrator prior performing inspection duties;
    (6) A person (e.g., a facility) performing repairs on a cargo tank 
authorized under this section must hold a current National Board 
certificate of authorization for the use of the National Board ``TR'' 
or ``R'' stamp. Persons, or the employer, performing repairs on cargo 
tanks must also be registered with DOT in accordance with 49 CFR part 
107, subchapter F; Repairers of cryogenic portable tanks and ton tanks 
must obtain prior approval from the Associate Administrator to make 
repairs.
    (b) Cargo tank motor vehicles. A cargo tank motor vehicles must 
conform to all applicable requirements of this part, and must meet to 
ASME Code Section XII, Modal Appendix 1 (for cargo tanks), all 
Mandatory Appendices and Non Mandatory Appendices, except as follows:
    (1) For MC 338 Cargo Tanks, ASME Code 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.
    (c) Cryogenic portable tanks. Cryogenic portable tanks must conform 
to all applicable requirements of this part, and must meet ASME Code 
Section XII, Modal Appendix 3, Article 1, all Mandatory Appendices and 
Non Mandatory Appendices, except as follows:
    (1) An inspector must perform external and internal visual 
inspection in accordance with Supplement 6 (IBR, see Sec.  171.7) in 
addition to ASME Code Section XII, Modal Appendix 3, Article 1, 
paragraph 3-1.10(b), and Article 1, 3-1.10(b)(5);
    (2) ASME Code Section XII, Modal Appendix 3, Article 1, paragraph 
3-1.10(b)(6) does not apply; and
    (3) Records must be kept in accordance with the Supplement 6, as 
applicable.
    (d) Ton tanks. Ton tanks must conform to all applicable 
requirements of this part and must meet ASME Section XII, Modal 
Appendix 4, Article 1, all Mandatory Appendices and Non Mandatory 
Appendices, except as follows:
    (1) ASME Code Section XII, Modal Appendix 4, Article 1, paragraph 
3-1.10 does not apply. Manufacturer-certified fusible plugs, tested and 
qualified under the fuse plug manufacturers' written quality control 
system must be used;
    (2) Notwithstanding ASME Code Section XII, Modal Appendix 4, 
Article 1, paragraph 4-8, non-ASME marked fusible plugs are authorized;
    (3) Per ASME Code Section XII, Modal Appendix 4, Article 1, 
paragraph 4-12(a), an inspector must perform an external and internal 
visual inspection in accordance with NBIC Supplement 6;
    (4) Records must be kept in accordance with the Supplement 6, as 
applicable; and
    (5) A ton tank that fails a prescribed test or inspection must be 
repaired in accordance with NBIC or removed from service.

PART 178--SPECIFICATIONS FOR PACKAGINGS

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

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

0
8. Add Sec.  178.278 to read as follows:


Sec.  178.278  Alternative requirements for the design, construction, 
inspection and testing of portable tanks intended for the 
transportation of refrigerated liquefied gases.

    Notwithstanding the requirements of Sec. Sec.  178.274 and 178.277 
of this subpart,

[[Page 25639]]

UN T75 cryogenic portable tanks may be designed, constructed, inspected 
(i.e., certified) and tested in accordance with ASME Code Section XII 
(IBR, see Sec.  171.7) in conjunction with the NBIC and Supplement 6 
(IBR, see Sec.  171.7), and in accordance with the conditions and 
limitations of Sec.  173.14 of part 173 of this subchapter.
0
9. Add Sec.  178.301 to read as follows:


Sec.  178.301  Alternative requirements for the design, construction, 
inspection and testing of cargo tank motor vehicles.

    Notwithstanding the requirements of this subpart, cargo tank motor 
vehicles Specification MC 331, 338, and DOT 406, 407, or 412 may be 
designed, constructed, inspected (i.e., certified) and tested in 
accordance with ASME Code Section XII (IBR, see Sec.  171.7) in 
conjunction with the NBIC and Supplement 6 (IBR, see Sec.  171.7), and 
in accordance with the conditions and limitations of Sec.  173.14 of 
part 173 of this subchapter.

PART 179--SPECIFICATIONS FOR TANK CARS

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

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

0
11. Revise Sec.  179.302 to read as follows:


Sec.  179.302  Alternative requirements for the design, construction, 
inspection and testing of multi-unit tank car tanks (Classes DOT-106A 
and 110AW).

    Notwithstanding the requirements of this subpart, Class DOT-106A 
and 110AW multi-unit tank car tanks may be designed, constructed, 
inspected (i.e., certified) and tested in accordance with ASME Code 
Section XII (IBR, see Sec.  171.7) in conjunction with the NBIC and 
Supplement 6 (IBR, see Sec.  171.7), and in accordance with the 
conditions and limitations of Sec.  173.14 of part 173 of this 
subchapter.

PART 180--CONTINUING QUALIFICATION AND MAINTENANCE OF PACKAGINGS

0
12. 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
13. Add Sec.  180.402 to read as follows:


Sec.  180.402  Alternative qualification and maintenance.

    Notwithstanding the applicability of Sec.  180.401 and the 
requirements of Sec.  180.413 (for ASME Code Section VIII, Division 1 
cargo tanks) of this subpart for the continuing qualification and 
maintenance of an authorized specification cargo tank motor vehicle, 
and subject to conditions and limitations set forth in Sec.  173.14 of 
part 173, the NBIC (IBR, see Sec.  171.7)--
    (a) Must be used, with Supplement 6 (IBR, see Sec.  171.7), for the 
continuing qualification, maintenance, or periodic testing (i.e., 
continued service) of cargo tanks constructed to ASME Code Section XII 
in accordance with Sec.  178.301 of this subchapter; and
    (b) May be used, in combination with the requirements of this part, 
for the continuing qualification, maintenance, or periodic testing 
(i.e., continued service) of cargo tank motor vehicles constructed to 
ASME Code Section VIII, Division 1. Specifically, DOT specification 
cargo tank motor vehicles constructed to ASME Section VIII, Division 1 
that bear a U stamp may be inspected, repaired and tested under part 
180, subpart E and the NBIC.
0
14. Add Sec.  180.502 to read as follows:


Sec.  180.502  Alternative qualification and maintenance.

    Notwithstanding the applicability of Sec.  180.501 of this subpart 
for the qualification and maintenance of multi-unit tank car tanks, and 
subject to conditions and limitations set forth in Sec.  173.14 of part 
173, the NBIC and Supplement 6 (IBR, see Sec.  171.7), must be used for 
the continuing qualification, maintenance, or periodic testing (i.e., 
continued service) of Class DOT-106A and 110AW multi-unit tank car 
tanks constructed to ASME Code Section XII in accordance with Sec.  
179.302 of part 179 of this subchapter.
0
15. Add Sec.  180.602 as follows:


Sec.  180.602  Alternative qualification and maintenance.

    Notwithstanding the applicability of Sec.  180.601 of this subpart 
for the continuing qualification, maintenance or periodic testing of 
portable tanks, and subject to conditions and limitations set forth in 
Sec.  173.14 of part 173, the NBIC and Supplement 6 (IBR, see Sec.  
171.7) must be used for the continuing qualification, maintenance, or 
periodic testing (i.e., continued service) of cryogenic portable tanks 
constructed and qualified to ASME Code Section XII in accordance with 
Sec.  178.278 of part 178 of this subchapter.

    Issued in Washington, DC, on April 22, 2016, under authority 
delegated in 49 CFR 1.97.
William S. Schoonover,
Deputy Associate Administrator, Pipeline and Hazardous Materials Safety 
Administration.
[FR Doc. 2016-09919 Filed 4-28-16; 8:45 am]
 BILLING CODE 4910-60-P


