
[Federal Register Volume 79, Number 114 (Friday, June 13, 2014)]
[Rules and Regulations]
[Pages 33864-33867]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13809]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 168

[Docket No. USCG-2012-0975]
RIN 1625-AB96


Double Hull Tanker Escorts on the Waters of Prince William Sound, 
Alaska

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is finalizing the escort requirements for 
double hull tankers over 5,000 gross tons transporting oil in bulk on 
the waters of Prince William Sound, Alaska (PWS). This final rule 
mandates two tug escorts for these tankers. The Coast Guard previously 
published an interim rule on August 19, 2013. Section 711 of the Coast 
Guard Authorization Act of 2010 directed the Coast Guard to promulgate 
regulations as soon as practicable to ensure that tug escort 
requirements apply to these double hull tankers.

DATES: This final rule is effective July 14, 2014.

ADDRESSES: Comments and material received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
are part of docket USCG-2012-0975 and are available for inspection or 
copying at the Docket Management Facility (M-30), U.S. Department of 
Transportation, West Building Ground Floor, Room W12-140, 1200 New 
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays. You may also find this 
docket online by going to http://www.regulations.gov and following the 
instructions on that Web site.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call or email Mr. Kevin Tone, Office of Operating and Environmental 
Standards, Coast Guard; telephone 202-372-1441, email 
Kevin.P.Tone@uscg.mil. If you have questions on viewing or submitting 
material to the docket, call Ms. Cheryl Collins, Program Manager, 
Docket Operations, telephone 202-366-9826.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Regulatory History
III. Basis and Purpose
IV. Background
V. Discussion of Comments
VI. Discussion of the Rule
VII. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Abbreviations

Act Coast Guard Authorization Act of 2010
CFR Code of Federal Regulations
DHS Department of Homeland Security
E.O. Executive Order
FR Federal Register
GT Gross tons
NPRM Notice of proposed rulemaking
OPA 90 Oil Pollution Act of 1990 (Pub. L. 101-380, 104 Stat. 484)
PWS Prince William Sound, Alaska

[[Page 33865]]

RFA Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612)
Sec.  Section symbol
U.S.C. United States Code

II. Regulatory History

    On August 19, 2013, we published an interim rule with request for 
comments entitled ``Double Hull Tanker Escorts on the Waters of Prince 
William Sound, Alaska'' in the Federal Register (78 FR 50335). We 
received one comment on the interim rule. No public meeting was 
requested, and none was held.

III. Basis and Purpose

    The basis of this rulemaking is section 711 of the Coast Guard 
Authorization Act of 2010 (Pub. L. 111-281) (Act). In section 711, 
Congress directed the Coast Guard to revise its regulations to require 
all double hull tankers over 5,000 gross tons (GT) transporting oil in 
bulk in Prince William Sound, Alaska (PWS) be escorted by at least two 
towing vessels or other vessels considered to be appropriate by the 
Secretary. This requirement is intended to increase the protection of 
the environment and the safety of vessels transiting PWS by reducing 
the risk of groundings, allisions, or collisions because escort vessels 
are readily available to assist a tanker in distress.

IV. Background

    Section 4116(c) of the Oil Pollution Act of 1990 (Pub. L. 101-380, 
104 Stat. 484)(OPA 90) required the two-vessel escort system for single 
hull tank vessels over 5,000 GT transporting oil in bulk in PWS. These 
regulations are found in 33 CFR part 168. OPA 90 also mandated the 
phase-out of single hull tank vessels by January 1, 2015, and required 
that newly built tank vessels be double hulled.
    With the phase-out of the single hull tank vessels, there would 
have been no requirement for any tank vessel to have an escort. Section 
711 of the Act extended the escort system requirement to double hull 
tank vessels over 5,000 GT transporting oil in bulk in PWS.
    A double hull provides a tank vessel with added protection from an 
oil spill as a result of a hull breach due to a grounding, allision, or 
collision. In the double hull tanker, there is the outer hull--the 
watertight body of the ship--and a second inner hull a few feet 
inboard, which creates a second layer of watertight protection, to 
secure the cargo if the outer hull is breached. While double hull tank 
vessels provide greater protection from oil spills compared to single 
hull tank vessels, with section 711 of the Act Congress further 
increased the protection of the environment and the safety of vessels 
transiting PWS.

V. Discussion of Comments

    The interim rule which published on August 19, 2013, had a 90-day 
comment period. We received several comments from one commenter. One of 
the comments was generally supportive of the rule. The other comments 
were outside the scope of this rulemaking.

VI. Discussion of the Rule

    The purpose of the regulations in 33 CFR part 168, Escort 
Requirements for Certain Tankers, is to reduce the risk of oil spills 
from certain tankers over 5,000 GT by requiring that these tankers be 
escorted by at least two suitable escort vessels in applicable waters. 
The applicable waters are defined in Sec.  168.40 to include PWS.
    The requirement for two escort vessels has contributed to a 
reduction in spill incidents because the escort vessels are immediately 
available to influence the tanker's speed and course in the event of a 
steering or propulsion equipment failure, thereby reducing the 
possibility of a grounding, allision, or collision. This rule finalizes 
the part 168 regulations now in effect, which extend the escort 
requirements to double hull tankers over 5,000 GT transporting oil in 
PWS. This rule codifies the established industry practice for escorting 
double hull tank vessels on transits in and out of PWS.
    This rule finalizes, without change, revisions made by the interim 
rule to three sections of 33 CFR part 168. We finalize Sec.  168.01 to 
make it clear that part 168 now addresses escort vessels for both 
double hull tankers and single hull tankers. We finalize a definition 
of the term double hull tanker in Sec.  168.05. This rule also 
finalizes Sec.  168.20, the applicability of part 168, to include 
double hull tankers over 5,000 GT transporting oil in bulk in PWS. All 
other sections of part 168, including the escort vessel performance and 
operational requirements in Sec.  168.50, which includes prescribed 
transit speeds and other maneuvering parameters such as directional 
variances for escort vessels, remain unchanged. With this final rule, 
the Coast Guard is finalizing the escort vessel requirements of section 
711 of the Act.

VII. Regulatory Analyses

    We developed this final rule after considering numerous statutes 
and Executive Orders (E.O.s) related to this rulemaking. Below we 
summarize our analyses based on these statutes or E.O.s.

A. Regulatory Planning and Review

    Executive Orders 12866 (``Regulatory Planning and Review'') and 
13563 (``Improving Regulation and Regulatory Review'') direct agencies 
to assess the costs and benefits of available regulatory alternatives 
and, if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. This final rule is not a significant regulatory 
action under section 3(f) of E.O. 12866 as supplemented by E.O. 13563, 
and does not require an assessment of potential costs and benefits 
under section 6(a)(3) of E.O. 12866. The Office of Management and 
Budget has not reviewed it under E.O. 12866. Nonetheless, we developed 
an analysis of the costs and benefits of the rule to ascertain its 
probable impacts on industry. The final Regulatory Assessment follows:
    We received no public comments, additional information, or data 
that would alter our assessment of the interim rule. Therefore, we 
adopt the Preliminary Regulatory Analysis for the interim rule as 
final. A summary of that analysis follows:
    This rule finalizes the requirement for a two-vessel escort system 
for double hull tankers over 5,000 GT transporting oil in bulk in PWS, 
as mandated by section 711(b) of the Act.
    Table 1 below summarizes the impacts of the final rule.

                 Table 1--Summary of Final Rule Impacts
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           Category                             Summary
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Population...................  --15 double hull tank vessels that
                                transit PWS annually.
                               --One company that owns the 12 escort
                                vessels in PWS.
Costs........................  None--codification of existing practice.

[[Page 33866]]

 
Unquantified Benefits........  --Elimination of confusion within
                                industry by harmonizing CFR with U.S.C.
                               --Codification of current industry
                                practice ensures benefits of dual-vessel
                                escort system in PWS remain, including
                                reduction of the risk of an oil spill by
                                influencing a vessel's speed and course
                                in the event of equipment failure or
                                loss of steering and/or propulsion.
------------------------------------------------------------------------

Costs
    OPA 90 requires the two-vessel escort system for single hull 
vessels over 5,000 GT transporting oil in bulk in PWS. However, single 
hull tankers are currently being phased out in favor of double hull 
tankers. Based on vessel traffic data from the Coast Guard Marine 
Safety Unit in Valdez, Alaska, no single hull vessels have called on 
PWS since 2009.
    Based on communications with the Marine Safety Unit in Valdez, AK, 
as well as the Vessel Traffic Service and the Captain of the Port for 
that region, we determined that it has been an industry practice since 
2008 that double hull tankers be escorted by a two-vessel escort system 
when in transit through PWS. Currently, 15 double hull tank vessels 
transit PWS annually and over the last 5 years, double hull tank 
vessels made an average of 250 port calls annually on PWS. One company 
operates the 12 tugs that participate in the two-tug escort system in 
PWS.
    Because this final rule will codify an industry practice that has 
been in place for over 5 years, we do not anticipate that this final 
rule will impose additional costs on the public or industry, or alter 
industry behavior in any way. Finally, we do not anticipate that this 
final rule will impose new costs on the Coast Guard or require the 
Coast Guard to expend additional resources.
Description of Alternatives
    We considered two alternatives (including the preferred 
alternative) in the development of this rule. The key factors that we 
evaluated in considering each alternative included: (1) The degree to 
which the alternative comported with the congressional mandate in 
section 711 of the Act; (2) what benefits, if any, would be derived, 
such as enhancement of personal and environmental safety and security; 
and (3) cost effectiveness. The alternatives considered are as follows:
    Alternative 1: Revise 33 CFR part 168 to include double hull 
tankers over 5,000 GT transporting oil in bulk in PWS, but do not 
revise the existing performance-based escort requirements (preferred 
alternative). At present, the industry practice being employed on the 
waters of PWS is two tug escorts of both single and double hull 
tankers. Implementation of this final rule will codify current industry 
practice.
Alternative 2: Take no action.
Analysis of Alternatives
    We chose Alternative 1, which codifies current industry practice 
and implements section 711 of the Act as described in Section VI of the 
preamble above. We chose to reject Alternative 2, the ``no action'' 
alternative, because it would not implement section 711 of the Act.
Benefits
    This final rule codifies the current industry practice of a dual 
vessel escort system in PWS. The primary benefit of the final rule is 
eliminating confusion within industry by harmonizing Coast Guard 
regulations with the congressional mandate in section 711 of the Act. 
The practice of a dual vessel escort system also results in safety and 
environmental benefits, although these benefits exist under current 
practice. However, codification of the industry practice ensures the 
continuing benefits of the dual vessel escort system, which is to 
reduce the risk of an oil spill by ensuring the safe transit of tank 
vessels over 5,000 GT transporting oil in bulk in PWS. For PWS, we 
believe a two-vessel escort system is beneficial in the event of 
equipment failure such as the loss of steering or propulsion. If a 
tanker becomes disabled, the two escort vessels can influence the speed 
and course of the tanker, thereby reducing the likelihood of an 
allision, collision, or grounding. We reviewed allision, collision, and 
grounding casualty data for tank vessels in PWS over a 15-year period 
from 1998 through 2012 and found no casualty cases that involved a 
double hull tank vessel. All of these double hull vessels were escorted 
by a two-vessel escort.

B. Small Entities

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as 
amended, requires federal agencies to consider the potential impact of 
regulations on small entities during rulemaking. However, when an 
agency is not required to publish a notice of proposed rulemaking 
(NPRM) for a rule, the RFA does not require an agency to prepare a 
regulatory flexibility analysis. The Coast Guard was not required to 
publish an NPRM for this rule for the reasons stated in section III 
``Regulatory History'' of the interim rule and therefore is not 
required to publish a regulatory flexibility analysis.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small 
entities in understanding this rule so that they can better evaluate 
its effects on them. If the rule affects your small business, 
organization, or governmental jurisdiction and you have questions 
concerning its provisions or options for compliance, please consult Mr. 
Kevin Tone, CG-OES, Coast Guard; telephone 202-372-1441, email 
Kevin.P.Tone@uscg.mil. The Coast Guard will not retaliate against small 
entities that question or complain about this rule or any policy or 
action of the Coast Guard.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

D. Collection of Information

    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

E. Federalism

    A rule has implications for federalism under E.O. 13132, 
Federalism, if it has a substantial direct effect on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. We have analyzed

[[Page 33867]]

this rule under that Order and have determined that it is consistent 
with the fundamental federalism principles and preemption requirements 
described in E.O. 13132. Our analysis is explained below.
    As noted earlier in the preamble, this rule implements section 711 
of Public Law 111-281 for PWS. With respect to federalism, section 
711(c) of Public Law 111-281 provides that nothing in the Act or any 
other provision of Federal law related to the regulation of maritime 
transportation of oil should be construed or interpreted as preempting 
the authority of the State, or a political subdivision thereof, from 
requiring escort vessels to accompany tankers transporting oil in bulk 
in PWS. This rule does not have any federalism implications as it has 
no effect on the laws or regulations of the State of Alaska. The rule 
has no preemptive effect because the rule implements the Congressional 
mandate. Furthermore, this statute preserves the authority of the State 
of Alaska to promulgate additional requirements in PWS beyond that 
required by this rule. Therefore, this rule is consistent with the 
fundamental federalism principles and preemption requirements described 
in E.O. 13132.

F. Unfunded Mandates Reform Act

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

G. Taking of Private Property

    This rule will not cause a taking of private property or otherwise 
have taking implications under E.O. 12630, Governmental Actions and 
Interference with Constitutionally Protected Property Rights.

H. Civil Justice Reform

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

I. Protection of Children

    We have analyzed this rule under E.O. 13045, Protection of Children 
from Environmental Health Risks and Safety Risks. This rule is not an 
economically significant rule and does not create an environmental risk 
to health or risk to safety that may disproportionately affect 
children.

J. Indian Tribal Governments

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

K. Energy Effects

    We have analyzed this rule under E.O. 13211, Actions Concerning 
Regulations That Significantly Affect Energy Supply, Distribution, or 
Use. We have determined that it is not a ``significant energy action'' 
under that order because it is not a ``significant regulatory action'' 
under E.O. 12866 and is not likely to have a significant adverse effect 
on the supply, distribution, or use of energy.

L. Technical Standards

    The National Technology Transfer and Advancement Act (15 U.S.C. 272 
note) directs agencies to use voluntary consensus standards in their 
regulatory activities unless the agency provides Congress, through the 
Office of Management and Budget, with an explanation of why using these 
standards would be inconsistent with applicable law or otherwise 
impractical. Voluntary consensus standards are technical standards 
(e.g., specifications of materials, performance, design, or operation; 
test methods; sampling procedures; and related management systems 
practices) that are developed or adopted by voluntary consensus 
standards bodies.
    This rule does not use technical standards. Therefore, we did not 
consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.lD, which 
guide the Coast Guard in complying with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321-4370f), and have concluded that this 
action is one of a category of actions that do not individually or 
cumulatively have a significant effect on the human environment. This 
rule is categorically excluded under section 6(b) of the ``Appendix to 
National Environmental Policy Act: Coast Guard Procedures for 
Categorical Exclusions, Notice of Final Agency Policy,'' (67 FR 48244, 
July 23, 2002). This rule involves Congressionally-mandated regulations 
designed to protect the environment, specifically, regulations 
implementing the requirements of the Act. An environmental analysis 
checklist and a categorical exclusion determination are available in 
the docket where indicated under ADDRESSES.

List of Subjects in 33 CFR Part 168

    Cargo vessels, Navigation (water), Oil pollution, Water pollution 
control.

    For the reasons discussed in the preamble, the interim rule 
amending 33 CFR part 168 that was published at 78 FR 50335 on August 
19, 2013, is adopted as a final rule without change.

    Dated: June 9, 2014.
J. G. Lantz,
Director of Commercial Regulations and Standards, U.S. Coast Guard.
[FR Doc. 2014-13809 Filed 6-12-14; 8:45 am]
BILLING CODE 9110-04-P


