August 20, 2010
Docket Operations
U.S. Department of Transportation
West Building, Ground Floor, Room W12-140
1200 New Jersey Avenue, SE
Washington, D.C. 20590-0001
Re: Docket Number PHMSA-2010-0017; Incorporation of Certain Cargo Tank Special
Permits Into Regulations
The National Propane Gas Association (NPGA) submits the following comments in response to
the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) July 21, 2010 Notice of
Proposed Rulemaking (NOPR) proposing to amend the Hazardous Materials Regulations
(HMR) to incorporate provisions contained in certain widely used or long standing cargo tank
special permits. Specifically, NPGA supports the incorporation of provisions associated with SP13341 and SP-11209.
Background
NPGA is the national trade association of the propane industry having a membership of about
3,200 companies, with 39 state and regional associations representing members in all 50
states. While NPGA’s largest membership category includes retail marketers of propane gas, it
also consists of propane producers, transporters and wholesalers, and manufacturers and
distributors of equipment, containers and appliances. Propane gas is used in millions of
installations nationwide for home and commercial heating and cooking, in agriculture, in
industrial processing, and as a clean-air alternative engine fuel for both over-the-road vehicles
and industrial lift trucks.
Introduction
The purpose of special permits is to provide wider access to the regulatory flexibility offered in the special
permits and eliminate the need for numerous renewal requests, thereby facilitating commerce and
reducing the paperwork burdens while still maintaining an equivalent level of safety. Special Permits
allow a company or individual to package or ship a hazardous material in a manner that varies from the
regulations provided a proper level of safety is maintained.
Both SP-11209 and SP-13341 are special permits that have been granted to members of NPGA in the
past and are still in use today. SP-11209 was first established in 1994 and allows non-DOT specified
cargo tank motor vehicles, commonly referred to as “moveable fuel storage tenders” or “farm carts,” to
transport propane for certain agricultural purposes only. SP 13341, referred to as the 5% Transport Rule,
was established in 2004 and allows the transport of ASME storage tanks having a water capacity
between 125 to 500 gallons, which are charged with propane to more than 5% of their water capacity.
Further, this special permit only allows one-way transportation from the consumer’s premises to the bulk
plant facility.
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As noted previously, NPGA supports the incorporation of provisions contained in both SP-11209 and SP13341 directly into the HMR. In doing so, it would eliminate the need for continued renewal requests
every four (4) years. The remainder of this letter offers additional reasons why NPGA supports PHMSA’s
actions.
Special Permit 11209 (SP-11209) “Farm Cart Special Permit”
The safety record and operational history of SP-11209, and the following supplemental
information support the propane industry’s contention that the HMR should be permanently
revised to authorize movement of mobile fuel storage tanks in agricultural applications.
History
The authorization of SP-11209 over the past 15 years has been necessary because the HMR
does not explicitly allow movement of mobile fuel storage tanks in agriculture. Agricultural
producers have limited on-site propane storage capacity and, therefore, their supplies must be
replenished in a manner consistent with the regulatory relief afforded through DOT special
permits. Agricultural mobile fuel-storage tanks are ASME storage tanks designed for propane
service that have been mounted on wheels, either single axle or full trailer and are used for a
wide-variety of agricultural applications and seasonal uses. These applications include, among
others, thermal weed and pest control, heating fuel for grain dryers, pig and chicken brooder
houses, and fuel for irrigation pumps.
NPGA originally petitioned DOT for rulemaking beginning in 1986 and submitted its first
application for an exemption in February 4, 1994. Since August 8, 1995, transportation of farm
carts as mobile fuel storage tanks for agricultural applications has been continuously authorized
by DOT under either Exemption or Special Permit. NPGA has received six (6) authorizations
and our current Special Permit, authorized on September 5, 2006, is on its 10th revision.
Safety
Farm carts used for transport of LPG in agricultural settings are provided appropriate means of
protection and containment of the liquid gas being transported. Propane farm carts are
equipped with fixed liquid level gauges used in the same manner and for the same purpose as
gauges identical in function on propane tank trucks / motor vehicles. They also have internal
excess flow valves that automatically shut off the flow of fuel should exterior valves be damaged
or become inoperative; and with pressure relief valves set to the same requirements as those
found for propane tank motor vehicles. Additionally, the tank itself is constructed as a pressure
vessel in compliance with Section VIII of the ASME Code as a MC-331 cargo tank.
DOT took over jurisdiction of all hazardous materials transportation in the mid-90’s as they
expanded their scope to include intrastate in addition to interstate transportation. Prior to 1998,
the transport of propane via mobile fuel storage tenders was regulated at the state government
level under the purview of NFPA 58. No known incidents occurred during this time of state
regulation further substantiating the safety of this operation.
NPGA believes proposed rulemaking authorizing movement of DOT mobile fuel storage tanks in
agricultural applications will not impact safety and will provide an equivalent level of safety as
currently found in the HMR. One of the conditions of the Special Permit is that any incidents
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experienced with moveable fuel storage tenders must be reported to DOT. Shipments or
operations conducted under the Farm Cart Special Permit are subject to the Hazardous
Materials Incident Reporting requirements specified in 49 CFR 171.15 and 171.16. NPGA is not
aware of any incidents nor has any incident been reported to NPGA regarding the use of farm
carts in agricultural applications.
NPGA strongly believes that the extensive operational history without incident for the past 15
years clearly demonstrates that amending the HMR to allow movement of mobile fuel storage
tanks in agricultural applications will provide an equivalent level of safety as currently found in
the HMR for the transport of other hazardous materials.
Special Permit 13341 (SP-13341) “5 Percent Transport Special Permit”
SP-13341 authorizes users to transport storage containers containing LPG charged to more
than 5 percent of their water capacity. At issue is whether transporting tanks from the
consumer’s installation back to the bulk plant facility provides a safer alternative for removing
propane from the tank at the bulk plant rather than at the point of installation. And, if these
provisions are amended into the HMR is an equivalent level of safety maintained. The following
discussion will demonstrate that an equivalent, if not a greater, level of safety is maintained.
History
Prior to October 1, 1998, most state LP-gas regulations permitted, under certain circumstances,
the intrastate transportation of consumer storage tanks containing more than 5 percent propane.
Subsequent to this date, however, the U.S. Hazardous Materials Regulations came under the
purview of federal regulations, superseding or preempting state regulations. As a result, with
intrastate transportation of hazardous materials under the jurisdiction of the U.S. Department of
Transportation (DOT), this transportation practice was prohibited until 2004. Since 2004, a
special permit issued by DOT has been in effect and utilized by thousands of grantees.
Safety
All relevant experience indicates that there were no incidents resulting from the transportation of
containers with more than 5 percent water capacity during the period of time when this practice
was permitted under state regulations, pre-1998. NPGA assures DOT that the same safe
practices which have contributed to the excellent safety record for transportation of propane
under existing DOT regulations (containing less than 5% water capacity) will be utilized for the
method of transportation proposed in this NOPR. Further, NPGA had a risk/safety analysis
performed to determine whether an equivalent level of safety would be maintained should
NPGA’s exemption request of 2003 be approved. The results of that analysis indicated that the
major concern associated with transportation of consumer storage tanks in excess of the 5
percent capacity limitation centered on the container’s lifting lugs.
ASME tanks are typically designed to be lifted by the lugs when empty, whereas DOT
containers are designed with a safety factor to account for lifting the container by the lugs with
product contained inside. The concern noted in the risk analysis was the potential for confusion
in the field in identifying whether a container was an ASME tank or DOT cylinder and the
resulting design of the lifting lugs. It was believed that such confusion in the field could result in
an unsafe approach to lifting the container. One of the requirements of NPGA’s exemption
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request was to specifically prohibit lifting of the container by the lifting lugs. This is consistent
with the current NOPR which requires lifting with slings, not by the lugs.
Additionally, the National Fire Protection Association (NFPA) pamphlet 58 (NFPA 58), LP-Gas
Code, permits transportation of consumer storage tanks in excess of 5 percent, provided certain
criteria are met as specified in Section 9.6.2 Transportation of Containers. Among others, this
criteria states that, “lifting lugs shall not be used to move these containers” and that
“transportation shall be permitted only from a stationary or temporary installation back to a bulk
plant.”
To illustrate our concerns, it is important to understand the properties of propane and the
operations of a marketer absent our current authorization by special permit to transport
containers with propane in excess of 5 percent water capacity.
On those occasions where transportation of a storage tank that contains propane in excess of 5
percent water capacity back to a bulk plant becomes necessary, a propane marketer would first
have to remove a sufficient amount of the fuel at the customer site in order to meet the capacity
limitation. However, removal of propane from the tank in the field is generally performed under
less than ideal safety conditions.
Propane is a liquefied petroleum gas (LPG). With a boiling point of –44oF, propane must be
stored under pressure in a storage tank or container in order for it to exist in liquid form.
Further, to allow for liquid expansion during warmer weather, propane containers are typically
filled to only 80 percent of its volumetric capacity. The remaining 20 percent of volume contains
propane vapor at the top of the container. Thus, propane exists in a pressurized state of
equilibrium with propane vapor located at the top of the container and propane liquid at the
bottom.
Our example provides several options available to a propane marketer to remove the propane
from the container in order to meet the current HMR 5 percent capacity limitation for
transporting the container:
1. Evacuation can occur by removing propane liquid from the bottom of the container by
connecting a pump to the tank’s bottom connection, with the liquid feeding the pump by
gravity. However, residential tanks often do not have a bottom connection available for
this function. In this circumstance, a compressor must be used to force the liquid from
the tank through a liquid withdrawal tube.
There are inherent problems in taking a compressor, its power source and other relevant
equipment, such as transfer hoses to the consumer premises. Often, physical obstacles
such as rocks or trees in the field or yard limit the use of this equipment. Further
complicating the situation is that there is no restricted access to the transfer area,
thereby allowing unauthorized people to remain within close proximity.
2. Another potential option to reduce the amount of propane in the container to the 5
percent capacity limitation is flaring. However, flaring is an extreme measure under
these circumstances and is done only when there are no other viable options. Releasing
even a small amount of gas to the atmosphere in an uncontrolled environment exposes
the gas to nearby sources of ignition. Flaring also requires constant attendance,
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generally takes many hours to complete and usually results in very inefficient burning
resulting in an undesirable environmental circumstance. Further, the operation of flaring
is inconsistent with efforts to conserve energy and reduce greenhouse gases.
NPGA believes that removal of propane from the tank at a marketer’s bulk plant rather than at
the point of use would ensure that the operation is carried out under the safest conditions.
There is controlled access to the bulk plant and more appropriate equipment is readily available
to perform this activity.
PHMSA states in the NOPR that, “inserting these special permits into regulations reduces
paperwork burdens and facilitates commerce while maintaining an acceptable level of safety.”
(75 FR 42365).
Paperwork Reduction
NPGA believes the Farm Cart Special Permit, SP-11209, originally authorized by DOT as an
Exemption in 1995 and the 5 Percent Transport Special Permit, SP-13341, also originally
authorized as an Exemption in 2004 both fully meet the criteria found in DOT’s December 22,
2009 Notice Of Proposed Rulemaking. The December, 2009 NOPR states, “The Pipeline and
Hazardous Materials Safety Administration is proposing to amend the Hazardous Materials
Regulations to incorporate provisions contained in certain widely used and longstanding special
permits that have an established safety record. Special permits allow a company or individual to
package or ship a hazardous material in a manner that varies from the regulations so long as an
equivalent level of safety is maintained.”
Facilitating Commerce
Agricultural propane equipment is used on row crops, chicken house pathogens, and as a
harvest aid for defoliation and treatment of crops. However, refueling of this equipment is
problematic due to lack of equipment and regulation. Typically on-board fuel tanks are of limited
capacity and may require refueling in the field three or four times during daily operation. The
permanent codification of SP-11209 could provide necessary incentive for manufacturers to
bring new farm carts to market. Permanent legal exemption would provide both greater
regulatory certainty justifying long-term capital investment often necessary for retooling customspecified farm carts and substantial simplification of design requirements. Currently, the benefits
of alternative fuel sources such as propane are at risk as there is limited potential market growth
and few available options for propane use in agriculture as a result of authorization only by
special permit. NPGA believes amending the HMR would provide regulatory relief for the
transportation of propane in agriculture without compromising safety and is in the public interest
as it ultimately results in the cost effective production of agricultural commodities.
Although infrequent, a customer may no longer need propane because of the availability of an
alternate fuel source or a customer may switch from one propane supplier to another, especially
in certain areas of the country that have a high level of competition among propane suppliers.
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Codifying the language of the NOPR easily allows consumers to make decisions in their choice
of energy usage and appliances.
SUMMARY
On behalf of the members of NPGA, we request that the proposed language in the NOPR for
“Moveable Fuel Storage Tenders” and “LPG Storage Containers” be incorporated into the HMR.
We believe this will provide wider access to the regulatory flexibility offered in both special
permits, SP-13341 and SP-11209, and eliminate the need for numerous renewal requests,
reduce paperwork burdens facilitate commerce, and most importantly, maintain an appropriate
and equal level of safety.
Thank you for the opportunity to comment on this Notice of Proposed Rulemaking. Please feel
free to contact us if you have any questions.
Sincerely,
Michael A. Caldarera
Vice President, Regulatory and Technical Services
National Propane Gas Association