U.S. Coast Guard Regulations “Making a difference” Jeff Lantz Director, Commercial Regulations & Standards U.S. Coast Guard United States Coast Guard Marine Safety, Security, and Stewardship 1 1 Why Regulate? • When required by law, to interpret the law, or to address “compelling public need” (Executive Order 12866: Regulatory Planning and Review) – Ensure activities of industry in keeping with broader societal objectives: safety, security, environmental protection – Provide enforceable policies for field – Provide reasoned, consistent, predictable policies for industry United States Coast Guard Marine Safety, Security, and Stewardship 2 2 USCG Regulatory Approach • Address risk in cost-effective manner • Consider economic impacts, with particular attention to small business impacts • Build international approaches where possible • Utilize industry consensus standards • Integrate regulations with policies to ensure reasoned, consistent enforcement Additional Requirements Consensus Standards International Standards Industry Voluntary Measures United States Coast Guard Marine Safety, Security, and Stewardship 3 3 LNG as Fuel - Interest in the U.S. TOTE RO/RO Container Ship LNG Retrofit United States Coast Guard Marine Safety, Security, and Stewardship 4 4 Gaps in Existing Regulations The Current Regulations Do Not address: • Design and construction of LNG fuel systems. • Operations, training, and general safety for personnel on vessels where LNG fuel systems are installed. • LNG transfer operations (Current procedures viewed in light of oil transfers). • Small scale LNG (e.g. bunkering) operations conducted from vessels and shoreside facilities (Currently viewed in context of large scale cargo transfer). • Barges transporting LNG in bulk. United States Coast Guard Marine Safety, Security, and Stewardship 5 5 U.S. Coast Guard Policy Letters Short Term Solution to Bridge Gaps: • Develop policy letters to address gaps in regulations until regulations can be developed. – Natural gas fuel systems on vessels • Base policy letters on existing regulations applicable to LNG cargo operations scaling down to fit needs and accomplish safety mission. • Ensure alignment with ongoing work of leading international organizations (e.g. IMO and ISO). United States Coast Guard Marine Safety, Security, and Stewardship 6 6 U.S. Code of Federal Regulations Long Term Solution to Close Gaps • Initiate rulemaking project. – Notice of Proposed Rulemaking – Final Rule • Use implemented policy to identify any additional areas to be addressed in regulation. CFR • Incorporate standards and guidance developed by the international community and LNG industry where appropriate. United States Coast Guard Marine Safety, Security, and Stewardship 7 7 U.S. Coast Guard LNG Industry Association • • • Standards Development IMO - International Code of Safety for Ships Using Gases or Other Low-Flashpoint Fuels (IGF Code) IMO - International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) ISO - International Guidelines for Bunkering LNG as a Marine Fuel (TC67 WG10) NFPA 52 - Vehicular Gaseous Fuel Systems Code (updates to Chapter on Marine Vessels) NFPA 59A - Production, Storage, and Handling of Liquefied Natural Gas (LNG) • • • • • Advisory Committees / Interagency & Industry Workgroups CGHQ Internal Natural Gas Workgroup Federal LNG Interagency Roundtable (Washington, DC) CTAC Subcommittee on LNG/CNG as Cargo and Use as Fuel (Federal Advisory Committee) SIGTTO – LNG Fuel Safety Advisory Group (London, UK) LNG Fuel Advisory Council (chaired by DNV, Houston) • • Other Industry Contacts Great Lakes Maritime Research Institute Center for LNG • • United States Coast Guard Marine Safety, Security, and Stewardship 8 8 Thank you – Questions? Additional Requirements Consensus Standards International Standards Industry Voluntary Measures United States Coast Guard Marine Safety, Security, and Stewardship 9 9