U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Approvals and Permits Division Programs and Policies Update Duane Cassidy Chief, Pressure Vessels Branch (PHH-33) Office of Hazardous Materials Safety March 17,

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Our Mission To protect people and the environment from the risks inherent in the transportation of hazardous materials

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Agency Goals Safety: To reduce the risk of harm to people due to the transportation of hazardous materials by pipelines and other modes. Environmental Stewardship: To reduce the risk of harm to the environment due to the transportation of oil and hazardous materials by pipeline and other modes. Reliability: To help maintain and improve the reliability of systems that deliver energy products and other hazardous materials. Global Connectivity: To harmonize and standardize the requirements for pipeline and hazardous materials transportation internationally, to facilitate efficient and safe transportation through ports of entry and through the supply chain. Preparedness and Response: To reduce the consequences (harm to people, environment, and economy) after a pipeline or hazmat failure has occurred

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration OHMS Divisions PHH-10 Standards & Rulemaking PHH-60 Program Development PHH-1 Office of the Assistant Administrator PHMSA Administrator PHH-20 Engineering & Research PHH-30 Approvals and Permits PHH-40 Field Services Support PHH-50 Outreach, Training, & Grants - 4 -

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Approvals and Permits Division Organizational Structure PHH-30 Approvals and Permits PHH-31 General Approvals and Permits PHH-32 Energetic Materials PHH-33 Pressure Vessels - 5 -

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration What Have We Been Doing? Reviewing and updating contact information for all approval holders to update approval files. Increased oversight and inspection on all approval and permit holders. Re-evaluated fitness review process (risk based/data driven). Incorporated a more stringent Technical Review of applications. Updating PHMSA website and available online content for better communication with approval holders and stakeholders

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration What Have We Been Doing? Began the process of incorporating Permits into the HMR. Increased oversight of all 3 rd party inspection agencies, including increased inspections, issuance of modified approval letters, and more stringent reporting and application requirements. Conducting onsite inspections of any approval holder who manufactures or certifies a DOT package to verify fitness, modifying approvals to more clearly define requirements, and update with a 5 year expiration date. Added UN ISO MEGC requirements to HMR. Reviewing portable tank regulatory requirements with possible regulatory changes/revisions for clarity

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration The 3 “C’s” Communication Compliance Consistency - 8 -

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Overall Pressure Vessel Program Goals: Goals: Risk based approach to determine gaps in respective approvals programs and mitigate those risks by the appropriate oversight and use of resources and personnel. Work closely with Field Operations to increase domestic and international oversight and compliance through –Improved coordination –Improved information sharing. –Improved communication and coordination with approved 3 rd Party inspection bodies

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Expectations of the Designated Approval Agencies (Portable Tanks/MEGC’s) Independency Communication with PHMSA/Reporting Reqts. Regulatory compliance Hold applicants accountable to the regulatory requirements. A Certification from a DAA, means that the applicant meets all of the applicable requirements i.a.w. 49 CFR. Complete Documentation of Non-conformities/Corrective Actions taken

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Noted Gaps and Corrective Actions Noted Gaps: Limited oversight of NONUS cylinder manufacturers and third party inspection agencies, including DAA’s. Lack of expiration dates on approvals. Lack of defined SOP and consistent inspection forms for cylinder inspection functions. Limited pool of qualified inspectors to effectively determine applicant fitness and provide oversight on companies inside and outside the U.S. Corrective Actions: Enacted a 5 year re-inspection program for all approved foreign manufacturers, to allow for more continued oversight of manufacturers and 3 rd parties. Revised all Approval letters to require 5 year renewal/re- inspection. Drafted SOP’s to define approval processes, and drafted universal inspection forms for consistency. Onsite inspection function is now handled by OHMFO, expanding the inspector pool and using procedures consistent with approval of U.S. companies

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Noted Gaps: More defined reporting language added to revised approvals. All applications of a technical nature are forwarded for Tech Review and recommendation. Applications are consistently reviewed and rejected if not i.a.w. HMR requirements. Implemented increased fitness review, use of HIP database, and inter office review of applications, also reviewing, updating, and sharing program data accordingly. Corrective Actions: Lack of review or oversight of approval letter reporting requirements. Applications for approvals reviewed by the Tech Office on a limited basis. Lack of consistent review of approval applications for completeness in accordance with 49 CFR Existing data regarding cylinder manufacturers, requalifiers, and 3 rd Party agencies not readily available or accessible between OHFO, PHH-30, and PHH Noted Gaps and Corrective Actions

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Moving Forward Assist Standards with developing clearer regulatory language into the 49 CFR, with regards to Portable Tanks/MEGC’s. Improve communication with 3 rd Parties to update and define DOT’s requirements/expectations. Work towards reciprocity with Transport Canada and other international inspection bodies. Continued oversight/compliance of portable tank manufacturers, requlifiers, and approved 3 rd party agencies. Hold annual/periodic meetings with approved 3 rd Party Agencies.

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 14 Break/ Questions? Duane Cassidy Chief, Pressure Vessels Branch (PHH-33)

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Duties of Designated Approval Agencies

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration When is a DAA required? Design Type Approval Witness of initial testing prior to use (i.a.w. 49 CFR ) 5-Year Periodic testing Repair to Portable Tank or MEGC (i.a.w. 49 CFR ; ; and ) Exceptional testing (i.a.w. 49 CFR and )

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration DAA is NOT required… The safety approval of cargo containers pursuant to 49 CFR, Parts is under the Authority of the USCG and not PHMSA. 2.5 Year periodic test. (Letter of Interp. – reference A1-0002)

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration HMR Regulations associated with Portable Tanks 49 CFR CFR – 49 CFR Part ( – ) 49 CFR Part ( – ) Approval Provisions Requirements for use of Portable Tanks Specifications for Manufacture. Qualification and Maintenance of Portable Tanks

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration HMR Regulations associated with MEGC’s (Cont.) 49 CFR – 49 CFR – 49 CFR Approval Provisions Specifications for Manufacture of MEGC’s. Requalification of MEGC’s

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Specific DAA duties of the inspector (UN Portable Tanks) Review application for completeness. Review drawings and calculations for compliance. Witness all required testing Ensure tank is fabricated i.a.w. drawings and calculations. Ensure tank is suitable for use. Upon completion, mark tank and issue certificate

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Specific DAA duties of the inspector (MEGC’s) Review application for completeness and that the design meets UN Reqts. Review drawings and calculations for compliance with specification. Prepare Design Type certificate. Witness all reqd. tests. Ensure correct fabrication. Upon completion, mark tank and issue certificate

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 22 Break/ Questions? Duane Cassidy Chief, Pressure Vessels Branch (PHH-33)

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Q & A Q 1: PHMSA requires a DAA to be independent from the tank manufacturer and owner. What does this mean? A: Notes: A company provides design consultation to portable (gas) tank manufacturers and then provides periodic inspection test witness on the same designs to which he’s provided design consultation. Is this considered not being independent? [The inspector can fail tests on designs he did not provide consultation, or possibly overlook design flaws on tanks he did design or consult on]. NOTE: The above example appear to be a dereliction of duty and a conflict of interest and are similar but slightly different ways of doing business as two companies that had their DAA status rescinded in the past (Canal Energy and Pacific Marine Repair). Perhaps using the example of the former DAA’s (and reasons for rescission) would be a useful instruction to stop the unethical/improper inspections

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Q & A (con’t) Q2: What about “Confined Space Entry” as a DAA? A: Yes, DAA must follow 29 CFR (OSHA’s Confined Space Entry requirements) Note: The overall responsibility of determining a confined space and permit-required confined space (PRCS) vs. non-permit confined space rests on the employer (person responsible for the tank). If an employer has a PRCS, they must have a PRCS program that entails safety equipment, safety/security protocols for the space, testing protocols and written plans to include communications, personnel duties permitting process to name a few. It is also the responsibility of the host employer to notify employer of contract employees (DAA's would fall into this) that a PRCS exists. There are engineering and mitigation efforts that an employer can effect to relieve some of the PRCS program requirements, as outlined in 29 CFR (c)(5)

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Q & A (con’t) Q3: Under Conditions of Approval, could we add a requirement for the DAA’s to retain records of repair, test and inspections, and must be made available upon request by DOT. A: Yes. Q4: Any other question?