FR 2021-02104

The document is a rule issued by the Coast Guard, which is part of the Department of Homeland Security (DHS). It establishes a permanent safety zone in the waters around Bahia de Ponce in Ponce, Puerto Rico. This safety zone is intended to protect the public and vessels during ship-to-ship transfers of liquefied gas (LG), prohibiting unauthorized access to the area during active operations. This rule is effective March 5, 2021.

General Summary

The Coast Guard's rule creates a safety zone extending 100 yards around liquefied gas carriers engaged in transfer operations off the coast of Ponce. The zone is enforced while transfers are active to protect navigation and human life. Entry into the zone requires authorization from the Captain of the Port San Juan or a designated representative. To gain access, vessels and individuals must follow specified communication protocols via radio, phone, or email. The rule aligns with various legal and environmental standards and has been analyzed for its potential effects on small businesses and federalism.

Significant Issues or Concerns

One significant issue with the document is its use of numerous acronyms like COTP (Captain of the Port) and LNG (Liquefied Natural Gas). Although defined in the document, they might still be unclear to some readers. Furthermore, the rule specifies that access to the safety zone is controlled by the Captain of the Port San Juan or a representative, without clearly outlining who such representatives could be, potentially causing confusion.

The rule also seems complex for small entities because it introduces regulations requiring authorization for entering the safety zone and details multiple communication methods to seek this permission. This could be overwhelming for small operators who may not be familiar with regulatory procedures.

Moreover, the discussion on the impact on small entities concludes that there is no significant economic impact, but it does not expand on the rationale behind this conclusion, leaving room for ambiguity among affected stakeholders.

Impact on the Public

The new rule is designed to enhance public safety by restricting unauthorized access around liquefied gas transfer operations, thus reducing the risk of accidents. While it may cause inconvenience to vessels needing to transit through the area, the rule is limited in both scope and duration, minimizing disruption.

However, the document indicates that compliance with the safety zone could be burdensome, particularly for smaller vessels that do not regularly operate in the area and are unfamiliar with such protocols. Mariners must adhere to orders from Coast Guard officers, though the nature of these orders is not explicitly defined.

Impact on Specific Stakeholders

Positive Impact: The rule provides clearer guidance for entities involved in liquefied gas operations, ensuring safety and reducing potential hazards. For companies like New Fortress Energy, conducting LNG transfer operations, the rule provides a structured operational environment, prioritizing safety and regulatory compliance.

Negative Impact: Small businesses and local maritime operators might face challenges adjusting to these new requirements, especially if they lack the resources or familiarity with the procedures needed to navigate the safety zone or seek necessary permissions. This could lead to operational delays or increased costs due to compliance.

Overall, while the rule enhances the safety of highly hazardous operations, it requires affected stakeholders to adapt to and comply with stricter navigation regulations, imposing a need for clear communication and possible regulatory adjustments for practical enforcement.

The document titled "Safety Zone; Bahia de Ponce, Ponce, PR" involves the establishment of a safety zone to ensure life safety during liquefied gas carrier operations. Financial implications, although indirectly referenced, provide insight into potential cost considerations.

The only explicit financial reference in the document is a mention of expenditures that may result from regulatory actions. Specifically, it states that the rule will not cause spending of $100,000,000 (adjusted for inflation) or more per year by state, local, tribal governments, or the private sector. This figure is part of the Unfunded Mandates Reform Act, which requires that federal agencies assess the costs of regulations to avoid overly burdensome financial implications on lower governance and private sectors. The document does not indicate that meeting the requirements of this rule will approach this considerable financial threshold, suggesting expected compliance costs remain relatively manageable.

Relating this to identified issues, one could infer that some confusion may exist around financial burdens potentially falling on small entities, such as small business owners and operators. While the document assures no significant economic impact on these smaller entities, it does not expansively detail how it reached this conclusion or discuss what costs might be incurred by entities seeking issuance or compliance with the safety zone rules.

Moreover, requirements for communicating with the Captain of the Port San Juan or obtaining authorization might necessitate additional resources or evoke logistical concerns for small operators, which could have indirect financial implications if not adequately addressed. The document could benefit from further explanation regarding this cost analysis to clarify any potential financial burdens small entities may face.

Overall, while the document briefly touches on financial concerns related to the rule, its limited elaboration on economic impacts and lack of specified allocations suggest minimal direct financial implications for the government or affected operators, although indirect costs must be navigated by those requiring compliance.