Consensus Study Report
Transportation Research Board Special Report 350
Subscriber Categories: Marine transportation; policy
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Cover photo: Three liquefied natural gas vessels at Sabine Pass LNG. Photo provided by Cheniere Energy, Inc., and used with permission.
This publication was reviewed by a group other than the authors according to the procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the National Academy of Medicine.
This study was sponsored by the U.S. Coast Guard.
International Standard Book Number-13: 978-0-309-72088-5
International Standard Book Number-10: 0-309-72088-5
Digital Object Identifier: http://doi.org/10.17226/27803
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COMMITTEE ON IMPROVING THE EFFICIENCY AND EFFECTIVENESS OF THE COAST GUARD CERTIFICATE OF COMPLIANCE EXAMINATION PROGRAM FOR GAS CARRIERS
KATHERINE F. TURNBULL (Chair), Senior Research Fellow and Regents Fellow, Texas A&M Transportation Institute
J. EDMUND (ED) CARR, Independent Consultant
RICHARD A. GILMORE, Liquefied Natural Gas Shipping Consultant
ERIC W. LINSNER, President, LINCO Shipping, Inc.
MARK F. MARTECCHINI, President, Webb Institute
ZAHRA MOHAGHEGH, Associate Professor, University of Illinois at Urbana-Champaign
JOHN P. NADEAU, Independent Consultant, U.S. Coast Guard (retired)
TRACY PHILLIPS, U.S. Coast Guard (retired)
JOSEPH (JOE) A. RIVA, Independent Consultant, Lowrider IV MC LLC
DAVID G. ST. AMAND, President, Navigistics Consulting
NANCY T. TIPPINS, Principal, The Nancy T. Tippins Group, LLC
Transportation Research Board Staff
MARK S. HUTCHINS, Study Director, Consensus and Advisory Studies
THOMAS R. MENZIES, JR., Director, Consensus and Advisory Studies
TIMOTHY B. MARFLAK, Program Coordinator
MYAH STROMAN, Senior Program Assistant
Consultant
SARAH JO PETERSON, 23 Urban Strategies, LLC
NOTE: See Appendix B, Disclosure of Unavoidable Conflict of Interest.
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Reviewers
This Consensus Study Report was reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise. The purpose of this independent review is to provide candid and critical comments that will assist the National Academies of Sciences, Engineering, and Medicine in making each published report as sound as possible and to ensure that it meets the institutional standards for quality, objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process.
We thank the following individuals for their review of this report:
Although the reviewers listed above provided many constructive comments and suggestions, they were not asked to endorse the conclusions or recommendations of this report, nor did they see the final draft before its release. The review of this report was overseen by CHRIS T. HENDRICKSON (NAE), Carnegie Mellon University, and R. KEITH MICHEL (NAE), Webb Institute. They were responsible for making certain that an independent
examination of this report was carried out in accordance with the standards of the National Academies and that all review comments were carefully considered. Responsibility for the final content rests entirely with the authoring committee and the National Academies.
Acknowledgments
The committee thanks the numerous individuals who contributed to its work.
From the U.S. Coast Guard:
Ken Hettler, Office of Commercial Vessel Compliance
LCDR Brent Mellen, Office of Commercial Vessel Compliance
CAPT Jason Smith, Commander, Sector Houston-Galveston
CAPT Mark Neeland, Chief, Office of Commercial Vessel Compliance
LCDR William Hickey, Liquefied Gas Carrier National Center of Expertise
LCDR Jason Y. Ryu, Liquefied Gas Carrier National Center of Expertise
Ali Cochran, Sector Houston-Galveston
Mark Bottiglieri, Sector Houston-Galveston
Frederick (Jamie) Wilson, Civilian Marine Inspector
Alberto Hernandez, Director, Vessel Traffic Services
Scott Whalen, Vessel Traffic Management Specialist
ENS Elizabeth K. Cheatham, Sector Houston-Galveston
Keith Core, Office of Commercial Vessel Compliance
Emanuel J. Terminella, Office of Vessel Activities
Mark Hinkle, Office of Shore Forces
From the Society of International Gas Tanker and Terminal Operators:
Rob Farmer, Principal Technical Advisor
From the Oil Companies International Marine Forum:
Kevin Coelho, Nautical Adviser
Ajay Gour, Inspector Training & Accreditation Manager
From the International Association of Independent Tanker Owners:
Patrick Keffler, Regional Manager, Americas
From Norton Lilly International:
Paul Carlton, Executive Vice President
From Poten & Partners:
Gordon Shearer, Senior Advisor
From the Houston Pilots Association:
CAPT Clint Winegar, Presiding Officer
From the Greater Houston Port Bureau:
Christine Schlenker, Vice President
From Enterprise Products:
Greg DeLong, Director, Marine Liaison
From the Harbor Safety Committee Certificate of Compliance Working Group:
Jeffrey Milstein, Chair of Working Group (Vitol)
Denise Schaefer, Assistant Chair of Working Group (Odfjell USA)
From Cameron LNG:
Nelson Robles, Director, Marine Operations
From Energy Transfer:
Steve Couch, Senior Technical & Marine Specialist
Chris Deslatte, Marine Operations and Vetting Manager
From the American Bureau of Shipping:
Louis O’Donnell
Joe Angilella
Daniel Wesp
From the International Registries, Inc./The Marshall Islands:
RADM Kevin Cook, Coast Guard (retired) and Maritime Consultant
Steven Garcia, Senior Liquefied Natural Gas/Liquefied Petroleum Gas Specialist
From Cheniere Energy, Inc.:
Guy Nicholls, Director, Marine Operations
Daniel Plumley, Director, Marine, Sabine Pass LNG
Amy Miller, Manager, Local Government & Community Affairs
From the U.S. Nuclear Regulatory Commission:
Mike Franovich, Director, Division of Risk Assessment, Office of Nuclear Reactor Regulation
PROJECT MANAGEMENT
Mark S. Hutchins managed the study and assisted the committee in the preparation of its report with the assistance of Sarah Jo Peterson, and under the guidance of Thomas R. Menzies, Jr. Timothy B. Marflak and Myah Stroman provided administrative and logistical support. The report review process was managed by Karen Febey.
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Contents
2 OCEAN SHIPPING OF LIQUEFIED GASES
Introduction to Shipping Liquified Gases
Liquefied Natural Gas Transport Trends
Liquefied Petroleum Gas Transport Trends
3 THE CERTIFICATE OF COMPLIANCE PROGRAM AND THE SAFETY FRAMEWORK FOR LIQUEFIED GAS CARRIERS
Introduction to the Safety Framework for Gas Carriers
The Coast Guard and Port State Control
Expansion of Coast Guard Safety Assurance Programs
Certificate of Compliance Examination Process
Coast Guard Vessel Inspection Workforce
Liquefied Gas Carrier Safety Performance
Current Coast Guard Activity Levels
Projected Coast Guard Activity Levels Through 2040
4 REVIEW OF PROPOSED OPTIONS TO REFORM THE CERTIFICATE OF COMPLIANCE PROGRAM
Advantages and Challenges of the Proposed Options
Modifying Certificate of Compliance Program Requirements
5 CONCLUSIONS AND RECOMMENDATIONS
Pressing Need for Reforms to Maintain Efficient Implementation
Imperative for Reforms That Maintain the Certificate of Compliance’s Safety Role
Merits of Proposed Reforms to the Certificate of Compliance Program
A STUDY COMMITTEE BIOGRAPHICAL INFORMATION
Preface
Section 8254 of the Elijah E. Cummings Coast Guard Authorization Act of 2020 directed the Government Accountability Office (GAO) to review gas-qualified inspector staffing levels and how the Coast Guard makes the most efficient and effective use of the inspectors for liquefied gas carrier exams. Six months after the release of GAO’s report, the same section of legislation directed the U.S. Coast Guard to enter into an arrangement with the National Academies of Sciences, Engineering, and Medicine (the National Academies) to do the following:
(A) conduct an evaluation of the constraints and challenges to maintaining examination efficiency under the program as United States bulk liquefied gases cargo, liquefied natural gas exports, and associated vessel traffic at United States ports increase; and
(B) issue recommendations for changes to resources, regulations, policies, and protocols to maintain the efficiency of the program.
To conduct the study, the National Academies appointed an 11-member committee of experts in gas carrier operations, maritime safety regulation, risk assessment, vessel inspection and certification services, and workforce training and management. The study committee met in person four times and virtually six more times. To inform the study, the committee heard from multiple parties, who are listed in the Acknowledgments section of this report.
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Acronyms and Abbreviations
| ABS | American Bureau of Shipping |
| ACP | Alternate Compliance Program |
| AEO | Annual Energy Outlook |
| AMS | Area Maritime Security |
| bbl | barrels |
| Bcf | billion cubic feet |
| CAP | Condition Assessment Program |
| CBM | cubic meter |
| CCS | carbon capture and storage |
| CFR | Code of Federal Regulations |
| COC | Certificate of Compliance |
| COI | Certificate of Inspection |
| COTP | captain of the port |
| CWO | chief warrant officer |
| EIA | U.S. Energy Information Administration |
| EQUASIS | Electronic Quality Shipping Information System |
| FERC | Federal Energy Regulatory Commission |
| FGCE | foreign gas carrier examiner |
| FID | final investment decision |
| GAO | Government Accountability Office |
| GRT | gross register tons |
| IACS | International Association of Classification Societies |
| IGC Code | International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk |
| IMO | International Maritime Organization |
| ISM Code | International Safety Management Code |
| Kbbl | thousand barrels |
| kBD | thousand barrels per day |
| kCBM | thousand cubic meters |
| LGC | liquefied gas carrier |
| LGC NCOE | Liquefied Gas Carrier National Center of Expertise |
| LNG | liquefied natural gas |
| LOC | letter of compliance |
| LPG | liquefied petroleum gas |
| LR | Lloyd’s Register of Shipping |
| m3 | cubic meters |
| MARPOL | International Convention for the Prevention of Pollution from Ships |
| MARV | maximum allowable relief valve |
| Mb | thousand barrels |
| mcf | million cubic feet |
| MISLE | Marine Information for Safety and Law Enforcement |
| MMb | million barrels |
| MMt | million tons |
| MODU | mobile offshore drilling unit |
| MOU | memorandum of understanding |
| MSC | Marine Safety Center |
| MSD | Marine Safety Detachment |
| MSU | Marine Safety Unit |
| NCOE | National Center of Expertise |
| NOA | notice of arrival |
| NRC | U.S. Nuclear Regulatory Commission |
| NVO | national verifying officer |
| OCIMF | Oil Companies International Marine Forum |
| OCMI | officer in charge, marine inspection |
| OCS | Outer Continental Shelf |
| PQS | performance qualification standard |
| PSC | Port State Control |
| PSCE | Port State Control examiner |
| PSCO | Port State Control officer |
| QUALSHIP 21 | Quality Shipping for the 21st Century |
| RO | recognized organization |
| SAR | search and rescue |
| SIGTTO | Society of International Gas Tanker and Terminal Operators |
| SIRE | Ship Inspection Report |
| SMS | safety management system |
| SOE | Subchapter O endorsement |
| SOLAS | International Convention for the Safety of Life at Sea |
| SOT | Statement of Task |
| SPA | sale and purchase agreement |
| SSM | Sector Staffing Model |
| STCW | International Convention on Standards of Training, Certification and Watchkeeping for Seafarers |
| Tcf | trillion cubic feet |
| TMSA | Tanker Management and Self-Assessment |
| TTP | Tactics, Techniques, and Procedures |
| USC | U.S. Code |
| VLEC | very large ethane carrier |
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