33 CFR §154.108

1. (a)The Assistant Commandant for Marine Safety, Security and Environmental Protection, acting for the Commandant, grants an exemption or partial exemption from compliance with any requirement in this part if:
   1. (1)A facility operator submits an application for the exemption via the COTP; and
   2. (2)It is determined, from the application, that:
      1. (i)Compliance with the requirement is economically or physically impractical;
      2. (ii)No alternative procedures, methods, or equipment standards exist that would provide an equivalent level of safety and protection from pollution by oil or hazardous material; and
      3. (iii)The likelihood of oil or hazardous material being discharged is not substantially increased as a result of the exemption.
2. (b)If requested, the applicant must submit any appropriate information, including an environmental and economic assessment of the effects of and reasons for the exemption, and proposed procedures, methods or equipment standards.
3. (c)The exemption may specify the procedures, methods, or equipment standards that will apply.
4. (d)An exemption is granted or denied in writing. The decision of the Assistant Commandant for Marine Safety, Security and Environmental Protection is a final agency action.