Section 408.4034. Public utility or industrial exemption.

(1) Practices and procedures for the exemption of licensing and permitting as referenced in section 23 of the act, MCL 408.773 consist of all of the following:

(a)      The boiler(s), boiler external piping, and non-boiler external piping shall be owned and operated by the public utility or industrial facility.

(b)     Have in effect a quality program which shall be in the form of a quality manual.

(c)      The quality program, at a minimum, shall address the required features relative to the scope of work to be preformed. The scope of work related to repairs or replacements to boiler(s), boiler external piping, non-boiler external piping, and boiler replacements.

(2)     The outline of the quality program shall include the following:

(a)     Title page:  name and complete address of the company.

(b)     Contents page:  a listing of the contents of the manual by subject.

(c)     Scope of work: clearly indicates the scope of work.

(d)     Statement of authority: a corporate resolution or policy recognizing its obligation under the act for compliance at all times and naming the person having responsibility and authority for the scope of work.

(e)     Manual control: provisions for revising and issuing those revisions to maintain the manual current within the organization.

(f)      Material control: method used to assure that only acceptable materials (including welding material) are ordered, verified, and identified in storage.

(g)      Method of performing work: documenting repairs in sufficient detail. Both of the following shall be documented:

(i)     When repairs are conducted on boiler(s) or boiler external piping the inspector must have prior acceptance of the method of repairs.

(ii)      The quality program shows who is responsible to notify the inspector of any boiler or boiler external piping repair work, and keeps him or her apprised of the progress of such work.

(h)     Shall describe controls to ensure qualified welding procedures and welders qualified to those procedures are used for repairs.

(i)      Nondestructive examination (NDE) and heat treatment: shall describe controls for NDE and heat treatment procedures.

(j)        Examinations and tests: what examination and tests are to be conducted upon completion of the repair.

(k)      Acceptance and inspection of repairs: the individual responsible for acceptance of repairs.

(l)      Inspections: provisions for the inspector to have access to areas where repair work is being performed.

(m)     Report of boiler repair: indicate the person responsible for preparing, signing, and presenting the record of welded (RWR) form to the inspector and sending it to the boiler division.

(n)     Nonconforming items:  have a system for the correction of nonconformities.

(o)     Exhibits: forms referenced in the quality manual shall be included.

(3)       The boiler owner shall maintain a maintenance record, subject to audit by state inspectors, for each boiler. The maintenance record shall contain an adequate description of each abnormal event, modification, repair, hydro test, internal or external inspections, and off-normal operations.

(4)     The boiler owner shall contract with an approved third-party inspection and insurance company for boiler and boiler external piping repairs.

(5)        All welders working on boilers or piping within the quality program shall be employees of the utility or industrial facility.

(6)       All welding, heat treatment, non-destructive examination, and testing procedures shall be qualified pursuant to the ASME code.

(7)       The boiler owner shall maintain documentation between each audit of non-boiler external piping repairs or replacements.

(8)      Third-party employees or contractors shall not work under the exemption program for the applicant related to installation or repairs.

(9)     The boiler division shall be notified prior to any boiler replacements.

(10)      The applicant shall prepare and file with the boiler division an appropriate record of a welded repair form, signed by a commissioned inspector, with the boiler division. The applicant shall submit to the boiler division the record of welded repair form within 180 days after the completion of the repair.

(11)        Upon the boiler board approval of the exemption program, a public utility or industrial plant shall be granted relief from licensing and permit requirements of the act for repairs to boiler and piping and the installation of a direct boiler replacement.

(12)     Failure to comply with any of the provisions of this rule shall constitute just cause for revocation of the exemption status.

(13)      The chief of the boiler division shall cause an audit of the exemption program to be conducted at least once every 3 years, to ensure continued compliance with the boiler act and the board’s requirements and these rules.

History: 2013 AACS.