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Statement of Need: PHMSA will be reviewing the definition of an HCA ( including the concept of a potential impact radius), the repair criteria for both HCA and non-HCA areas, requiring the use of automatic and remote controlled shut off valves, valve spacing, and whether applying the integrity management program requirements to additional areas would mitigate the need for class location requirements. This rulemaking is in direct response to Congressional mandates in the 2011 Pipeline Reauthorization Act, specifically; section 4 (e) Gas IM plus 6 months), section 5(IM), 8 (leak detection), 23 (b)(2)(exceedance of MAOP); section 29 (seismicity). Congress has requested PHMSA to review the existing regulations for gas transmission by pipeline and strengthen them through more clarity and expansion of of IM for gas pipelines. The goal of this rule is to improve gas transmission pipeline safety.

Summary of the Legal Basis: This action would respond to the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (P.L. 112-90), which requires that the Secretary of Transportation to study and submit to Congress reports on various topics related to transmission of natural gas by pipeline and to amend the current pipeline safety statutes through the rulemaking process after submission of these reports. The mandates which this rule responds to are found in section 4 (e) (Gas IM) , section 5 (IM), section 23 (b)(2)(exceedance of MAOP) and section 29 (seismicity).

Alternatives: Alternative analyzed included no change and extention of the compliance deadlines associated with the major cost of the requirement area; namely, development and implementation of management of change processes that apply to all gas transmission pipelines beyond that which already applies to beyond IMP- and control center-related processes.

Anticipated Costs and Benefits: PHMSA does not expect the proposed rule to adversely affect the economy or any sector of the economy in terms of productivity and employment, the environment, public health, safety, or State, local, or tribal government. PHMSA has also determined, as required by the Regulatory Flexibility Act, that the rule would not have a significant economic impact on a substantial number of small entities in the United States. Additionally, PHMSA determined that the rule would not impose annual expenditures on State, local, or tribal governments in excess of $152 million, and thus does not require an Unfunded Mandates Reform Act analysis. However, the rule would impose annual expenditure on private sector in excess of $152 million and is therefore economically significant.

Risks: This proposed rule will strengthen current pipeline regulations and lower the safety risk of all regulated entities.