View Rule

In this proposed rulemaking, PHMSA would be revisiting the requirements in the Pipeline Safety Regulations addressing integrity management principles for Gas Transmission pipelines. In particular, PHMSA would address: repair criteria for both HCA and non-HCA areas, assessment methods, validating and integrating pipeline data, risk assessments, knowledge gained through the IM program, corrosion control, change management, gathering lines, and safety features on launchers and receivers.

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; sec 4 (e) Gas IM plus 6 months), sec 5(IM), 8 (leak detection), 23 (b)(2) (exceedance of MAOP); sec 29 (seismicity).

Summary of the Legal Basis:

Congress has authorized Federal regulation of the transportation of gas by pipeline under the Commerce Clause of the U.S. Constitution. Authorization is codified in the Pipeline Safety Laws (49 U.S.C. sections 60101 et seq.), a series of statutes that are administered by the DOT, PHMSA. PHMSA has used that authority to promulgate comprehensive minimum safety standards for the transportation of gas by pipeline.

Alternatives:

Alternative analyzed included no change and extension 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 $138 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 $138 million. Here is a summary of the costs and benefits: Present Values Calculated at 3 Percent Discount for Gas rule Avg Annual Cost Estimate: $138.3 million/year. Avg Annual Benefit Estimate: $204.53 million/year. Avg Annual Net Benefit Estimate: $68.60 million/year

Risks:

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