PHMSA Eases Pipeline, Fuel Transport Rules to Cut Energy Costs
PHMSA finalized new pipeline safety and fuel transport rules designed to cut compliance costs, ease infrastructure upgrades and lower energy transportation expenses.
(P&GJ) — The U.S. Department of Transportation on Monday finalized new pipeline safety and hazardous materials rules aimed at reducing compliance costs for energy infrastructure operators, moves federal officials say will lower energy transportation costs while maintaining safety standards.
Sean P. Duffy said the Pipeline and Hazardous Materials Safety Administration (PHMSA) is issuing two final rules and adopting a new enforcement policy that together are expected to generate more than $600 million in annualized cost savings.
“Under President Trump’s leadership, we’re driving down energy costs by encouraging innovation and cutting unnecessary red tape. These commonsense changes will make day to day life more affordable for American families while continuing to maintain the highest levels of safety,” Duffy said.
One rule updates PHMSA’s class location regulations for gas transmission pipelines, a framework that determines safety requirements based on population density near a pipeline. The changes reflect advances in pipeline technology and integrity management practices developed over the past five decades.
PHMSA said the updated rule will allow operators to avoid certain pipeline replacements and pressure reductions by applying modern, risk-based integrity management measures. The agency estimates the changes will save more than $461 million annually and reduce maintenance-related emissions by about 1.3 billion cubic feet per year.
A second rule amends PHMSA’s Hazardous Materials Regulations governing fuel transportation by cargo tank. The changes include allowing new technologies for cargo tank inspections and reinstating a long-standing exemption for placarding certain fuel shipments. PHMSA estimates these updates will generate $145.3 million in annualized savings.
PHMSA also issued a new enforcement policy tied to the national energy emergency declared by President Trump. The policy allows regulated entities to seek special permits to defer certain compliance activities in regions facing supply constraints, including the West Coast, Northeast and Alaska, provided safety is not compromised.
“Demand for American energy is growing, and today’s actions will reduce the cost of transporting it to consumers while prioritizing safety,” said Paul Roberti.
Both final rules were submitted to the Federal Register on Monday. Changes to pipeline class location requirements will take effect 60 days after publication, while hazardous materials updates will take effect after 30 days.