Moves will generate over $600 million in savings while enhancing safety
WASHINGTON, D.C. – U.S. Transportation Secretary Sean P. Duffy today announced the Pipeline and Hazardous Materials Safety Administration (PHMSA) is issuing new rules and introducing a new enforcement policy that will lower energy costs and provide relief to American families. Together, these changes will enhance safety and generate over $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,” said U.S. Transportation Secretary Sean P. Duffy.
The first rule modernizes PHMSA’s class location regulations for gas transmission lines to account for more than five decades of advancements in technology and safety practices. These changes, modeled on PHMSA’s highly successful class location special permit program, will allow operators to avoid unnecessary pipeline replacements and pressure reductions by implementing modern, risk-based Integrity Management (IM) practices. PHMSA’s rulemaking is expected to save more than $461 million per year and reduce maintenance-related emissions by 1.3 billion cubic feet per year.
The second rule amends PHMSA’s Hazardous Materials Regulations (HMR) and will lower compliance costs associated with transporting fuel via cargo tank. From allowing new technologies to perform cargo tank inspections to restoring a longstanding exemption in the placarding requirements for shipment of certain fuels, these commonsense changes will generate $145.3 million in annualized cost savings.
Finally, PHMSA issued a new enforcement policy to provide relief to consumers in areas affected by the national energy emergency declared by President Trump, particularly the West Coast, Northeast, and Alaska. The policy allows regulated entities to apply for special permits to defer the performance of compliance activities that could contribute to the national energy emergency in these areas, if they can do so safely.
“Demand for American energy is growing, and today’s actions will reduce the cost of transporting it to consumers while prioritizing safety,” said PHMSA Administrator Paul Roberti.
Both final rules were sent to the Federal Register for publication today. The changes to class location requirements will become effective 60 days from publication, while the changes to the HMR will become effective 30 days from publication.