The U.S. Department of Transportation (DOT) has announced another action to streamline energy market regulations, seeking to lower energy costs and maintain national energy stability.
As part of the changes, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued two new rules and an enforcement policy to modernize and amend existing energy regulations. The updates are projected to improve energy sector efficiency, reducing unnecessary pipeline replacements and pressure reductions, lowering compliance costs and providing relief to areas impacted by the national energy emergency.
The first rule modernizes class location regulations to enable operators to apply contemporary risk management principles when addressing the safety of gas pipelines impacted by class location changes. According to federal officials, operators typically use a risk management approach that was developed in the 1950s. That approach has not evolved to account for five decades of refined, innovative technological and safety practice development.
This final rule offers operators a modern Integrity Management (IM) practice to confirm or restore the maximum allowable operating pressure of eligible segments that undergo class location changes. The adoption and implementation of these risk-based alternatives will help operators avoid unnecessary pipeline replacements and pressure reductions.
PHMSA’s second rule adopts several amendments to the Hazardous Materials Regulations (HMR) to reduce regulatory burdens associated with the safe transportation of hazardous materials. These will ultimately lower compliance costs associated with transporting energy materials through cargo tanks and alleviate burdens on fuel transportation without compromising safety. The amendments include:
- Revising the cargo tank facility registration requirements to allow for electronic submission procedures.
- Including updated guidelines for the safe transportation of chlorine by highway in the HMR, accounting for new technologies.
- Allowing the marking of fuel identification numbers with the lowest flash point transported in the same or previous business day, revising the marking requirements for multiple petroleum distillate fuels.
- Changing the scope of safety training and security training requirements for certain hazmat employees.
- Allowing the use of external coverings other than paint that meet reflectivity requirements for select transportation vehicles.
- Allowing the use of video cameras or video optics equipment for cargo tank inspections or tests.
PHMSA also announced a new enforcement policy targeting relief for consumers in areas affected by the national energy emergency. The policy enables regulated entities to apply for special permits for deferring compliance activities under certain conditions.
The agency’s Office of Pipeline Safety (OPS) and Office of Hazardous Materials Safety (OHMS) will refrain from taking enforcement action should the regulated party meet three criteria:
- Prove that performing the needed activity would contribute to the national energy emergency by negatively impacting the transportation of energy throughout the West Coast, Northeast and Alaska.
- Demonstrate that deferring the activity would not create an unreasonable risk to public safety, property or the environment.
- File an application for a special permit no later than 45 days after determining that the required activity should not be performed.
PHMSA will not take enforcement action while considering applications submitted for special permits. In addition, the agency will provide a brief buffer period of non-enforcement should the application be denied for the applicant to take appropriate action.
Photo by Wolfgang Weiser from Pexels
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