PHMSA Issues Proposed Gas Pipeline Rule, Broadly Expanding Regulatory Scope

Jameson Rice is an Associate, Michael Friedberg is a Senior Policy Advisor and David Whitestone is a Partner in Holland & Knight's Washington D.C. office

HIGHLIGHTS:

• The Pipeline and Hazardous Materials Safety Administration (PHMSA) has issued a Notice of Proposed Rulemaking that would significantly broaden the agency's regulatory scope with respect to gas pipelines.
• The proposed rule creates "Moderate Consequence Areas" as a new category for regulation and also requires that older pipelines that have not previously required testing be pressure tested.
• Automatic or remote-controlled shut-off valve requirements were omitted, leaving that for another rulemaking.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an extensive, 549-page Notice of Proposed Rulemaking on March 17, 2016, that would significantly broaden the agency's regulatory scope with respect to gas pipelines. The proposed rule follows on the heels of S. 2276, the