Underground Infrastructure - July 2023 - 10

WASHINGTONWATCH
Th e federal Pipeline and Hazardous
Materials Safety Administration (PHMSA)
has proposed major changes to its
leak detection based not on concerns
about safety but, rather, in order to reduce
methane emissions related to their
contribution to climate change. Th e move
to comply with a provision in 2020 Protecting
our Infr astructure of Pipelines and
Enhancing Safety (PIPES) Act broadens
the agency's mission to environmental
concerns which may turn out, Congressional
authorization aside, to be a very
controversial move.
Part of PHMSA's rationale for this
proposed rule, other than injecting environmental
concerns into the agency's
mandate, is the belief that although the
pipeline industry has made some headway
with voluntary industry eff orts to reduce
methane leaks: " those eff orts generally
exhibit shortcomings (including meager
participation, limited application to different
pipeline facilities, absence of meaningful
leak reduction targets, or a lack of
transparency, limited application to natural
gas pipelines), underscoring the need
for timely federal regulatory intervention. "
" Th e proposed rule's preamble creates
the impression pipes are leaking leſt and
right, " stated Emily Mallen, an att orney at
Akin Gump in Washington, who has been
fi elding concerned phone calls from transmission
pipeline clients. " Industry will not
be happy with that characterization.
" Pipelines have been able to say we
are safe. Th e industry is proud of its safety
record. If they start gett ing dinged by
PHMSA for leaks based on environmental
protection principles, it could give the
impression that their systems are not safe.
Th at won't sit well with the industry. "
Section 118 of the PIPES Act gives
PHMSA new authority to force companies
to plug both " fugitive emissions "
10 JULY 2023 | UndergroundInfrastructure.com
Stephen Barlas | Washington, D.C. Editor
New Leak Detection Rules
for Pipelines Proposed
and " vented emissions " from over 2.7
million miles of gas transmission, distribution
and gathering pipelines, and
other gas pipeline facilities, as well as
403 underground natural gas storage
facilities and 165 liquefi ed natural gas
(LNG) facilities. According to PHMSA,
these will help in " improving public safety,
promoting environmental justice and
addressing the climate crisis. "
" I do think PHMSA has some ground
to consider environmental impacts of
leaks, " Mallen explained. " But what concerns
me is that this rule goes too far. Th e
proposed rule focuses a lot on climate.
By emphasizing so much on climate,
pipeline safety may become less of a bipartisan
issue and may result in PHMSA
being further politicized. "
Investigation
Key Republicans in the House are already
investigating the May 5, 2023, leak detection
proposal among other PHMSA regulatory
eff orts. On May 9, House Energy
and Commerce Committ ee Chair Cathy
McMorris Rodgers (R-Wash.) and Subcommitt
ee on Energy, Climate and Grid
Security Chair Jeff Duncan (R-S.C.) sent
a lett er to Tristan Brown, acting administrator
at PHMSA, asking a number of
questions about diff erent issues.
One item in that lett er asked, regarding
the leak detection proposal, whether
PHMSA is required to conduct a risk assessment
and cost-benefi t analysis, so all
new regulations are cost-eff ective. Th at
query added:
" Has PHMSA estimated the compliance
costs of the proposed regulation?
How much does PHMSA expect the proposed
regulation will increase the price
of natural gas for American consumers?
How does PHMSA estimate environmental
costs and benefi ts? Does PHMSA
estimate environmental costs and benefi
ts related to climate change that are incurred
outside the United States for use
in agency rulemakings?
" Does PHMSA utilize the Social Cost
of Carbon, the Social Cost of Methane,
or other tools or models to estimate
environmental costs related to climate
change? How does PHMSA defi ne 'equity
benefi ts,' a term used in the May 5,
2023, proposal? Please describe PHMSA's
statutory authority and methodology
for estimating 'equity benefi ts' for use
in agency rulemaking. "
PHMSA's current rules are narrowly
focused on public safety risks associated
with ignition of large-volume, instantaneous
releases and accumulated gas; they
are unclear regarding when, if at all, most
leaks must be repaired.
Small methane leaks do not have to
be repaired. Some pipelines do have to
promptly repair " hazardous leaks, " but
that term is not defi ned in terms of risks
to the environment. Current regulations
tolerate signifi cant intentional emissions
of methane and other gases, even in
non-emergency situations, by allowing
venting, blowdowns and other large-volume
releases of gas.
Th e proposed rule establishes an
Advanced Leak Detection Program
(ALDP) performance standard that
would require operators to:
* Grade and repair all leaks
(except those from compressor
stations) and not merely those
that pose public safety risk.
* Establish minimum criteria
for leak grades and associated
repair schedules prioritized by
safety and environmental hazard.
* Reduce intentional sources of
methane emissions by minimizing
releases associated with blowdowns.
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