AGA expresses concern over PHMSA’s proposed gas transmission rule
The American Gas Association (AGA) expressed severe concern over the Pipelines and Hazardous Materials Safety Administration’s (PHMSA) Safety of Gas Transmission and Gathering Pipelines Proposed Rule on Thursday, warning that it could actually hinder pipeline safety.
The AGA said that the PHMSA’s proposed rule was largely unreasonable and unjustified because it does not take into account the success of the existing performance-based regulations placed upon natural gas utilities. Performance-based regulations give utilities leeway in how to meet a specific goal, and acknowledge the unique circumstances and characteristics of individual systems.
The AGA said that the proposed rule is process-driven and would enforce a particular methodology across the industry, regardless of whether or not it makes sense based on a facility’s unique circumstances. The association added that this would add unnecessary and burdensome operational costs for utilities and ratepayers alike, without actually improving pipeline safety.
The AGA affirmed its commitment to improving pipeline safety throughout the country, but disagreed with the PHMSA’s methodology of doing so. The AGA said that the proposed regulations are inconsistent and provide no justification as to how the proposed methodology better addresses concerns regarding pipeline safety.
The AGA sent the PHMSA a new proposal that would both address the organization’s pipeline safety goals and give utilities the freedom to reach those goals in ways that make sense for those facilities, which the AGA said would be more effective and affordable for all stakeholders. The AGA also provided the PHMSA with statements from utilities, to be considered separately from the AGA’s recommendations.
