PHMSA Issues Notice of Limited Enforcement Discretion

On June 20, 2024 PHMSA issued a notice of limited enforcement discretion for the final rule titled "Periodic Updates of Regulatory References to Technical Standards and Miscellaneous Amendments." The new rule, which is effective this Friday June 28, 2024, incorporated by reference more than 20 updated industry technical standards.

Several industry associations filed joint petitions for reconsideration of the final rule, based on the fact that operators are currently engaged in projects that require compliance with the previous versions of industry technical standards. A change to those standards during the summer months, when construction in the pipeline industry is at its peak, would cause operators to "suffer irreparable harm" by disrupting progress and increasing costs.

PHMSA considered the petitions and determined it would exercise its discretion by allowing operators to follow either the previous or updated industry technical standards.

The limited enforcement discretion will last until January 1, 2025 at which time operators will be expected to put into use the updated documents. PHMSA has also encouraged state agencies to exercise the same enforcement discretion. This stay of enforcement, however, does not prevent PHMSA from pursuing an enforcement action if it believes a significant safety issue exists.

Operators will need to prepare for the January 1, 2025 deadline by analyzing the changes to applicable industry standards and updating their procedures and implementation methods accordingly. If you need an analysis of what industry technical standards changes might mean for your operations, contact Elemental Compliance today!