Court Repeals Federal Pipeline Safety Standards

The U.S. Court of Appeals for the District of Columbia Circuit has vacated several natural gas pipeline safety standards established by the Biden administration, stating that the Pipeline and Hazardous Materials Safety Administration (PHMSA) failed to adequately justify the benefits relative to the costs. Judge Florence Pan noted that the agency's analysis was either inconsistent or lacking, which necessitated the court's decision to toss out the rules. The Interstate Natural Gas Association of America, which supported the revisions, had previously challenged certain standards, particularly those requiring repairs for corroded or damaged pipeline walls. While the court upheld one standard regarding monitoring corrosion-related anomalies, it emphasized the importance of thorough cost-benefit analysis in regulatory processes. The ruling underscores regulatory challenges faced by the Biden administration amid industry pushback. PHMSA is now required to reassess these standards in accordance with statutory procedures.