{"operation":"document","citation":"0900006480e883b2","title":"   U.S. DOT/RSPA - Draft Regulatory Evaluation and Regulatory Flexibility Certification","source_type":"rulemaking","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"The document proposes a new mandatory hazardous liquid annual report to provide RSPA/OPS with inventory data (miles by size and decade installed; type and volume transported; number and size of breakout tanks) because RSPA currently lacks such data and needs it to normalize and trend accident data and compare with natural gas pipeline data. RSPA rejected voluntary alternatives (API PPTI and NPMS) and selected a mandatory report. Estimated industry costs are $144,000 initial and $72,000 yearly (300 operators; 12 hours first year, 6 hours thereafter; $40/hour), yielding per-operator costs of $480 first year and $240 thereafter. The document concludes these costs are modest and certifies under the Regulatory Flexibility Act that the rule “would not have a significant impact on a substantial number of small entities,” while noting limited data on numbers of small operators and ongoing dialog","machine_formats":{"json":"https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e883b2.json","markdown":"https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e883b2.md"},"app_url":"https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e883b2","source_url":"https://downloads.regulations.gov/PHMSA-RSPA-2001-9832-0007/attachment_1.pdf","body":"<<<PAGE 1>>>\n\ne-*>? ’ I\nL t -\n, n-.-\n8 i % ~ , I . :! - 2\nU.S. DEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRAlXffN ’ 3 I ,. , , I P : - C J\n49 CFR PART 195\n-7 DOCKET NO. RSPA-01-9832\nRIN 2137-AD59\nPipeline Safety: New Reporting Requirement for Hazardous Liquid Pipeline Operators:\nHazardous Liquid Annual Report Form\nDRAFT REGULATORY EVALUATION AND REGULATORY FLEXIBILITY\nCERTIFICATION\nBackmound\nThe Research and Special Programs Administration’s (RSPA) Office of Pipeline Safety (OPS)\nhas responsibility for assuring adequate safety and environmental protection for risks posed by\nthe nation’s approximately 2 million miles of natural gas and hazardous liquid pipelines. The\nOPS shares responsibility for inspecting and overseeing the nation’s pipelines with state pipeline\nsafety offices. RSPA maintains a hazardous liquid pipeline accident database which it uses to\nidentify safety issues and to target inspections of hazardous liquid pipeline facilities based on\nrisk. RSPA does not, however, collect inventory information on hazardous liquid pipelines that\nwould allow for normalization or trending of accident data. The inventory information that the\nnew form proposes to collect includes: miles of pipeline by size and decade installed; type and\nvolume of hazardous liquid transported; number and size of breakout tanks; etc.\nNeed for the Regulation\nRSPA currently does not collect inventory data from hazardous liquid pipeline operators. The\ndata is needed to: 1) identify safety trends in hazardous liquid pipeline accident data; 2) provide\naggregate information about the extent and type of hazardous liquid pipelines in operation in the\nUnited States; and 3) compare natural gas pipeline inventory data with hazardous liquid pipeline\ninventory data. The proposed rule will provide RSPA with the inventory information necessary to\nperform normalization and trending of accident data and to accurately characterize the hazardous\nliquid pipeline infrastructure on a national scale.\nIn its special investigation report PB96-917002 (January 23, 1996), the National Transportation\nSafety Board (NTSB) issued recommendation P-96-1, which directed the Office of Pipeline\nSafety (OPS) to develop:\na comprehensive plan for the collection and use of gas and hazardous liquid pipeline\naccident data that details the type and extent of data to be collected, to provide RSPA\nwith the capability to perform methodologically sound accident trend analysis and\nevaluations of pipeline operator performance using normalized accident data.\nThe process of making elements of data comparable for comparison purposes (as, for example, in\n\n<<<PAGE 2>>>\n\nfinding a common denominator) is known as “normalizing “ the data.\nAlternatives\nAlternative 1 : Use the American Petroleum Institute Pipeline Performance Tracking Initiative\n(PPTI) which has been in existence since 1999.\nThis alternative was rejected because the PPTI program is voluntary and anonymous. RSPA\nrequires full participation and accountability by hazardous liquid pipeline operators.\nAlternative 2: Use the National Pipeline Mapping System (NPMS) as a means of collecting the\nnecessary information.\nNPMS is also a voluntary initiative. Alternative 2 was rejected for that reason and also because\nsystem limitations made submission of the information impractical.\nAlternative 3: Create a mandatory hazardous liquid pipeline annual report.\nAlternative 3 is the chosen alternative.\nAlthough RSPA has never collected the needed inventory data from the hazardous liquid\nindustry, it has collected such information from natural gas pipeline operators since the 1970’s.\nRSPA intends to use the inventory information from hazardous liquid pipeline operator annual\nreports to normalize and trend accident data. For example, RSPA will be able to compute a leak\nrate per mile of pipeline. RSPA may also determine if pipe installed in certain years are more\nlikely to have problems compared to those installed in other years. RSPA will be able to compare\noperators’ safety records to determine which operators may require more frequent Federal or\nstate inspections. Additionally, RSPA will use the normalized data to advise operators whether\nthey should consider repairing or replacing parts of their pipelines. RSPA will use the\nnormalized data for cost-benefit analysis, regulatory development and compliance, and RSPA\nresource utilization. State pipeline safety programs will use this data for the same purposes.\ncosts\nRSPA estimates the new annual report form will take hazardous liquid pipeline operators about\n12 hours to complete in its first year of use. Every subsequent year operators will spend about 6\nhours completing the form as they gain familiarity with it. The 6 hours for completing this form\ncorresponds to the time previously estimated for completion of the Annual Report form for Gas\nTransmission and Gathering Systems. The new hazardous liquid system form will be very\nsimilar to the gas system forms currently in use. RSPA estimates that 300 hazardous liquid\noperators will be required to completed this form yearly. The average cost to complete this form\nwill be $40 per hour. This is the same hourly cost used in RSPA’s recently published regulation\n\n<<<PAGE 3>>>\n\non hazardous liquid accident reporting. The $40 figure was based on the U.S. Department of\nLabor's National Occupational Employment and Wage Earnings for 1999. According to that\ndocument, the hourly wage for a Transportation, Storage, and Distribution Manager (the closest\ncategory to a pipeline manager) was $26.03 per hour. The $26.03 figure was multiplied by 1.35\nto account for fringe benefits ($26.03 x 1.35= $35.14). RSPA added an inflation factor of 14%\nto account for inflation from 1999 to 2002 ($35.14 x 1.14= $40.05).\nThree hundred forms X 12 hours X $40 per hour = $144,000 for the first year total cost to\nindustry.\nThe cost in subsequent years will be $60,000 (300 forms X 6 hours * $40 = $72,000).\nThe average cost per firm will be $480 the first year (12 X $40 = $480) and $240 each year\nthereafter (6 X $40 = $240).\nConclusions\nRSPA believes the initial annual cost of $144,000 and subsequent yearly cost of $72,000 are\nrelatively modest burdens on the hazardous liquid pipeline industry. The benefits accruing to\nRSPA, state pipeline safety offices, and industry through the increased utility of the hazardous\nliquid accident data should easily outweigh the cost. The additional information will allow\nRSPA, the states, and the hazardous liquid pipeline industry to identify safety issues and trends,\nand allow operators to make changes to procedures and practices that will ultimately reduce\npipeline accidents and improve pipeline safety.\nRegulatory Flexibility Act\nThe annual cost per operator of complying with this proposed rule is $480 for the first year and\n$240 per year thereafter. Based on this small increase in costs per operator, I certify pursuant to\nsection 605 of the Regulatory Flexibility Act (5 U.S.C. 605), that this proposed rulemaking\nwould not have a significant impact on a substantial number of small entities. RSPA continues\nto seek information from anyone who has information on the potential impact of this proposal on\nsmall entities. In RSPA's Hazardous Liquid Accident Reporting Notice of Proposed Rulemaking\n(66 FR 15681; March 20,2001) RSPA sought input from the public on the impact of the\nproposed rule on small entities. No one responded to this request. The Small Business\nAdministration Chief Counsel for Advocacy, however, made comments on behalf of small\nbusinesses. SBA asked a question regarding how many operators RSPA would consider small.\nFor several years RSPA has sought public comment from small hazardous liquid operators.\nRSPA solicited public comment from small operators in its recent rulemakings on pipeline\nintegrity management. No comments from small hazardous liquid operators were forthcoming.\nThe hazardous liquid pipeline industry is a highly competitive, capital intensive industry which in\nrecent years has seen many mergers and buyouts. SBA's criteria for defining a small entity in the\nhazardous liquid pipeline industry is 1,500 employees, as specified in the North American\n\n<<<PAGE 4>>>\n\nIndustry Classification System codes (4861 lO--Pipeline Transportation of Crude Oil and 48691 0-\n-Pipeline Transportation of Refined Petroleum Products). RSPA does not collect information on\nnumber of employees or revenues for pipeline operators. Such a collection would require OMB\napproval. However, RSPA has had recent conversations with SBA regarding characterization of\nhazardous liquid pipelines for rulemaking purposes. RSPA intends to continue its dialog with\nSBA and its efforts to ascertain the number of small business operators in the hazardous liquid\npipeline industry.","truncated":false,"body_characters":8807}