LegiStorm

Summary:
Highlights


GAO reviewed the Office of Personnel Management's (OPM) new rule on the Federal Employees Dental and Vision Insurance Program. GAO found that the final rule expands eligibility for enrollment in the Federal Employees Dental and Vision Insurance Program to additional groups. 

Enclosed is our assessment of OPM's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shirley A. Jones, Assistant General Counsel, at (202) 512-8156.





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B-330546





December 10, 2018



The Honorable John Thune
Chairman
The Honorable Bill Nelson
Ranking Member
Committee on Commerce, Science, and Transportation
United States Senate

The Honorable Bill Shuster
Chairman
The Honorable Peter A. DeFazio
Ranking Member
Committee on Transportation and Infrastructure
House of Representatives



Subject: Department
of Transportation, Pipeline and Hazardous Materials Safety Administration:
Pipeline Safety: Plastic Pipe Rule



Pursuant to section 801(a)(2)(A) of title 5, United States
Code, this is our report on a major rule promulgated by the Department of Transportation,
Pipeline and Hazardous Materials Safety Administration (PHMSA) entitled "Pipeline
Safety: Plastic Pipe Rule" (RIN: 2137-AE93).  We received the rule on November
23, 2018.  It was published in the Federal Register as a final rule on
November 20, 2018.  83 Fed. Reg. 58,694.  The effective date of the final
rule is January 22, 2019.  The incorporation by reference of certain
publications listed in the rule is approved by the Director of the Federal
Register as of January 22, 2019.



The final rule amends the Federal Pipeline Safety
Regulations that govern the use of plastic piping systems in the transportation
of natural and other gas.  According to PHMSA, the amendments are necessary to
enhance pipeline safety, adopt innovative technologies and best practices, and
respond to petitions from stakeholders.  The changes include increasing the
design factor of polyethylene pipe; increasing the maximum pressure and
diameter for Polyamide-11 pipe and components; allowing the use of Polyamide-12
pipe and components; new standards for risers, more stringent standards for
plastic fittings and joints; stronger mechanical fitting requirements; the
incorporation by reference of certain new or updated consensus standards for
pipe, fittings, and other components; the qualification of procedures and
personnel for joining plastic pipe; the installation of plastic pipe; and a
number of general provisions.



The Congressional Review Act requires a 60-day delay in the
effective date of a major rule from the date of publication in the Federal
Register or receipt of the rule by Congress, whichever is later.  5 U.S.C.
§ 801(a)(3)(A).  The rule was received by Congress on November 26, 2018. 
It was published in the Federal Register on November 20, 2018.  83 Fed.
Reg. 58,694.  The rule has a stated effective date of January 22, 2019.  Therefore,
the final rule does not have the required 60-day delay in its effective date.



Enclosed is our assessment of PHMSA's compliance with the
procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5
with respect to the rule.  If you have any questions about this report or wish
to contact GAO officials responsible for the evaluation work relating to the
subject matter of the rule, please contact Shirley A. Jones, Assistant General
Counsel, at (202) 512-8156.







  signed



Julia C. Matta

Managing Associate General Counsel



Enclosure



cc: James O.
Payne
Honors Attorney/Regulatory Affairs
PHMSA Office of Chief Counsel
Department of Transportation



ENCLOSURE



REPORT UNDER 5 U.S.C.
§ 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF TRANSPORTATION,
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
ENTITLED
"PIPELINE SAFETY: PLASTIC PIPE RULE"
(RIN: 2137-AE93)





(i) Cost-benefit analysis



The Department of Transportation, Pipeline and Hazardous
Materials Safety Administration (PHMSA) estimated the costs and benefits of
this final rule.  PHMSA quantified positive net benefits of $32.7 million,
mostly from cost savings due to the change in the polyethylene (PE) design
factor.  According to PHMSA, other changes enhance pipeline safety, expand
flexibility in pipe material choice, and incorporate more modern technical
consensus standards. 



PHMSA quantified approximately $391,000 in annualized safety
benefits from the revisions to plastic pipe installation requirements.  PHMSA
states that this estimate is based on the historical frequency and consequences
of incidents on plastic pipe systems that could have been prevented by the
changes in the final rule.  PHMSA also determined unquantified safety benefits
from enhanced standards for fittings and risers, prohibiting the permanent use
of temporary leak repair clamps, and other general provisions.  PHMSA estimated
that the revised design factor for PE, relaxed restrictions on polyamide-11
(PA-11), incorporation of polyamide-12 (PA-12), and updated standards for all
three materials would have negligible impacts on pipeline safety.



PHMSA also quantified $32 million in costs savings for the
revision to the design factor of PE pipe from 0.32 to 0.40.  PHMSA states that
the change in design factor leads to pipe material cost savings as it permits
pipe to operate at higher pressures for a given pipe size and wall thickness. 
PHMSA also determined that the provisions for expanded use of PA-11 and
incorporation of PA-12 materials would lead to unquantified cost savings to
operators from greater flexibility in pipeline material choice.  PHMSA states
that the other provisions have unquantified costs; however PHMSA expects these
to be minimal as they generally incorporate existing industry best practices by
incorporating by reference technical consensus standards.



(ii) Agency actions relevant to the Regulatory
Flexibility Act (RFA), 5 U.S.C. §§ 603-605, 607, and 609



Based on the results of PHMSA's Final Regulatory Flexibility
Analysis, PHMSA determined that the final rule will not have a significant
economic impact on a substantial number of small entities.  According to PHMSA,
the final Regulatory Flexibility Act Analysis is included in the Regulatory
Impact Analysis, available at regulations.gov.



(iii) Agency actions relevant to sections 202-205 of the
Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532-1535



PHMSA determined that the final rule does not impose unfunded
mandates.  PHMSA states that it would not result in costs of $100 million,
adjusted for inflation, or more in any one year to either state, local, or
tribal governments, in the aggregate, or to the private sector, and is the
least burdensome alternative that achieves the objective of the final rule.



(iv) Other relevant information or requirements under
acts and executive orders



Administrative Procedure Act, 5 U.S.C. §§ 551et seq.



On May 21, 2015, PHMSA published the plastic pipe notice of
proposed rulemaking (NPRM) and requested feedback and public comments on the
proposed changes to the natural gas pipeline safety regulations.  80 Fed. Reg.
29,263.  PHMSA states that the comments and all other related rulemaking
materials are available at www.regulations.gov,
under docket ID PHMSA-2014-0098.  The final rule includes a summary of
the regulatory changes proposed in the NPRM, the public comments regarding
those changes, and PHMSA's responses to those comments. 



Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501-3520



PHMSA determined that the final rule does not impose any new
information collection requirements.



Statutory authorization for the rule



The final rule was promulgated pursuant to the federal pipeline
safety statutes, 49 U.S.C. §§ 60101 et seq.



Executive Order No. 12,866 (Regulatory Planning and Review)



PHMSA found that the rule was a significant regulatory
action under the Order.  PHMSA stated that the Office of Management and Budget
reviewed the rule.



Executive Order No. 13,132 (Federalism)



PHMSA stated that the rule does not have a substantial
direct effect on the states, the relationship between the national government
and the states, or the distribution of power and responsibilities among the
various levels of government.  PHMSA also stated that the rule does not impose
substantial direct compliance costs on state and local governments, and does
not preempt state law for intrastate pipelines.





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