Portions of PHMSA Rulemakings Overturned in Court

On Friday, August 16, 2024, the United States Court of Appeals for the District of Columbia Circuit (Court) overturned some portions of recent PHMSA rulemakings. The basis for the decision came down to the cost-benefit analysis required under 49 U.S.C. § 60102(b)(3). The Court determined PHMSA had not proven that benefits outweighed the costs for the following sections of code:

• 49 C.F.R. § 192.712(c) – Dent safety factor standard
• 49 C.F.R. §§ 192.714(d)(1)(v)(C) and 192.933(d)(1)(v)(C) – Crack-MAOP standard
• 49 C.F.R. § 192.478 – Internal corrosion monitoring and mitigation standard
• 49 C.F.R. §§ 192.714(d)(1)(iv) and 192.933(d)(1)(iv) – High frequency-ERW standard (low frequency ERW still stands)

Therefore, these sections have been vacated as of August 16, 2024, and are not enforceable. From here, PHMSA can either start over with a new rulemaking process to try to reinstate these sections of code or appeal this ruling.

Of note, 49 C.F.R. § 192.929(b)(3) – direct examination for stress corrosion cracking was also included in the appeal but the Court found PHMSA did justify the costs of that section, therefore rejecting the appeal, and letting that section of the code stand.

Please note, it is not the entire Mega Rule that has been vacated (as some publicized wording might confuse), it is only the bulleted referenced sections listed herein.

If you have questions on this decision and its implications or other regulatory requirements, please contact us at [email protected] or [email protected].

To read the full decision click here.