80_FR_41595 80 FR 41460 - Pipeline Safety: Expanding the Use of Excess Flow Valves in Gas Distribution Systems to Applications Other Than Single-Family Residences

80 FR 41460 - Pipeline Safety: Expanding the Use of Excess Flow Valves in Gas Distribution Systems to Applications Other Than Single-Family Residences

DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration

Federal Register Volume 80, Issue 135 (July 15, 2015)

Page Range41460-41472
FR Document2015-17195

Excess Flow Valves (EFVs), which are safety devices installed on natural gas pipelines to reduce the risk of accidents, are currently required for new or replaced gas service lines servicing single-family residences (SFR). PHMSA is proposing to make changes to part 192 to expand this requirement to include new or replaced branched service lines servicing SFRs, multi-family residences, and small commercial entities consuming gas volumes not exceeding 1,000 Standard Cubic Feet per Hour (SCFH). PHMSA is also proposing to require the use of manual service line shut-off valve (e.g., curb valves) for new or replaced service lines with meter capacities exceeding 1,000 SCFH. Finally, PHMSA is proposing that operators notify customers of their right to request installation of an EFV on service lines that are not being newly installed or replaced. PHMSA is proposing to delegate the question of who bears the cost of installing EFVs to service lines that are not being newly installed or replaced to the operator, customer, and the appropriate State regulatory agency.

Federal Register, Volume 80 Issue 135 (Wednesday, July 15, 2015)
[Federal Register Volume 80, Number 135 (Wednesday, July 15, 2015)]
[Proposed Rules]
[Pages 41460-41472]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-17195]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Part 192

[Docket No. PHMSA-2011-0009]
RIN 2137-AE71


Pipeline Safety: Expanding the Use of Excess Flow Valves in Gas 
Distribution Systems to Applications Other Than Single-Family 
Residences

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Excess Flow Valves (EFVs), which are safety devices installed 
on natural gas pipelines to reduce the risk of accidents, are currently 
required for new or replaced gas service lines servicing single-family 
residences (SFR). PHMSA is proposing to make changes to part 192 to 
expand this requirement to include new or replaced branched service 
lines servicing SFRs, multi-family residences, and small commercial 
entities consuming gas volumes not exceeding 1,000 Standard Cubic Feet 
per Hour (SCFH). PHMSA is also proposing to require the use of manual 
service line shut-off valve (e.g., curb valves) for new or replaced 
service lines with meter capacities exceeding 1,000 SCFH. Finally, 
PHMSA is proposing that operators notify customers of their right to 
request installation of an EFV on service lines that are not being 
newly installed or replaced. PHMSA is proposing to delegate the 
question of who bears the cost of installing EFVs to service lines that 
are not being newly installed or replaced to the operator, customer, 
and the appropriate State regulatory agency.

DATES: Persons interested in submitting written comments on this Notice 
of Proposed Rulemaking (NPRM) must do so by September 14, 2015. PHMSA 
will consider late-filed comments so far as practicable.

ADDRESSES: You may submit comments identified by the docket number 
PHMSA-2011-0009 by any of the following methods:
    Comments should reference Docket No. PHMSA-2011-0009 and may be 
submitted in the following ways:
     Web site: http://www.regulations.gov. This site allows the 
public to enter comments on any Federal Register notice issued by any 
agency. Follow the online instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: U.S. Department of Transportation (DOT) Docket 
Operations Facility (M-30), West Building, 1200 New Jersey Avenue SE., 
Washington, DC 20590.
     Hand Delivery: DOT Docket Operations Facility, West 
Building, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC, 
20590 between 9:00 a.m. and 5:00 p.m., Monday through Friday, except 
Federal holidays.
    Instructions: Identify the docket number, PHMSA-2011-0009, at the 
beginning of your comments. If you mail your comments, submit two 
copies. In order to confirm receipt of your comments, include a self-
addressed, stamped postcard.

    Note:  All comments are posted electronically in their original 
form, without changes or edits, including any personal information.

Privacy Act Statement

    Anyone can search the electronic comments associated with any 
docket by the name of the individual submitting the comment (or signing 
the comment, if submitted on behalf of an association, business, labor 
union, etc.). DOT's complete Privacy Act Statement was published in the 
Federal Register on April 11, 2000, (65 FR 19477).

FOR FURTHER INFORMATION CONTACT: Mike Israni, by telephone at 202-366-
4571, by fax at 202-366-4566, or by mail at DOT, PHMSA, 1200 New Jersey 
Avenue SE., PHP-1, Washington, DC 20590-0001.

SUPPLEMENTARY INFORMATION:

I. Background

    An EFV is a mechanical safety device installed inside the natural 
gas service line between the street and residential meter. The EFV will 
``trip or close'' if there is sufficient damage to the line to minimize 
the flow of gas through the line and thus, the amount of gas that 
escapes into the atmosphere. During normal use, the valve is kept 
pushed open against oncoming gas flow by a spring. EFVs are designed so 
that general usage, such as turning on appliances, will not shut the 
valve. However, during a significant increase in the flow of gas (e.g., 
due to a damaged line), the spring cannot overcome the force of gas, 
and the valve will close and stay closed until the correct pressure is 
restored. When the correct pressure is restored, the EFV automatically 
resets itself.
    On July 7, 1998, in South Riding, Virginia, a residential gas 
explosion resulted in one death and three injuries. It is not known if 
the explosion occurred on a branched or non-branched service line 
servicing an SFR; however, PHMSA believes that this proposed rule or 
its previous rule requiring EFVs on single lines serving SFRs would 
have mitigated the consequences of the explosion. An investigation by 
the National Transportation Safety Board (NTSB) found the explosion 
likely would not have occurred if an EFV had been installed for this 
single-family home. Similarly, PHMSA strongly believes this incident 
would have likely been would have been mitigated at a minimum. As a 
result, on June 22, 2001, the NTSB issued Safety Recommendation P-01-2, 
recommending that PHMSA require excess flow valves in all new and 
renewed gas service lines, regardless of a customer's classification, 
when the

[[Page 41461]]

operating conditions are compatible with readily available valves.
    In December of 2005, the ``Integrity Management for Gas 
Distribution: Report of Phase I Investigations,'' \1\ developed by a 
multi-stakeholder group, was published. In the report, the stakeholder 
group recommended that ``[A]s part of its distribution integrity 
management plan, an operator should consider the mitigative value of 
excess flow valves (EFVs). EFVs meeting performance criteria in Sec.  
192.381 and installed in accordance with Sec.  192.383 may reduce the 
need for other mitigation options.''
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    \1\ http://www.regulations.gov/#!documentDetail;D=PHMSA-RSPA-
2004-19854-0070.
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    In an effort to study the possible benefits of expanding EFVs 
beyond SFR applications, PHMSA began development of the Interim 
Evaluation in early 2009. In June and August of 2009, PHMSA held public 
meetings on NTSB Recommendation P-01-2.
    The meeting participants included the National Association of 
Regulatory Utility Commissioners, the National Association of Pipeline 
Safety Representatives, the International Association of Fire Chiefs, 
the National Association of State Fire Marshals, natural gas 
distribution operators, trade associations, manufacturers, and the 
Pipeline Safety Trust. As a result of these meetings, PHMSA issued a 
report titled: ``Interim Evaluation: NTSB Recommendation P-01-2 Excess 
Flow Valves in Applications Other Than Service Lines Serving One 
SFR'').\2\
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    \2\ The Interim Evaluation Report was issued in 2010 by PHMSA. 
The purpose of the interim report was to respond to the NTSB safety 
recommendation P-01-02 and evaluate the possibility of expansion of 
EFVs to applications other than service lines serving one single 
family residence (above 10 psig). The interim report also built a 
foundation for an economic analysis, considered the need for 
enhanced technical standards or guidelines, and suggested that any 
new technical standards include criteria for pressure drops across 
the EFV. The interim report can be found at: http://www.regulations.gov/#!documentDetail;D=PHMSA-2011-0009-0002.
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    On December 4, 2009, PHMSA amended the pipeline safety regulations 
to require the use of EFVs for new or replaced gas lines servicing 
SFRs.\3\ While this requirement met the mandate of the Pipeline 
Inspection, Protection, Enforcement and Safety Act (PIPES Act) enacted 
in 2006, distribution lines, including those that serve branched SFRs, 
apartment buildings, other multi-residential dwellings, commercial 
properties, and industrial service lines, are still not required to use 
EFVs. These structures are susceptible to the same risks as SFR service 
lines. PHMSA, already aware of this risk, was awaiting completion of 
the Interim Evaluation, which studied the possible expansion of EFVs 
beyond SFRs and the challenges of application. The Interim Evaluation 
also addressed other practical alternatives such as the use of manual 
isolation devices, such as curb valves. The evaluation identified 
challenges related to the feasibility and practicality of the proposed 
solutions, as well as significant cost factors and benefit factors. The 
evaluation found that there are no other devices or viable options to 
shut off gas supply quickly when gas services line ruptures.
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    \3\ ``Pipeline Safety: Integrity Management Programs for Gas 
Distribution Pipelines,'' 74 FR 63906 (December 4, 2009) RIN 2137-
AE15.
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    On November 25, 2011, PHMSA published an Advance Notice of Proposed 
Rulemaking (ANPRM) (76 FR 72666) asking the public to comment on the 
findings of the Interim Evaluation and issues relating to the expanded 
use of EFVs in gas distribution systems. PHMSA also sought comments 
from gas distribution operators on their experiences using EFVs, 
including:
     Technical challenges of installing EFVs on services other 
than SFRs;
     Categories of service to be considered for expanded EFV 
use;
     Cost factors;
     Data analysis in the Interim Evaluation;
     Technical standards for EFV devices; and
     Potential safety and societal benefits, small business and 
environmental impacts, and costs of modifying the existing regulatory 
requirements.

The ANPRM comments received by PHMSA will assist in the finalization of 
the Interim Evaluation and in determining what regulatory changes may 
be necessary to fulfill this mandate.

    In 2012, the President signed the Pipeline Safety, Regulatory 
Certainty, and Job Creation Act of 2011, which requires PHMSA to study 
the possibility of expanding the use of EFVs beyond SFRs and issue a 
final report on the evaluation of the NTSB's recommendation on excess 
flow valves within 2 years after enactment of the Act. PHMSA is also 
mandated to, if appropriate, issue regulations requiring the use of 
EFVs or equivalent technology, where ``economically, technically and 
operationally feasible'', for new or entirely replaced distribution 
branch services, multi-family lines, and small commercial service 
lines. PHMSA has determined for the purpose of this proposed rule, 
based on the study, that the safety benefits of expanding EFVs justify 
the cost and is appropriate. The only proposed exceptions are for large 
apartment buildings, industrial or commercial users for whom EFVs may 
not be practical due to inherent design complexity, continuous supply 
demands and/or contamination issues. Additionally, PHMSA is proposing 
that services exceeding 1,000 SFCH install curb valves on new or 
replaced gas service lines.
    The proposed required use of curb valves for large commercial 
(greater than 1,000 SFCH) goes beyond the Section 22 language of the 
Pipeline Safety, Job Creation, and Regulatory Certainty Act of 2011, 
however it is based on ANPRM comments received from industry, trade 
associations and other stakeholders. PHMSA and industry in general 
believe that EFVs are not suitable larger commercial facilities over 
1,000 SFCH. Curb valves are the best alternative to an EFV and provide 
an effective added level of safety for these facilities. These valves 
also are a feasible alternative based on the cost/benefit analyses.
    PHMSA's authority for regulating natural gas pipelines was first 
established by the Natural Gas Pipeline Safety Act of 1968, Public Law 
90-481, and has since been enlarged by additional legislation. The 
Pipeline Safety Laws specifically delegate authority to DOT to develop, 
prescribe, and enforce minimum Federal safety standards for the 
transportation of natural gas. PHMSA has used this statutory authority 
to promulgate comprehensive minimum safety standards. While the 2011 
Act specifically directed PHMSA to require the installation of EFVs on 
new and replaced branched lines serving SFRs, multi-family and small 
commercial facilities, DOT's underlying prior statutory authority under 
49 U.S.C. 60104 provides PHMSA with the authority to require the 
installation of curb valves for large commercial facilities.
    In the time since the 1998 incident in South Riding, Virginia, the 
NTSB has investigated an additional 8 incidents, which resulted in 10 
fatalities that could have possibly been averted if an EFV had been in 
place. The most recent incident occurred on November 23, 2012, when a 
gas pipeline exploded in Springfield, Massachusetts. The Springfield 
explosion injured 21 people and damaged more than 40 buildings. It is 
important also to note that this incident occurred on the day after 
Thanksgiving and the daycare adjacent to the explosion was closed. If 
the daycare would have been open, it is highly likely this incident 
would have resulted in even more losses. This incident is currently 
under investigation

[[Page 41462]]

by the NTSB. All eight of these incidents occurred on lines that would 
be affected by this rulemaking.

II. Analysis of ANPRM

    Nineteen organizations and individuals submitted comments in 
response to the ANPRM. The individual docket item numbers are listed 
for each comment.

Trade Associations

     Northeast Gas Association (NGA) (PHMSA-2011-0009-0012).
     Texas Pipeline Association (TPA) (PHMSA-2011-0009-0016).
     American Gas Association (AGA) (PHMSA-2011-0009-0023).
     American Public Gas Association (APGA) (PHMSA-2011-0009-
0024).

Gas Transmission and Distribution Pipeline Companies

     MidAmerican Energy Company (MAE) (PHMSA-2011-0009-0011).
     Avista Utilities (AU) (PHMSA-2011-0009-0013).
     Southwest Gas Corporation (SWC) (PHMSA-2011-0009-0015).
     National Grid (NG) (PHMSA-2011-0009-0022) (Supported AGA 
comments).
     Laclede Gas (LG) (PHMSA-2011-0009-0018) (Supported AGA 
comments).
     Kansas Gas Service (KGS) (PHMSA-2011-0009-0017).
     Nicor Gas (PHMSA-2011-0009-0014).

Government/Municipalities

     City of Ellensburg, Washington (PHMSA-2011-0009-0004).
     NTSB (PHMSA-2011-0009-0009).
     Iowa Utilities Board (IUB) (PHMSA-2011-0009-0020).

Pipeline Industry Suppliers

     R.W. Lyall (PHMSA-2011-0009-0021).
     Gas Breaker, Inc. (GBI) (PHMSA-2011-0009-0019).

Citizens

     Rebecca Lee Roter (PHMSA-2011-0009-0006).
     Courtney D. Brown (PHMSA-2011-0009-0010).
     Anonymous (PHMSA-2011-0009-0008) (The anonymous commenter 
expressed concerns regarding pipeline safety versus job creation, 
corruption, and politics. These topics are beyond the scope of this 
NPRM and are not discussed further.)
    PHMSA reviewed all of the comments received in response to the 
ANPRM. The comments received from the trade associations largely 
supported expanded EFV use with certain limitations. The operators that 
responded with comments raised some concerns with expanded EFV use 
generally related to logistics and implementation. Municipality 
comments reflected a concern that State laws already in place could 
conflict with any new Federal requirements. The NTSB expressed strong 
approval of the expanded EFV use. The comments submitted are discussed 
below in the same order as presented in the questions from the ANPRM.

A. Technical Challenges of Installing EFVs on Services Other Than SFRs

A.1. Does the Interim Evaluation address all challenges associated with 
expanded EFV use (changing gas usage patterns, snap loads, business-
critical gas supply applications, system configuration, pressure 
ratings, and size of commercially available EFVs)?
    The ANPRM solicited feedback and comments regarding whether the 
Interim Evaluation fairly and accurately explained the challenges of 
expanded EFV use. These challenges, identified in the Interim 
Evaluation from a variety of stakeholders, may limit or exclude future 
EFV expansion beyond SFR applications due to safety reasons. The 
challenges included changing gas-usage patterns, snap loads (i.e. loads 
that lead to false closures), business-critical gas supply 
applications, system configurations, pressure ratings, and the sizes of 
commercially available EFVs. Among the challenges discussed by the 
commenters, snap loads (loads that lead to false closures), load 
variation, and proper EFV sizing seemed to be of the greatest concern.
    Overall, industry, trade association, government, and municipality 
commenters agreed that the Interim Evaluation failed to accurately and 
fully portray a variety of the technical and operational challenges and 
costs and benefits associated with expanded EFV requirements. These 
commenters either stated the report was lacking in certain areas or did 
not comment. In general, commenters, including AGA and APGA, strongly 
cautioned against the broad expansion of EFV requirements beyond those 
for SFRs, citing operators' lack of experience and design complexities. 
Specifically, APGA, SWC, AGA, LG, NG, AU, TPA, IUB, NGA, and MAE all 
found the Interim Evaluation's discussion of the challenges of proper 
EFV sizing protocols, system configuration, and changes in gas-usage 
patterns to be inadequate and to contain false assumptions. Due to 
these concerns, MAE suggested that any EFV requirements should only 
affect new installations. Likewise, AGA supported the installation of 
EFVs on new and entirely replaced service lines in the following 
applications only:
     Service lines to SFRs;
     SFR service lines and branched SFR service lines installed 
at the same time;
     A branched SFR service line branching off an existing SFR 
service line that does not contain an EFV provided there is sufficient 
line capacity;
     A branched SFR service line branching off an existing SFR 
service line that contains an EFV sized appropriately for both 
customers provided there is sufficient line capacity;
     Multi-family installations, including duplexes, triplexes, 
and fourplexes, with individual meter sets, a known customer load 
(based on meter capacity) not exceeding 1,000 standard cubic feet per 
hour (SCFH), and a load that is not expected to increase over time; and
     Small commercial customers with a known customer load 
(based on meter capacity) not exceeding 1,000 SCFH through a single 
service line and where the load is not expected to increase over time.
    AU, KGS, APGA, SWC, GBI, AGA, and the City of Ellensburg, WA, were 
concerned with the challenges of snap loads and the loss of continuous 
supply. Snap loads may occur when the amount of natural gas required to 
meet demand suddenly increases, which is generally due to many 
appliances being turned on at one time. GBI, AU, and AGA suggested that 
requiring EFVs for lines not exceeding 1,000 SCFH based on meter size 
is reasonable, but the false closure and load variation challenges make 
using EFVs for applications that exceed 1,000 SCFH difficult. AU 
specifically stated that the failure (false closure or malfunction) of 
EFVs at high loads during winter frost is difficult to mitigate and is 
an inconvenience to customers who lose service. AU stated that winter 
frost makes pipeline excavation to repair lines difficult due to frozen 
soil. SWC commented that business disruptions and loss of service in 
vital areas such as high-occupancy dwellings created a safety hazard. 
KGS recommended that service lines serving multiple customers should 
not use a single EFV due to the increased degree of variation in the 
gas flow rates.
    PHMSA received different approaches from commenters regarding the 
proper selection of an EFV for a pipeline, or what is referred to in 
the Interim Evaluation as ``EFV sizing''. The trip point is the 
specific point in which the

[[Page 41463]]

EFV ``trips'', or closes, the valve due to gas pressure differential 
and is essentially the factor that guides the size selection of an EFV. 
In the Interim Evaluation, PHMSA suggested an EFV's trip point should 
be less than, but close to, the flow rate of a complete line rupture.
    Commenters indicated that PHMSA's approach for trip point selection 
either led to tripping too easily or not at all. R.W. Lyall, an EFV 
manufacturer, further submitted that EFVs should be sized so that the 
EFV trip point, at the minimum system pressure, is above the maximum 
anticipated load and is above meter capacity. GBI suggested an EFV 
should be selected that operates at least 1.5 times the meter rating at 
the minimum design inlet pressure. Finally, SWC and NGA specifically 
commented that, due to the complexity of design found in multi-family 
industrial and commercial service lines, a common approach for sizing 
is not possible. With regard to the challenges of commercially 
available EFVs, PHMSA received two comments. GBI, an EFV manufacturer, 
commented that the commercial availability for most applications, even 
those considered large, is not a problem. In contrast, MAE stated that 
the commercial availability of EFVs for non-residential load profiles 
is an assumption made on the part of PHMSA that may be inaccurate.

PHMSA Response

    A number of the comments PHMSA received focused on a concern that 
EFVs could trip inadvertently and may cause unnecessary service 
disruptions. PHMSA agrees that variations in the configuration of 
service lines make it difficult to impose specific sizing requirements 
for various types of service lines and customers. However, if an 
operator installs an EFV and operates it in accordance with a 
manufacturer's specifications, the EFV should operate safely without 
the need for a prescriptive sizing requirement even when customer gas 
usage changes, unless the change were so large as to require a new 
service line.
    Overall, PHMSA disagrees with the comments that EFVs are prone to 
failure and inadvertent tripping due to variations in gas flow, 
location, etc. Research and available data has shown very few failures 
with EFVs in actual usage. Operators in the United States have gained 
considerable experience with EFVs since 1999 mainly with SFRs. The NRRI 
conducted a survey on EFV installation and operators' experiences with 
EFVs installed on single family residential service lines found of 2.5 
million EFVs installed on SFRs only 223 failed.\4\ In Europe, BEGAS, 
the government owned gas company in Eastern Austria, reported that EFVs 
have been installed since 1993 on service lines to hospitals, large 
facilities, production plants, etc. Out of 26,000 BEGAS installations 
there have been no spurious failures.\5\ PHMSA maintains proper 
operator installation using manufacture direction and maintenance of 
EFVs is paramount to their success. Therefore, PHMSA is not proposing a 
protocol for EFV installation. PHMSA is only advising operators to 
install EFVs as the manufacturer directs and the service safely 
requires.
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    \4\ ``Survey on Excess Flow Valves: Installations, Cost, 
Operating Performance and Gas Operator Policy'', Ken Costello, The 
National Regulatory Research Institute, March 2007.
    \5\ ``Operational Experiences with Excess Flow Valves for 
Service Lines and Main Lines in Network Operation'', Peter Masloff, 
Technology Department Director, BEGAS--Burgenlandische 
Erdgasversorgungs AG. http://pipelife-gasstop.com/media/gasstop/pdf_englisch/GWF_7_2003_Excess-Flow-Valves_Experience-report.pdf.
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    Operators and manufacturers that PHMSA contacted stated they 
typically size an EFV in such a way that it trips at 20% to 30% above 
the maximum service load it will encounter. It is possible that this 
trip point could be too high for small leaks, however, EFVs are 
intended to react to ruptures, not small holes.
    Likewise, one commenter mentioned winter time excavation of lines 
to repair them due to EFV failure was a concern. PHMSA suggests that 
digging in frozen ground in winter is not any more difficult than 
digging concrete or curbside if valve is located underneath. Again, 
PHMSA believes, proper sizing of an EFV is the key to avoiding all 
these issues. PHMSA has surveyed twice in the past, and there were only 
one or two instances of EFV failure in greater than a million services 
over many years. All major EFV manufacturers PHMSA contacted indicated 
that they are available to help operators to properly size their 
valves.
    PHMSA received no information to indicate that pressure ratings 
and/or the size of commercially available EFVs are a problem for the 
expansion of EFVs to certain other types of service. Currently, the 
normal minimum pressure design (the minimum anticipated design 
pressure) is 10 psig. The maximum pressure of composite materials (250 
psig), plastic (125 psig), and steel (1,000 psig and up), does not pose 
a problem. There is no pressure limit on an EFV's performance except 
that, when activated, the EFV seat must be able to withstand the 
pressure. The pressure limit is normally constrained by the design of 
the carrier pipe. EFVs covered by ASTM F2138 must have a maximum inlet 
pressure of at least 125 psig, while ASTM F1802 applies to EFVs with a 
pressure rating of up to 125 psig. However, for very high-volume EFV 
applications, such as those for industrial customers, technical 
standards may need to address operating design pressures that exceed 
125 psig.
    Therefore, PHMSA proposes to expand EFV applications to new or 
replaced service lines for SFRs with branched lines; multi-family 
installations, including duplexes, triplexes, and fourplexes with 
individual meter sets and known customer loads not exceeding 1,000 
SCFH; and small commercial customers with known loads not exceeding 
1,000 SCFH. EFVs will not be required in the above-mentioned 
applications if one of the existing Sec.  192.383 exceptions is 
present.
    While the proposed expansion of EFVs would have costs, PHMSA 
believes the costs are justified by the added protection for gas 
customers, as the only proposed exceptions are for large apartment 
buildings, industrial or commercial users for whom EFVs may not be 
practical due to inherent design complexity and continuous supply 
demands. In those situations (loads exceeding 1,000 SFCH), PHMSA 
believes curb valves will provide the best possible option for improved 
safety at this time. PHMSA does not have definitive data, but some 
commenters stated that 2% to 5% of customers would fall into one of the 
exceptions for EFVs, which would include many of those facilities over 
with loads exceeding 1,000 SFCH.
A.2. Additional Challenges Not Addressed by the Interim Evaluation
    The ANPRM also solicited comments on whether additional challenges 
existed beyond those discussed in the Interim Evaluation. MAE commented 
that the addition of more EFVs in natural gas systems could create an 
increase in safety hazards resulting from the maintenance of failed 
EFVs and EFVs that fail to trip on small leaks (i.e., pinhole 
corrosion). These safety hazards would be due to increased excavation 
activities, which place more workers in high-traffic and congested 
areas. MAE also mentioned that excavation contractors may be less 
cautious around service lines if they believe they will not leak 
because of an installed EFV. TPA stated that the mandated use of EFVs 
for new or replaced transmission or gathering lines should not be 
pursued until further study is completed.

[[Page 41464]]

PHMSA Response

    MAE's comment regarding excavation damage prevention can be 
addressed with proper EFV installation techniques and the normal course 
of training for pipeline operator personnel, including training on 
excavation damage prevention. Excavation contractors hired by operators 
go thru same damage prevention training as operators regarding safe 
digging practices and are aware of the dangers of gas leaks and 
explosions. In regard to TPA's comment, PHMSA agrees at this time and 
is proposing to expand EFV use only to distribution lines, not 
gathering or transmission lines. PHMSA has found that there is a lack 
of experience with EFVs on gathering and transmission lines in addition 
to problems with contaminants and other factors.
A.3. Use of Curb Valves (Manual Shut-Off Valve) as an Alternative to 
EFVs
    The ANPRM sought comments on the use of curb valves as an 
alternative to EFVs. Most commenters agreed that use of a curb valve is 
a viable alternative to EFV use in some cases. In fact, the City of 
Ellensburg, Washington, stated the installation of a curb valve should 
be considered by PHMSA to be equivalent to the installation of an EFV. 
The City of Ellensburg mentioned that current Washington State 
regulations require the use of a curb valve if an EFV is not installed.
    MAE, APGA, and APA commented that operators have experience with 
curb valves, but their use presents certain challenges. The technical 
challenges expressed by commenters with regard to curb valve use 
include: Maintenance of the valve; location of the valve for 
accessibility; third-party damage to the valve; recordkeeping as to the 
location of the valve; ensuring the box does not place stress on the 
pipe; and the delayed shut-off response inherent in curb valve design 
during emergency situations. APGA commented that curb valves require 
trained personnel to manually close the valve with a special key. APGA 
further stated that ``squeezing'' off the gas in the line is sometimes 
quicker than using a curb valve for stopping the flow of gas.

PHMSA Response

    Historically, curb valves have proven to be a very effective 
mechanism for interrupting the flow of gas in both routine maintenance 
situations and in emergencies. Other than a curb valves, distribution 
operators have tools (large pliers) to squeeze pipe to shut off gas 
supply. Curb valves require that a person make a conscious decision to 
physically close the valve itself, thereby avoiding inadvertent 
closures. Curb valves are slightly more expensive than EFVs and require 
some maintenance and need to be located in an accessible site. The 
primary disadvantage curb valves have is the time it can take to 
mobilize to the valve site and close the valve.
    It is not technically feasible to expand EFV use to service lines 
operating at loads exceeding 1,000 SCFH. This is largely due to issues 
with reliable service, load fluctuation, the lack of experience with 
EFV usage in larger applications, and the complexity of design issues. 
Therefore, in the case of service lines operating at more than 1,000 
SCFH, PHMSA proposes to require curb valves be installed and maintained 
in such a manner that emergency personnel can access them. Although it 
does not come at a prohibitive cost, the installation of curb valves is 
slightly more expensive than the installation of EFVs.
A.4. Additional Situations Where the Installation of EFVs May Not Be 
Feasible
    The ANPRM solicited comments concerning additional situations not 
found in the Interim Evaluation where the installation of an EFV may 
not be feasible or practical. AGA and SWC commented that they agreed 
with the examples cited in section 10.3.1 of the Interim Evaluation. 
MAE commented that lines containing contaminants, and distribution 
systems with a history of transporting liquids, may create situations 
where EFVs are impracticable.

PHMSA Response

    Section 192.383 currently includes exceptions for EFV installations 
with regard to SFRs. With respect to MAE's concern regarding lines 
containing contaminants and distribution systems with a history of 
transporting liquids, the proposed exceptions would waive the EFV 
requirement for those systems for which installing EFVs would be 
impracticable. This proposed rule incorporates the existing Sec.  
192.383 exceptions in place and would extend them to the additional 
service line applications covered in this NPRM.

B. Economic Analysis Considerations

    PHMSA requested comments on the potential costs of modifying the 
existing regulatory requirements. PHMSA requested that commenters 
provide information and supporting data on the potential quantifiable 
safety and societal benefits, the potential impacts on small 
businesses, and the potential environmental impacts of modifying the 
existing regulatory requirements. The economic analysis for the 
installation of EFVs on services other than SFRs involves challenges 
including the quantification and monetization of costs and benefits.
B.1. Categories of Service for Expanded Use of EFVs
    The ANPRM requested comments on section 10.3.2. of the Interim 
Evaluation. This section describes the ``Categories of Services'' in 
which PHMSA could expand EFV requirements. PHMSA sought input as to 
whether the categories accurately represented current ``real world'' 
applications and which categories are most likely to benefit from EFV 
expansion.\6\
---------------------------------------------------------------------------

    \6\ The categories of service from the Interim Evaluation are: 
Branched service line serving single-family residence; Service line 
serving one (or two adjoining) multi-family residential building(s) 
with one meter or one meter header or manifold; Non-residential 
services to space and water heat customers; Other applications where 
the service line configuration or EFV specification is more complex; 
and Industrial customers.
---------------------------------------------------------------------------

    AGA largely agreed with the categories of service presented in the 
Interim Evaluation, while MAE commented that the categories are 
sufficient for economic analysis only. MAE further states that if the 
rule in its final form creates different requirements among these five 
categories, the rule may prove difficult to implement because an 
operator may not be clear which category a service may fall into.
    AGA, APGA, AU, Nicor, and SWC advised PHMSA not to apply the EFV 
requirements to all five categories named in the Interim Evaluation. 
Specifically, the commenters supported all categories of service with 
the exception of those with services requiring greater than 1,000 SCFH. 
Those services with 1,000 SCFH requirements or higher are generally 
sensitive to loss of supply and may have complex configurations not 
conducive to EFVs. Nicor, APGA, and AGA commented that service lines 
serving one multi-family building with one meter should be limited to 
duplexes, triplexes, and fourplexes with known loads not exceeding 
1,000 SCFH, and that non-residential services to space and water heater 
customers should be limited to 1,000 SCFH due to possible snap loads. 
Additionally, AGA stated that there are factors to consider for 
applying EFVs to non-residential service lines such as commercial food 
sales, food service, and health care, and that these applications would 
require unique analysis. These service applications are susceptible to 
loss of service issues and

[[Page 41465]]

frequently have complex designs. SWC likewise stated that EFVs work in 
applications not exceeding 1,000 SCFH. The industrial customer's 
category was mentioned by all those commenting on this question as a 
category not suitable for mandated EFV use due to unpredictable load 
changes over the life of the service and inherent design complexities.

PHMSA Response

    PHMSA has reviewed the comments on the possible expansion of 
categories of gas services requiring EFVs. PHMSA proposes expansion of 
EFV use for only certain categories of service presented in the Interim 
Evaluation. Specifically, PHMSA proposes to expand EFV requirements to 
include:
     Branched SFR service lines off of existing SFR service 
lines that do not contain an EFV and have a known load not exceeding 
1,000 SFCH based on meter capacity;
     SFR service lines and branched SFR service lines installed 
at the same time with a known load not exceeding 1,000 SFCH based on 
meter capacity;
     Branched SFR service lines off of existing SFR service 
lines with a known load not exceeding 1,000 SFCH based on meter 
capacity;
     Multi-family residences with individual meter sets and a 
known customer load not exceeding 1,000 standard cubic feet per hour 
(SCFH) based on meter capacity; and
     Small commercial customers with a known customer load 
(based on meter capacity) not exceeding 1,000 SCFH through a single 
service line.
    Operators with services lines with loads exceeding 1,000 SCFH will 
be required to utilize curb valves. Since PHMSA has found commercial 
and industrial service lines often have complex designs and/or require 
constant reliable service requirements, PHMSA has decided that these 
categories of service are not good candidates for requiring EFV use. 
Often these services meet or exceed a demand for 1,000 SCFH. PHMSA 
therefore proposes the 1,000 SCFH threshold based on comments and PHMSA 
experience however we invite comment.
B.2. Cost Factors Associated With Mandatory EFV or Curb Valve 
Installation
    The ANPRM sought comments as to whether there are any other issues 
related to the costs associated with mandatory EFV or curb valve 
installation that should be considered aside from those mentioned in 
the Interim Evaluation. Both AGA and SWC noted that cleaning labor for 
EFVs on larger service lines, inadvertent trips and the subsequent loss 
of business for commercial customers and accidental environmental 
discharges are additional costs to the operator that PHSMA should 
consider. APGA commented that EFV installation costs for large-volume 
EFVs may be higher due to the fact there is less demand for them, and 
PHMSA should not assume the same unit price as a SFR EFV. Both NGA and 
Nicor mentioned that installation of EFVs may conflict with 
restrictions placed by local jurisdictions on excavating paved roads to 
access existing or install new EFVs.

PHMSA Response

    PHMSA has determined that installing EFVs by using manufacturer 
guidelines should eliminate most EFV tripping errors. EFVs are 
commercially available in a wide variety of pipe sizes. Some 
manufacturers report that they make EFVs for larger than 2-inch IPS 
(Iron Pipe Size) diameters (typical SFR size), and at least one 
manufacturer is developing a 10,000 SCFH EFV. The principles of 
operation remain the same as valve size and trip point increase, making 
EFVs for larger loads and pipe sizes technically feasible. PHMSA also 
noted that SFR installation of EFVs, which began in 2010, depended on 
manufacturer guidelines for installation. No PHMSA guidance was issued. 
Since 2010 the SFR EFVs required to be installed have resulted in no 
false trips or failures if installed as manufacturer directed. PHMSA 
has found manufacture guidelines to be well within the safety margin 
and they know their product better than PHMSA in most instances.
    Additional costs for purging lines are minimal as documented by AGA 
estimates. AGA states many operators either have already installed EFVs 
on some services beyond SFRs or are planning to start. The price per 
unit has decreased in recent years given the development, improved 
availability, and quality of EFVs. Higher installation costs for high 
volume EFVs have been taken into account in the cost/benefit analysis 
through the averaged cost. Similarly, installation costs for curb 
valves are more expensive than smaller volume EFVs and the cost/benefit 
analysis considered that aspect.
B.3. Who should pay for the installation and maintenance of EFVs or 
other alternatives and why?
    PHMSA sought comments as to who should pay for the costs of 
installation and maintenance of EFVs. Comments were received from AGA, 
SWC, and MAE concerning who should be expected to pay for the 
installation and maintenance of EFVs or other alternatives if 
applicable regulatory requirements were implemented. MAE stated that 
operators should pay for the initial installation of valves, but any 
changes to customer loads requiring EFV installation should be at the 
customer's expense.

PHMSA Response

    Because operators would already be newly installing or replacing 
pipelines, i.e. they would already have a trench open and be in place 
to work at the site, the addition of an EFV adds only minor costs 
(PHMSA estimates the cost of an EFV including installation is $30). 
This is supported by the AGA response to the excess flow valve census 
(Docket PHMSA-2012-0086, page 2), in which AGA indicated ``the 
incremental cost per installation of EFVs is relatively minimal.'' AGA 
further committed to expand the installation of EFVs beyond SFR 
services by June 2013. This also supports the notion that cost is not a 
major factor for the expansion of EFV use on new and fully replaced 
service lines beyond SFRs as proposed by this NPRM. PHMSA additionally 
utilized ANPRM comments which included numerical data on the costs for 
EFVs provided by operators as well as PHMSA Technical Advisory 
Committee \7\ input for this proposed rulemaking.
---------------------------------------------------------------------------

    \7\ Joint Meeting of the PHMSA Technical Advisory Committees 
held Dec. 11-13, 2012, Alexandria, Virginia. Transcripts available 
at Regulations.gov., docket PHMSA-2009-0203.
---------------------------------------------------------------------------

B.4. Are there any opportunity costs associated with the installation 
of EFVs? A particular time of day that is optimal for installation? How 
long does installation take?
    The ANPRM sought comment as to any opportunity costs and 
installation timelines that EFVs or alternatives may require. AGA, 
APGA, SWC, MAE, and Nicor commented on this question. These commenters 
all mentioned the loss of gas supply as a potential opportunity loss 
for customers due to the longer period of time needed to install an EFV 
on larger service lines. Additionally, the operators would spend more 
time and resources installing EFVs or alternatives versus maintenance, 
construction, operation, and inspection activities. APGA responded that 
EFVs do not need to be installed at any particular time of day, with 
most installations occurring during normal business hours.

PHMSA Response

    Given industry's commitment to support EFV installation on new and

[[Page 41466]]

fully replaced service lines where practically and technically 
feasible, PHMSA believes that the cost of installation of EFVs, as 
proposed by the regulation, are sufficiently low that they will not 
interfere with other operator expenditures. PHMSA agrees with industry 
that the incremental cost per installation is minimal and would be 
utilized during the new construction or the replacement of service 
lines when industry resources (labor) are already at the installation 
sites.
B.5. Are there any other issues related to benefits associated with the 
mandatory EFV or curb valve installation that should be considered when 
performing the benefit/cost analysis, other than those listed in 
section 10.5 ``Defining Benefit Factors'' of the Interim Evaluation? 
Does the methodology utilized in the Interim Evaluation appropriately 
quantify the expected number of incidents or consequences averted? Can 
a conclusion be satisfactorily made concerning the cost and benefits of 
EFV or curb valve installation as presented in the Interim Evaluation?
    PHMSA asked for comments concerning any other issues that had not 
yet been considered regarding benefits associated with mandatory EFV or 
curb valve installation. IUB, NGA, MAE, and AGA commented on additional 
cost/benefit factors that had not yet been considered. NGA stated that 
upgrading existing EFVs to meet the increased demand loads will add 
significant costs to customers and will conflict with restrictions 
placed by local jurisdictions on excavating paved roads to access 
existing or install new EFVs. Similarly, MAE stated that load changes 
due to changes in ownership may cause extra expenses from service 
modifications and industrial process equipment damage. AGA and SWC were 
unaware of any additional cost/benefit factors other than those in the 
Interim Evaluation.
    In terms of the methods PHMSA used in the Interim Evaluation to 
study EFV expansion, the comments were generally supportive. MAE, SWC, 
APGA, and AGA commented that they typically agreed with the methodology 
used by PHMSA. However, some trade association comments also indicated 
there was some concern about the assumptions PHMSA made with its 
methodology. In particular, there were concerns with the ``incidents 
averted calculation,'' including the associated root cause analyses and 
assumed continued operations of all lines over 10 psi. AGA further 
commented that the analysis could not draw reliable conclusions. IUB 
suggested PHMSA should develop a separate analysis for each of the 
classes of service.

PHMSA Response

    PHMSA's analysis was based on incident-specific data, which were 
obtained from the incident reports submitted by operators. PHMSA 
explained how it used the data, including the assumptions it made in 
applying the operational and other data obtained from incident reports, 
to filter past incidents that would likely not have been averted or 
mitigated had an EFV been installed. The remaining candidate incidents 
might have been averted or mitigated had an EFV been installed, but 
PHMSA did not conclusively assert that all of those candidate incidents 
definitively would have been averted or mitigated. However, based on 
the analysis of the best available data, PHMSA is convinced that the 
installation of EFVs on additional service lines could help avert or 
mitigate future incidents. The candidate incidents, incidents that 
PHMSA can classify as preventable by EFV installation, represent the 
scope of incidents that might have benefited from an EFV during the 
time period studied. PHMSA requests comments on whether the incidents 
that PHMSA has identified are likely to have been averted or mitigated 
if an EFV or manual service line shut-off valve had been in place. In 
addition, PHMSA does not have an EFV sizing protocol, nor was one 
proposed in the Interim Evaluation. The methodology for sizing EFVs was 
one of the challenges described in section 9.1 of the Interim 
Evaluation.

C. Technical Standards and Guidance for EFVs

    The OMB circular A-119, ``Federal Participation in the Development 
and Use of Voluntary Consensus Standards in Conformity Assessment 
Activities,'' directs Federal agencies to utilize voluntary standards, 
both domestic and international, whenever feasible and consistent with 
law and regulation. The current regulation at 49 CFR 192.381 only 
requires EFVs to be manufactured and tested by the manufacturer 
according to an industry specification or the manufacturer's written 
specification. The regulation does not prescribe a precise 
specification. PHMSA solicited comments as to the need for the adoption 
of consensus standards for EFV specification.
C.1. Should PHMSA incorporate by reference the following standards? 
Manufacturers Standardization Society (MSS) SP-115-2006 Design, 
Performance & Test, ASTM International (ASTM) F1802-04--Standard 
Specification for Excess Flow Valves for Natural Gas Service, and ASTM 
International (ASTM) F2138-01--Standard Specification for Excess Flow 
Valves for Natural Gas Service?
    The comments received by PHMSA largely indicated that the 
incorporation by reference of any standards for EFVs is not necessary. 
AGA, supported by MAE, stated in their comments that manufacturers 
already construct and test EFVs according to industry consensus 
standards MSS SP-115-2006, ASTM F-1802, and ASTM F-2138. Operators have 
been successfully installing EFVs using manufacturer guidance with no 
known safety issues arising. Similarly, AGA and SWC expressed concern 
regarding the incorporation by reference of any industry standards due 
to the delay in updating the pipeline safety statutes, which in turn 
would prevent the timely installation of the newest and best EFVs on 
the market. As an alternative to PHMSA incorporating standards, 
commenters suggested that PHMSA continue to allow operators to utilize 
manufacturer installation guidance already available.

PHMSA Response

    PHMSA will not be incorporating any new standards by reference for 
EFVs into the pipeline statutes at this time but may do so in the 
future. All EFVs currently available have been manufactured and tested 
to current consensus standards. Additionally, PHMSA has not 
incorporated any standards for EFVs into the pipeline safety 
regulations for SFRs and has not found any issues with that approach. 
If the need for incorporation by reference does become necessary, PHMSA 
will review the issue.
C.2. Are there alternatives to the standards referenced in C.1.?
    PHMSA also asked for comments on three current consensus standards 
and if there are alternatives to them. APGA and APA stated they were 
unaware of additional standards beyond those listed in the Interim 
Evaluation, with the exception of ``MSS SP-142-2012 Excess Flow Valve 
for fuel gas service, NPS 1 1/2 through 12'' for larger sized EFVs. 
Similarly, MAE, deferring to AGA comments, stated it was aware of no 
other standards except for the Gas

[[Page 41467]]

Piping Technology Committee (GPTC) Appendix G192-8 in the Z380 Guide.

PHMSA Response

    PHMSA is also unaware of any alternatives to the three standards 
listed in the Interim Evaluation for EFVs for natural gas service. As 
for selection and sizing guidelines, PHMSA will request GPTC to develop 
comprehensive standards for selection, installation, and performance 
testing of EFVs for a variety of design considerations and service line 
configurations and operating conditions. This guidance will be in 
addition to guidance provided by manufacturers and will act as a 
supplement to address various situations which may not be elaborated on 
in manufacturer guidance. PHMSA will also issue advisory bulletins if 
we become aware of new conditions of concern for EFV installation.
C.3. Are guidelines or technical standards needed for developing and if 
so, why?
    PHMSA asked for comments as to whether EFV guidelines or technical 
standards are in need of development, and if so, why. Both MAE and SWC 
commented that a standard approach or some sort of guidance for sizing 
EFVs, and criteria for identifying adverse conditions, may be needed. 
SWC agreed and stated that additional guidance, not necessarily 
standards, need to be developed. SWC additionally asked PHMSA to issue 
advisory bulletins if PHMSA finds additional conditions in which an EFV 
installation is advisable. Likewise, AGA stated that the current 
industry standards used in manufacturing are satisfactory, and EFV 
performance testing using industry standards cannot be accomplished in 
an economically, technically, and operationally feasible manner on 
installed service lines.

PHMSA Response

    PHMSA finds that additional technical standards development for 
EFVs at this time is not necessary. However, PHMSA is considering 
requesting a new or existing industry committee to develop guidelines 
for a standard approach to the sizing and installation of EFVs. 
Industry guidelines have already been developed for the implementation 
of (Distribution Integrity Management Program) DIMP by the GPTC and 
industry gas associations. PHMSA believes these guidelines should be 
developed in a more comprehensive manner to include the selection, 
installation, and performance testing of EFVs for a variety of design 
considerations and service line configurations. The identification of 
operating conditions and system configurations that are incompatible 
with EFVs could also be included in the guidelines.

D. Additional Comments

    Only one commenter, MAE, provided additional information and 
supporting data with regard to additional potential costs and impacts 
of expanding EFV use. Specifically, MAE stated that it had installed 
5,102 EFVs on SFRs in 2010. If applications beyond SFRs were required 
for service lines, MAE would have installed an additional 1,123 EFVs in 
2010. MAE stated the estimated average cost for an EFV is $50.00 and 
that there would be no anticipated significant impact on the 
environment.
    Several comments from members of the public were received in 
response to the ANPRM. One commenter, Courtney D. Brown, supported the 
expanded use of EFVs to protect people in the vicinity of large 
businesses and/or entertainment venues. Brown commented that the cost 
of installing EFVs does not outweigh the loss of lives, homes, or 
businesses when an incident occurs. Commenter Rebecca Lee Roter 
expressed concern with the lack of regulatory requirements in place for 
natural gas and transmission lines in Class 1 areas. Roter indicated 
that these areas required little routine inspection and no emergency 
plans.

PHMSA Response

    PHMSA received several additional comments on the topic of the 
expanded use of EFVs. The information from MAE was helpful for PHMSA to 
get a better understanding of the costs and impacts of expanding EFV 
use. PHMSA has estimated an average cost of $30 per valve--see the 
initial RIA for further discussion. Additionally, PHMSA is aware of the 
concern for public safety expressed by Brown and Roter.

III. Section by Section Analysis

Section 192.381 Service Lines: Excess Flow Valve Performance Standards

    PHMSA is proposing to revise the language used in Sec.  192.381(a) 
to remove the words ``single residence''. This change reflects the 
proposed expansion of EFVs to applications beyond SFRs.

Section 192.383 Excess Flow Valve Installation

    PHMSA is proposing to revise Sec.  192.383(b) to include the 
proposed new categories of service on which EFVs would be installed. 
The existing category of service (new or replaced service line serving 
a SFR) would remain. The new categories of service would include 
branched service lines to a SFR installed concurrently with the primary 
SFR service line; branched service lines to a SFR installed off a 
previously installed SFR service line that does not contain an EFV; and 
small commercial customers and multi-family installations. The existing 
exceptions for EFV installation found in Sec.  192.383(b)(1) through 
(4) would remain but would be moved to Sec.  192.383(c)(1) through (4).
    PHMSA is proposing the addition of Sec.  192.383(d) to allow 
existing service line customers the option of requesting an EFV 
installation on their service line if one or more of the exceptions 
listed in Sec.  192.383(c)(1) through (4) are not met. Operators would 
install an EFV at the request of customer on a mutually agreeable date 
and time. This option would be available to service line customers on 
existing service lines when the customer applies for service and for a 
period of 90 days after service has started. Operators will rely upon 
the appropriate State regulatory agencies to determine who would bear 
the costs of installation for customer requested EFVs.
    With regard to the issue of installation costs of a customer 
requested EFV, PHMSA has no jurisdiction concerning natural gas rates 
or any costs incurred due to installation of an optional EFV at a 
consumer's request. Rather, the appropriate State regulatory agency 
will determine all issues related to the costs of installation.
    PHMSA proposes to add paragraphs (e)(1) through (2) which would 
require that operators notify existing service line customers of their 
right to request an EFV in writing. Master meter operators may 
continuously post a general notification in a prominent location 
frequented by customers. Operators must also have evidence of customer 
notification. Operator evidence of notification could include such 
items as a statement printed on customer bills or mailings. Small 
Master meters would be ask to prove that they posted a notice at some 
common location. Each operator must maintain a copy of the customer EFV 
notice for three years. This notice must be available for inspection by 
the Administrator or a State agency participating under 49 U.S.C. 60105 
or 60106.

Section 192.385 Manual Service Line Shut-Off Valve Installation

    PHMSA is proposing the addition of Sec.  192.385 to require the 
installation of a manual service line shut-off valve, such as a curb 
valve, when an EFV is not installed in accordance with Sec.  192.383. 
This proposed section also includes a

[[Page 41468]]

definition for ``Manual service line shut-off valve'' to further 
clarify the applicability of this provision.

V. Regulatory Notices

A. Statutory/Legal Authority for This Rulemaking

    This Notice of Proposed Rulemaking is published under the authority 
of the Federal pipeline safety law (49 U.S.C. 60101 et seq.). Section 
60102 authorizes the Secretary of Transportation to issue regulations 
governing design, installation, inspection, emergency plans and 
procedures, testing, construction, extension, operation, replacement, 
and maintenance of pipeline service lines. Further, section 
60109(e)(3)(B) states that ``the Secretary, if appropriate, shall by 
regulation require the use of excess flow valves, or equivalent 
technology, where economically, technically, and operationally feasible 
on new or entirely replaced distribution branch services, multifamily 
facilities, and small commercial service facilities.''

B. Executive Order 12866, Executive Order 13563, and DOT Regulatory 
Policies and Procedures

    Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review) require agencies to 
regulate in the ``most cost-effective manner,'' to make a ``reasoned 
determination that the benefits of the intended regulation justify its 
costs,'' and to develop regulations that ``impose the least burden on 
society.'' Expansion of the use of EFVs and curb valves is a non-
significant regulatory action under Executive Order 12866 and the 
Department of Transportation's (DOT's) Regulatory Policies and 
Procedures. This proposed requirement has been reviewed by the Office 
of Management and Budget in accordance with Executive Order 13563 and 
Executive Order 12866 and is consistent with the requirements in both 
Orders.
    During the initial stages of the development of the regulatory 
evaluation, PHMSA developed the survey recommended by the Interim 
Evaluation, which was aimed at gathering data on EFV and curb valve 
costs and benefits. PHMSA intended to send the survey to all operators 
in order to ensure that any proposed changes were based upon 
comprehensive and useful data. The goal was to have a better 
understanding of the costs of EFVs on installations beyond SFRs from 
those who have deployed them already, and on the costs and 
effectiveness of curb valves. Nine companies were asked to pilot the 
census, and a copy was published in the Federal Register.
    Both the census pilot and the comments to the proposed census 
published in the Federal Register quickly revealed that company 
databases are not currently set up to provide the necessary data. Load 
and customer type data are stored separately from data on EFVs and from 
data on incidents, and grouping customers into the census categories 
would, in some cases, cost more in labor for the database work and 
analysis than it would cost to implement this proposed rule itself. As 
a result of discussions with industry representatives and the NTSB, 
PHMSA chose to propose a rule similar to the framework included in 
Section 22 of the Pipeline Safety, Regulatory Certainty, and Job 
Creation Act of 2011.
    The initial Regulatory Impact Analysis (RIA), which is included in 
the docket for this rulemaking, does not address the benefits and costs 
of the proposal to require operators to install EFVs on branched 
service lines servicing SFRs because the benefits and costs of this 
proposal were addressed in the regulatory impact analysis for a 
previous rulemaking \8\. The initial RIA found that the estimated 
monetized benefits do not exceed the monetized costs in all cases. For 
the proposal to require EFVs on new or replaced service lines servicing 
MFRs, the monetized costs exceed monetized benefits even when using 
lower bound cost estimates. PHMSA believes that the proposals are 
nevertheless justified by the significant unquantifiable benefits, such 
as avoided evacuations and environmental damage from EFV-preventable 
incidents, including incidents that could not be included in the 
analysis because they do not meet PHMSA reporting criteria. EFVs also 
provide protection against a low-probability but high-consequence 
incident that could inflict mass casualties.
---------------------------------------------------------------------------

    \8\ ``Pipeline Safety: Integrity Management Programs for Gas 
Distribution Pipelines.'' 74 FR 63906 (December 4, 2009) RIN 2137-
AE15.
---------------------------------------------------------------------------

    The proposed rule is assumed to affect approximately 1,289 natural 
gas distribution operators and 222,114 service lines per year on 
average. The RIA assumed valves do not have network effects, in other 
words, each EFV operates independently and the costs and benefits of 
EFV installation simply scale linearly. The total annual benefits of 
the rule are $7,735,725 when discounted at 7 percent, while the costs 
range from $4,381,734 to $17,848,499 depending on the costs of the 
valve. At the 3% discount rate the total benefits of the rule are 
$2,748,456, while the costs range from $4,967,145 to $20,311,030. PHMSA 
requests public comments on its monetized estimates of the proposed 
rule's benefits and costs.
    The following tables summarize the quantified benefits and costs of 
this proposed rule at the 3 and 7% discount rates:

[[Page 41469]]



                     Estimated Benefits and Costs: Low and High Scenarios, 7% Discount Rate
----------------------------------------------------------------------------------------------------------------
                                                                   Annualized       Annualized      Annualized
                                  Number of                         cost, low    cost, from DIMP    cost, high
           Category                valves         Annualized     scenario  ($15  Analysis  ($20-  scenario  ($50
                                 installed,         benefit       EFV, $10 curb    $30 per EFV)   EFV, $100 curb
                                   year 1                            valve)                           valve)
----------------------------------------------------------------------------------------------------------------
SFR (as upper bound estimate   ..............  $11-27 million..  ..............  $8 million.....  ..............
 for Branched SFR) \9\.
Multi-Family EFV.............         153,985  $1,144,372......      $3,102,295  ...............     $10,340,985
Commercial EFV...............          27,174  $1,434,683......         547,467  ...............       1,824,890
Industrial/Large Other Curb            40,955  $5,156,671......         550,073  ...............       5,500,726
 Valve \10\.
Notification and               ..............  ................         181,899  ...............         181,899
 Recordkeeping.
                              ----------------------------------------------------------------------------------
    Total....................         222,114  $7,735,725......       4,381,734  ...............      17,848,499
----------------------------------------------------------------------------------------------------------------


                     Estimated Benefits and Costs: Low and High Scenarios, 3% Discount Rate
----------------------------------------------------------------------------------------------------------------
                                                                                    Annualized      Annualized
                                                     Number of                       cost, low      cost, high
                    Category                          valves        Annualized    scenario  ($15  scenario  ($50
                                                    installed,        benefit      EFV, $10 curb  EFV, $100 curb
                                                      year 1                          valve)          valve)
----------------------------------------------------------------------------------------------------------------
Multi-Family EFV................................         153,985      $1,958,991      $3,534,722     $11,782,405
Commercial EFV..................................          27,174       2,748,456         623,778       2,079,259
Industrial/Large Other Curb Valve...............          40,955      10,240,363         626,747       6,267,467
Notification and Recordkeeping..................  ..............  ..............         181,899         181,899
                                                 ---------------------------------------------------------------
    Total.......................................         222,114      14,947,810       4,967,145      20,311,030
----------------------------------------------------------------------------------------------------------------

    Additional unquantified benefit areas include:
---------------------------------------------------------------------------

    \9\ Benefit and cost information is taken from the DIMP 
rulemaking analysis. No information is available to estimate the 
proportion of SFR service lines that are branched; PHMSA believes it 
to be very roughly in the range of 10%. The DIMP analysis used 
different estimates for the cost of an EFV and used the then-
prevailing USDOT values for injury prevention. Although DIMP did not 
cover branched SFR, benefits and costs were calculated as if they 
were, because there were no data available to create a more precise 
estimate.
    \10\ This category is defined by service characteristics (size, 
flow) for which a curb valve is more appropriate than an EFV. No 
data are available on customer classification within the category, 
though it likely includes larger MFR, commercial and industrial 
facilities, and other similar customers.
---------------------------------------------------------------------------

     Equity: Provides a fair and equal level of safety to 
members of society who do not live in single-family residences.
     Additional incident costs avoided for which no PHMSA 
incident data are available: Mitigates the consequences (death, injury, 
property damage) of incidents when customer piping or equipment is 
involved and thus the incident would not be reflected in PHMSA records.
     Additional incident costs which are not recorded in 
incident reports, including costs of evacuations, emergency response 
costs, and business downtime.
     Environmental externalities associated with methane 
release (discussed in Appendix).
     Peace of mind for operators and customers.
     Protection against seismic events and intentional 
tampering.

PHMSA requests public comments on methods and information sources that 
could be used to quantify and monetize these unquantified benefits.

C. Executive Order 13132: Federalism

    This NPRM has been analyzed in accordance with the principles and 
criteria contained in Executive Order 13132 (``Federalism''). PHMSA 
issues pipeline safety regulations applicable to interstate and 
intrastate pipelines. The requirements in this proposed rule apply to 
operators of distribution pipeline systems, primarily intrastate 
pipeline systems. Under 49 U.S.C. 60105, a state may regulate 
intrastate pipeline facility or intrastate pipeline transportation, 
after submitting a certification to PHMSA. Thus, state pipeline safety 
regulatory agencies with a valid certification on file with PHMSA will 
be the primary enforcer of the safety requirements proposed in this 
NPRM. Under 49 U.S.C. 60107, PHMSA provides grant money to 
participating states to carry out their pipeline safety enforcement 
programs. Although a few states choose not to participate in the 
natural gas pipeline safety grant program, every state has the option 
to participate. This grant money is used to defray additional costs 
incurred by enforcing the pipeline safety regulations.
    PHMSA has concluded this proposed rule does not include any 
regulation that: (1) Has substantial direct effects on states, 
relationships between the national government and the states, or 
distribution of power and responsibilities among various levels of 
government; (2) imposes substantial direct compliance costs on states 
and local governments; or (3) preempts state law. Therefore, the 
consultation and funding requirements of Executive Order 13132 (64 FR 
43255; August 10, 1999) do not apply.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an 
agency to review regulations to assess their impact on small entities, 
unless the agency determines that a rule is not expected to have a 
significant impact on a substantial number of small entities. This NPRM 
has been developed in accordance with Executive Order 13272 (``Proper 
Consideration of Small Entities in Agency Rulemaking'') and DOT's 
procedures and policies to promote

[[Page 41470]]

compliance with the Regulatory Flexibility Act to ensure that potential 
impacts of rules on small entities are properly considered.
    This NPRM proposes to require small and large gas pipeline 
operators to comply with the new EFV installation requirements. The 
Small Business Administration (SBA) criteria for defining a small 
entity in the natural gas pipeline distribution industry is one that 
employs less than 500 employees as specified in the North American 
Industry Classification System (NAICS) codes.
    PHMSA calculated the number of small businesses affected by 
reviewing annual reports submitted by gas pipeline operators and data 
provided by Dunn and Bradstreet. PHMSA estimated that of the 1,289 
operators who submitted an annual report to PHMSA on their gas 
distribution activities, 1,221, or 95 percent, of these natural gas 
operators are classified as being ``small business.'' The natural gas 
distribution industry does have a substantial number of small entities 
as defined by the SBA. However, we believe that this rule would not 
have a significant impact on small entities because the additional 
costs are minimal: approximately $30 per EFV installed and $55 per curb 
valve installed. Industry comments have described these additional 
costs as ``relatively minimal'' \11\ and the one-time cost is largely 
offset by incident cost avoidance over the 50-year lifetime of the 
valves. The notification and recordkeeping costs associated with the 
new notification requirement for optional EFV installation are 
estimated at $42 per firm annually, which is a minimal cost even for 
the smallest operators.
---------------------------------------------------------------------------

    \11\ PHMSA-2012-0086-0003, Comment by the American Gas 
Association, submitted July 17, 2012, pg. 2.
---------------------------------------------------------------------------

    Accordingly, the head of the agency certifies under Section 605(b) 
of the RFA that the proposed rule, if promulgated, will not have a 
significant economic impact on a substantial number of small entities. 
PHMSA seeks comment on the Initial Regulatory Flexibility Analysis. A 
copy of the Initial Regulatory Flexibility Analysis has been placed in 
the docket.

E. Unfunded Mandates Reform Act of 1995

    This proposed rule does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It would not result in costs of 
$147.6 million, adjusted for inflation, or more in any one year to 
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 proposed rule. Installation of EFVs and curb 
valves significantly protects the safety of the public and is 
technically and economically feasible.

F. National Environmental Policy Act

    PHMSA analyzed this NPRM in accordance with section 102(2)(c) of 
the National Environmental Policy Act (42 U.S.C. 4332), the Council on 
Environmental Quality regulations (40 CFR parts 1500 through 1508), and 
DOT Order 5610.1C, and has preliminarily determined that this action 
will not significantly affect the quality of the human environment. A 
preliminary environmental assessment of this NPRM is available in the 
docket, and PHMSA invites comment on the environmental impacts of this 
proposed rule.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This NPRM has been analyzed in accordance with the principles and 
criteria contained in Executive Order 13175 (``Consultation and 
Coordination with Indian Tribal Governments''). Because this NPRM does 
not have tribal implications and does not impose substantial direct 
compliance costs on Indian tribal governments, the funding and 
consultation requirements of Executive Order 13175 do not apply.

H. Executive Order 13211: Energy Supply, Distribution, or Use

    This proposed rule is not a ``significant energy action'' under 
Executive Order 13211 (Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use). It is not 
likely to have a significant adverse effect on supply, distribution, or 
energy use. The Office of Information and Regulatory Affairs has not 
designated this proposed rule as a significant energy action.

I. Paperwork Reduction Act

    Pursuant to 5 CFR 1320.8(d), PHMSA is required to provide 
interested members of the public and affected agencies with an 
opportunity to comment on information collection and recordkeeping 
requests. As a result of the requirements proposed in this notice of 
proposed rulemaking, the following information collection impacts are 
expected:
Gas Distribution Annual Report Revision
    PHMSA is proposing to revise Sec.  192.383, to require the 
installation of EFVs beyond single family residences as currently 
required. Further, PHMSA is proposing to add Sec.  192.385 which would 
require the installation of manual service line shut-off valves. As a 
result, PHMSA wants to track the number of new installations related to 
these provisions on an annual basis. This will lead to changes to the 
Gas Distribution Annual Report which is contained in the currently 
approved information collection titled ``Annual Report for Gas 
Distribution Operators'' identified under OMB Control Number 2137-0629. 
PHMSA proposes to revise the Gas Distribution Annual report to collect 
the number of EFVs installed on multi-family dwellings and small 
commercial businesses and the number of manual service line shut-off 
valves installed. Currently, operators are required to submit the total 
number of excess flow valves installed on single-family residences and 
the total number of EFVs within their system. Therefore, PHMSA does not 
expect operators to experience an increase in burden beyond the burden 
currently estimated for the Gas Distribution Annual Report.
Customer Notification
    PHMSA proposes to revise Sec.  192.383 to require operators to 
notify customers of their right to request the installation of EFVs. 
PHMSA estimates that approximately half of the 6,184 operators 
categorized as either master meter operators or small LPG systems will 
be impacted, resulting in 3,092 operators. This estimate is based on 
the premise that only half of these operators have systems that can 
accommodate an EFV. PHMSA also estimates that 1,289 gas distribution 
operators will be impacted. Therefore PHMSA estimates a total impacted 
community of 4,381 (3,092 master meter/small LPG operators and 1,289 
gas distribution operators). PHMSA estimates that each impacted 
operator will take approximately 30 minutes per year to complete this 
notification and an additional 30 minutes per year to maintain the 
associated records. Therefore, PHMSA will request a new information 
collection to address these reporting and recordkeeping requirements.
    As a result of the changes listed above, PHMSA proposes to submit 
an information collection revision request as well as a new information 
collection request to OMB for approval based on the requirements in 
this proposed rule. These information collections are contained in the 
pipeline safety regulations, 49 CFR parts 190 through 199. The 
following information is provided for these information

[[Page 41471]]

collections: (1) Title of the information collection; (2) OMB control 
number; (3) Current expiration date; (4) Type of request; (5) Abstract 
of the information collection activity including a description of the 
changes applicable to the rulemaking action; (6) Description of 
affected public; (7) Estimate of total annual reporting and 
recordkeeping burden; and (8) Frequency of collection. The information 
collection burden for the following information collection will be 
requested as follows:
    1. Title: Annual Report for Gas Distribution Operators.
    OMB Control Number: 2137-0629.
    Current Expiration Date: May 31, 2018.
    Type of Request: Revision.
    Abstract: This information collection covers the collection of 
annual report data for information from Gas distribution pipeline 
operators for Incidents and Annual reports. This information collection 
will only be revised to reflect the amendment to the Gas Distribution 
Annual Report which will not result in a burden hour increase.
    Affected Public: Gas Distribution Pipeline Operators.
    Annual Reporting and Recordkeeping Burden:
    Total Annual Responses: 1,440. (no change).
    Total Annual Burden Hours: 2,300. (no change).
    Frequency of Collection: Annual.
    2. Title: Customer Notifications for Installation of Excess Flow 
Valves.
    OMB Control Number: TBD.
    Current Expiration Date: Not Applicable.
    Type of Request: New Information Collection.
    Abstract: This new information collection will cover the reporting 
and recordkeeping requirements for gas pipeline operators associated 
with customer notifications pertaining to the installation of excess 
flow valves.
    Affected Public: Gas Pipeline Operators.
    Annual Reporting and Recordkeeping Burden:
    Total Annual Responses: 4,381 responses.
    Total Annual Burden Hours: 4,381 hours.
    Frequency of Collection: On occasion.
    Requests for a copy of this information collection should be 
directed to Cameron Satterthwaite, Office of Pipeline Safety (PHP-30), 
Pipeline and Hazardous Materials Safety Administration (PHMSA), 2nd 
Floor, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, Telephone 
202-366-4595.

J. Privacy Act Statement

    Anyone is able to search the electronic form of all comments 
received for any dockets by the name of the individual submitting the 
comment (or signing the comment, if submitted on behalf of an 
association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477), or at http://www.regulations.gov.

K. Regulation Identifier Number

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN contained in the heading of 
this document may be used to cross-reference this action with the 
Unified Agenda.

List of Subjects in 49 CFR Part 192

    Excess flow valve installation, Excess flow valve performance 
standards, Pipeline safety, Service lines.

    In consideration of the foregoing, PHMSA proposes to amend 49 CFR 
part 192 as follows:

PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE: 
MINIMUM FEDERAL SAFETY STANDARDS

0
1. The authority citation for part 192, as revised at 80 FR 12762 
(March 11, 2015), effective October 1, 2015, continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60110, 
60113, 60116, 60118, and 60137, and 49 CFR 1.97.

0
2. In Sec.  192.381, the introductory text of paragraph (a) is revised 
to read as follows:


Sec.  192.381  Service lines: Excess flow valve performance standards.

    (a) Excess flow valves to be used on service lines that operate 
continuously throughout the year at a pressure not less than 10 p.s.i. 
(69 kPa) gage must be manufactured and tested by the manufacturer 
according to an industry specification, or the manufacturer's written 
specification, to ensure that each valve will:
* * * * *
0
3. Section 192.383 is revised to read as follows:


Sec.  192.383  Excess flow valve installation.

    (a) Definitions. As used in this section:
    Replaced service line means a gas service line where the fitting 
that connects the service line to the main is replaced or the piping 
connected to this fitting is replaced.
    Service line serving single-family residence (SFR) means a gas 
service line that begins at the fitting that connects the service line 
to the main and serves only one SFR.
    (b) Installation required. An excess flow valve (EFV) installation 
must comply with the performance standards in Sec.  192.381. After 
January 3, 2014, each operator must install an EFV on any new or 
replaced services line serving the following types of services before 
the line is activated:
    (1) A single service line to one SFR;
    (2) A branched service line to a SFR installed concurrently with 
the primary SFR service line (i.e., a single EFV may be installed to 
protect both service lines);
    (3) A branched service line to a SFR installed off a previously 
installed SFR service line that does not contain an EFV;
    (4) Multi-family residences with known customer loads not exceeding 
1,000 SCFH per service, at time of service installation based on 
installed meter capacity, and
    (5) A single, small commercial customer served by a single service 
line with a known customer load not exceeding 1,000 SCFH, at the time 
of meter installation, based on installed meter capacity.
    (c) Exceptions to excess flow valve installation requirement. An 
operator need not install an excess flow valve if one or more of the 
following conditions are present:
    (1) The service line does not operate at a pressure of 10 psig or 
greater throughout the
    year;
    (2) The operator has prior experience with contaminants in the gas 
stream that could interfere with the EFV's operation or cause loss of 
service to a customer;
    (3) An EFV could interfere with necessary operation or maintenance 
activities, such as blowing liquids from the line; or
    (4) An EFV meeting performance standards in Sec.  192.381 is not 
commercially available to the operator.
    (d) Customer's right to request an EFV. Existing service line 
customers, who desire an EFV on service lines not exceeding 1,000 SFCH 
and not meeting the conditions in paragraph (b) of this section, may 
request an EFV be installed on their service line. If a service line 
customer requests EFV installation, an operator must install the EFV at 
a mutually agreeable date. The appropriate State regulatory agency

[[Page 41472]]

determines whom and/or how the costs of the requested EFVs are 
distributed.
    (e) Operator notification of customers concerning EFV installation. 
Operators must notify customers of their right to request an EFV in the 
following manner:
    (1) Except as specified in paragraph (e)(2) of this section, each 
operator must provide written notification to the customer of their 
right to request the installation of an EFV within 90 days of the 
customer first receiving gas at a particular location.
    (2) Operators of master meter systems may continuously post a 
general notification in a prominent location frequented by customers.
    (f) Operator evidence of customer notification. Each operator must 
maintain a copy of the customer EFV notice for three years. This notice 
must be available for inspection by the Administrator or a State agency 
participating under 49 U.S.C. 60105 or 60106.
    (g) Reporting. Each operator must report the EFV measures detailed 
in the annual report required by Sec.  191.11 of this chapter.
0
4. Section 192.385 is added to subpart H to read as follows:


Sec.  192.385  Manual service line shut-off valve installation.

    (a) Definitions. As used in this section:
    Manual service line shut-off valve means a curb valve or other 
manually operated valve located near the service main or a common 
source of supply that is accessible to first responders and operator 
personnel to manually shut off gas flow to the service line in the 
event of an emergency.
    (b) The operator must install a manual service line shut-off valve 
for any new or replaced service line, with installed meter capacity 
exceeding 1,000 SCFH.
    (c) Manual service line shut-off valves for any new or replaced 
service line must be installed in such a way to allow accessibility 
during emergencies.

    Issued in Washington, DC, on July 7, 2015, under authority 
delegated in 49 CFR 1.97.
Jeffrey D. Wiese,
Associate Administrator for Pipeline Safety.
[FR Doc. 2015-17195 Filed 7-14-15; 8:45 am]
 BILLING CODE 4910-60-P



                                                  41460                  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules

                                                    • Is not a significant regulatory action               natural gas pipelines to reduce the risk              changes or edits, including any personal
                                                  subject to Executive Order 13211 (66 FR                  of accidents, are currently required for              information.
                                                  28355, May 22, 2001);                                    new or replaced gas service lines
                                                    • Is not subject to requirements of                    servicing single-family residences (SFR).             Privacy Act Statement
                                                  Section 12(d) of the National                            PHMSA is proposing to make changes to                   Anyone can search the electronic
                                                  Technology Transfer and Advancement                      part 192 to expand this requirement to                comments associated with any docket
                                                  Act of 1995 (15 U.S.C. 272 note) because                 include new or replaced branched                      by the name of the individual
                                                  application of those requirements would                  service lines servicing SFRs, multi-                  submitting the comment (or signing the
                                                  be inconsistent with the CAA; and,                       family residences, and small                          comment, if submitted on behalf of an
                                                    • Does not provide EPA with the                        commercial entities consuming gas                     association, business, labor union, etc.).
                                                  discretionary authority to address, as                   volumes not exceeding 1,000 Standard                  DOT’s complete Privacy Act Statement
                                                  appropriate, disproportionate human                      Cubic Feet per Hour (SCFH). PHMSA is                  was published in the Federal Register
                                                  health or environmental effects, using                   also proposing to require the use of                  on April 11, 2000, (65 FR 19477).
                                                  practicable and legally permissible                      manual service line shut-off valve (e.g.,             FOR FURTHER INFORMATION CONTACT:
                                                  methods, under Executive Order 12898                     curb valves) for new or replaced service              Mike Israni, by telephone at 202–366–
                                                  (59 FR 7629, Feb. 16, 1994).                             lines with meter capacities exceeding                 4571, by fax at 202–366–4566, or by
                                                    The SIP is not approved to apply on                    1,000 SCFH. Finally, PHMSA is                         mail at DOT, PHMSA, 1200 New Jersey
                                                  any Indian reservation land or in any                    proposing that operators notify                       Avenue SE., PHP–1, Washington, DC
                                                  other area where EPA or an Indian tribe                  customers of their right to request                   20590–0001.
                                                  has demonstrated that a tribe has                        installation of an EFV on service lines               SUPPLEMENTARY INFORMATION:
                                                  jurisdiction. In those areas of Indian                   that are not being newly installed or
                                                  country, the rule does not have tribal                   replaced. PHMSA is proposing to                       I. Background
                                                  implications and will not impose                         delegate the question of who bears the                   An EFV is a mechanical safety device
                                                  substantial direct costs on tribal                       cost of installing EFVs to service lines              installed inside the natural gas service
                                                  governments or preempt tribal law as                     that are not being newly installed or                 line between the street and residential
                                                  specified by Executive Order 13175 (65                   replaced to the operator, customer, and               meter. The EFV will ‘‘trip or close’’ if
                                                  FR 67249, November 9, 2000).                             the appropriate State regulatory agency.              there is sufficient damage to the line to
                                                                                                           DATES: Persons interested in submitting               minimize the flow of gas through the
                                                  List of Subjects in 40 CFR Part 52
                                                                                                           written comments on this Notice of                    line and thus, the amount of gas that
                                                    Environmental protection, Air                          Proposed Rulemaking (NPRM) must do                    escapes into the atmosphere. During
                                                  pollution control, Carbon monoxide,                      so by September 14, 2015. PHMSA will                  normal use, the valve is kept pushed
                                                  Incorporation by reference,                              consider late-filed comments so far as                open against oncoming gas flow by a
                                                  Intergovernmental relations,                             practicable.                                          spring. EFVs are designed so that
                                                  Greenhouse gases, Lead, Nitrogen                                                                               general usage, such as turning on
                                                                                                           ADDRESSES: You may submit comments
                                                  dioxide, Ozone, Particulate matter,                                                                            appliances, will not shut the valve.
                                                                                                           identified by the docket number
                                                  Reporting and recordkeeping                                                                                    However, during a significant increase
                                                                                                           PHMSA–2011–0009 by any of the
                                                  requirements, Sulfur oxides, Volatile                                                                          in the flow of gas (e.g., due to a damaged
                                                                                                           following methods:
                                                  organic compounds.                                                                                             line), the spring cannot overcome the
                                                                                                              Comments should reference Docket
                                                     Authority: 42 U.S.C. 7401 et seq.                     No. PHMSA–2011–0009 and may be                        force of gas, and the valve will close and
                                                    Dated: June 25, 2015.                                  submitted in the following ways:                      stay closed until the correct pressure is
                                                  Debra H. Thomas,                                            • Web site: http://                                restored. When the correct pressure is
                                                                                                           www.regulations.gov. This site allows                 restored, the EFV automatically resets
                                                  Acting Regional Administrator, Region 8.
                                                                                                           the public to enter comments on any                   itself.
                                                  [FR Doc. 2015–17380 Filed 7–14–15; 8:45 am]
                                                                                                           Federal Register notice issued by any                    On July 7, 1998, in South Riding,
                                                  BILLING CODE 6560–50–P                                                                                         Virginia, a residential gas explosion
                                                                                                           agency. Follow the online instructions
                                                                                                           for submitting comments.                              resulted in one death and three injuries.
                                                                                                              • Fax: 1–202–493–2251.                             It is not known if the explosion
                                                  DEPARTMENT OF TRANSPORTATION                                • Mail: U.S. Department of                         occurred on a branched or non-
                                                                                                           Transportation (DOT) Docket                           branched service line servicing an SFR;
                                                  Pipeline and Hazardous Materials                         Operations Facility (M–30), West                      however, PHMSA believes that this
                                                  Safety Administration                                    Building, 1200 New Jersey Avenue SE.,                 proposed rule or its previous rule
                                                                                                           Washington, DC 20590.                                 requiring EFVs on single lines serving
                                                  49 CFR Part 192                                             • Hand Delivery: DOT Docket                        SFRs would have mitigated the
                                                  [Docket No. PHMSA–2011–0009]                             Operations Facility, West Building,                   consequences of the explosion. An
                                                                                                           Room W12–140, 1200 New Jersey                         investigation by the National
                                                  RIN 2137–AE71                                            Avenue SE., Washington, DC, 20590                     Transportation Safety Board (NTSB)
                                                                                                           between 9:00 a.m. and 5:00 p.m.,                      found the explosion likely would not
                                                  Pipeline Safety: Expanding the Use of                    Monday through Friday, except Federal                 have occurred if an EFV had been
                                                  Excess Flow Valves in Gas Distribution                   holidays.                                             installed for this single-family home.
                                                  Systems to Applications Other Than                          Instructions: Identify the docket                  Similarly, PHMSA strongly believes this
srobinson on DSK5SPTVN1PROD with PROPOSALS




                                                  Single-Family Residences                                 number, PHMSA–2011–0009, at the                       incident would have likely been would
                                                  AGENCY: Pipeline and Hazardous                           beginning of your comments. If you mail               have been mitigated at a minimum. As
                                                  Materials Safety Administration                          your comments, submit two copies. In                  a result, on June 22, 2001, the NTSB
                                                  (PHMSA), DOT.                                            order to confirm receipt of your                      issued Safety Recommendation P–01–2,
                                                                                                           comments, include a self-addressed,                   recommending that PHMSA require
                                                  ACTION: Notice of proposed rulemaking.
                                                                                                           stamped postcard.                                     excess flow valves in all new and
                                                  SUMMARY:  Excess Flow Valves (EFVs),                       Note: All comments are posted                       renewed gas service lines, regardless of
                                                  which are safety devices installed on                    electronically in their original form, without        a customer’s classification, when the


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                                                                         Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules                                            41461

                                                  operating conditions are compatible                      structures are susceptible to the same                only proposed exceptions are for large
                                                  with readily available valves.                           risks as SFR service lines. PHMSA,                    apartment buildings, industrial or
                                                     In December of 2005, the ‘‘Integrity                  already aware of this risk, was awaiting              commercial users for whom EFVs may
                                                  Management for Gas Distribution:                         completion of the Interim Evaluation,                 not be practical due to inherent design
                                                  Report of Phase I Investigations,’’ 1                    which studied the possible expansion of               complexity, continuous supply
                                                  developed by a multi-stakeholder group,                  EFVs beyond SFRs and the challenges of                demands and/or contamination issues.
                                                  was published. In the report, the                        application. The Interim Evaluation also              Additionally, PHMSA is proposing that
                                                  stakeholder group recommended that                       addressed other practical alternatives                services exceeding 1,000 SFCH install
                                                  ‘‘[A]s part of its distribution integrity                such as the use of manual isolation                   curb valves on new or replaced gas
                                                  management plan, an operator should                      devices, such as curb valves. The                     service lines.
                                                  consider the mitigative value of excess                  evaluation identified challenges related                 The proposed required use of curb
                                                  flow valves (EFVs). EFVs meeting                         to the feasibility and practicality of the            valves for large commercial (greater than
                                                  performance criteria in § 192.381 and                    proposed solutions, as well as                        1,000 SFCH) goes beyond the Section 22
                                                  installed in accordance with § 192.383                   significant cost factors and benefit                  language of the Pipeline Safety, Job
                                                  may reduce the need for other                            factors. The evaluation found that there              Creation, and Regulatory Certainty Act
                                                  mitigation options.’’                                    are no other devices or viable options to             of 2011, however it is based on ANPRM
                                                     In an effort to study the possible                    shut off gas supply quickly when gas                  comments received from industry, trade
                                                  benefits of expanding EFVs beyond SFR                    services line ruptures.                               associations and other stakeholders.
                                                  applications, PHMSA began                                   On November 25, 2011, PHMSA                        PHMSA and industry in general believe
                                                  development of the Interim Evaluation                    published an Advance Notice of                        that EFVs are not suitable larger
                                                  in early 2009. In June and August of                     Proposed Rulemaking (ANPRM) (76 FR                    commercial facilities over 1,000 SFCH.
                                                  2009, PHMSA held public meetings on                      72666) asking the public to comment on                Curb valves are the best alternative to an
                                                  NTSB Recommendation P–01–2.                              the findings of the Interim Evaluation                EFV and provide an effective added
                                                     The meeting participants included the                 and issues relating to the expanded use               level of safety for these facilities. These
                                                  National Association of Regulatory                       of EFVs in gas distribution systems.                  valves also are a feasible alternative
                                                  Utility Commissioners, the National                      PHMSA also sought comments from gas                   based on the cost/benefit analyses.
                                                  Association of Pipeline Safety                           distribution operators on their                          PHMSA’s authority for regulating
                                                  Representatives, the International                       experiences using EFVs, including:                    natural gas pipelines was first
                                                  Association of Fire Chiefs, the National                    • Technical challenges of installing               established by the Natural Gas Pipeline
                                                  Association of State Fire Marshals,                      EFVs on services other than SFRs;                     Safety Act of 1968, Public Law 90–481,
                                                  natural gas distribution operators, trade                   • Categories of service to be                      and has since been enlarged by
                                                  associations, manufacturers, and the                     considered for expanded EFV use;                      additional legislation. The Pipeline
                                                  Pipeline Safety Trust. As a result of                       • Cost factors;                                    Safety Laws specifically delegate
                                                  these meetings, PHMSA issued a report                       • Data analysis in the Interim                     authority to DOT to develop, prescribe,
                                                  titled: ‘‘Interim Evaluation: NTSB                       Evaluation;                                           and enforce minimum Federal safety
                                                  Recommendation P–01–2 Excess Flow                           • Technical standards for EFV                      standards for the transportation of
                                                  Valves in Applications Other Than                        devices; and                                          natural gas. PHMSA has used this
                                                  Service Lines Serving One SFR’’).2                          • Potential safety and societal                    statutory authority to promulgate
                                                     On December 4, 2009, PHMSA                            benefits, small business and                          comprehensive minimum safety
                                                  amended the pipeline safety regulations                  environmental impacts, and costs of                   standards. While the 2011 Act
                                                  to require the use of EFVs for new or                    modifying the existing regulatory                     specifically directed PHMSA to require
                                                  replaced gas lines servicing SFRs.3                      requirements.                                         the installation of EFVs on new and
                                                  While this requirement met the mandate                                                                         replaced branched lines serving SFRs,
                                                                                                           The ANPRM comments received by                        multi-family and small commercial
                                                  of the Pipeline Inspection, Protection,                  PHMSA will assist in the finalization of
                                                  Enforcement and Safety Act (PIPES Act)                                                                         facilities, DOT’s underlying prior
                                                                                                           the Interim Evaluation and in                         statutory authority under 49 U.S.C.
                                                  enacted in 2006, distribution lines,                     determining what regulatory changes                   60104 provides PHMSA with the
                                                  including those that serve branched                      may be necessary to fulfill this mandate.             authority to require the installation of
                                                  SFRs, apartment buildings, other multi-                     In 2012, the President signed the                  curb valves for large commercial
                                                  residential dwellings, commercial                        Pipeline Safety, Regulatory Certainty,                facilities.
                                                  properties, and industrial service lines,                and Job Creation Act of 2011, which                      In the time since the 1998 incident in
                                                  are still not required to use EFVs. These                requires PHMSA to study the possibility               South Riding, Virginia, the NTSB has
                                                    1 http://www.regulations.gov/
                                                                                                           of expanding the use of EFVs beyond                   investigated an additional 8 incidents,
                                                  #!documentDetail;D=PHMSA-RSPA-2004-19854-
                                                                                                           SFRs and issue a final report on the                  which resulted in 10 fatalities that could
                                                  0070.                                                    evaluation of the NTSB’s                              have possibly been averted if an EFV
                                                    2 The Interim Evaluation Report was issued in          recommendation on excess flow valves                  had been in place. The most recent
                                                  2010 by PHMSA. The purpose of the interim report         within 2 years after enactment of the                 incident occurred on November 23,
                                                  was to respond to the NTSB safety recommendation         Act. PHMSA is also mandated to, if                    2012, when a gas pipeline exploded in
                                                  P–01–02 and evaluate the possibility of expansion
                                                  of EFVs to applications other than service lines         appropriate, issue regulations requiring              Springfield, Massachusetts. The
                                                  serving one single family residence (above 10 psig).     the use of EFVs or equivalent                         Springfield explosion injured 21 people
                                                  The interim report also built a foundation for an        technology, where ‘‘economically,                     and damaged more than 40 buildings. It
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                                                  economic analysis, considered the need for               technically and operationally feasible’’,             is important also to note that this
                                                  enhanced technical standards or guidelines, and
                                                  suggested that any new technical standards include       for new or entirely replaced distribution             incident occurred on the day after
                                                  criteria for pressure drops across the EFV. The          branch services, multi-family lines, and              Thanksgiving and the daycare adjacent
                                                  interim report can be found at: http://                  small commercial service lines. PHMSA                 to the explosion was closed. If the
                                                  www.regulations.gov/#!documentDetail;D=PHMSA-            has determined for the purpose of this                daycare would have been open, it is
                                                  2011-0009-0002.
                                                    3 ‘‘Pipeline Safety: Integrity Management              proposed rule, based on the study, that               highly likely this incident would have
                                                  Programs for Gas Distribution Pipelines,’’ 74 FR         the safety benefits of expanding EFVs                 resulted in even more losses. This
                                                  63906 (December 4, 2009) RIN 2137–AE15.                  justify the cost and is appropriate. The              incident is currently under investigation


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                                                  41462                  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules

                                                  by the NTSB. All eight of these                          EFV use with certain limitations. The                 requirements should only affect new
                                                  incidents occurred on lines that would                   operators that responded with                         installations. Likewise, AGA supported
                                                  be affected by this rulemaking.                          comments raised some concerns with                    the installation of EFVs on new and
                                                                                                           expanded EFV use generally related to                 entirely replaced service lines in the
                                                  II. Analysis of ANPRM                                                                                          following applications only:
                                                                                                           logistics and implementation.
                                                    Nineteen organizations and                             Municipality comments reflected a                        • Service lines to SFRs;
                                                  individuals submitted comments in                        concern that State laws already in place                 • SFR service lines and branched SFR
                                                  response to the ANPRM. The individual                    could conflict with any new Federal                   service lines installed at the same time;
                                                  docket item numbers are listed for each                  requirements. The NTSB expressed                         • A branched SFR service line
                                                  comment.                                                 strong approval of the expanded EFV                   branching off an existing SFR service
                                                                                                           use. The comments submitted are                       line that does not contain an EFV
                                                  Trade Associations                                                                                             provided there is sufficient line
                                                                                                           discussed below in the same order as
                                                    • Northeast Gas Association (NGA)                      presented in the questions from the                   capacity;
                                                  (PHMSA–2011–0009–0012).                                  ANPRM.                                                   • A branched SFR service line
                                                    • Texas Pipeline Association (TPA)                                                                           branching off an existing SFR service
                                                  (PHMSA–2011–0009–0016).                                  A. Technical Challenges of Installing                 line that contains an EFV sized
                                                    • American Gas Association (AGA)                       EFVs on Services Other Than SFRs                      appropriately for both customers
                                                  (PHMSA–2011–0009–0023).                                  A.1. Does the Interim Evaluation                      provided there is sufficient line
                                                    • American Public Gas Association                      address all challenges associated with                capacity;
                                                  (APGA) (PHMSA–2011–0009–0024).                                                                                    • Multi-family installations,
                                                                                                           expanded EFV use (changing gas usage
                                                                                                                                                                 including duplexes, triplexes, and
                                                  Gas Transmission and Distribution                        patterns, snap loads, business-critical
                                                                                                                                                                 fourplexes, with individual meter sets, a
                                                  Pipeline Companies                                       gas supply applications, system
                                                                                                                                                                 known customer load (based on meter
                                                                                                           configuration, pressure ratings, and size
                                                    • MidAmerican Energy Company                           of commercially available EFVs)?
                                                                                                                                                                 capacity) not exceeding 1,000 standard
                                                  (MAE) (PHMSA–2011–0009–0011).                                                                                  cubic feet per hour (SCFH), and a load
                                                    • Avista Utilities (AU) (PHMSA–                           The ANPRM solicited feedback and                   that is not expected to increase over
                                                  2011–0009–0013).                                         comments regarding whether the                        time; and
                                                    • Southwest Gas Corporation (SWC)                      Interim Evaluation fairly and accurately                 • Small commercial customers with a
                                                  (PHMSA–2011–0009–0015).                                  explained the challenges of expanded                  known customer load (based on meter
                                                    • National Grid (NG) (PHMSA–2011–                      EFV use. These challenges, identified in              capacity) not exceeding 1,000 SCFH
                                                  0009–0022) (Supported AGA                                the Interim Evaluation from a variety of              through a single service line and where
                                                  comments).                                               stakeholders, may limit or exclude                    the load is not expected to increase over
                                                    • Laclede Gas (LG) (PHMSA–2011–                        future EFV expansion beyond SFR                       time.
                                                  0009–0018) (Supported AGA                                applications due to safety reasons. The                  AU, KGS, APGA, SWC, GBI, AGA,
                                                  comments).                                               challenges included changing gas-usage                and the City of Ellensburg, WA, were
                                                    • Kansas Gas Service (KGS)                             patterns, snap loads (i.e. loads that lead            concerned with the challenges of snap
                                                  (PHMSA–2011–0009–0017).                                  to false closures), business-critical gas             loads and the loss of continuous supply.
                                                    • Nicor Gas (PHMSA–2011–0009–                          supply applications, system                           Snap loads may occur when the amount
                                                  0014).                                                   configurations, pressure ratings, and the             of natural gas required to meet demand
                                                                                                           sizes of commercially available EFVs.                 suddenly increases, which is generally
                                                  Government/Municipalities                                Among the challenges discussed by the                 due to many appliances being turned on
                                                    • City of Ellensburg, Washington                       commenters, snap loads (loads that lead               at one time. GBI, AU, and AGA
                                                  (PHMSA–2011–0009–0004).                                  to false closures), load variation, and               suggested that requiring EFVs for lines
                                                    • NTSB (PHMSA–2011–0009–0009).                         proper EFV sizing seemed to be of the                 not exceeding 1,000 SCFH based on
                                                    • Iowa Utilities Board (IUB)                           greatest concern.                                     meter size is reasonable, but the false
                                                  (PHMSA–2011–0009–0020).                                     Overall, industry, trade association,              closure and load variation challenges
                                                                                                           government, and municipality                          make using EFVs for applications that
                                                  Pipeline Industry Suppliers                              commenters agreed that the Interim                    exceed 1,000 SCFH difficult. AU
                                                    • R.W. Lyall (PHMSA–2011–0009–                         Evaluation failed to accurately and fully             specifically stated that the failure (false
                                                  0021).                                                   portray a variety of the technical and                closure or malfunction) of EFVs at high
                                                    • Gas Breaker, Inc. (GBI) (PHMSA–                      operational challenges and costs and                  loads during winter frost is difficult to
                                                  2011–0009–0019).                                         benefits associated with expanded EFV                 mitigate and is an inconvenience to
                                                                                                           requirements. These commenters either                 customers who lose service. AU stated
                                                  Citizens                                                 stated the report was lacking in certain              that winter frost makes pipeline
                                                    • Rebecca Lee Roter (PHMSA–2011–                       areas or did not comment. In general,                 excavation to repair lines difficult due
                                                  0009–0006).                                              commenters, including AGA and APGA,                   to frozen soil. SWC commented that
                                                    • Courtney D. Brown (PHMSA–2011–                       strongly cautioned against the broad                  business disruptions and loss of service
                                                  0009–0010).                                              expansion of EFV requirements beyond                  in vital areas such as high-occupancy
                                                    • Anonymous (PHMSA–2011–0009–                          those for SFRs, citing operators’ lack of             dwellings created a safety hazard. KGS
                                                  0008) (The anonymous commenter                           experience and design complexities.                   recommended that service lines serving
                                                  expressed concerns regarding pipeline                    Specifically, APGA, SWC, AGA, LG,                     multiple customers should not use a
srobinson on DSK5SPTVN1PROD with PROPOSALS




                                                  safety versus job creation, corruption,                  NG, AU, TPA, IUB, NGA, and MAE all                    single EFV due to the increased degree
                                                  and politics. These topics are beyond                    found the Interim Evaluation’s                        of variation in the gas flow rates.
                                                  the scope of this NPRM and are not                       discussion of the challenges of proper                   PHMSA received different approaches
                                                  discussed further.)                                      EFV sizing protocols, system                          from commenters regarding the proper
                                                    PHMSA reviewed all of the comments                     configuration, and changes in gas-usage               selection of an EFV for a pipeline, or
                                                  received in response to the ANPRM.                       patterns to be inadequate and to contain              what is referred to in the Interim
                                                  The comments received from the trade                     false assumptions. Due to these                       Evaluation as ‘‘EFV sizing’’. The trip
                                                  associations largely supported expanded                  concerns, MAE suggested that any EFV                  point is the specific point in which the


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                                                                         Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules                                             41463

                                                  EFV ‘‘trips’’, or closes, the valve due to               SFRs only 223 failed.4 In Europe,                     design of the carrier pipe. EFVs covered
                                                  gas pressure differential and is                         BEGAS, the government owned gas                       by ASTM F2138 must have a maximum
                                                  essentially the factor that guides the size              company in Eastern Austria, reported                  inlet pressure of at least 125 psig, while
                                                  selection of an EFV. In the Interim                      that EFVs have been installed since                   ASTM F1802 applies to EFVs with a
                                                  Evaluation, PHMSA suggested an EFV’s                     1993 on service lines to hospitals, large             pressure rating of up to 125 psig.
                                                  trip point should be less than, but close                facilities, production plants, etc. Out of            However, for very high-volume EFV
                                                  to, the flow rate of a complete line                     26,000 BEGAS installations there have                 applications, such as those for industrial
                                                  rupture.                                                 been no spurious failures.5 PHMSA                     customers, technical standards may
                                                     Commenters indicated that PHMSA’s                     maintains proper operator installation                need to address operating design
                                                  approach for trip point selection either                 using manufacture direction and                       pressures that exceed 125 psig.
                                                  led to tripping too easily or not at all.                maintenance of EFVs is paramount to                      Therefore, PHMSA proposes to
                                                  R.W. Lyall, an EFV manufacturer,                         their success. Therefore, PHMSA is not                expand EFV applications to new or
                                                  further submitted that EFVs should be                    proposing a protocol for EFV                          replaced service lines for SFRs with
                                                  sized so that the EFV trip point, at the                 installation. PHMSA is only advising                  branched lines; multi-family
                                                  minimum system pressure, is above the                    operators to install EFVs as the                      installations, including duplexes,
                                                  maximum anticipated load and is above                    manufacturer directs and the service                  triplexes, and fourplexes with
                                                  meter capacity. GBI suggested an EFV                     safely requires.                                      individual meter sets and known
                                                  should be selected that operates at least                   Operators and manufacturers that                   customer loads not exceeding 1,000
                                                  1.5 times the meter rating at the                        PHMSA contacted stated they typically                 SCFH; and small commercial customers
                                                  minimum design inlet pressure. Finally,                  size an EFV in such a way that it trips               with known loads not exceeding 1,000
                                                  SWC and NGA specifically commented                       at 20% to 30% above the maximum                       SCFH. EFVs will not be required in the
                                                  that, due to the complexity of design                    service load it will encounter. It is                 above-mentioned applications if one of
                                                  found in multi-family industrial and                     possible that this trip point could be too            the existing § 192.383 exceptions is
                                                  commercial service lines, a common                       high for small leaks, however, EFVs are               present.
                                                  approach for sizing is not possible. With                intended to react to ruptures, not small
                                                                                                                                                                    While the proposed expansion of
                                                  regard to the challenges of commercially                 holes.
                                                                                                              Likewise, one commenter mentioned                  EFVs would have costs, PHMSA
                                                  available EFVs, PHMSA received two
                                                                                                           winter time excavation of lines to repair             believes the costs are justified by the
                                                  comments. GBI, an EFV manufacturer,
                                                                                                           them due to EFV failure was a concern.                added protection for gas customers, as
                                                  commented that the commercial
                                                  availability for most applications, even                 PHMSA suggests that digging in frozen                 the only proposed exceptions are for
                                                  those considered large, is not a problem.                ground in winter is not any more                      large apartment buildings, industrial or
                                                  In contrast, MAE stated that the                         difficult than digging concrete or                    commercial users for whom EFVs may
                                                  commercial availability of EFVs for non-                 curbside if valve is located underneath.              not be practical due to inherent design
                                                  residential load profiles is an                          Again, PHMSA believes, proper sizing                  complexity and continuous supply
                                                  assumption made on the part of PHMSA                     of an EFV is the key to avoiding all                  demands. In those situations (loads
                                                  that may be inaccurate.                                  these issues. PHMSA has surveyed                      exceeding 1,000 SFCH), PHMSA
                                                                                                           twice in the past, and there were only                believes curb valves will provide the
                                                  PHMSA Response                                           one or two instances of EFV failure in                best possible option for improved safety
                                                     A number of the comments PHMSA                        greater than a million services over                  at this time. PHMSA does not have
                                                  received focused on a concern that EFVs                  many years. All major EFV                             definitive data, but some commenters
                                                  could trip inadvertently and may cause                   manufacturers PHMSA contacted                         stated that 2% to 5% of customers
                                                  unnecessary service disruptions.                         indicated that they are available to help             would fall into one of the exceptions for
                                                  PHMSA agrees that variations in the                      operators to properly size their valves.              EFVs, which would include many of
                                                  configuration of service lines make it                      PHMSA received no information to                   those facilities over with loads
                                                  difficult to impose specific sizing                      indicate that pressure ratings and/or the             exceeding 1,000 SFCH.
                                                  requirements for various types of service                size of commercially available EFVs are               A.2. Additional Challenges Not
                                                  lines and customers. However, if an                      a problem for the expansion of EFVs to                Addressed by the Interim Evaluation
                                                  operator installs an EFV and operates it                 certain other types of service. Currently,
                                                  in accordance with a manufacturer’s                      the normal minimum pressure design                      The ANPRM also solicited comments
                                                  specifications, the EFV should operate                   (the minimum anticipated design                       on whether additional challenges
                                                  safely without the need for a                            pressure) is 10 psig. The maximum                     existed beyond those discussed in the
                                                  prescriptive sizing requirement even                     pressure of composite materials (250                  Interim Evaluation. MAE commented
                                                  when customer gas usage changes,                         psig), plastic (125 psig), and steel (1,000           that the addition of more EFVs in
                                                  unless the change were so large as to                    psig and up), does not pose a problem.                natural gas systems could create an
                                                  require a new service line.                              There is no pressure limit on an EFV’s                increase in safety hazards resulting from
                                                     Overall, PHMSA disagrees with the                     performance except that, when                         the maintenance of failed EFVs and
                                                  comments that EFVs are prone to failure                  activated, the EFV seat must be able to               EFVs that fail to trip on small leaks (i.e.,
                                                  and inadvertent tripping due to                          withstand the pressure. The pressure                  pinhole corrosion). These safety hazards
                                                  variations in gas flow, location, etc.                   limit is normally constrained by the                  would be due to increased excavation
                                                  Research and available data has shown                                                                          activities, which place more workers in
                                                  very few failures with EFVs in actual                      4 ‘‘Survey on Excess Flow Valves: Installations,    high-traffic and congested areas. MAE
srobinson on DSK5SPTVN1PROD with PROPOSALS




                                                  usage. Operators in the United States                    Cost, Operating Performance and Gas Operator          also mentioned that excavation
                                                                                                           Policy’’, Ken Costello, The National Regulatory
                                                  have gained considerable experience                      Research Institute, March 2007.                       contractors may be less cautious around
                                                  with EFVs since 1999 mainly with                           5 ‘‘Operational Experiences with Excess Flow        service lines if they believe they will not
                                                  SFRs. The NRRI conducted a survey on                     Valves for Service Lines and Main Lines in Network    leak because of an installed EFV. TPA
                                                  EFV installation and operators’                          Operation’’, Peter Masloff, Technology Department     stated that the mandated use of EFVs for
                                                                                                           Director, BEGAS—Burgenlandische
                                                  experiences with EFVs installed on                       Erdgasversorgungs AG. http://pipelife-gasstop.com/
                                                                                                                                                                 new or replaced transmission or
                                                  single family residential service lines                  media/gasstop/pdf_englisch/GWF_7_2003_Excess-         gathering lines should not be pursued
                                                  found of 2.5 million EFVs installed on                   Flow-Valves_Experience-report.pdf.                    until further study is completed.


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                                                  41464                  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules

                                                  PHMSA Response                                           physically close the valve itself, thereby            environmental impacts of modifying the
                                                     MAE’s comment regarding excavation                    avoiding inadvertent closures. Curb                   existing regulatory requirements. The
                                                  damage prevention can be addressed                       valves are slightly more expensive than               economic analysis for the installation of
                                                  with proper EFV installation techniques                  EFVs and require some maintenance                     EFVs on services other than SFRs
                                                  and the normal course of training for                    and need to be located in an accessible               involves challenges including the
                                                                                                           site. The primary disadvantage curb                   quantification and monetization of costs
                                                  pipeline operator personnel, including
                                                                                                           valves have is the time it can take to                and benefits.
                                                  training on excavation damage
                                                                                                           mobilize to the valve site and close the
                                                  prevention. Excavation contractors                                                                             B.1. Categories of Service for Expanded
                                                                                                           valve.
                                                  hired by operators go thru same damage                      It is not technically feasible to expand           Use of EFVs
                                                  prevention training as operators                         EFV use to service lines operating at                    The ANPRM requested comments on
                                                  regarding safe digging practices and are                 loads exceeding 1,000 SCFH. This is                   section 10.3.2. of the Interim Evaluation.
                                                  aware of the dangers of gas leaks and                    largely due to issues with reliable                   This section describes the ‘‘Categories of
                                                  explosions. In regard to TPA’s comment,                  service, load fluctuation, the lack of                Services’’ in which PHMSA could
                                                  PHMSA agrees at this time and is                         experience with EFV usage in larger                   expand EFV requirements. PHMSA
                                                  proposing to expand EFV use only to                      applications, and the complexity of                   sought input as to whether the
                                                  distribution lines, not gathering or                     design issues. Therefore, in the case of              categories accurately represented
                                                  transmission lines. PHMSA has found                      service lines operating at more than                  current ‘‘real world’’ applications and
                                                  that there is a lack of experience with                  1,000 SCFH, PHMSA proposes to                         which categories are most likely to
                                                  EFVs on gathering and transmission                       require curb valves be installed and                  benefit from EFV expansion.6
                                                  lines in addition to problems with                       maintained in such a manner that                         AGA largely agreed with the
                                                  contaminants and other factors.                          emergency personnel can access them.                  categories of service presented in the
                                                  A.3. Use of Curb Valves (Manual Shut-                    Although it does not come at a                        Interim Evaluation, while MAE
                                                  Off Valve) as an Alternative to EFVs                     prohibitive cost, the installation of curb            commented that the categories are
                                                                                                           valves is slightly more expensive than                sufficient for economic analysis only.
                                                     The ANPRM sought comments on the
                                                                                                           the installation of EFVs.                             MAE further states that if the rule in its
                                                  use of curb valves as an alternative to
                                                  EFVs. Most commenters agreed that use                    A.4. Additional Situations Where the                  final form creates different requirements
                                                  of a curb valve is a viable alternative to               Installation of EFVs May Not Be                       among these five categories, the rule
                                                  EFV use in some cases. In fact, the City                 Feasible                                              may prove difficult to implement
                                                  of Ellensburg, Washington, stated the                                                                          because an operator may not be clear
                                                                                                              The ANPRM solicited comments                       which category a service may fall into.
                                                  installation of a curb valve should be                   concerning additional situations not
                                                  considered by PHMSA to be equivalent                                                                              AGA, APGA, AU, Nicor, and SWC
                                                                                                           found in the Interim Evaluation where                 advised PHMSA not to apply the EFV
                                                  to the installation of an EFV. The City                  the installation of an EFV may not be
                                                  of Ellensburg mentioned that current                                                                           requirements to all five categories
                                                                                                           feasible or practical. AGA and SWC                    named in the Interim Evaluation.
                                                  Washington State regulations require                     commented that they agreed with the
                                                  the use of a curb valve if an EFV is not                                                                       Specifically, the commenters supported
                                                                                                           examples cited in section 10.3.1 of the               all categories of service with the
                                                  installed.                                               Interim Evaluation. MAE commented
                                                     MAE, APGA, and APA commented                                                                                exception of those with services
                                                                                                           that lines containing contaminants, and               requiring greater than 1,000 SCFH.
                                                  that operators have experience with                      distribution systems with a history of
                                                  curb valves, but their use presents                                                                            Those services with 1,000 SCFH
                                                                                                           transporting liquids, may create                      requirements or higher are generally
                                                  certain challenges. The technical                        situations where EFVs are
                                                  challenges expressed by commenters                                                                             sensitive to loss of supply and may have
                                                                                                           impracticable.                                        complex configurations not conducive
                                                  with regard to curb valve use include:
                                                  Maintenance of the valve; location of                    PHMSA Response                                        to EFVs. Nicor, APGA, and AGA
                                                  the valve for accessibility; third-party                                                                       commented that service lines serving
                                                                                                             Section 192.383 currently includes
                                                  damage to the valve; recordkeeping as to                                                                       one multi-family building with one
                                                                                                           exceptions for EFV installations with
                                                  the location of the valve; ensuring the                                                                        meter should be limited to duplexes,
                                                                                                           regard to SFRs. With respect to MAE’s
                                                  box does not place stress on the pipe;                                                                         triplexes, and fourplexes with known
                                                                                                           concern regarding lines containing
                                                  and the delayed shut-off response                                                                              loads not exceeding 1,000 SCFH, and
                                                                                                           contaminants and distribution systems
                                                  inherent in curb valve design during                                                                           that non-residential services to space
                                                                                                           with a history of transporting liquids,
                                                  emergency situations. APGA                                                                                     and water heater customers should be
                                                                                                           the proposed exceptions would waive
                                                  commented that curb valves require                                                                             limited to 1,000 SCFH due to possible
                                                                                                           the EFV requirement for those systems
                                                  trained personnel to manually close the                                                                        snap loads. Additionally, AGA stated
                                                                                                           for which installing EFVs would be
                                                  valve with a special key. APGA further                                                                         that there are factors to consider for
                                                                                                           impracticable. This proposed rule
                                                  stated that ‘‘squeezing’’ off the gas in the                                                                   applying EFVs to non-residential service
                                                                                                           incorporates the existing § 192.383
                                                  line is sometimes quicker than using a                                                                         lines such as commercial food sales,
                                                                                                           exceptions in place and would extend
                                                  curb valve for stopping the flow of gas.                                                                       food service, and health care, and that
                                                                                                           them to the additional service line
                                                                                                                                                                 these applications would require unique
                                                  PHMSA Response                                           applications covered in this NPRM.
                                                                                                                                                                 analysis. These service applications are
                                                    Historically, curb valves have proven                  B. Economic Analysis Considerations                   susceptible to loss of service issues and
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                                                  to be a very effective mechanism for                       PHMSA requested comments on the                        6 The categories of service from the Interim
                                                  interrupting the flow of gas in both                     potential costs of modifying the existing             Evaluation are: Branched service line serving
                                                  routine maintenance situations and in                    regulatory requirements. PHMSA                        single-family residence; Service line serving one (or
                                                  emergencies. Other than a curb valves,                   requested that commenters provide                     two adjoining) multi-family residential building(s)
                                                  distribution operators have tools (large                 information and supporting data on the                with one meter or one meter header or manifold;
                                                                                                                                                                 Non-residential services to space and water heat
                                                  pliers) to squeeze pipe to shut off gas                  potential quantifiable safety and societal            customers; Other applications where the service
                                                  supply. Curb valves require that a                       benefits, the potential impacts on small              line configuration or EFV specification is more
                                                  person make a conscious decision to                      businesses, and the potential                         complex; and Industrial customers.



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                                                                         Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules                                                   41465

                                                  frequently have complex designs. SWC                     larger service lines, inadvertent trips               maintenance of EFVs or other
                                                  likewise stated that EFVs work in                        and the subsequent loss of business for               alternatives if applicable regulatory
                                                  applications not exceeding 1,000 SCFH.                   commercial customers and accidental                   requirements were implemented. MAE
                                                  The industrial customer’s category was                   environmental discharges are additional               stated that operators should pay for the
                                                  mentioned by all those commenting on                     costs to the operator that PHSMA                      initial installation of valves, but any
                                                  this question as a category not suitable                 should consider. APGA commented that                  changes to customer loads requiring
                                                  for mandated EFV use due to                              EFV installation costs for large-volume               EFV installation should be at the
                                                  unpredictable load changes over the life                 EFVs may be higher due to the fact there              customer’s expense.
                                                  of the service and inherent design                       is less demand for them, and PHMSA
                                                                                                                                                                 PHMSA Response
                                                  complexities.                                            should not assume the same unit price
                                                                                                           as a SFR EFV. Both NGA and Nicor                         Because operators would already be
                                                  PHMSA Response                                           mentioned that installation of EFVs may               newly installing or replacing pipelines,
                                                    PHMSA has reviewed the comments                        conflict with restrictions placed by local            i.e. they would already have a trench
                                                  on the possible expansion of categories                  jurisdictions on excavating paved roads               open and be in place to work at the site,
                                                  of gas services requiring EFVs. PHMSA                    to access existing or install new EFVs.               the addition of an EFV adds only minor
                                                  proposes expansion of EFV use for only                                                                         costs (PHMSA estimates the cost of an
                                                                                                           PHMSA Response                                        EFV including installation is $30). This
                                                  certain categories of service presented in
                                                  the Interim Evaluation. Specifically,                       PHMSA has determined that                          is supported by the AGA response to the
                                                  PHMSA proposes to expand EFV                             installing EFVs by using manufacturer                 excess flow valve census (Docket
                                                  requirements to include:                                 guidelines should eliminate most EFV                  PHMSA–2012–0086, page 2), in which
                                                    • Branched SFR service lines off of                    tripping errors. EFVs are commercially                AGA indicated ‘‘the incremental cost
                                                  existing SFR service lines that do not                   available in a wide variety of pipe sizes.            per installation of EFVs is relatively
                                                  contain an EFV and have a known load                     Some manufacturers report that they                   minimal.’’ AGA further committed to
                                                  not exceeding 1,000 SFCH based on                        make EFVs for larger than 2-inch IPS                  expand the installation of EFVs beyond
                                                  meter capacity;                                          (Iron Pipe Size) diameters (typical SFR               SFR services by June 2013. This also
                                                    • SFR service lines and branched SFR                   size), and at least one manufacturer is               supports the notion that cost is not a
                                                  service lines installed at the same time                 developing a 10,000 SCFH EFV. The                     major factor for the expansion of EFV
                                                  with a known load not exceeding 1,000                    principles of operation remain the same               use on new and fully replaced service
                                                  SFCH based on meter capacity;                            as valve size and trip point increase,                lines beyond SFRs as proposed by this
                                                    • Branched SFR service lines off of                    making EFVs for larger loads and pipe                 NPRM. PHMSA additionally utilized
                                                  existing SFR service lines with a known                  sizes technically feasible. PHMSA also                ANPRM comments which included
                                                  load not exceeding 1,000 SFCH based                      noted that SFR installation of EFVs,                  numerical data on the costs for EFVs
                                                  on meter capacity;                                       which began in 2010, depended on                      provided by operators as well as
                                                    • Multi-family residences with                         manufacturer guidelines for installation.             PHMSA Technical Advisory
                                                  individual meter sets and a known                        No PHMSA guidance was issued. Since                   Committee 7 input for this proposed
                                                  customer load not exceeding 1,000                        2010 the SFR EFVs required to be                      rulemaking.
                                                  standard cubic feet per hour (SCFH)                      installed have resulted in no false trips
                                                                                                                                                                 B.4. Are there any opportunity costs
                                                  based on meter capacity; and                             or failures if installed as manufacturer
                                                                                                                                                                 associated with the installation of EFVs?
                                                    • Small commercial customers with a                    directed. PHMSA has found
                                                                                                                                                                 A particular time of day that is optimal
                                                  known customer load (based on meter                      manufacture guidelines to be well
                                                                                                                                                                 for installation? How long does
                                                  capacity) not exceeding 1,000 SCFH                       within the safety margin and they know                installation take?
                                                  through a single service line.                           their product better than PHMSA in
                                                    Operators with services lines with                     most instances.                                         The ANPRM sought comment as to
                                                  loads exceeding 1,000 SCFH will be                          Additional costs for purging lines are             any opportunity costs and installation
                                                  required to utilize curb valves. Since                   minimal as documented by AGA                          timelines that EFVs or alternatives may
                                                  PHMSA has found commercial and                           estimates. AGA states many operators                  require. AGA, APGA, SWC, MAE, and
                                                  industrial service lines often have                      either have already installed EFVs on                 Nicor commented on this question.
                                                  complex designs and/or require                           some services beyond SFRs or are                      These commenters all mentioned the
                                                  constant reliable service requirements,                  planning to start. The price per unit has             loss of gas supply as a potential
                                                  PHMSA has decided that these                             decreased in recent years given the                   opportunity loss for customers due to
                                                  categories of service are not good                       development, improved availability,                   the longer period of time needed to
                                                  candidates for requiring EFV use. Often                  and quality of EFVs. Higher installation              install an EFV on larger service lines.
                                                  these services meet or exceed a demand                   costs for high volume EFVs have been                  Additionally, the operators would
                                                  for 1,000 SCFH. PHMSA therefore                          taken into account in the cost/benefit                spend more time and resources
                                                  proposes the 1,000 SCFH threshold                        analysis through the averaged cost.                   installing EFVs or alternatives versus
                                                  based on comments and PHMSA                              Similarly, installation costs for curb                maintenance, construction, operation,
                                                  experience however we invite comment.                    valves are more expensive than smaller                and inspection activities. APGA
                                                                                                           volume EFVs and the cost/benefit                      responded that EFVs do not need to be
                                                  B.2. Cost Factors Associated With                                                                              installed at any particular time of day,
                                                                                                           analysis considered that aspect.
                                                  Mandatory EFV or Curb Valve                                                                                    with most installations occurring during
                                                  Installation                                             B.3. Who should pay for the installation              normal business hours.
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                                                    The ANPRM sought comments as to                        and maintenance of EFVs or other
                                                                                                           alternatives and why?                                 PHMSA Response
                                                  whether there are any other issues
                                                  related to the costs associated with                        PHMSA sought comments as to who                      Given industry’s commitment to
                                                  mandatory EFV or curb valve                              should pay for the costs of installation              support EFV installation on new and
                                                  installation that should be considered                   and maintenance of EFVs. Comments                       7 Joint Meeting of the PHMSA Technical Advisory
                                                  aside from those mentioned in the                        were received from AGA, SWC, and                      Committees held Dec. 11–13, 2012, Alexandria,
                                                  Interim Evaluation. Both AGA and SWC                     MAE concerning who should be                          Virginia. Transcripts available at Regulations.gov.,
                                                  noted that cleaning labor for EFVs on                    expected to pay for the installation and              docket PHMSA–2009–0203.



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                                                  41466                  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules

                                                  fully replaced service lines where                       conclusions. IUB suggested PHMSA                      C.1. Should PHMSA incorporate by
                                                  practically and technically feasible,                    should develop a separate analysis for                reference the following standards?
                                                  PHMSA believes that the cost of                          each of the classes of service.                       Manufacturers Standardization Society
                                                  installation of EFVs, as proposed by the                                                                       (MSS) SP–115–2006 Design,
                                                  regulation, are sufficiently low that they               PHMSA Response                                        Performance & Test, ASTM
                                                  will not interfere with other operator                     PHMSA’s analysis was based on                       International (ASTM) F1802–04—
                                                  expenditures. PHMSA agrees with                                                                                Standard Specification for Excess Flow
                                                                                                           incident-specific data, which were
                                                  industry that the incremental cost per                                                                         Valves for Natural Gas Service, and
                                                                                                           obtained from the incident reports
                                                  installation is minimal and would be                                                                           ASTM International (ASTM) F2138–
                                                  utilized during the new construction or                  submitted by operators. PHMSA
                                                                                                                                                                 01—Standard Specification for Excess
                                                  the replacement of service lines when                    explained how it used the data,
                                                                                                                                                                 Flow Valves for Natural Gas Service?
                                                  industry resources (labor) are already at                including the assumptions it made in
                                                  the installation sites.                                  applying the operational and other data                  The comments received by PHMSA
                                                                                                           obtained from incident reports, to filter             largely indicated that the incorporation
                                                  B.5. Are there any other issues related                  past incidents that would likely not                  by reference of any standards for EFVs
                                                  to benefits associated with the                          have been averted or mitigated had an                 is not necessary. AGA, supported by
                                                  mandatory EFV or curb valve                              EFV been installed. The remaining                     MAE, stated in their comments that
                                                  installation that should be considered                                                                         manufacturers already construct and
                                                                                                           candidate incidents might have been
                                                  when performing the benefit/cost                                                                               test EFVs according to industry
                                                  analysis, other than those listed in                     averted or mitigated had an EFV been
                                                                                                           installed, but PHMSA did not                          consensus standards MSS SP–115–2006,
                                                  section 10.5 ‘‘Defining Benefit Factors’’                                                                      ASTM F–1802, and ASTM F–2138.
                                                  of the Interim Evaluation? Does the                      conclusively assert that all of those
                                                                                                           candidate incidents definitively would                Operators have been successfully
                                                  methodology utilized in the Interim
                                                                                                           have been averted or mitigated.                       installing EFVs using manufacturer
                                                  Evaluation appropriately quantify the
                                                                                                           However, based on the analysis of the                 guidance with no known safety issues
                                                  expected number of incidents or
                                                                                                           best available data, PHMSA is                         arising. Similarly, AGA and SWC
                                                  consequences averted? Can a conclusion
                                                                                                           convinced that the installation of EFVs               expressed concern regarding the
                                                  be satisfactorily made concerning the
                                                                                                           on additional service lines could help                incorporation by reference of any
                                                  cost and benefits of EFV or curb valve
                                                                                                                                                                 industry standards due to the delay in
                                                  installation as presented in the Interim                 avert or mitigate future incidents. The
                                                                                                                                                                 updating the pipeline safety statutes,
                                                  Evaluation?                                              candidate incidents, incidents that
                                                                                                                                                                 which in turn would prevent the timely
                                                    PHMSA asked for comments                               PHMSA can classify as preventable by                  installation of the newest and best EFVs
                                                  concerning any other issues that had not                 EFV installation, represent the scope of              on the market. As an alternative to
                                                  yet been considered regarding benefits                   incidents that might have benefited                   PHMSA incorporating standards,
                                                  associated with mandatory EFV or curb                    from an EFV during the time period                    commenters suggested that PHMSA
                                                  valve installation. IUB, NGA, MAE, and                   studied. PHMSA requests comments on                   continue to allow operators to utilize
                                                  AGA commented on additional cost/                        whether the incidents that PHMSA has                  manufacturer installation guidance
                                                  benefit factors that had not yet been                    identified are likely to have been                    already available.
                                                  considered. NGA stated that upgrading                    averted or mitigated if an EFV or
                                                  existing EFVs to meet the increased                      manual service line shut-off valve had                PHMSA Response
                                                  demand loads will add significant costs                  been in place. In addition, PHMSA does                  PHMSA will not be incorporating any
                                                  to customers and will conflict with                      not have an EFV sizing protocol, nor
                                                  restrictions placed by local jurisdictions                                                                     new standards by reference for EFVs
                                                                                                           was one proposed in the Interim                       into the pipeline statutes at this time but
                                                  on excavating paved roads to access                      Evaluation. The methodology for sizing
                                                  existing or install new EFVs. Similarly,                                                                       may do so in the future. All EFVs
                                                                                                           EFVs was one of the challenges                        currently available have been
                                                  MAE stated that load changes due to
                                                                                                           described in section 9.1 of the Interim               manufactured and tested to current
                                                  changes in ownership may cause extra
                                                                                                           Evaluation.                                           consensus standards. Additionally,
                                                  expenses from service modifications
                                                  and industrial process equipment                                                                               PHMSA has not incorporated any
                                                                                                           C. Technical Standards and Guidance
                                                  damage. AGA and SWC were unaware                                                                               standards for EFVs into the pipeline
                                                                                                           for EFVs                                              safety regulations for SFRs and has not
                                                  of any additional cost/benefit factors
                                                  other than those in the Interim                            The OMB circular A–119, ‘‘Federal                   found any issues with that approach. If
                                                  Evaluation.                                              Participation in the Development and                  the need for incorporation by reference
                                                    In terms of the methods PHMSA used                     Use of Voluntary Consensus Standards                  does become necessary, PHMSA will
                                                  in the Interim Evaluation to study EFV                   in Conformity Assessment Activities,’’                review the issue.
                                                  expansion, the comments were                             directs Federal agencies to utilize                   C.2. Are there alternatives to the
                                                  generally supportive. MAE, SWC,                          voluntary standards, both domestic and                standards referenced in C.1.?
                                                  APGA, and AGA commented that they                        international, whenever feasible and
                                                  typically agreed with the methodology                    consistent with law and regulation. The                 PHMSA also asked for comments on
                                                  used by PHMSA. However, some trade                       current regulation at 49 CFR 192.381                  three current consensus standards and if
                                                  association comments also indicated                      only requires EFVs to be manufactured                 there are alternatives to them. APGA
                                                  there was some concern about the                                                                               and APA stated they were unaware of
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                                                                                                           and tested by the manufacturer
                                                  assumptions PHMSA made with its                                                                                additional standards beyond those listed
                                                                                                           according to an industry specification or
                                                  methodology. In particular, there were                                                                         in the Interim Evaluation, with the
                                                                                                           the manufacturer’s written specification.
                                                  concerns with the ‘‘incidents averted                                                                          exception of ‘‘MSS SP–142–2012
                                                  calculation,’’ including the associated                  The regulation does not prescribe a                   Excess Flow Valve for fuel gas service,
                                                  root cause analyses and assumed                          precise specification. PHMSA solicited                NPS 1 1/2 through 12’’ for larger sized
                                                  continued operations of all lines over 10                comments as to the need for the                       EFVs. Similarly, MAE, deferring to AGA
                                                  psi. AGA further commented that the                      adoption of consensus standards for                   comments, stated it was aware of no
                                                  analysis could not draw reliable                         EFV specification.                                    other standards except for the Gas


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                                                                         Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules                                            41467

                                                  Piping Technology Committee (GPTC)                       service line configurations. The                      a SFR installed concurrently with the
                                                  Appendix G192–8 in the Z380 Guide.                       identification of operating conditions                primary SFR service line; branched
                                                                                                           and system configurations that are                    service lines to a SFR installed off a
                                                  PHMSA Response
                                                                                                           incompatible with EFVs could also be                  previously installed SFR service line
                                                     PHMSA is also unaware of any                          included in the guidelines.                           that does not contain an EFV; and small
                                                  alternatives to the three standards listed                                                                     commercial customers and multi-family
                                                  in the Interim Evaluation for EFVs for                   D. Additional Comments
                                                                                                                                                                 installations. The existing exceptions for
                                                  natural gas service. As for selection and                   Only one commenter, MAE, provided                  EFV installation found in
                                                  sizing guidelines, PHMSA will request                    additional information and supporting                 § 192.383(b)(1) through (4) would
                                                  GPTC to develop comprehensive                            data with regard to additional potential              remain but would be moved to
                                                  standards for selection, installation, and               costs and impacts of expanding EFV                    § 192.383(c)(1) through (4).
                                                  performance testing of EFVs for a                        use. Specifically, MAE stated that it had                PHMSA is proposing the addition of
                                                  variety of design considerations and                     installed 5,102 EFVs on SFRs in 2010.                 § 192.383(d) to allow existing service
                                                  service line configurations and                          If applications beyond SFRs were                      line customers the option of requesting
                                                  operating conditions. This guidance will                 required for service lines, MAE would                 an EFV installation on their service line
                                                  be in addition to guidance provided by                   have installed an additional 1,123 EFVs               if one or more of the exceptions listed
                                                  manufacturers and will act as a                          in 2010. MAE stated the estimated                     in § 192.383(c)(1) through (4) are not
                                                  supplement to address various                            average cost for an EFV is $50.00 and                 met. Operators would install an EFV at
                                                  situations which may not be elaborated                   that there would be no anticipated                    the request of customer on a mutually
                                                  on in manufacturer guidance. PHMSA                       significant impact on the environment.                agreeable date and time. This option
                                                  will also issue advisory bulletins if we                    Several comments from members of                   would be available to service line
                                                  become aware of new conditions of                        the public were received in response to               customers on existing service lines
                                                  concern for EFV installation.                            the ANPRM. One commenter, Courtney                    when the customer applies for service
                                                                                                           D. Brown, supported the expanded use                  and for a period of 90 days after service
                                                  C.3. Are guidelines or technical                         of EFVs to protect people in the vicinity
                                                  standards needed for developing and if                                                                         has started. Operators will rely upon the
                                                                                                           of large businesses and/or entertainment              appropriate State regulatory agencies to
                                                  so, why?                                                 venues. Brown commented that the cost                 determine who would bear the costs of
                                                    PHMSA asked for comments as to                         of installing EFVs does not outweigh the              installation for customer requested
                                                  whether EFV guidelines or technical                      loss of lives, homes, or businesses when              EFVs.
                                                  standards are in need of development,                    an incident occurs. Commenter Rebecca                    With regard to the issue of installation
                                                  and if so, why. Both MAE and SWC                         Lee Roter expressed concern with the                  costs of a customer requested EFV,
                                                  commented that a standard approach or                    lack of regulatory requirements in place              PHMSA has no jurisdiction concerning
                                                  some sort of guidance for sizing EFVs,                   for natural gas and transmission lines in             natural gas rates or any costs incurred
                                                  and criteria for identifying adverse                     Class 1 areas. Roter indicated that these             due to installation of an optional EFV at
                                                  conditions, may be needed. SWC agreed                    areas required little routine inspection              a consumer’s request. Rather, the
                                                  and stated that additional guidance, not                 and no emergency plans.                               appropriate State regulatory agency will
                                                  necessarily standards, need to be                                                                              determine all issues related to the costs
                                                                                                           PHMSA Response
                                                  developed. SWC additionally asked                                                                              of installation.
                                                  PHMSA to issue advisory bulletins if                       PHMSA received several additional                      PHMSA proposes to add paragraphs
                                                  PHMSA finds additional conditions in                     comments on the topic of the expanded                 (e)(1) through (2) which would require
                                                  which an EFV installation is advisable.                  use of EFVs. The information from MAE                 that operators notify existing service
                                                  Likewise, AGA stated that the current                    was helpful for PHMSA to get a better                 line customers of their right to request
                                                  industry standards used in                               understanding of the costs and impacts                an EFV in writing. Master meter
                                                  manufacturing are satisfactory, and EFV                  of expanding EFV use. PHMSA has                       operators may continuously post a
                                                  performance testing using industry                       estimated an average cost of $30 per                  general notification in a prominent
                                                  standards cannot be accomplished in an                   valve—see the initial RIA for further                 location frequented by customers.
                                                  economically, technically, and                           discussion. Additionally, PHMSA is                    Operators must also have evidence of
                                                  operationally feasible manner on                         aware of the concern for public safety                customer notification. Operator
                                                  installed service lines.                                 expressed by Brown and Roter.                         evidence of notification could include
                                                                                                           III. Section by Section Analysis                      such items as a statement printed on
                                                  PHMSA Response
                                                                                                                                                                 customer bills or mailings. Small Master
                                                    PHMSA finds that additional                            Section 192.381 Service Lines: Excess                 meters would be ask to prove that they
                                                  technical standards development for                      Flow Valve Performance Standards                      posted a notice at some common
                                                  EFVs at this time is not necessary.                        PHMSA is proposing to revise the                    location. Each operator must maintain a
                                                  However, PHMSA is considering                            language used in § 192.381(a) to remove               copy of the customer EFV notice for
                                                  requesting a new or existing industry                    the words ‘‘single residence’’. This                  three years. This notice must be
                                                  committee to develop guidelines for a                    change reflects the proposed expansion                available for inspection by the
                                                  standard approach to the sizing and                      of EFVs to applications beyond SFRs.                  Administrator or a State agency
                                                  installation of EFVs. Industry guidelines                                                                      participating under 49 U.S.C. 60105 or
                                                  have already been developed for the                      Section 192.383 Excess Flow Valve
                                                                                                                                                                 60106.
                                                  implementation of (Distribution                          Installation
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                                                  Integrity Management Program) DIMP                         PHMSA is proposing to revise                        Section 192.385 Manual Service Line
                                                  by the GPTC and industry gas                             § 192.383(b) to include the proposed                  Shut-Off Valve Installation
                                                  associations. PHMSA believes these                       new categories of service on which                      PHMSA is proposing the addition of
                                                  guidelines should be developed in a                      EFVs would be installed. The existing                 § 192.385 to require the installation of a
                                                  more comprehensive manner to include                     category of service (new or replaced                  manual service line shut-off valve, such
                                                  the selection, installation, and                         service line serving a SFR) would                     as a curb valve, when an EFV is not
                                                  performance testing of EFVs for a                        remain. The new categories of service                 installed in accordance with § 192.383.
                                                  variety of design considerations and                     would include branched service lines to               This proposed section also includes a


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                                                  41468                  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules

                                                  definition for ‘‘Manual service line shut-               and Budget in accordance with                         costs of this proposal were addressed in
                                                  off valve’’ to further clarify the                       Executive Order 13563 and Executive                   the regulatory impact analysis for a
                                                  applicability of this provision.                         Order 12866 and is consistent with the                previous rulemaking 8. The initial RIA
                                                                                                           requirements in both Orders.                          found that the estimated monetized
                                                  V. Regulatory Notices                                      During the initial stages of the                    benefits do not exceed the monetized
                                                  A. Statutory/Legal Authority for This                    development of the regulatory                         costs in all cases. For the proposal to
                                                  Rulemaking                                               evaluation, PHMSA developed the                       require EFVs on new or replaced service
                                                                                                           survey recommended by the Interim                     lines servicing MFRs, the monetized
                                                     This Notice of Proposed Rulemaking                    Evaluation, which was aimed at                        costs exceed monetized benefits even
                                                  is published under the authority of the                  gathering data on EFV and curb valve                  when using lower bound cost estimates.
                                                  Federal pipeline safety law (49 U.S.C.                   costs and benefits. PHMSA intended to                 PHMSA believes that the proposals are
                                                  60101 et seq.). Section 60102 authorizes                 send the survey to all operators in order             nevertheless justified by the significant
                                                  the Secretary of Transportation to issue                 to ensure that any proposed changes                   unquantifiable benefits, such as avoided
                                                  regulations governing design,                            were based upon comprehensive and                     evacuations and environmental damage
                                                  installation, inspection, emergency                      useful data. The goal was to have a                   from EFV-preventable incidents,
                                                  plans and procedures, testing,                           better understanding of the costs of                  including incidents that could not be
                                                  construction, extension, operation,                      EFVs on installations beyond SFRs from                included in the analysis because they do
                                                  replacement, and maintenance of                          those who have deployed them already,                 not meet PHMSA reporting criteria.
                                                  pipeline service lines. Further, section                 and on the costs and effectiveness of                 EFVs also provide protection against a
                                                  60109(e)(3)(B) states that ‘‘the Secretary,              curb valves. Nine companies were asked                low-probability but high-consequence
                                                  if appropriate, shall by regulation                      to pilot the census, and a copy was                   incident that could inflict mass
                                                  require the use of excess flow valves, or                published in the Federal Register.                    casualties.
                                                  equivalent technology, where                               Both the census pilot and the                          The proposed rule is assumed to
                                                  economically, technically, and                           comments to the proposed census                       affect approximately 1,289 natural gas
                                                  operationally feasible on new or entirely                published in the Federal Register                     distribution operators and 222,114
                                                  replaced distribution branch services,                   quickly revealed that company                         service lines per year on average. The
                                                  multifamily facilities, and small                        databases are not currently set up to                 RIA assumed valves do not have
                                                  commercial service facilities.’’                         provide the necessary data. Load and                  network effects, in other words, each
                                                  B. Executive Order 12866, Executive                      customer type data are stored separately              EFV operates independently and the
                                                  Order 13563, and DOT Regulatory                          from data on EFVs and from data on                    costs and benefits of EFV installation
                                                  Policies and Procedures                                  incidents, and grouping customers into                simply scale linearly. The total annual
                                                                                                           the census categories would, in some                  benefits of the rule are $7,735,725 when
                                                    Executive Orders 12866 (Regulatory                     cases, cost more in labor for the                     discounted at 7 percent, while the costs
                                                  Planning and Review) and 13563                           database work and analysis than it                    range from $4,381,734 to $17,848,499
                                                  (Improving Regulation and Regulatory                     would cost to implement this proposed                 depending on the costs of the valve. At
                                                  Review) require agencies to regulate in                  rule itself. As a result of discussions               the 3% discount rate the total benefits
                                                  the ‘‘most cost-effective manner,’’ to                   with industry representatives and the                 of the rule are $2,748,456, while the
                                                  make a ‘‘reasoned determination that                     NTSB, PHMSA chose to propose a rule                   costs range from $4,967,145 to
                                                  the benefits of the intended regulation                  similar to the framework included in                  $20,311,030. PHMSA requests public
                                                  justify its costs,’’ and to develop                      Section 22 of the Pipeline Safety,                    comments on its monetized estimates of
                                                  regulations that ‘‘impose the least                      Regulatory Certainty, and Job Creation                the proposed rule’s benefits and costs.
                                                  burden on society.’’ Expansion of the                    Act of 2011.                                             The following tables summarize the
                                                  use of EFVs and curb valves is a non-                      The initial Regulatory Impact
                                                                                                                                                                 quantified benefits and costs of this
                                                  significant regulatory action under                      Analysis (RIA), which is included in the
                                                                                                                                                                 proposed rule at the 3 and 7% discount
                                                  Executive Order 12866 and the                            docket for this rulemaking, does not
                                                                                                                                                                 rates:
                                                  Department of Transportation’s (DOT’s)                   address the benefits and costs of the
                                                  Regulatory Policies and Procedures.                      proposal to require operators to install                8 ‘‘Pipeline Safety: Integrity Management
                                                  This proposed requirement has been                       EFVs on branched service lines                        Programs for Gas Distribution Pipelines.’’ 74 FR
                                                  reviewed by the Office of Management                     servicing SFRs because the benefits and               63906 (December 4, 2009) RIN 2137–AE15.
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                                                                                 Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules                                                                                                         41469

                                                                                    ESTIMATED BENEFITS AND COSTS: LOW AND HIGH SCENARIOS, 7% DISCOUNT RATE
                                                                                                                                                                                                                                                                 Annualized
                                                                                                                                                                                   Annualized
                                                                                                       Number of                                                                                                                                                 cost, high
                                                                                                                                                                                    cost, low                Annualized cost, from DIMP
                                                                                                          valves                                                                                                                                                  scenario
                                                                 Category                                                              Annualized benefit                           scenario                          Analysis
                                                                                                        installed,                                                                                                                                               ($50 EFV,
                                                                                                                                                                                 ($15 EFV, $10                  ($20–$30 per EFV)
                                                                                                          year 1                                                                                                                                                 $100 curb
                                                                                                                                                                                   curb valve)                                                                     valve)

                                                  SFR (as upper bound esti-                        ........................   $11–27 million ......................              ........................   $8 million ..............................          ........................
                                                    mate for Branched SFR) 9.
                                                  Multi-Family EFV ...................                        153,985         $1,144,372 ............................                  $3,102,295            ...............................................       $10,340,985
                                                  Commercial EFV ...................                           27,174         $1,434,683 ............................                     547,467            ...............................................         1,824,890
                                                  Industrial/Large Other Curb                                  40,955         $5,156,671 ............................                     550,073            ...............................................         5,500,726
                                                    Valve 10.
                                                  Notification and Record-                         ........................    ...............................................              181,899          ...............................................              181,899
                                                    keeping.

                                                        Total ...............................                 222,114         $7,735,725 ............................                    4,381,734           ...............................................        17,848,499


                                                                                    ESTIMATED BENEFITS AND COSTS: LOW AND HIGH SCENARIOS, 3% DISCOUNT RATE
                                                                                                                                                                                                                                                                 Annualized
                                                                                                                                                                                                                                      Annualized
                                                                                                                                                                                 Number of                                                                       cost, high
                                                                                                                                                                                                                                       cost, low
                                                                                                                                                                                    valves                  Annualized                                            scenario
                                                                                                     Category                                                                                                                          scenario
                                                                                                                                                                                  installed,                  benefit                                            ($50 EFV,
                                                                                                                                                                                                                                    ($15 EFV, $10
                                                                                                                                                                                    year 1                                                                       $100 curb
                                                                                                                                                                                                                                      curb valve)                  valve)

                                                  Multi-Family EFV .............................................................................................                        153,985               $1,958,991                  $3,534,722              $11,782,405
                                                  Commercial EFV ..............................................................................................                           27,174                2,748,456                    623,778                2,079,259
                                                  Industrial/Large Other Curb Valve ...................................................................                                   40,955              10,240,363                     626,747                6,267,467
                                                  Notification and Recordkeeping .......................................................................                     ........................   ........................             181,899                  181,899

                                                        Total ..........................................................................................................                222,114               14,947,810                    4,967,145               20,311,030



                                                    Additional unquantified benefit areas                                       • Environmental externalities                                               states choose not to participate in the
                                                  include:                                                                    associated with methane release                                               natural gas pipeline safety grant
                                                    • Equity: Provides a fair and equal                                       (discussed in Appendix).                                                      program, every state has the option to
                                                  level of safety to members of society                                         • Peace of mind for operators and                                           participate. This grant money is used to
                                                  who do not live in single-family                                            customers.                                                                    defray additional costs incurred by
                                                  residences.                                                                   • Protection against seismic events                                         enforcing the pipeline safety
                                                    • Additional incident costs avoided                                       and intentional tampering.                                                    regulations.
                                                  for which no PHMSA incident data are                                        PHMSA requests public comments on                                               PHMSA has concluded this proposed
                                                  available: Mitigates the consequences                                       methods and information sources that                                          rule does not include any regulation
                                                  (death, injury, property damage) of                                         could be used to quantify and monetize                                        that: (1) Has substantial direct effects on
                                                  incidents when customer piping or                                           these unquantified benefits.                                                  states, relationships between the
                                                  equipment is involved and thus the                                                                                                                        national government and the states, or
                                                                                                                              C. Executive Order 13132: Federalism                                          distribution of power and
                                                  incident would not be reflected in
                                                  PHMSA records.                                                                 This NPRM has been analyzed in                                             responsibilities among various levels of
                                                    • Additional incident costs which are                                     accordance with the principles and                                            government; (2) imposes substantial
                                                  not recorded in incident reports,                                           criteria contained in Executive Order                                         direct compliance costs on states and
                                                  including costs of evacuations,                                             13132 (‘‘Federalism’’). PHMSA issues                                          local governments; or (3) preempts state
                                                  emergency response costs, and business                                      pipeline safety regulations applicable to                                     law. Therefore, the consultation and
                                                  downtime.                                                                   interstate and intrastate pipelines. The                                      funding requirements of Executive
                                                                                                                              requirements in this proposed rule                                            Order 13132 (64 FR 43255; August 10,
                                                     9 Benefit and cost information is taken from the                         apply to operators of distribution                                            1999) do not apply.
                                                  DIMP rulemaking analysis. No information is                                 pipeline systems, primarily intrastate
                                                  available to estimate the proportion of SFR service                         pipeline systems. Under 49 U.S.C.                                             D. Regulatory Flexibility Act
                                                  lines that are branched; PHMSA believes it to be
                                                  very roughly in the range of 10%. The DIMP
                                                                                                                              60105, a state may regulate intrastate                                           The Regulatory Flexibility Act (5
                                                  analysis used different estimates for the cost of an                        pipeline facility or intrastate pipeline                                      U.S.C. 601 et seq.) requires an agency to
                                                  EFV and used the then-prevailing USDOT values                               transportation, after submitting a                                            review regulations to assess their impact
                                                  for injury prevention. Although DIMP did not cover                          certification to PHMSA. Thus, state                                           on small entities, unless the agency
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                                                  branched SFR, benefits and costs were calculated as                                                                                                       determines that a rule is not expected to
                                                  if they were, because there were no data available
                                                                                                                              pipeline safety regulatory agencies with
                                                  to create a more precise estimate.                                          a valid certification on file with PHMSA                                      have a significant impact on a
                                                     10 This category is defined by service                                   will be the primary enforcer of the                                           substantial number of small entities.
                                                  characteristics (size, flow) for which a curb valve                         safety requirements proposed in this                                          This NPRM has been developed in
                                                  is more appropriate than an EFV. No data are                                NPRM. Under 49 U.S.C. 60107, PHMSA                                            accordance with Executive Order 13272
                                                  available on customer classification within the
                                                  category, though it likely includes larger MFR,
                                                                                                                              provides grant money to participating                                         (‘‘Proper Consideration of Small Entities
                                                  commercial and industrial facilities, and other                             states to carry out their pipeline safety                                     in Agency Rulemaking’’) and DOT’s
                                                  similar customers.                                                          enforcement programs. Although a few                                          procedures and policies to promote


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                                                  41470                  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules

                                                  compliance with the Regulatory                           to the private sector, and is the least               EFVs beyond single family residences as
                                                  Flexibility Act to ensure that potential                 burdensome alternative that achieves                  currently required. Further, PHMSA is
                                                  impacts of rules on small entities are                   the objective of the proposed rule.                   proposing to add § 192.385 which
                                                  properly considered.                                     Installation of EFVs and curb valves                  would require the installation of manual
                                                     This NPRM proposes to require small                   significantly protects the safety of the              service line shut-off valves. As a result,
                                                  and large gas pipeline operators to                      public and is technically and                         PHMSA wants to track the number of
                                                  comply with the new EFV installation                     economically feasible.                                new installations related to these
                                                  requirements. The Small Business                                                                               provisions on an annual basis. This will
                                                  Administration (SBA) criteria for                        F. National Environmental Policy Act                  lead to changes to the Gas Distribution
                                                  defining a small entity in the natural gas                  PHMSA analyzed this NPRM in                        Annual Report which is contained in
                                                  pipeline distribution industry is one                    accordance with section 102(2)(c) of the              the currently approved information
                                                  that employs less than 500 employees as                  National Environmental Policy Act (42                 collection titled ‘‘Annual Report for Gas
                                                  specified in the North American                          U.S.C. 4332), the Council on                          Distribution Operators’’ identified under
                                                  Industry Classification System (NAICS)                   Environmental Quality regulations (40                 OMB Control Number 2137–0629.
                                                  codes.                                                   CFR parts 1500 through 1508), and DOT                 PHMSA proposes to revise the Gas
                                                     PHMSA calculated the number of                        Order 5610.1C, and has preliminarily                  Distribution Annual report to collect the
                                                  small businesses affected by reviewing                   determined that this action will not                  number of EFVs installed on multi-
                                                  annual reports submitted by gas                          significantly affect the quality of the               family dwellings and small commercial
                                                  pipeline operators and data provided by                  human environment. A preliminary                      businesses and the number of manual
                                                  Dunn and Bradstreet. PHMSA estimated                     environmental assessment of this NPRM                 service line shut-off valves installed.
                                                  that of the 1,289 operators who                          is available in the docket, and PHMSA                 Currently, operators are required to
                                                  submitted an annual report to PHMSA                      invites comment on the environmental                  submit the total number of excess flow
                                                  on their gas distribution activities,                    impacts of this proposed rule.                        valves installed on single-family
                                                  1,221, or 95 percent, of these natural gas                                                                     residences and the total number of EFVs
                                                                                                           G. Executive Order 13175: Consultation                within their system. Therefore, PHMSA
                                                  operators are classified as being ‘‘small
                                                                                                           and Coordination With Indian Tribal                   does not expect operators to experience
                                                  business.’’ The natural gas distribution
                                                                                                           Governments                                           an increase in burden beyond the
                                                  industry does have a substantial number
                                                  of small entities as defined by the SBA.                   This NPRM has been analyzed in                      burden currently estimated for the Gas
                                                  However, we believe that this rule                       accordance with the principles and                    Distribution Annual Report.
                                                  would not have a significant impact on                   criteria contained in Executive Order
                                                                                                                                                                 Customer Notification
                                                  small entities because the additional                    13175 (‘‘Consultation and Coordination
                                                  costs are minimal: approximately $30                     with Indian Tribal Governments’’).                      PHMSA proposes to revise § 192.383
                                                  per EFV installed and $55 per curb                       Because this NPRM does not have tribal                to require operators to notify customers
                                                  valve installed. Industry comments have                  implications and does not impose                      of their right to request the installation
                                                  described these additional costs as                      substantial direct compliance costs on                of EFVs. PHMSA estimates that
                                                  ‘‘relatively minimal’’ 11 and the one-                   Indian tribal governments, the funding                approximately half of the 6,184
                                                  time cost is largely offset by incident                  and consultation requirements of                      operators categorized as either master
                                                  cost avoidance over the 50-year lifetime                 Executive Order 13175 do not apply.                   meter operators or small LPG systems
                                                  of the valves. The notification and                                                                            will be impacted, resulting in 3,092
                                                                                                           H. Executive Order 13211: Energy                      operators. This estimate is based on the
                                                  recordkeeping costs associated with the                  Supply, Distribution, or Use
                                                  new notification requirement for                                                                               premise that only half of these operators
                                                                                                              This proposed rule is not a                        have systems that can accommodate an
                                                  optional EFV installation are estimated
                                                                                                           ‘‘significant energy action’’ under                   EFV. PHMSA also estimates that 1,289
                                                  at $42 per firm annually, which is a
                                                                                                           Executive Order 13211 (Actions                        gas distribution operators will be
                                                  minimal cost even for the smallest
                                                                                                           Concerning Regulations That                           impacted. Therefore PHMSA estimates a
                                                  operators.
                                                     Accordingly, the head of the agency                   Significantly Affect Energy Supply,                   total impacted community of 4,381
                                                  certifies under Section 605(b) of the                    Distribution, or Use). It is not likely to            (3,092 master meter/small LPG
                                                                                                           have a significant adverse effect on                  operators and 1,289 gas distribution
                                                  RFA that the proposed rule, if
                                                                                                           supply, distribution, or energy use. The              operators). PHMSA estimates that each
                                                  promulgated, will not have a significant
                                                                                                           Office of Information and Regulatory                  impacted operator will take
                                                  economic impact on a substantial
                                                                                                           Affairs has not designated this proposed              approximately 30 minutes per year to
                                                  number of small entities. PHMSA seeks
                                                                                                           rule as a significant energy action.                  complete this notification and an
                                                  comment on the Initial Regulatory
                                                                                                                                                                 additional 30 minutes per year to
                                                  Flexibility Analysis. A copy of the                      I. Paperwork Reduction Act                            maintain the associated records.
                                                  Initial Regulatory Flexibility Analysis
                                                                                                              Pursuant to 5 CFR 1320.8(d), PHMSA                 Therefore, PHMSA will request a new
                                                  has been placed in the docket.
                                                                                                           is required to provide interested                     information collection to address these
                                                  E. Unfunded Mandates Reform Act of                       members of the public and affected                    reporting and recordkeeping
                                                  1995                                                     agencies with an opportunity to                       requirements.
                                                                                                           comment on information collection and                   As a result of the changes listed
                                                     This proposed rule does not impose
                                                                                                           recordkeeping requests. As a result of                above, PHMSA proposes to submit an
                                                  unfunded mandates under the
                                                                                                           the requirements proposed in this notice              information collection revision request
srobinson on DSK5SPTVN1PROD with PROPOSALS




                                                  Unfunded Mandates Reform Act of
                                                                                                           of proposed rulemaking, the following                 as well as a new information collection
                                                  1995. It would not result in costs of
                                                                                                           information collection impacts are                    request to OMB for approval based on
                                                  $147.6 million, adjusted for inflation, or
                                                                                                           expected:                                             the requirements in this proposed rule.
                                                  more in any one year to State, local, or
                                                                                                                                                                 These information collections are
                                                  tribal governments, in the aggregate, or                 Gas Distribution Annual Report                        contained in the pipeline safety
                                                                                                           Revision                                              regulations, 49 CFR parts 190 through
                                                    11 PHMSA–2012–0086–0003, Comment by the

                                                  American Gas Association, submitted July 17, 2012,         PHMSA is proposing to revise                        199. The following information is
                                                  pg. 2.                                                   § 192.383, to require the installation of             provided for these information


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                                                                         Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules                                          41471

                                                  collections: (1) Title of the information                J. Privacy Act Statement                              connects the service line to the main is
                                                  collection; (2) OMB control number; (3)                     Anyone is able to search the                       replaced or the piping connected to this
                                                  Current expiration date; (4) Type of                     electronic form of all comments                       fitting is replaced.
                                                  request; (5) Abstract of the information                 received for any dockets by the name of                  Service line serving single-family
                                                  collection activity including a                          the individual submitting the comment                 residence (SFR) means a gas service line
                                                  description of the changes applicable to                 (or signing the comment, if submitted                 that begins at the fitting that connects
                                                  the rulemaking action; (6) Description of                on behalf of an association, business,                the service line to the main and serves
                                                  affected public; (7) Estimate of total                   labor union, etc.). You may review                    only one SFR.
                                                  annual reporting and recordkeeping                       DOT’s complete Privacy Act Statement                     (b) Installation required. An excess
                                                  burden; and (8) Frequency of collection.                 in the Federal Register published on                  flow valve (EFV) installation must
                                                  The information collection burden for                    April 11, 2000 (65 FR 19477), or at                   comply with the performance standards
                                                  the following information collection                     http://www.regulations.gov.                           in § 192.381. After January 3, 2014, each
                                                  will be requested as follows:                                                                                  operator must install an EFV on any
                                                     1. Title: Annual Report for Gas                       K. Regulation Identifier Number                       new or replaced services line serving
                                                  Distribution Operators.                                     A regulation identifier number (RIN)               the following types of services before
                                                     OMB Control Number: 2137–0629.                        is assigned to each regulatory action                 the line is activated:
                                                     Current Expiration Date: May 31,                      listed in the Unified Agenda of Federal                  (1) A single service line to one SFR;
                                                  2018.                                                    Regulations. The Regulatory Information                  (2) A branched service line to a SFR
                                                     Type of Request: Revision.                            Service Center publishes the Unified                  installed concurrently with the primary
                                                     Abstract: This information collection                 Agenda in April and October of each                   SFR service line (i.e., a single EFV may
                                                  covers the collection of annual report                   year. The RIN contained in the heading                be installed to protect both service
                                                  data for information from Gas                            of this document may be used to cross-                lines);
                                                  distribution pipeline operators for                      reference this action with the Unified                   (3) A branched service line to a SFR
                                                  Incidents and Annual reports. This                       Agenda.                                               installed off a previously installed SFR
                                                  information collection will only be                                                                            service line that does not contain an
                                                  revised to reflect the amendment to the                  List of Subjects in 49 CFR Part 192
                                                                                                                                                                 EFV;
                                                  Gas Distribution Annual Report which                        Excess flow valve installation, Excess                (4) Multi-family residences with
                                                  will not result in a burden hour                         flow valve performance standards,                     known customer loads not exceeding
                                                  increase.                                                Pipeline safety, Service lines.                       1,000 SCFH per service, at time of
                                                     Affected Public: Gas Distribution                        In consideration of the foregoing,                 service installation based on installed
                                                  Pipeline Operators.                                      PHMSA proposes to amend 49 CFR part                   meter capacity, and
                                                     Annual Reporting and Recordkeeping                    192 as follows:                                          (5) A single, small commercial
                                                  Burden:                                                                                                        customer served by a single service line
                                                     Total Annual Responses: 1,440. (no                    PART 192—TRANSPORTATION OF                            with a known customer load not
                                                  change).                                                 NATURAL AND OTHER GAS BY                              exceeding 1,000 SCFH, at the time of
                                                     Total Annual Burden Hours: 2,300.                     PIPELINE: MINIMUM FEDERAL                             meter installation, based on installed
                                                  (no change).                                             SAFETY STANDARDS                                      meter capacity.
                                                     Frequency of Collection: Annual.
                                                     2. Title: Customer Notifications for                                                                           (c) Exceptions to excess flow valve
                                                                                                           ■ 1. The authority citation for part 192,
                                                  Installation of Excess Flow Valves.                                                                            installation requirement. An operator
                                                                                                           as revised at 80 FR 12762 (March 11,
                                                     OMB Control Number: TBD.                                                                                    need not install an excess flow valve if
                                                                                                           2015), effective October 1, 2015,
                                                     Current Expiration Date: Not                                                                                one or more of the following conditions
                                                                                                           continues to read as follows:
                                                  Applicable.                                                                                                    are present:
                                                                                                             Authority: 49 U.S.C. 5103, 60102, 60104,               (1) The service line does not operate
                                                     Type of Request: New Information                      60108, 60109, 60110, 60113, 60116, 60118,
                                                  Collection.                                                                                                    at a pressure of 10 psig or greater
                                                                                                           and 60137, and 49 CFR 1.97.
                                                     Abstract: This new information                                                                              throughout the
                                                                                                           ■ 2. In § 192.381, the introductory text                 year;
                                                  collection will cover the reporting and                  of paragraph (a) is revised to read as
                                                  recordkeeping requirements for gas                                                                                (2) The operator has prior experience
                                                                                                           follows:                                              with contaminants in the gas stream that
                                                  pipeline operators associated with
                                                  customer notifications pertaining to the                 § 192.381 Service lines: Excess flow valve            could interfere with the EFV’s operation
                                                  installation of excess flow valves.                      performance standards.                                or cause loss of service to a customer;
                                                     Affected Public: Gas Pipeline                           (a) Excess flow valves to be used on                   (3) An EFV could interfere with
                                                  Operators.                                               service lines that operate continuously               necessary operation or maintenance
                                                     Annual Reporting and Recordkeeping                    throughout the year at a pressure not                 activities, such as blowing liquids from
                                                  Burden:                                                  less than 10 p.s.i. (69 kPa) gage must be             the line; or
                                                     Total Annual Responses: 4,381                         manufactured and tested by the                           (4) An EFV meeting performance
                                                  responses.                                               manufacturer according to an industry                 standards in § 192.381 is not
                                                     Total Annual Burden Hours: 4,381                      specification, or the manufacturer’s                  commercially available to the operator.
                                                  hours.                                                   written specification, to ensure that                    (d) Customer’s right to request an
                                                     Frequency of Collection: On occasion.                 each valve will:                                      EFV. Existing service line customers,
                                                     Requests for a copy of this                                                                                 who desire an EFV on service lines not
srobinson on DSK5SPTVN1PROD with PROPOSALS




                                                                                                           *     *     *     *     *
                                                  information collection should be                         ■ 3. Section 192.383 is revised to read
                                                                                                                                                                 exceeding 1,000 SFCH and not meeting
                                                  directed to Cameron Satterthwaite,                       as follows:                                           the conditions in paragraph (b) of this
                                                  Office of Pipeline Safety (PHP–30),                                                                            section, may request an EFV be installed
                                                  Pipeline and Hazardous Materials Safety                  § 192.383    Excess flow valve installation.          on their service line. If a service line
                                                  Administration (PHMSA), 2nd Floor,                         (a) Definitions. As used in this                    customer requests EFV installation, an
                                                  1200 New Jersey Avenue SE,                               section:                                              operator must install the EFV at a
                                                  Washington, DC 20590–0001,                                 Replaced service line means a gas                   mutually agreeable date. The
                                                  Telephone 202–366–4595.                                  service line where the fitting that                   appropriate State regulatory agency


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                                                  41472                  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Proposed Rules

                                                  determines whom and/or how the costs                     DEPARTMENT OF COMMERCE                                   • Mail: Submit all written comments
                                                  of the requested EFVs are distributed.                                                                         to Mary Janine Vara, NMFS Southeast
                                                                                                           National Oceanic and Atmospheric                      Regional Office (SERO), 263 13th
                                                     (e) Operator notification of customers
                                                                                                           Administration                                        Avenue South, St. Petersburg, FL 33701.
                                                  concerning EFV installation. Operators
                                                                                                                                                                    Instructions: Comments sent by any
                                                  must notify customers of their right to                  50 CFR Part 622                                       other method, to any other address or
                                                  request an EFV in the following manner:                                                                        individual, or received after the end of
                                                                                                           RIN 0648–BE38
                                                     (1) Except as specified in paragraph                                                                        the comment period may not be
                                                  (e)(2) of this section, each operator must               Fisheries of the Caribbean, Gulf of                   considered by NMFS. All comments
                                                  provide written notification to the                      Mexico, and South Atlantic; Snapper-                  received are a part of the public record
                                                  customer of their right to request the                   Grouper Fishery and Golden Crab                       and will generally be posted for public
                                                  installation of an EFV within 90 days of                 Fishery of the South Atlantic, and                    viewing on www.regulations.gov
                                                  the customer first receiving gas at a                    Dolphin and Wahoo Fishery of the                      without change. All personal identifying
                                                  particular location.                                     Atlantic                                              information (e.g., name, address, etc.),
                                                                                                                                                                 confidential business information, or
                                                     (2) Operators of master meter systems                 AGENCY:  National Marine Fisheries                    otherwise sensitive information
                                                  may continuously post a general                          Service (NMFS), National Oceanic and                  submitted voluntarily by the sender will
                                                  notification in a prominent location                     Atmospheric Administration (NOAA),                    be publicly accessible. NMFS will
                                                  frequented by customers.                                 Commerce.                                             accept anonymous comments (enter ‘‘N/
                                                     (f) Operator evidence of customer                     ACTION: Notice of availability; request               A’’ in the required fields if you wish to
                                                  notification. Each operator must                         for comments.                                         remain anonymous).
                                                  maintain a copy of the customer EFV                                                                               Electronic copies of the Generic AM
                                                                                                           SUMMARY:    The South Atlantic Fishery
                                                  notice for three years. This notice must                                                                       Amendment may be obtained from
                                                                                                           Management Council (Council) has
                                                  be available for inspection by the                                                                             www.regulations.gov or the Southeast
                                                                                                           submitted Amendment 34 to the Fishery
                                                  Administrator or a State agency                                                                                Regional Office Web site at http://
                                                                                                           Management Plan (FMP) for the
                                                  participating under 49 U.S.C. 60105 or                                                                         sero.nmfs.noaa.gov. The Generic AM
                                                                                                           Snapper-Grouper Fishery of the South
                                                  60106.                                                   Atlantic Region, Amendment 9 to the                   Amendment includes an environmental
                                                                                                           FMP for the Golden Crab Fishery of the                assessment, initial regulatory flexibility
                                                     (g) Reporting. Each operator must                                                                           analysis (IRFA), regulatory impact
                                                  report the EFV measures detailed in the                  South Atlantic Region, and Amendment
                                                                                                           8 to the FMP for the Dolphin and                      review, and fishery impact statement.
                                                  annual report required by § 191.11 of                                                                          FOR FURTHER INFORMATION CONTACT:
                                                  this chapter.                                            Wahoo Fishery of the Atlantic;
                                                                                                           collectively referred to as the Generic               Mary Janine Vara, NMFS SERO,
                                                  ■ 4. Section 192.385 is added to subpart                 Accountability Measures (AMs) and                     telephone: 727–824–5305, or email:
                                                  H to read as follows:                                    Dolphin Allocation Amendment                          mary.vara@noaa.gov.
                                                                                                           (Generic AM Amendment) for review,                    SUPPLEMENTARY INFORMATION: The
                                                  § 192.385 Manual service line shut-off
                                                                                                           approval, and implementation by                       Magnuson-Stevens Fishery
                                                  valve installation.
                                                                                                           NMFS. If approved by the Secretary of                 Conservation and Management Act
                                                     (a) Definitions. As used in this                      Commerce, the Generic AM                              (Magnuson-Stevens Act) requires each
                                                  section:                                                 Amendment would revise the                            regional fishery management council to
                                                     Manual service line shut-off valve                    commercial and recreational AMs for                   submit any fishery management plan or
                                                  means a curb valve or other manually                     numerous snapper-grouper species and                  amendment to NMFS for review and
                                                                                                           golden crab. This amendment would                     approval, partial approval, or
                                                  operated valve located near the service
                                                                                                           also revise commercial and recreational               disapproval. The Magnuson-Stevens Act
                                                  main or a common source of supply that
                                                                                                           sector allocations for dolphin in the                 also requires that NMFS, upon receiving
                                                  is accessible to first responders and
                                                                                                           Atlantic. The proposed actions are                    a plan or amendment, publish an
                                                  operator personnel to manually shut off                  intended to make the AMs consistent for               announcement in the Federal Register
                                                  gas flow to the service line in the event                the snapper-grouper species addressed                 notifying the public that the plan or
                                                  of an emergency.                                         in this amendment and for golden crab,                amendment is available for review and
                                                     (b) The operator must install a manual                and revise the allocations between the                comment.
                                                  service line shut-off valve for any new                  commercial and recreational sectors for
                                                                                                                                                                 Actions Contained in the Generic AM
                                                  or replaced service line, with installed                 dolphin.
                                                                                                                                                                 Amendment
                                                  meter capacity exceeding 1,000 SCFH.                     DATES: Written comments on the
                                                                                                           Generic AM Amendment must be                          Modifications to AMs for Snapper-
                                                     (c) Manual service line shut-off valves
                                                                                                           received on or before September 14,                   Grouper Species and Golden Crab
                                                  for any new or replaced service line
                                                                                                           2015.                                                    This amendment would revise the
                                                  must be installed in such a way to allow
                                                  accessibility during emergencies.                        ADDRESSES: You may submit comments                    AMs for golden tilefish, snowy grouper,
                                                                                                           on the proposed amendment and                         gag, red grouper, black grouper, scamp,
                                                    Issued in Washington, DC, on July 7, 2015,                                                                   the shallow-water grouper complex,
                                                                                                           environmental assessment identified by
                                                  under authority delegated in 49 CFR 1.97.                                                                      greater amberjack, the other jacks
                                                                                                           ‘‘NOAA–NMFS–2013–0181’’ by either
                                                  Jeffrey D. Wiese,                                        of the following methods:                             complex, bar jack, yellowtail snapper,
srobinson on DSK5SPTVN1PROD with PROPOSALS




                                                  Associate Administrator for Pipeline Safety.                • Electronic Submission: Submit all                mutton snapper, the other snappers
                                                  [FR Doc. 2015–17195 Filed 7–14–15; 8:45 am]              electronic comments via the Federal e-                complex, gray triggerfish, wreckfish
                                                  BILLING CODE 4910–60–P
                                                                                                           Rulemaking Portal. Go to                              (recreational sector), Atlantic spadefish,
                                                                                                           www.regulations.gov/                                  hogfish, red porgy, the other porgies
                                                                                                           #!docketDetail;D=NOAA-NMFS-2013-                      complex, and golden crab (commercial
                                                                                                           0181, click the ‘‘Comment Now!’’ icon,                sector).
                                                                                                           complete the required fields, and enter                  Currently, the snapper-grouper
                                                                                                           or attach your comments.                              species and golden crab addressed in


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Document Created: 2015-12-15 13:32:13
Document Modified: 2015-12-15 13:32:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesPersons interested in submitting written comments on this Notice of Proposed Rulemaking (NPRM) must do so by September 14, 2015. PHMSA will consider late-filed comments so far as practicable.
ContactMike Israni, by telephone at 202-366- 4571, by fax at 202-366-4566, or by mail at DOT, PHMSA, 1200 New Jersey Avenue SE., PHP-1, Washington, DC 20590-0001.
FR Citation80 FR 41460 
RIN Number2137-AE71
CFR AssociatedExcess Flow Valve Installation; Excess Flow Valve Performance Standards; Pipeline Safety and Service Lines

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