The Measures Could Cost Companies $600 Million Each Year, Industry Representatives Say
The AP reports that despite industry resistance and concern that President-elect Trump could cancel them, the Obama Administration “is expected to push through long-delayed safety measures for the nation’s sprawling network of oil pipelines in its final days.” The Transportation Department proposal is “aimed at preventing increasingly frequent accidents,” which the AP says have “caused $2.5 billion in damages nationwide and dumped almost 38 million gallons of fuels” over the past 10 years. Under the plan, there would be “tougher inspection and repair criteria, leak detection systems on more lines and other measures to cut risk.” In addition, companies “would be required to inspect lines after flooding or other extreme events.” The proposal is under review by the Office of Management and Budget and final adoption “is anticipated in late December, said Allie Aguilera, government affairs director of the Transportation Department’s Pipeline and Hazardous Materials Safety Administration.”
What This Means For Small Businesses
Industry representatives argue the proposal “would cost companies $600 million a year and almost $5 billion over the next decade,” nearly “30 times the government’s estimate of $22.5 million annually.” This could result in increasing the cost of fuels that small businesses and others utilize.
Additional Reading
World Pipelines (UK) also reports on the Department of Transportation’s pipeline safety efforts, noting PHMSA’s recent creation of a 24-person working group to discuss pipeline safety issues.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
