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[Federal Register Volume 89, Number 237 (Tuesday, December 10, 2024)]
[Notices]
[Pages 99327-99334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28899]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2023-0134]

National Environmental Policy Act Implementing Procedures; 
Proposed Categorical Exclusions

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
Department of Transportation.

ACTION: Notice; request for comments.

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SUMMARY: Consistent with the National Environmental Policy Act and the 
Council on Environmental Quality regulations implementing the National 
Environmental Policy Act, PHMSA is proposing to establish new 
categorical exclusions and agency the National Environmental Policy Act 
implementing procedures. Categorical exclusions are categories of 
actions that an agency has determined normally do not have a 
significant effect on the human environment, individually or in the 
aggregate. Categorical exclusions are a form of review that agencies 
use to comply with the National Environmental Policy Act for proposed 
actions that normally have no or minimal environmental effects. PHMSA 
requests the views of the public on its proposal to establish these CEs 
and agency National Environmental Policy Act procedures.

DATES: Submit written comments on or before January 9, 2025.

ADDRESSES: To ensure you do not duplicate your docket submissions, 
please submit comments by only one of the following means:
    Web: https://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: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, West Building, Room W12-140, 
Washington, DC 20590-0001.
    Hand Delivery: U.S. Department of Transportation, 1200 New Jersey 
Avenue SE, West Building, Room W12-140, Washington, DC 20590-0001, 
between 9 a.m. and 5 p.m., EST, Monday through Friday, except Federal 
holidays.
    Instructions: Identify docket number PHMSA-2023-0134 at the 
beginning of your comments. To avoid duplication, please use only one 
of these four methods. Note that all comments received will be posted 
without change to http://www.regulations.gov, including any personal 
information provided. You should know that anyone is able to search the 
comments received in any of our 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.). Therefore, you may 
want to review DOT's complete Privacy Act Statement (65 FR 19477) in 
the Federal Register, published on April 11, 2000, or visit http://www.regulations.gov before submitting any such comments.
    Docket: For access to the docket or to read background documents or 
comments, go to http://www.regulations.gov or DOT's Docket Operations 
Office (see ADDRESSES). If you wish to receive confirmation of receipt 
of your written comments, please include a self-addressed, stamped 
postcard with the following statement: ``Comments on: PHMSA-2023-
0134.'' The Docket Clerk will date stamp the postcard prior to 
returning it

[[Page 99328]]

to you via U.S. mail. Please note that due to delays in the delivery of 
U.S. mail to federal offices in Washington, DC, we recommend that 
persons consider an alternative method (internet, fax, or professional 
delivery service) for submitting comments to the docket and ensuring 
their timely receipt by DOT.
    Privacy Act Statement: In accordance with 5 U.S.C. 553(c), DOT may 
solicit comments from the public regarding certain general notices. DOT 
posts these comments, without edit, including any personal information 
the commenter provides, to www.regulations.gov, as described in the 
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: Carolyn Nelson, Office of Planning and 
Analytics, PHMSA, by email at [email protected] or by phone at 
202-860-6173.

SUPPLEMENTARY INFORMATION:

I. Introduction

    The National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et 
seq., requires Federal agencies to consider the environmental effects 
of their proposed actions in their decision-making processes and inform 
and engage the public in that process. Section 101(a) of NEPA sets 
forth a national policy to use all practicable means and measures, 
including financial and technical assistance, in a manner calculated to 
foster and promote the general welfare, to create and maintain 
conditions under which humans and nature can exist in productive 
harmony, and fulfill the social, economic, and other requirements of 
present and future generations of Americans. 42 U.S.C. 4331(a). Section 
102 of NEPA directs agencies to interpret and administer Federal 
policies, regulations and laws consistent with NEPA's policies. 42 
U.S.C. 4332.
    NEPA also created the Council on Environmental Quality (CEQ), which 
has issued regulations implementing NEPA, 40 CFR parts 1500 through 
1508 (CEQ regulations). CEQ also has issued numerous guidance documents 
to facilitate agency implementation of NEPA. See CEQ, CEQ Guidance 
Documents, https://ceq.doe.gov/guidance/guidance.html.
    To comply with NEPA, agencies determine the appropriate level of 
review of any major Federal action--an environmental impact statement 
(EIS), environmental assessment (EA), or categorical exclusion (CE). 40 
CFR 1501.3. If a proposed action is likely to have significant 
environmental effects, the agency must prepare an EIS and document its 
decision in a record of decision. 40 CFR 1501.3(c)(3), part 1502, 
1505.2. If the proposed action is not likely to have significant 
environmental effects or the effects are unknown, the agency may 
instead prepare an EA, which is a concise public document used to 
support agency decision making. 40 CFR 1501.3(c)(2), 1501.5, 1508.1(j). 
After completing the analysis in the EA, the agency may conclude that 
the action will have no significant effects and document that 
conclusion in a finding of no significant impact, or conclude that the 
action is likely to have significant effects and therefore requires 
preparation of an EIS. 40 CFR 1501.6(a), 1508.1(j).
    Under NEPA and the CEQ regulations, a Federal agency establishes 
categorical exclusions (CEs)--categories of actions that the agency has 
determined normally do not have a significant effect on the human 
environment, individually or in the aggregate--in its agency NEPA 
procedures. 42 U.S.C. 4336(e)(1); 40 CFR 1501.4(a), 1507.3(c)(8), 
1508.1(e). If an agency determines that a CE covers a proposed action, 
it then evaluates the proposed action for extraordinary circumstances, 
which are factors or circumstances that indicate a normally 
categorically excluded action may have a significant effect. 40 CFR 
1501.4(b), 1508.1(o). If an extraordinary circumstance exists, the 
agency nevertheless may apply the CE if it conducts an analysis and 
determines that the proposed action does not in fact have the potential 
to result in significant effects notwithstanding the extraordinary 
circumstance, or the agency modifies the action to avoid the potential 
to result in significant effects. 40 CFR 1501.4(b)(1). In these cases, 
the agency must document such determination. Id. If the agency cannot 
categorically exclude the proposed action, it will prepare an EA or 
EIS, as appropriate. 40 CFR 1501.4(b)(2).
    The CEQ regulations require Federal agencies to develop procedures 
to implement NEPA and the CEQ regulations, facilitate efficient 
decision making, and ensure that the agencies make decisions in 
accordance with the policies and requirements of NEPA. 40 CFR 1507.3. 
As part of their procedures, agencies must establish CEs and identify 
extraordinary circumstances. 40 CFR 1507.3(c)(8). When establishing new 
or revising existing CEs in agency NEPA procedures, agencies must 
substantiate the proposed new or revised CEs with sufficient 
information to conclude that each category of actions does not have a 
significant effect, individually or in the aggregate, on the human 
environment, and provide this substantiation in a written record that 
is made publicly available as part of the notice and comment process 
for developing or revising proposed agency procedures. See 40 CFR 
1507.3(b), (c)(8). In developing NEPA procedures, agencies must consult 
with CEQ and provide an opportunity for public review. 40 CFR 
1507.3(b)(1)-(2). Before publishing final procedures, agencies must 
receive a determination from CEQ that the procedures conform with NEPA 
and the CEQ regulations. See 40 CFR 1507.3(b)(2).
    PHMSA's mission is to protect people and the environment by 
advancing the safe transportation of energy and other hazardous 
materials that are essential to our daily lives. To do this, the Agency 
establishes national policy, promulgates and enforces safety 
regulations, educates, and conducts research to prevent incidents. 
PHMSA also prepares the public and first responders to mitigate 
consequences if a hazardous materials incident does occur. PHMSA's 
Office of Planning and Analytics (OPA), Environmental Analysis and 
Compliance Division, conducts and manages the Agency's environmental 
review process to ensure compliance with NEPA and other relevant 
federal environmental laws; reviews and approves environmental 
documents; and issues associated decisions. PHMSA actions include 
rulemakings, special permits (also known as regulatory waivers), and 
certain grants. PHMSA does not have infrastructure siting or approval 
authority, and therefore does not conduct NEPA reviews for proposed new 
pipeline construction projects.
    The Infrastructure Investment and Jobs Act of 2021, also known as 
the Bipartisan Infrastructure Law (BIL), established the Natural Gas 
Distribution Infrastructure Safety and Modernization (NGDISM) Grant 
Program. The BIL authorized PHMSA to award $200 million per year in 
NGDISM Grant funding, for a total of $1 billion in grant funding over 
five years. The grant funding is available to a municipality- or 
community-owned utility (not including for-profit entities) to repair, 
rehabilitate, or replace its natural gas distribution pipeline systems 
or portions thereof, or to acquire equipment to (1) reduce incidents 
and fatalities, and (2) avoid economic losses.
    In this notice, PHMSA proposes to establish its NEPA procedures as 
agency guidance to efficiently and effectively consider the 
environmental consequences of PHMSA's actions. PHMSA has not previously 
established Agency-specific NEPA procedures,

[[Page 99329]]

including CEs. When conducting NEPA reviews, PHMSA complies with DOT 
Order 5610.1C, ``Procedures for Considering Environmental Impacts,'' 
which establishes NEPA implementing procedures that apply to all DOT 
operating administrations. PHMSA's distinct mission and the nature of 
its actions warrant establishing Agency-specific procedures. These 
Agency-specific procedures reflect how PHMSA will apply CEQ's NEPA 
regulations to PHMSA's unique programs and decision-making processes. 
At the same time, PHMSA will continue to comply with DOT Order 5610.1C 
or any successor DOT NEPA implementing procedures applicable to PHMSA. 
Due in part, to the significant increase in PHMSA actions as a result 
of the BIL's establishment of the NGDISM Grant Program, PHMSA is 
establishing Agency-specific NEPA procedures, including five CEs, to 
efficiently and effectively consider the environmental consequences of 
PHMSA's actions. CEs are listed in Appendix 1 of PHMSA's NEPA 
Implementing procedures.
    PHMSA has prepared a record to substantiate the development of its 
new CEs, which is available for review in Docket No. PHMSA-2023-0134 or 
on PHMSA's website at https://www.phmsa.dot.gov/regulations-and-compliance. PHMSA invites comment on the substantiation record and 
supporting materials. The analyses in the record are built upon 
assessment of previous PHMSA actions as delineated in existing NEPA 
documentation and implemented by PHMSA; information from PHMSA 
professional staff, expert opinion, and scientific analysis; and 
benchmarking of other federal agencies' experiences. PHMSA also 
developed a list of extraordinary circumstances as part of its NEPA 
Implementing Procedures to provide additional safeguards to ensure that 
future proposed actions that are reviewed using the proposed CEs will 
not result in significant impacts. (See section 5. NEPA Implementing 
Procedures.) PHMSA has consulted with CEQ on its proposal and is 
seeking input from the public. PHMSA will consider input from the 
public and consult with CEQ for a conformity determination before 
finalizing its proposal.

II. PHMSA NEPA Implementing Procedures for Considering Environmental 
Impacts

Section 1: Purpose and Applicability

    This document establishes policies, responsibilities, and 
procedures for the Pipeline and Hazardous Materials Safety 
Administration (PHMSA or Agency), an operating administration of the 
U.S. Department of Transportation (DOT), to consider the environmental 
effects of its proposed actions in its decision-making processes and 
inform and engage the public in that process as required by the 
National Environmental Policy Act (NEPA) (42 U.S.C. 4321-4336e), and 
consistent with the Council on Environmental Quality (CEQ) Regulations 
for Implementing the Procedural Provisions of the National 
Environmental Policy Act (CEQ Regulations), 40 CFR parts 1500-1508, and 
DOT Order 5610.1C, Procedures for Considering Environmental Impacts. 
The CEQ Regulations establish procedures for complying with NEPA. 
Consistent with 40 CFR 1507.3 of the CEQ Regulations, this order 
contains the PHMSA's implementing procedures, which implement NEPA and 
supplement those regulations.
    PHMSA's mission is to protect people and the environment by 
advancing the safe transportation of energy and other hazardous 
materials that are essential to our daily lives. PHMSA regulates over 
three million miles of pipelines and oversees the safe and secure 
movement of over one million daily shipments of hazardous materials by 
all modes of transportation. PHMSA does not site, permit, or authorize 
transportation infrastructure. PHMSA's regulatory standards are 
intended to reduce the likelihood of a release of hazardous materials 
into the human environment during transportation.
    PHMSA's major Federal actions that are subject to NEPA review 
generally fall into three categories: regulatory actions, special 
permits, and natural gas distribution grant actions:
    Regulatory Actions. PHMSA promulgates regulations to improve the 
safety of transportation of hazardous materials in all modes, including 
the Hazardous Materials Regulations (49 CFR parts 171-180) and the 
Pipeline Safety Regulations (49 CFR parts 190-199). PHMSA does not 
site, permit, or authorize transportation infrastructure or the 
transportation of hazardous materials. PHMSA's regulatory standards are 
intended to reduce the likelihood of release of hazardous materials 
into the human environment during ongoing transportation of hazardous 
materials.
    Special Permits. A Special Permit sets forth alternative 
requirements, or variances, to the requirements in the Hazardous 
Materials Regulations (49 CFR parts 171-180) or Pipeline Safety 
Regulations (49 CFR parts 190-199). PHMSA may issue such variances if 
the applicant demonstrates an equivalent level of safety will be 
achieved or, if a required safety level does not exist, the alternative 
requirements are consistent with the public interest.
    Natural Gas Distribution Grants. PHMSA awards grants under programs 
including the Natural Gas Distribution Infrastructure Safety and 
Modernization grant program. This program assists municipalities or 
community-owned utilities (not including for-profit entities) in the 
repair, rehabilitation, or replacement of their natural gas 
distribution pipeline systems or portions thereof or in the acquisition 
of equipment to (1) reduce incidents and fatalities and (2) avoid 
economic losses.
    Other PHMSA actions subject to NEPA review may include 
administrative actions, such as administrative procurements or 
personnel actions.
    Actions are not subject to NEPA review if they are exempted from 
NEPA by law; if compliance with NEPA would clearly and fundamentally 
conflict with the requirements of another provision of Federal law; or 
if any other factors stated in 40 CFR 1501.3(a) are identified. 
Consistent with 40 CFR 1507.3(a), the following actions by PHMSA are 
not subject to NEPA review pursuant to the statute and implementing CEQ 
Regulations:
    Administrative, organizational, or procedural actions that do not 
result in final agency actions (40 CFR 1501.3(a)(4)). Examples include 
day-to-day administrative operations; routine use of PHMSA facilities 
consistent with their intended purpose; required hazardous material or 
pipeline inspections; data collection and analysis, response to data 
requests, and statistical work; development of informational technology 
systems and portals; and community outreach.
    Issuance of internal and external advisory or guidance actions to 
aid regulated entities in complying with existing regulatory 
obligations, but which otherwise does not change their substantive 
rights and obligations, including manuals, advisory circulars and 
bulletins, frequently asked questions, interpretations, and other 
guidance documents. Examples include supplemental instructions for 
agency compliance with NEPA procedures, PHMSA's Pipeline Safety 
Enforcement Procedures Manual, PHMSA's Part 192 Corrosion Enforcement 
Guidance, PHMSA's Operations & Maintenance Enforcement Guidance Part 
192 Subparts L and M, PHMSA's Operator Qualification Enforcement 
Guidance, and Emergency Response Guidebook. These actions are not 
subject to NEPA because they are not final agency actions (40 CFR 
1501.3(a)(4)).

[[Page 99330]]

    Enforcement actions such as issuance of Corrective Action Orders, 
Notices of Proposed Safety Orders, Notices of Probable Violation, 
Warning Letters, and Notices of Amendments by PHMSA's Pipeline Safety 
Enforcement Program, and Emergency Order Authority by PHMSA's Office of 
Hazardous Materials and Safety (40 CFR 1508.1(w)(2)(v)).

Section 2: Background

    i. NEPA established certain policies and goals concerning the 
environment and requires that, to the fullest extent possible, the 
policies, regulations, and public laws of the United States shall be 
interpreted and administered in accordance with those policies and 
goals. Section 102 of NEPA establishes procedural requirements, 
applying that national policy to proposals for major federal actions 
significantly affecting the quality of the human environment.
    ii. The CEQ Regulations direct each agency to develop procedures 
that implement the CEQ Regulations for the agency's specific programs 
to facilitate efficient decision making, and ensure that the agency 
makes decisions in accordance with the policies and requirements of 
NEPA.
    iii. DOT has issued Department-wide Order 5610.1C that outlines the 
general processes and procedures for the Department to implement NEPA.
    iv. Consistent with 40 CFR 1507.3, these PHMSA procedures implement 
NEPA within PHMSA, consistent with CEQ Regulations, DOT Order 5610.1C, 
and implementing DOT regulations, policy, or order. These procedures 
provide that information on environmental effects of proposed actions 
will be evaluated through the appropriate level of review (namely, 
categorical exclusions (CEs), environmental assessments (EAs), and 
environmental impact statements (EISs)).
    v. PHMSA must adhere to all laws, regulations, and Executive Orders 
that address environmental protection, including environmental justice.

Section 3: Responsibilities

    i. The PHMSA Administrator is responsible for ensuring Agency 
compliance with NEPA pursuant to delegated authority under DOT 
regulation 49 CFR 1.81(a)(5).
    ii. The PHMSA Administrator has delegated authority to the 
Associate Administrator for the Office of Planning and Analytics to 
carry out NEPA functions. The Associate Administrator for Planning and 
Analytics must review and approve all final EISs (FEISs) and records of 
decision (RODs).
    iii. The Associate Administrator for the Office of Planning and 
Analytics must designate an Agency Environmental Coordinator within the 
Environmental Analysis and Compliance Division to manage day-to-day 
NEPA functions, including approval of any CE determination, EA, finding 
of no significant impact (FONSI), or draft EIS (DEIS). The Agency 
Environmental Coordinator, or their designee, must lead and review 
development of all CEs, EAs, FONSIs, EISs and RODs.
    iv. The Agency Environmental Coordinator must implement the 
provisions of NEPA, the CEQ Regulations, and DOT Order 5610.1C on 
behalf of the Associate Administrator for the Office of Planning and 
Analytics. This includes serving as an initial point of contact for 
interested parties to request information or status reports on 
environmental documents and other elements of the NEPA process 
consistent with 40 CFR 1507.3(c)(11). PHMSA must post the name and 
contact information of this individual on PHMSA's website.
    v. The Agency Environmental Coordinator must implement a training 
program to ensure all PHMSA personnel engaged in programs and projects 
that may include a federal action subject to NEPA are familiar and 
comply with these procedures, NEPA, DOT Order 5610.1C, and the CEQ 
Regulations.
    vi. The Associate Administrator for the Office of Planning and 
Analytics must designate a Lead Environmental Protection Specialist and 
a Federal Preservation Officer. The Lead Environmental Protection 
Specialist must coordinate NEPA activities for grant programs and is 
authorized to approve EAs, FONSIs, and CE determinations for these 
programs, following consultation with the Program Offices and PHMSA 
Office of Chief Counsel. The Federal Preservation Officer is authorized 
to act as the PHMSA agency official, consult on the behalf of PHMSA, 
sign PHMSA correspondence, and identify Program Alternatives for the 
purpose of compliance with section 106 of the National Historic 
Preservation Act and the Advisory Council on Historic Preservation's 
regulations at 36 CFR part 800.
    vii. Consistent with 40 CFR 1507.2(a), PHMSA must designate a Chief 
Public Engagement Officer to be responsible for facilitating community 
engagement across the agency and, where appropriate, the provision of 
technical assistance to communities. PHMSA must post the name and 
contact information of this individual on PHMSA's website.
    viii. The PHMSA Office of Chief Counsel will review all EAs, 
FONSIs, DEISs, FEISs, RODs, and analyses under section 4(f) of the U.S. 
Department of Transportation Act (49 U.S.C. 303). At its discretion, 
the Office of Chief Counsel may review any other environmental 
document, including CE determinations, to ensure legal compliance and 
assess legal risk.

Section 4: Procedures: PHMSA Actions

    i. The Associate Administrators, Office Directors, and Other 
Officials (``Program Managers'') must coordinate with the Agency 
Environmental Coordinator on all proposed actions under their 
jurisdiction that are, or may be, major federal actions subject to the 
requirements of NEPA.
    ii. PHMSA must engage, as appropriate, with other federal and state 
agencies, Tribes, and with the public when considering the scope of the 
proposed action and its effects to inform the agency's determination of 
the appropriate level of NEPA review (40 CFR 1501.3(b)).
    iii. PHMSA is responsible for the accuracy, scope, and content of 
all environmental documents, and must ensure they are prepared with 
professional and scientific integrity, using reliable data and 
resources. In accordance with section 107(f) of NEPA and consistent 
with 40 CFR 1507.3(c)(12), applicants, including applicant-directed 
contractors, may prepare EAs and EISs under PHMSA's supervision, 
subject to the following procedures.
    a. If an applicant chooses to use a contractor to prepare an 
environmental document, PHMSA must ensure that all costs of using a 
contractor will be borne by the applicant.
    b. PHMSA must participate in and supervise the document's 
preparation. PHMSA must assist contractors and applicants by providing 
guidance and outlining the types of information required for the 
preparation of the environmental document. Additionally, PHMSA must 
collaborate with the contractor to ensure the analysis is focused on 
areas where there is a higher potential for significant impacts.
    c. PHMSA must review and approve the statement of purpose and need 
and the alternatives that will be considered in the environmental 
document at an early time, before the applicant (or the applicant's 
contractor) prepares the rest of the environmental document.
    d. PHMSA must independently evaluate the environmental document and 
take responsibility for its accuracy, scope, and contents. PHMSA may 
choose in its discretion to accept, edit,

[[Page 99331]]

revise, or independently author sections of the document or the whole 
document.
    e. PHMSA must include a statement in any environmental document 
prepared by an applicant or contractor stating that PHMSA has 
independently evaluated the document for its accuracy, scope, and 
contents.
    f. The environmental document must include the names and 
qualifications of individuals responsible for preparing and reviewing 
the document, including those individuals from PHMSA responsible for 
conducting the Agency's independent evaluation.
    g. PHMSA must independently prepare FONSIs and RODs without the 
support of an applicant or their contractor.
    h. PHMSA must ensure that the applicant preserves and includes in a 
decision file all factual, scientific, or technical information used, 
developed, or considered by the applicant in the course of preparing 
the draft environmental document, including any correspondence with 
PHMSA or with third parties.
    iv. NEPA Applicability and Level of NEPA Review. The Agency 
Environmental Coordinator, or designated representative, must evaluate 
any proposed action being considered by the Agency pursuant to NEPA and 
these procedures to determine whether the action is subject to NEPA and 
determine the appropriate level of NEPA review, in consultation with 
the PHMSA Office of Chief Counsel and Program Offices, consistent with 
40 CFR 1501.3.
    a. PHMSA must assess whether NEPA applies to a proposed activity or 
decision in accordance with Section 1: Purpose and Applicability of 
these Procedures and consistent with 40 CFR 1501.3(a) and 1501.8(w).
    b. Consistent with 40 CFR 1501.3(b), if NEPA is applicable, PHMSA 
must consider the scope of the action, including whether some aspects 
are non-discretionary, and its reasonably foreseeable effects to 
determine the appropriate level of NEPA review. PHMSA must use public 
and governmental engagement (consistent with 40 CFR 1501.9) and scoping 
(consistent with 40 CFR 1502.4), when appropriate, to inform this 
determination. PHMSA must consider potential temporary as well as 
permanent environmental effects. PHMSA must consider the direct, 
indirect and cumulative effects including the reasonably foreseeable 
effects of connected actions when making this determination. The level 
of NEPA review may not be made on a ``net benefit'' basis and PHMSA may 
not offset an action's adverse effects against other beneficial effects 
when determining the potential for significant effects.
    c. If the proposed action requires the preparation of an EA or EIS, 
the Agency Environmental Coordinator must notify the Program Manager of 
the type of environmental document required.
    d. PHMSA must prepare EISs comporting with 40 CFR part 1502. 
Generally, consideration of reasonably foreseeable effects should 
include discussion of any reasonably foreseeable greenhouse gas 
emissions and climate change effects (including effects from climate 
change on the proposed action), hazardous material releases, effects on 
communities with environmental justice concerns, and effects on 
environmentally sensitive resources. Environmentally sensitive 
resources include, but are not limited to, properties subject to 
section 4(f) of the U.S. Department of Transportation Act of 1966 (49 
U.S.C. 303); historic properties, as defined in the National Historic 
Preservation Act of 1966 (54 U.S.C. 300101 et seq.); threatened or 
endangered species or their habitat, as defined under the Endangered 
Species Act (16 U.S.C. 1531 et seq.); farmland protected under the 
Farmland Protection Policy Act (7 U.S.C. 4201 and 7 CFR ch. VI part 
658); and wetlands, as defined in Executive Order 11990, Protection of 
Wetlands, and DOT Order 5660.1A; floodplains, as defined in Executive 
Order 11988, Floodplain Management, as amended by Executive Order 
13690, and DOT Order 5650.2. Typically, an EIS may be appropriate for a 
PHMSA regulatory action that requires new construction of transmission 
pipelines on a national scale.
    e. PHMSA must prepare EAs comporting with 40 CFR 1501.5 and must 
briefly discuss the purpose and need for the proposed action, 
alternatives, and reasonably foreseeable environmental effects of the 
proposed action and alternatives. EAs should consider the same types of 
effects as EISs, as appropriate to the proposed action in question, but 
should include a more concise discussion, consistent with the reduced 
risk of significant effects. Typically, an EA would be appropriate for 
deregulatory rulemaking actions or construction grant projects for 
existing service lines outside of existing rights-of-way or easements.
    f. PHMSA may apply a CE if such use is consistent with section V.
    v. Categorical Exclusions. CEs are categories of actions that 
normally do not have a significant effect on the quality of the human 
environment, individually or in the aggregate, and therefore do not 
require preparation of an EA or EIS unless extraordinary circumstances 
exist that make application of the categorical exclusion inappropriate. 
Consistent with 40 CFR 1507.3(c)(8), appendix 1 of these procedures 
lists PHMSA's CEs.
    a. The Agency Environmental Coordinator, or their designee, must 
review the proposed action to determine if a CE covers the proposed 
action or to identify a CE that potentially covers the proposed action 
(see Appendix 1). They must also review the proposed action for 
extraordinary circumstances. If an extraordinary circumstance exists, 
PHMSA may nevertheless apply the CE if it conducts an analysis and 
determines that the proposed action does not in fact have the potential 
to result in significant effects notwithstanding the extraordinary 
circumstance, or PHMSA modifies the action to avoid the potential to 
result in significant effects. 40 CFR 1501.4(b)(1).
    b. Additional documentation is not required to document that an 
action has been categorically excluded for those CEs listed in Appendix 
1, Paragraph a, unless an extraordinary circumstance exists and PHMSA 
applies the CE notwithstanding the extraordinary circumstance 
consistent with 40 CFR 1501.4(b)(1). In instances where PHMSA applies a 
CE to an action where an extraordinary circumstance exists, PHMSA must 
publish this determination via PHMSA's Notices and Rulemaking Documents 
web page (https://www.phmsa.dot.gov/regulations/federal-register-documents).
    c. CEs listed in Appendix 1, Paragraph b, require documentation, 
regardless of whether extraordinary circumstances exist. The Agency 
Environmental Coordinator must prepare documentation of potential 
environmental impacts.
    d. If no CE covers the proposed action, or if extraordinary 
circumstances exist that preclude PHMSA from applying a CE, PHMSA must 
prepare an EA or an EIS before a proposed action may proceed.
    vi. Other Agency CEs. PHMSA may adopt and apply a CE listed in 
another agency's NEPA procedures for a proposed action or a category of 
proposed actions consistent with the process outlined in 40 CFR 
1501.4(e). PHMSA must publish each application of an adopted CE 
consistent with Sec.  1501.4(e)(5) via PHMSA's Notices and Rulemaking 
Documents web page (https://www.phmsa.dot.gov/regulations/federal-register-documents). Any adopted categorical exclusion will be 
available for use by the agency as of

[[Page 99332]]

the date of the public notice consistent with 40 CFR 1501.4(e)(3).
    vii. Prepare EA. PHMSA must prepare an EA when a proposed action is 
not categorically excluded and is not expected to result in significant 
environmental effects, or the significance of the effects of a proposed 
action is unknown. 40 CFR 1501.5. The decision-making process for the 
level of NEPA review determination is described in IV.b above. The 
Agency Environmental Coordinator, or designated representative, must 
determine the appropriate level of review. Consistent with 40 CFR 
1501.5(g), the text of an EA may not exceed 75 pages, not including any 
citations or appendices.
    viii. Prepare EIS. PHMSA must prepare an EIS for any proposed 
action that is likely to significantly affect the human environment. 
The decision-making process for the level of NEPA review determination 
is described in IV.b above. The Agency Environmental Coordinator, or 
designated representative, must determine the appropriate level of 
review. In accordance with 49 U.S.C. 304a, PHMSA must combine FEIS/ROD 
documents to the extent practicable. See DOT's Guidance on the Use of 
Combined Final Environmental Impact Statements/Records of Decision and 
Errata Sheets in National Environmental Policy Act Review (2019). 
Consistent with 40 CFR 1502.7, the text of an FEIS may not exceed 150 
pages except for proposals of extraordinary complexity, which may not 
exceed 300 pages.
    ix. As appropriate and where consistent with applicable statutory 
requirements, PHMSA must combine environmental documents with other 
Agency documents to facilitate sound and efficient decision making and 
avoid duplication. 40 CFR 1506.4, 1507.3(c)(5).
    x. Timelines. The Agency Environmental Coordinator, or their 
designee, must review and approve timelines for EA and EIS documents. 
PHMSA must complete EAs and EISs within the timeframes outlined in 40 
CFR 1501.10. PHMSA may extend EA and EIS deadlines in writing, subject 
to the Associate Administrator for the Office of Planning and 
Analytics' approval, consistent with 40 CFR 1501.10(b). If additional 
time is required, PHMSA may only utilize so much additional time as is 
necessary to complete the document.
    a. Unless an extension is made, EAs must be completed within 1 year 
from the date PHMSA determines an EA is required.
    b. Unless an extension is made, EISs must be completed within 2 
years of the Notice of Intent to Prepare an Environmental Impact 
Statement.
    xi. Consistent with 40 CFR 1507.3(c) and (4), the Agency 
Environmental Coordinator is responsible for ensuring relevant 
environmental documents, comments, and responses accompany the proposal 
through PHMSA's decision-making review processes. PHMSA must prepare 
EAs and EISs to encompass the range of the alternatives to be 
considered by the decision maker. As appropriate, PHMSA must make 
available to the public those portions of any additional documents 
provided to the decision maker in addition to the relevant 
environmental documents that relate to the comparison of alternatives.
    xii. Prior to final approval of environmental documents, the Agency 
Environmental Coordinator is responsible for consulting with the 
Program Manager and PHMSA Office of Chief Counsel for any proposed 
mitigation commitments required for the proposed action.
    xiii. Supplement. If new information becomes available that is 
relevant to the environmental process, such as changes in project scope 
or environmental effects, PHMSA Program Offices must coordinate with 
the Agency Environmental Coordinator and the PHMSA Office of Chief 
Counsel to determine if a supplement to or reevaluation of an EA or EIS 
is necessary, consistent with 40 CFR 1501.5(h) and (i) or 1502.9(d) and 
(e), respectively.

Section 5: Procedures: Extraordinary Circumstances

    i. Extraordinary circumstances are factors or circumstances that 
indicate that a normally categorically excluded action may have a 
significant environmental effect. If an extraordinary circumstance 
exists, the Agency Environmental Coordinator, or designated 
representative, must consult the PHMSA Office of Chief Counsel and 
Program Offices to confirm whether the use of a CE is appropriate, 
consistent with 40 CFR 1501.4(b). If the Agency Environmental 
Coordinator or designated representative; the PHMSA Office of Chief 
Counsel; or Program Offices determines that use of a CE is 
inappropriate, the level of NEPA review must be an EA or EIS. 
Consistent with 40 CFR 1507.3(c)(8), PHMSA must consider circumstances 
including the following when determining whether extraordinary 
circumstances exist:
    a. The proposed action is greater in scope or size than those 
normally covered by the category.
    b. The proposed action may increase the likelihood of a reportable 
release under the Hazardous Materials Regulations (49 CFR parts 171-
180) or Pipeline Safety Regulations (49 CFR parts 190-199).
    c. The proposed action may be inconsistent with or cause a 
violation of a federal, state, local, or Tribal law or requirement.
    d. The proposed action may result in a substantial increase in 
greenhouse gas emissions.
    e. The proposed action may have disproportionate and adverse 
effects on communities with environmental justice concerns as defined 
at 40 CFR 1508.1(f).
    f. The proposed action may have an adverse effect on an 
environmentally sensitive resource. Environmentally sensitive resources 
include, but are not limited to:
    1. Wildlife or waterfowl refuges, historic sites, public parks, or 
other protected properties under section 4(f) of the U.S. Department of 
Transportation Act (49 U.S.C. 303) or section 6(f) of the Land and 
Water Conservation Fund Act of 1965 (54 U.S.C. 200305(f)(3)).
    2. Historic, architectural, archeological, or cultural resources 
subject to section 106 of the National Historic Preservation Act of 
1966 (54 U.S.C. 306108) or the Archeological and Historic Preservation 
Act of 1974 (54 U.S.C. Ch. 3125).
    3. Farmland protected under the Farmland Protection Policy Act (7 
U.S.C. 4201 et seq.). In this context, a potential adverse effect would 
involve the acquisition and irreversible conversion of non-urban land 
to non-agricultural uses.
    4. Threatened or endangered species or their habitat, as defined 
under the Endangered Species Act (16 U.S.C. 1531 et seq.).
    5. Wetlands, as defined in Executive Order 11990, Protection of 
Wetlands, and DOT Order 5660.1A.
    6. Floodplains, as defined in Executive Order 11988, Floodplain 
Management, as amended by Executive Order 13690, and DOT Order 5650.2. 
PHMSA's compliance with these Orders will inform its extraordinary 
circumstances analysis.
    7. State coastal zones, as defined by state coastal zone management 
programs, or undeveloped coastal barriers along the Atlantic or Gulf 
Coasts.
    8. Wild and scenic rivers in the National Inventory.
    ii. Compliance with other statutes such as the National Historic 
Preservation Act of 1966, Archeological and Historic Preservation Act 
of 1974,

[[Page 99333]]

and the Endangered Species Act is separate from, and not displaced by, 
compliance with NEPA and these procedures. PHMSA will develop Standard 
Operating Procedures describing the necessary processes to comply with 
these statutes.

Section 6: Procedures: Public and Governmental Engagement

    i. The Agency Environmental Coordinator must ensure that PHMSA 
provides the appropriate level of public and governmental engagement 
consistent with 40 CFR 1501.9 and other laws and regulations, 
regardless of the level of NEPA review. PHMSA must carry out public and 
governmental engagement in accordance with NEPA and must coordinate 
these efforts with other PHMSA public involvement opportunities when 
practicable.
    ii. PHMSA must identify the potentially affected Federal, State, 
Tribal, and local governments and invite them to serve as cooperating 
agencies as early as practicable and as appropriate. PHSMA must also 
ensure that participating agencies have opportunities to provide input 
on the proposed action and engage in the environmental review process, 
as appropriate.
    iii. Interested persons may obtain information or status reports on 
EISs, EAs, and other elements of the NEPA process by contacting PHMSA's 
Agency Environmental Coordinator (PHMSA Office of Planning and 
Analytics). See 40 CFR 1507.3(c)(11).
    iv. Regulatory Actions. PHMSA promulgates regulations to advance 
the safe transportation of hazardous materials in all modes, including 
the Hazardous Materials Regulations (49 CFR parts 171-180) and the 
Pipeline Safety Regulations (49 CFR parts 190-199). PHMSA does not 
site, permit, or authorize transportation infrastructure. PHMSA's 
regulatory standards are intended to reduce the likelihood of a release 
of hazardous materials into the human environment during 
transportation. Consistent with 40 CFR 1507.3(c)(2), PHMSA must ensure 
that relevant environmental documents, comments, and responses will be 
part of the record in rulemaking proceedings.
    a. PHMSA must notify the public of the availability of Draft EAs 
and DEISs for regulatory actions subject to public notice and comment, 
to solicit public comment. PHMSA may publish the Draft EA in the 
``Regulatory Notices and Analyses'' section of a Notice of Proposed 
Rulemaking or supplemental Notice of Proposed Rulemaking, or as a 
standalone document in the docket for the rulemaking action, found at 
www.regulations.gov (in which case PHMSA must include a citation to the 
docket in the ``Regulatory Notices and Analyses'' section). Absent 
special circumstances, PHMSA must allow at least 30 days for comment on 
Draft EAs and DEISs. PHMSA may consider longer comment periods for 
particularly complex proposals or when otherwise appropriate.
    b. The Agency Environmental Coordinator may determine public 
engagement for PHMSA CEs on a case-by-case basis.
    c. If the Agency Environmental Coordinator or their designee 
determines that a proposed action requires preparation of an EIS, PHMSA 
must alert the public of its intent to prepare an EIS by publishing a 
Notice of Intent (NOI) in the Federal Register. The Associate 
Administrator for the Office of Planning and Analytics must approve the 
NOI prior to publication.
    d. Consistent with the CEQ Regulations, PHMSA must publish a DEIS 
for public review for a minimum of 45 days.
    e. PHMSA must consider public comments and address them in the EA 
and FONSI or the FEIS.
    v. Special Permits. Special permits and associated environmental 
documents are posted in the Federal Register and available at 
www.Regulations.gov. A special permit, or regulatory waiver, is an 
order by which PHMSA waives compliance with one or more of the 
requirements in the hazardous material regulations (49 CFR parts 171-
180) or pipeline safety regulations (49 CFR parts 190-199), subject to 
conditions set forth in the permit.
    a. PHMSA must provide the public with a 30-day opportunity to 
comment on EAs. For particularly complex proposals, PHMSA may extend 
the minimum comment periods established in these procedures.
    b. PHMSA must make FONSIs publicly available on PHMSA's website.
    c. The Agency Environmental Coordinator must ensure that PHMSA 
provides the appropriate level of public and governmental engagement 
consistent with 40 CFR 1501.9 and other laws and regulations, 
regardless of the level of NEPA review.
    d. If PHMSA determines the action requires an EIS, PHMSA must alert 
the public of its intent to prepare an EIS by publishing an NOI 
consistent with 40 CFR 1502.4(e) in the Federal Register. The Associate 
Administrator for the Office of Planning and Analytics must approve 
NOIs prior to publication.
    e. Consistent with CEQ regulations, PHMSA must publish a DEIS for 
public review for a minimum of 45 days.
    f. For these actions, PHMSA must consider public comments and 
address substantive comments in the EA and FONSIs, or FEIS and RODs.
    vi. Natural Gas Distribution Grants. For pipeline or related site-
specific construction projects, PHMSA must notify the public of the 
availability of EAs and DEISs on PHMSA's website. PHMSA must solicit 
public comment on Draft EAs and DEISs. PHMSA must also make these 
documents available in a location that is locally accessible to where 
the proposed action is located.
    a. PHMSA must evaluate grant projects on a case-by-case basis to 
determine the appropriate level of outreach, notification, and 
coordination consistent with 40 CFR 1501.9(c).
    b. PHMSA must provide the public with a 30-day opportunity to 
comment on draft EAs. For particularly complex proposals, PHMSA may 
extend the minimum comment periods established in these procedures.
    c. PHMSA must make FONSIs publicly available on PHMSA's website.
    d. If the action requires an EIS, PHMSA must alert the public of 
its intent to prepare an EIS by publishing an NOI consistent with 40 
CFR 1502.4(e) in the Federal Register. The Associate Administrator for 
the Office of Planning and Analytics must approve NOIs prior to 
publication.
    e. Consistent with CEQ regulations, PHMSA must publish a DEIS for 
public review for a minimum of 45 days.
    f. For these actions, PHMSA must consider public comments and 
address substantive comments in the EA and FONSIs, or FEIS and RODs.

Section 7: Procedures: Emergency Circumstances

    In emergency circumstances (such as life threatening natural or 
human-caused disasters), where it is necessary to take an action that 
is likely to have a significant environmental effect, it may not be 
possible for PHMSA to follow the NEPA implementing procedures outlined 
in this document. CEQ regulations regarding emergencies permit federal 
agencies to consult with CEQ to discuss alternative arrangements. See 
40 CFR 1506.11.
    When the expected environmental effects of the proposed action are 
unlikely to be significant and the action cannot be categorically 
excluded, PHMSA must prepare a focused EA in compliance with PHMSA's 
NEPA implementing procedures and consistent with CEQ regulations as 
soon as practicable. Requests for alternative

[[Page 99334]]

arrangements from PHMSA Program Offices or applicant due to emergency 
circumstances must be referred to the Agency Environmental Coordinator 
for evaluation.
    Alternative arrangements for such actions should focus on 
minimizing adverse environmental effects of the PHMSA action and the 
emergency. To the maximum extent practicable, the alternative 
arrangements should include the interagency coordination, and public 
and governmental engagement, that would normally be undertaken for an 
EA. The alternative arrangements may not alter the requirements of the 
CEQ regulations regarding EAs, but the level of evidence, analysis, and 
discussion may be limited to what is practicable under the emergency 
circumstances. The Agency Environmental Coordinator must approve 
alternative arrangements. Any alternative arrangements must be 
documented. The Agency Environmental Coordinator must inform CEQ of the 
alternative arrangement at the earliest opportunity.
    If significant impacts are likely and an EIS would typically be 
required, the Agency Environmental Coordinator, in consultation with 
the Program Office and PHMSA Office of Chief Counsel, must consult with 
CEQ to request alternative arrangements.

Section 8: Review of Environmental Documents Prepared by Other Agencies

    i. The Agency Environmental Coordinator is PHMSA's receiving 
official for all requests for comment on environmental documents from 
other agencies or requests to be a cooperating agency on a NEPA 
project. If a PHMSA official receives such requests from someone other 
than the Agency Environmental Coordinator, the request must be 
forwarded promptly to the Agency Environmental Coordinator. The Agency 
Environmental Coordinator must review all requests, in consultation 
with Program Managers and the Office of the Chief Counsel, to determine 
whether PHMSA can provide useful and constructive comments concerning 
the action involved. All Associate Administrators and other PHMSA 
officials must cooperate with the Agency Environmental Coordinator in 
providing comments on a timely basis so that the Agency Environmental 
Coordinator may respond in a similar manner (see paragraph 9, DOT Order 
5610.1C).
    ii. The Agency Environmental Coordinator must assess the comments 
received from Program Managers and prepare a coordinated PHMSA response 
to the request. Responses must be forwarded to the PHMSA Office of 
Chief Counsel, Regulatory Affairs Division, and Program Managers for 
consultation prior to its being forwarded to the Department.

Section 9: Periodic Review

    PHMSA must continue to review its NEPA implementing policies and 
procedures and, in consultation with CEQ, revise them as necessary to 
ensure compliance with NEPA. Consistent with 40 CFR 1507.3(c)(9), this 
review must also include periodic review of PHMSA's CEs at least every 
10 years from approval of these procedures or as otherwise required by 
applicable law, regulations, and policies/procedures.

Appendix 1. Categorical Exclusions Summary

A. Categorical Exclusions Requiring No Further Documentation

    (1) Equipment acquisition (including purchase or lease) of handheld 
and mobile methane detection equipment and associated vehicles.

B. Categorical Exclusions Requiring Documentation (Documented CEs)

    (1) Granting, renewing, or denying a special permit related to 
waiving class location or odorization requirements, following the 
procedures set forth in 49 CFR 190.341, including the identification of 
any enforceable conditions, imposed pursuant to 49 CFR 190.341(d)(2), 
that are required to prevent and address pipeline safety and 
environmental risk.
    (2) Rulemaking actions by the Office of Hazardous Materials Safety, 
other than deregulatory rulemaking actions, within one of the following 
categories:
    (a) policies, directives, regulations, and guidelines that are of 
an administrative, financial, legal, technical, or procedural nature;
    (b) regulations designating, defining, or classifying regulated 
materials (hazardous materials, hazardous substances, hazardous wastes, 
marine pollutants, elevated temperature materials, materials designated 
as hazardous in the Hazardous Materials Table (49 CFR 172.101), and 
materials that meet the defining criteria for hazard classes and 
divisions in 49 CFR part 173);
    (c) regulations imposing requirements on transportation of 
regulated materials, including shipping papers, marking, labeling, 
placarding, emergency response information, training, and safety and 
security plans;
    (d) regulations concerning stowage and segregation of regulated 
materials in transportation, including rail car, portable tank, and 
cargo tank placement; loading, unloading, transportation, and storage 
of regulated materials by mode (rail, aircraft, vessel, and highway); 
revising standards for bulk and non-bulk packages (cylinders, portable 
tanks, cargo tanks, radioactive packages, intermediate bulk containers, 
drums, jerricans, boxes, and composite packagings, etc.); or incident 
reporting or tracking of regulated movements;
    (e) editorial or technical revisions and clarifications to correct 
editorial errors and improve clarity; and
    (f) training, testing, and qualification of regulated materials 
personnel.
    (3) Rulemaking actions by the Office of Pipeline Safety, other than 
deregulatory rulemaking actions, within one of the following 
categories:
    (a) policies, directives, regulations, and guidelines that are of 
an administrative, financial, legal, technical, or procedural nature;
    (b) regulations concerning corrosion control; training, testing, 
and qualification of operator personnel; or emergency response;
    (c) editorial or technical revisions and clarifications to correct 
editorial errors and improve clarity; and
    (d) revisions to civil penalty amounts that may be imposed for 
violations of certain DOT regulations.
    (4) Repair, rehabilitation, or replacement of natural gas 
distribution pipelines and associated equipment within existing rights-
of-way or easements. Associated actions include replacement of service 
lines, meters, metering stations, valves, taps, abandonment in place or 
abandonment by removal, minor excavation, replacement of pavement of 
existing roadway and/or sidewalks, and relocation within existing 
rights-of-way or easements. Actions will follow the applicable safety 
standards and requirements described at 49 CFR part 192.

    Issued in Washington, DC, on December 4, 2024 under authority 
delegated in 49 CFR 1.81.
Tristan H. Brown,
Deputy Administrator, Pipeline and Hazardous Materials Safety 
Administration.
[FR Doc. 2024-28899 Filed 12-9-24; 8:45 am]
BILLING CODE 4910-60-P
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