Bipartisan Bill Aims to Establish Safety Standards for CO2 Pipelines and Enhance Pipeline Regulations

The impending debate over the Pipes Act of 2025 represents a significant step in addressing the urgent need for enhanced safety standards in the realm of carbon dioxide (CO2) pipelines. Scheduled for a committee vote, this bipartisan legislation aims to empower the Pipeline and Hazardous Materials Safety Administration (PHMSA) by providing it with the necessary guidance and authorizing $804 million in funding through fiscal year 2029. This funding is designed to be recouped from pipeline operators and natural gas storage facilities, ensuring that the financial burden does not solely fall on taxpayers.

The act is particularly notable for its mandate that PHMSA finalize overdue safety rules that have lingered unaddressed for far too long. Among its stipulations is a requirement for the agency to issue status updates on congressionally mandated rules every 30 days, a measure intended to inject much-needed accountability into the regulatory process.

Furthermore, it establishes a 90-day deadline for finalizing a crucial class location change rule, which has been delayed for over a decade. This rule aims to impose stricter standards on pipeline segments in areas with increasing population density.

A key component of the bill is its focus on CO2 pipelines, which have come under scrutiny following a 2020 rupture in Mississippi and alarming incidents at CO2 storage sites, including a recent report of subsurface leaks in Illinois. In light of these developments, federal representatives have called for a moratorium on new CO2 injection wells until regulatory shortcomings are addressed. Their concerns reflect a broader apprehension regarding the safety of carbon storage projects, particularly those eligible for the lucrative 45Q tax credit.

Additionally, the bill highlights the growing interest in hydrogen as a clean energy source. It directs the U.S. Government Accountability Office to evaluate existing natural gas pipeline systems that incorporate at least 5% hydrogen into their supply, while also exploring the potential for composite materials in pipelines designed for hydrogen transport. As the nation grapples with the dual challenges of energy transition and environmental safety, the Pipes Act of 2025 could play a pivotal role in shaping the future of pipeline regulations in the United States.