Understanding the Pipeline and Informed Planning Alliance (PIPA) Risk Mitigation Program

What Property Developers and Owners Need to Know about PIPA

For commercial real estate developers and property owners with interests along pipeline rights-of-way (ROWs), understanding the Pipeline and Informed Planning Alliance (PIPA) risk mitigation program is crucial, since it may be necessary for LIHTC funding applications. PIPA, initiated by the Pipeline and Hazardous Materials Safety Administration (PHMSA), aims to enhance safety and communication among stakeholders involved in land use planning near transmission pipelines.

The Importance of PIPA

PIPA was established to address the risks associated with land development near transmission pipelines. The program brings together a diverse group of stakeholders, including property developers, real estate professionals, local and state governments, fire marshals, and the pipeline industry, with the goal of developing and implementing risk-informed land use practices that protect both communities and pipelines.

By following PIPA’s recommended practices, developers and property owners can significantly reduce the risks associated with building near pipelines. These practices not only protect the safety of the community but also safeguard the integrity of the pipeline infrastructure. Additionally, adhering to these guidelines can help avoid costly delays and legal issues that may arise from non-compliance with safety regulations.

Key Recommendations for Developers and Property Owners

1. Consultation with Pipeline Operators: Before initiating any development project near a pipeline, it’s essential to consult with the pipeline operator. This ensures that you are aware of the pipeline’s location, operational characteristics, and any specific safety requirements. Early consultation helps in planning the layout and design of your development to minimize risks.
2. Risk-Informed Land Use Planning: PIPA emphasizes the importance of incorporating risk-informed practices into land use planning. This involves understanding the potential hazards associated with pipelines and making informed decisions about the placement and type of development. For instance, high-density residential or commercial buildings should be situated at a safe distance from pipelines to reduce the risk of damage in case of an incident.
3. Access for Maintenance and Emergency Response: Ensuring that there is adequate access for pipeline maintenance and emergency response is critical. This includes maintaining clear ROWs and avoiding the construction of permanent structures that could obstruct access. Proper access facilitates timely maintenance and quick response in case of emergencies, thereby enhancing safety.
4. Excavation Damage Prevention: One of the leading causes of pipeline incidents is excavation damage. Developers and property owners must implement measures to prevent accidental damage during construction activities. This includes using one-call systems to locate pipelines before digging and employing safe excavation practices.
5. Enhanced Fire Protection: Depending on the type of development and its proximity to a pipeline, enhanced fire protection measures may be necessary. This could involve installing fire-resistant materials, creating buffer zones, and ensuring that fire suppression systems are in place and accessible.

Project Example: Multifamily Property in Texas Requires PIPA Risk Mitigation Assessment for Housing Tax Credit

Partner is currently engaged by a large-scale multifamily property developer to conduct a comprehensive PIPA risk mitigation assessment for a property in Texas, in support of their applications for Texas Department of Housing and Community Affairs (TDHCA) funding and Housing Tax Credit (HTC). The property was purchased post-development, and the client needs to conduct property rehabilitation efforts that are required for the funding.

The assessment will identify potential hazards, analyze risks, and develop appropriate mitigation strategies in accordance with industry best practices and regulatory requirements. This involves addressing gaps in existing documentation, such as the Phase I Environmental Site Assessment and ALTA Land Title Survey.

The expected outcome includes the completion of a thorough PIPA risk mitigation assessment within six business weeks. Site-specific risk mitigation recommendations will also be developed, including structural and operational safeguards, evacuation and emergency response planning, setback requirements, buffer zones, safety barriers, and signage plans. Comprehensive PIPA compliance documentation will also be compiled to satisfy TDHCA requirements for properties with pipeline proximity concerns.

Ultimately, the project will support the successful funding and tax credit applications through detailed documentation of pipeline safety considerations for the client’s multifamily property.

Conclusion

The PIPA risk mitigation program provides a comprehensive framework for safe land-use planning near transmission pipelines. As a commercial developer or property owner, understanding and implementing these recommendations is essential for ensuring the safety of your development and the surrounding community. Contact Partner if you have any questions about PIPA Risk Assessment and Plan Development, and learn more about how our environmental compliance team can help.