PHMSA Pause Leaves CO₂ Pipelines in Limbo as Projects Advance

With no updated PHMSA rule in sight, CO₂ pipeline developers face uncertainty and respond with flexible designs and tougher self-imposed safety standards

29 Jan 2026

The rule never arrived. And for much of the carbon capture industry, that absence now shapes every major decision.

As of early 2026, federal regulators have not finalized updated safety standards for carbon dioxide pipelines. A proposed rule from the Pipeline and Hazardous Materials Safety Administration was drafted in early 2025, then withdrawn before formal publication. More than a year later, it has yet to reappear.

The delay leaves developers operating in a gray zone just as CO₂ pipeline construction accelerates across the country. These lines are essential to moving captured emissions from ethanol plants, power stations, and factories to underground storage sites. But many of the current federal rules were written for a far smaller and simpler network.

PHMSA’s draft would have tightened requirements around pipeline design, operations, emergency response, and vapor dispersion modeling. Its withdrawal, tied to broader regulatory review, has stalled a long-anticipated update that companies say would bring clarity to permitting, financing, and public outreach.

In the meantime, states are filling the gap. That patchwork of expectations can slow approvals and raise costs, especially for projects that cross multiple jurisdictions. Developers like Summit Carbon Solutions have warned that inconsistent standards make long-term planning harder and community engagement more fragile.

Still, the pause has created an unexpected opening. Rather than waiting for mandates, some companies are moving ahead with higher internal safety benchmarks. Advanced leak detection, enhanced emergency planning, and more transparent communication are becoming selling points rather than compliance items.

Investors are paying attention. Capital continues to flow into carbon capture, buoyed by tax incentives and corporate climate goals. Yet without clear federal rules, some funding decisions are taking longer as backers weigh regulatory risk.

Few expect the silence to last forever. Lawmakers and regulators have acknowledged that existing CO₂ pipeline rules no longer match today’s scale. Updated standards are widely seen as inevitable.

Until then, the industry is pressing on. Projects already in motion are advancing, while new ones are being designed with flexibility in mind. The pause may feel like a setback, but it could also prove a reset, rewarding companies that treat safety as a strategy rather than a checkbox.