[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Rules and Regulations]
[Pages 28050-28054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12113]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 191 and 195

[Docket No. PHMSA-2025-0109; Amdt. Nos. 191-36, 195-115]
RIN 2137-AF78


Pipeline Safety: Property Damage Definition for Incident 
Reporting on Gas Pipelines and Accidents on Hazardous Liquid Pipelines

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

ACTION: Direct final rule (DFR); request for comments.

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SUMMARY: This DFR revises the property damage threshold for determining 
when a release from a gas or hazardous liquid pipeline facility meets 
the definition of a reportable incident or accident. This change 
clarifies that certain indirect impacts associated with investigating 
and repairing a release do not contribute to that threshold. This DFR 
also adopts an inflation adjusted property damage threshold for 
reporting hazardous liquid pipeline accidents identical to the one 
previously adopted for reporting gas pipeline incidents.

DATES: The DFR is effective October 9, 2025, unless adverse comments 
are received by September 2, 2025. If adverse comments are received, 
notification will be published in the Federal Register before the 
effective date either withdrawing the rule (in its entirety or portions 
thereof) or issuing a new final rule which responds to those comments.

ADDRESSES: You may submit comments identified by the Docket Number 
PHMSA-2025-0109 using any of the following methods:
    E-Gov 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.
    Mail: Docket Management System: U.S. Department of Transportation, 
1200 New Jersey Avenue SE, West Building, Ground Floor, Room W12-140, 
Washington, DC 20590-0001.
    Hand Delivery: U.S. DOT Docket Management System: West Building, 
Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, between 9 a.m. 
and 5 p.m., Monday through Friday, except Federal holidays.
    Fax: 1-202-493-2251.

[[Page 28051]]

    For commenting instructions and additional information about 
commenting, see SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT: Sayler Palabrica, Transportation 
Specialist, 1200 New Jersey Avenue SE, Washington, DC 20590, 202-744-
0825, [email protected].

SUPPLEMENTARY INFORMATION: 

I. General Discussion

    Through this DFR, PHMSA is clarifying the property damage 
thresholds that apply in determining whether a release is a reportable 
incident pursuant to 49 CFR 191.9 or 191.15 or reportable accident 
pursuant to 49 CFR 195.50(e). PHMSA is also adopting for hazardous 
liquid pipeline accident reporting under part 195 the inflation 
adjustment methodology that was previously adopted for reporting gas 
pipeline incidents in Sec.  191.3 and appendix A to part 191.
    Specifically, PHMSA is revising the definition of ``incident'' (at 
Sec.  191.3) for gas pipelines and ``accident'' for hazardous liquid 
pipelines (at Sec.  195.50(e)) to clarify that the costs associated 
with obtaining permits and removing or replacing infrastructure 
undamaged by an event (e.g., pavement needed for access and repair 
activity) do not need to be considered when calculating estimated 
property damage. This amendment responds to the National Association of 
Pipeline Safety Representatives Resolution 2021-01, ``A Resolution 
Seeking a Modification of PHMSA's Instructions for Incident Reporting 
for Gas Distribution, Gas Transmission, and Gas Gathering Systems,'' 
concerning how to classify overall secondary damage beyond the primary 
damage from a potential gas pipeline incident. Operators would still 
report these costs as incident consequences on the applicable incident 
and accident report forms; however, they should not be included in the 
calculation of property damage for determining whether a release is 
reportable as an incident or accident.
    On May 18, 2023, PHMSA published a notice of proposed rulemaking 
(NPRM) that addressed, among other things, the change to the property 
damage criterion in part 191 being adopted in this direct final rule 
(88 FR 31890 (May 18, 2023)). PHMSA received approximately 43,000 
public comments and nearly two weeks of advisory committee deliberation 
on that proceeding; however, this specific provision was subject to no 
controversy. While that proposal did not address hazardous liquid 
pipeline facilities, PHMSA anticipates that the change is even less 
consequential for hazardous liquid pipelines, which have a more 
stringent volumetric criterion for reporting accidents and are less 
likely to be located under pavement or other infrastructure compared 
with gas distribution lines.
    Along with this change, PHMSA is adjusting the property damage 
threshold for reporting accidents on hazardous liquid pipelines in 
Sec.  195.50(e) to account for inflation. The current $50,000 threshold 
has not been adjusted since 1994, and the regulation does not 
incorporate a mechanism for annual inflation adjustments going forward. 
PHMSA is adopting the same methodology previously applied to gas 
pipeline incident reporting in Sec.  191.1 and Appendix A to part 191. 
In 2020, PHMSA proposed in separate proposed rulemakings to adjust the 
property damage criterion for reporting gas pipeline incidents (85 FR 
35240 (Jun. 9, 2020)) and hazardous liquid pipeline accidents (85 FR 
21140 (Apr. 4, 2020)) from $50,000 to account for inflation, to reduce 
reporting burdens from inconsequential releases, and to ensure that 
reporting requirements remain consistent going forward in real (i.e., 
inflation-adjusted) terms. In 2021, PHMSA issued a final rule 
incorporating a one-time catch-up for historical inflation and adopting 
a mechanism for making periodic inflationary adjustments to the 
property damage threshold in accordance with appendix A to part 191 (86 
FR 2210 (Jan. 11, 2021)). Since then, PHMSA has published updates to 
the property damage criterion for reporting gas pipeline incidents on 
the agency web page each year. However, the parallel liquid pipeline 
regulatory reform proposed rule was not finalized, resulting in 
inconsistent reporting requirements across PHMSA's jurisdiction. This 
direct final rule corrects this discrepancy, resulting in the benefits 
described above and in preamble to the 2021 final rule, while also 
ensuring consistency across gas and hazardous liquid pipeline reporting 
requirements.
    Consistent with the current property damage criterion posted on 
PHMSA's incident reporting web page at https://www.phmsa.dot.gov/incident-reporting, the property damage criterion for calendar year 
2025 is $149,700. In future versions of the inflation adjustment memo, 
PHMSA will refer to both gas incidents and hazardous liquid accidents. 
Also consistent with gas requirements, PHMSA clarifies that the cost of 
lost product is not included in the property damage calculation for 
reporting hazardous liquid pipeline accidents. The volume of lost 
product is addressed separately in Sec.  195.50(b) and the price of a 
given volume of crude oil, petroleum products, and other hazardous 
liquids and carbon dioxide can be highly variable.
    Finally, this direct final rule updates the property damage 
threshold for gas pipeline reporting in Sec.  191.3 to $149,700 
consistent with the value currently posted on PHMSA's website for 
calendar year 2025. Since this reflects the current definition, this 
amendment is editorial and intended only to ensure consistency across 
gas and hazardous liquid pipeline incident and accident reporting.

Commenting

    Instructions: Please include the docket number PHMSA-2025-0109 at 
the beginning of your comments. If you submit your comments by mail, 
submit two copies. If you wish to receive confirmation that PHMSA 
received your comments, include a self-addressed stamped postcard. 
Internet users may submit comments at https://www.regulations.gov.

    Note:  Comments are posted without changes or edits to https://www.regulations.gov, including any personal information provided. 
There is a privacy statement published on https://www.regulations.gov.

    Privacy Act: In accordance with 5 United States Code (U.S.C.) 
553(c), DOT solicits comments from the public to inform its rulemaking 
process. DOT posts these comments, without edit, including any personal 
information the commenter provides, to https://www.regulations.gov, as 
described in the system of records notice (DOT/ALL-14 FDMS), which can 
be reviewed at https://www.dot.gov/privacy.
    Confidential Business Information: Confidential Business 
Information (CBI) is commercial or financial information that is both 
customarily and actually treated as private by its owner. Under the 
Freedom of Information Act (FOIA, 5 U.S.C. 552), CBI is exempt from 
public disclosure. It is important that you clearly designate the 
comments submitted as CBI if: your comments responsive to this document 
contain commercial or financial information that is customarily treated 
as private; you actually treat such information as private; and your 
comment is relevant or responsive to this notice. Pursuant to 49 Code 
of Federal Regulations (CFR) 190.343, you may ask PHMSA to provide 
confidential treatment to information you give to the agency by taking 
the following steps: (1) mark each page of the original document

[[Page 28052]]

submission containing CBI as ``Confidential''; (2) send PHMSA, along 
with the original document, a second copy of the original document with 
the CBI deleted; and (3) explain why the information that you are 
submitting is CBI. Submissions containing CBI should be sent to Sayler 
Palabrica, Office of Pipeline Safety, Pipeline and Hazardous Materials 
Safety Administration (PHMSA), 2nd Floor, 1200 New Jersey Avenue SE, 
Washington, DC 20590-0001, or by email at [email protected]. Any 
materials PHMSA receives that is not specifically designated as CBI 
will be placed in the public docket.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Follow the online 
instructions for accessing the docket. Alternatively, you may review 
the documents in person at the street address listed above.

II. Regulatory Analysis and Notices

A. Legal Authority

    This direct final rule is published under the authority of the 
Secretary of Transportation set forth in the Federal Pipeline Safety 
Laws (49 U.S.C. 60101 et seq.) and delegated to the PHMSA Administrator 
pursuant to 49 CFR 1.97. Upon evaluation, and for the reasons explained 
above, PHMSA has determined that this direct final rule is unlikely to 
elicit adverse comment. See 49 U.S.C. 60102(b)(6)(A); 49 CFR 190.339.

B. Executive Order 12866; Regulatory Planning and Review

    Executive Order (E.O.) 12866 (``Regulatory Planning and Review''; 
58 FR 51735 (Oct. 4, 1993)), as implemented by DOT Order 2100.6B 
(``Policies and Procedures for Rulemaking''), requires agencies to 
regulate in the ``most cost-effective manner,'' to make a ``reasoned 
determination that the benefits of the intended regulation justify its 
costs,'' and to develop regulations that ``impose the least burden on 
society.'' DOT Order 2100.6B specifies that regulations should 
generally ``not be issued unless their benefits are expected to exceed 
their costs.'' In arriving at those conclusions, E.O. 12866 requires 
that agencies should consider ``both quantifiable measures . . . and 
qualitative measures of costs and benefits that are difficult to 
quantify'' and ``maximize net benefits . . . unless a statute requires 
another regulatory approach.'' E.O. 12866 also requires that ``agencies 
should assess all costs and benefits of available regulatory 
alternatives, including the alternative of not regulating.'' DOT Order 
2100.6B directs that PHMSA and other Operating Administrations must 
generally choose the ``least costly regulatory alternative that 
achieves the relevant objectives'' unless required by law or compelling 
safety need.
    E.O. 12866 and DOT Order 2100.6B also require that PHMSA submit 
``significant regulatory actions'' to the Office of Information and 
Regulatory Affairs (OIRA) within the Executive Office of the 
President's Office of Management and Budget (OMB) for review. This 
direct final rule is a not significant regulatory action pursuant to 
E.O. 12866; it also has not designated this rule as a ``major rule'' as 
defined by the Congressional Review Act (5 U.S.C. 801 et seq.).
    PHMSA has complied with the procedural and analytical requirements 
in E.O. 12866 as implemented by DOT Order 2100.6B. In so doing, PHMSA 
has determined that this direct final rule will result in cost savings 
by reducing unnecessary reporting burdens for incidents and accidents 
with relatively low actual consequences. PHMSA identified 57 hazardous 
liquid pipeline accidents reported between 2010 and 2024 involving 
total property damage between $50,000 and $149,700 that did not result 
in a fire, the release of five gallons or more, death, or injury. This 
averages to 3.5 incidents per year that would not require reporting to 
PHMSA under the final rule, resulting in cost savings for affected 
entities. According to OMB Control Number 2137-0047, the estimated 
burden for collecting this information is approximately 12 hours per 
response, including time for reviewing instructions, gathering data, 
and completing and reviewing the submission. Based on this estimate, 
PHMSA projects an annual reduction of 42 burden hours under the direct 
final rule. PHMSA expects those cost savings will also lead to reduced 
costs for the public, as pipeline operators typically pass a portion of 
their compliance costs on to consumers. Although PHMSA acknowledges a 
reduction in the number of reported accidents in the abstract could be 
said to reduce the quantity of information informing PHMSA regulatory 
oversight activity. However, PHMSA understands that impact would be de 
minimis as the accidents in question would (by definition) involve 
minimal public safety and property damage consequences; some of those 
events that were formerly reported as accidents may also remain subject 
to safety-related condition reporting pursuant to Sec.  195.55. The 
cost savings of this rulemaking could not be quantified.

C. Executive Orders 14192 and 14219

    This direct final rule will be a deregulatory action pursuant to 
E.O. 14192 (``Unleashing Prosperity Through Deregulation''; (90 FR 9065 
(Feb. 6, 2025)). PHMSA estimates that the total costs of the rule on 
the regulated community will be less than zero. Nor does this 
rulemaking implicate any of the factors identified in section 2(a) of 
E.O. 14219 (``Ensuring Lawful Governance and Implementing the 
President's `Department of Government Efficiency' Deregulatory 
Initiative'') indicative that a regulation is ``unlawful . . . [or] 
that undermine[s] the national interest.'' (90 FR 10583 (Feb. 25, 
2025).

D. Energy-Related Executive Orders 13211, 14154, and 14156

    The President has declared in E.O. 14156 (``Declaring a National 
Energy Emergency''; (90 FR 8353 (Jan. 29, 2025)) a national emergency 
to address America's inadequate energy development production, 
transportation, refining, and generation capacity. Similarly, E.O. 
14154 (``Unleashing American Energy,'' (90 FR 8353 (Jan. 29, 2025)) 
asserts a Federal policy to unleash American energy by ensuing access 
to abundant supplies of reliable, affordable energy from (inter alia) 
the removal of ``undue burden[s]'' on the identification, development, 
or use of domestic energy resources such as PHMSA-jurisdictional gasses 
and hazardous liquids. PHMSA finds this direct final rule is consistent 
with each of E.O. 14156 and E.O. 14154. The direct final rule will give 
affected pipeline operators cost savings associated with preparing 
incident and accident reports. PHMSA therefore expects the regulatory 
amendments in this direct final rule will in turn increase national 
pipeline transportation capacity and improve pipeline operators' 
ability to provide abundant, reliable, affordable natural gas and 
petroleum products in response to residential, commercial, and 
industrial demand.
    However, this direct final rule is not a ``significant energy 
action'' under E.O. 13211 (``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use''; (66 FR 
28355 (May 22, 2001)), which requires Federal agencies to prepare a 
Statement of Energy Effects for any ``significant energy action.'' 
Because this direct final rule is not a significant action under E.O. 
12866, it will not have a significant adverse effect on supply, 
distribution, or energy use; and OIRA

[[Page 28053]]

has therefore not designated this direct final rule as a significant 
energy action.

E. Executive Order 13132: Federalism

    PHMSA analyzed this direct final rule in accordance with the 
principles and criteria contained in E.O. 13132 (``Federalism''; 64 FR 
43255 (Aug. 10, 1999)) and the Presidential Memorandum (``Preemption'') 
published in the Federal Register on May 22, 2009 (74 FR 24693). E.O. 
13132 requires agencies to ensure meaningful and timely input by State 
and local officials in the development of regulatory policies that may 
have ``substantial direct effects on the States, on the relationship 
between the National Government and the States, or on the distribution 
of power and responsibilities among the various levels of government.''
    While the direct final rule may operate to preempt some State 
requirements, it will not impose any regulation that has substantial 
direct effects on the States, the relationship between the National 
Government and the States, or the distribution of power and 
responsibilities among the various levels of government. Section 
60104(c) of Federal Pipeline Safety Laws prohibits certain State safety 
regulation of interstate pipelines. Under Federal Pipeline Safety Laws, 
States that have submitted a current certification under section 
60105(a) can augment Federal pipeline safety requirements for 
intrastate pipelines regulated by PHMSA but may not approve safety 
requirements less stringent than those required by Federal law. A State 
may also regulate an intrastate pipeline facility that PHMSA does not 
regulate. The preemptive effect of the regulatory amendments in this 
direct final rule is limited to the minimum level necessary to achieve 
the objectives of the Federal Pipeline Safety Laws. Therefore, the 
consultation and funding requirements of E.O. 13132 do not apply.

F. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
Federal agencies to conduct a Final Regulatory Flexibility Analysis 
(FRFA) for a direct final rule subject to notice-and-comment rulemaking 
under the Administrative Procedure Act unless the agency head certifies 
that the proposed rule in the rulemaking will not have a significant 
economic impact on a substantial number of small entities. E.O. 13272 
(``Proper Consideration of Small Entities in Agency Rulemaking''; 67 FR 
53461 (Aug. 16, 2002)) obliges agencies to establish procedures 
promoting compliance with the Regulatory Flexibility Act. DOT posts its 
implementing guidance on a dedicated web page. This direct final rule 
was developed in accordance with E.O. 13272 and DOT implementing 
guidance to ensure compliance with the Regulatory Flexibility Act. 
PHMSA expects that this direct final rule will relieve a regulatory 
burden and therefore certifies it will not have a significant impact on 
a substantial number of small entities.

G. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act (UMRA, 2 U.S.C. 1501 et seq.) 
requires agencies to assess the effects of Federal regulatory actions 
on State, local, and Tribal governments, and the private sector. For 
any proposed or direct final rule that includes a Federal mandate that 
may result in the expenditure by State, local, and Tribal governments, 
in the aggregate of $100 million or more (in 1996 dollars) in any given 
year, the agency must prepare, amongst other things, a written 
statement that qualitatively and quantitatively assesses the costs and 
benefits of the Federal mandate.
    This direct final rule does not impose unfunded mandates under UMRA 
because it does not result in costs of $100 million or more (in 1996 
dollars) per year for either State, local, or Tribal governments, or to 
the private sector.

H. National Environmental Policy Act

    The National Environmental Policy Act (NEPA, 42 U.S.C. 4321 et. 
seq.) requires that Federal agencies assess and consider the impact of 
major Federal actions on the human and natural environment.
    PHMSA analyzed this direct final rule in accordance with NEPA and 
issues this Finding of No Significant Impact (FONSI), as it has 
determined that the rulemaking will not adversely affect safety and 
therefore will not significantly affect the quality of the human and 
natural environment.

I. Executive Order 13175

    PHMSA analyzed this direct final rule according to the principles 
and criteria in E.O. 13175 (``Consultation and Coordination with Indian 
Tribal Governments''; 65 FR 67249 (Nov. 9, 2000)) and DOT Order 5301.1A 
(``Department of Transportation Tribal Consultation Polices and 
Procedures''). E.O. 13175 requires agencies to assure meaningful and 
timely input from Tribal government representatives in the development 
of rules that significantly or uniquely affect Tribal communities by 
imposing ``substantial direct compliance costs'' or ``substantial 
direct effects'' on such communities or the relationship or 
distribution of power between the Federal Government and Tribes.
    PHMSA assessed the impact of the direct final rule and determined 
that it will not significantly or uniquely affect Tribal communities or 
Indian Tribal governments. The rulemaking's regulatory amendments have 
a broad, national scope; therefore, this direct final rule will not 
significantly or uniquely affect Tribal communities, much less impose 
substantial compliance costs on Native American Tribal governments or 
mandate Tribal action. For these reasons, PHMSA has concluded that the 
funding and consultation requirements of E.O. 13175 and DOT Order 
5301.1A do not apply.

J. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) and its 
implementing regulations at 5 CFR 1320.8(d) requires that PHMSA provide 
interested members of the public and affected agencies with an 
opportunity to comment on information collection and recordkeeping 
requests.
    PHMSA will submit an information collection revision request to OMB 
for approval based on the requirements in this proposed rule. The 
information collection is contained in the pipeline safety regulations, 
49 CFR parts 190 through 199. The following information is provided for 
each information collection: (1) Title of the information collection; 
(2) OMB control number; (3) Current expiration date; (4) Type of 
request; (5) Abstract of the information collection activity; (6) 
Description of affected public; (7) Estimate of total annual reporting 
and recordkeeping burden; and (8) Frequency of collection. The 
information collection burdens for the following information 
collections are estimated to be revised as follows:
    1. Title: Transportation of Hazardous Liquids by Pipeline: Record 
keeping and Accident Reporting.
    OMB Control Number: 2137-0047.
    Current Expiration Date: 04/30/2026.
    Abstract: This information collection covers general recordkeeping 
and the collection of information from hazardous liquid pipeline 
operators for accident reports. PHMSA estimates that due to the revised 
monetary damage threshold for reporting accidents operators will submit 
3 fewer hazardous liquid accident reports per year. Therefore, PHMSA 
expects to eliminate 3 responses and 36 hours to this information 
collection per year as a result of the provisions in the rule.

[[Page 28054]]

    Affected Public: All hazardous liquid pipeline operators.
    Annual Reporting and Recordkeeping Burden:
    Total Annual Responses: 1,643 (1,646-3).
    Total Annual Burden Hours: 53,741 (53,777-36).
    Frequency of Collection: On Occasion.

K. Executive Order 13609 and International Trade Analysis

    E.O. 13609 (``Promoting International Regulatory Cooperation''; 77 
FR 26413 (May 4, 2012)) requires agencies consider whether the impacts 
associated with significant variations between domestic and 
international regulatory approaches are unnecessary or may impair the 
ability of American business to export and compete internationally. In 
meeting shared challenges involving health, safety, labor, security, 
environmental, and other issues, international regulatory cooperation 
can identify approaches that are at least as protective as those that 
are or would be adopted in the absence of such cooperation. 
International regulatory cooperation can also reduce, eliminate, or 
prevent unnecessary differences in regulatory requirements.
    Similarly, the Trade Agreements Act of 1979 (Pub. L. 96-39), as 
amended by the Uruguay Round Agreements Act (Pub. L. 103-465), 
prohibits Federal agencies from establishing any standards or engaging 
in related activities that create unnecessary obstacles to the foreign 
commerce of the United States. For purposes of these requirements, 
Federal agencies may participate in the establishment of international 
standards, so long as the standards have a legitimate domestic 
objective, such as providing for safety, and do not operate to exclude 
imports that meet this objective. The statute also requires 
consideration of international standards and, where appropriate, that 
they be the basis for U.S. standards.
    PHMSA engages with international standards setting bodies to 
protect the safety of the American public. PHMSA has assessed the 
effects of the direct final rule and has determined that its regulatory 
amendments will not cause unnecessary obstacles to foreign trade.

L. Cybersecurity and Executive Order 14028

    E.O. 14028 (``Improving the Nation's Cybersecurity''; 86 FR 26633 
(May 17, 2021)) directed the Federal Government to improve its efforts 
to identify, deter, and respond to ``persistent and increasingly 
sophisticated malicious cyber campaigns.'' PHMSA has considered the 
effects of the direct final rule and has determined that its regulatory 
amendments will not materially affect the cybersecurity risk profile 
for pipeline facilities.

List of Subjects

49 CFR Part 191

    Natural gas, Pipeline safety, Reporting and recordkeeping 
requirements.

49 CFR Part 195

    Pipeline safety, Reporting and recordkeeping requirements.

    In consideration of the foregoing, PHMSA amends 49 CFR parts 191 
and 195 as follows:

PART 191--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE; 
ANNUAL, INCIDENT, AND OTHER REPORTING

0
1. The authority citation for part 191 continues to read as follows:

    Authority:  30 U.S.C. 185(w)(3), 49 U.S.C. 5121, 60101 et seq., 
and 49 CFR 1.97.


0
2. In Sec.  191.3, revise paragraph (1)(ii) in the definition of 
``Incident'' to read as follows:


Sec.  191.3  Definitions.

* * * * *
    Incident * * *
    (1) * * *
    (ii) Estimated property damage of $149,700 or more, including loss 
to the operator and others, or both, but excluding each of the cost of 
gas lost, the cost to acquire permits, and the cost to remove and 
replace non-operator infrastructure that was not damaged by the 
release. For adjustments for inflation observed in calendar year 2026 
onwards, changes to the reporting threshold will be posted on PHMSA's 
website. These changes will be determined in accordance with the 
procedures in appendix A to part 191.
* * * * *

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE

0
3. The authority citation for part 195 continues to read as follows:

    Authority:  30 U.S.C. 185(w)(3), 49 U.S.C. 5121, 60101 et seq., 
and 49 CFR 1.97.


0
4. Revise Sec.  195.50(e) to read as follows:


Sec.  195.50  Reporting Accidents.

* * * * *
    (e) Estimated property damage, including cost of clean-up and 
recovery and damage to the property of the operator or others--but 
excluding each of the cost of lost product, the cost to acquire 
permits, and the cost to remove and replace non-operator infrastructure 
that was not damaged by the release--exceeding $149,700. For 
adjustments for inflation observed in calendar year 2026 onwards, 
changes to the reporting threshold will be posted on PHMSA's website. 
These changes will be determined in accordance with the procedures in 
appendix D to part 195.

0
5. In part 195, add appendix D to read as follows:

Appendix D to Part 195--Procedure for Determining Reporting Threshold

I. Property Damage Threshold Formula

    Each year after calendar year 2025, the Administrator will 
publish a notice on PHMSA's website announcing the updates to the 
property damage threshold criterion that will take effect on July 1 
of that year and will remain in effect until the June 30 of the next 
year. The property damage threshold used in determining the scope of 
accident reporting at Sec.  195.50(d) shall be determined in 
accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TR01JY25.004

Where:

Tr is the revised damage threshold,
Tp is the previous damage threshold,
CPIr is the average Consumer Price Indices for all Urban Consumers 
(CPI-U) published by the Bureau of Labor Statistics each month 
during the most recent complete calendar year, and
CPIp is the CPI-U used to establish the previous property damage 
criteria.

    Issued in Washington, DC, on June 26, 2025, under the authority 
delegated in 49 CFR 1.97.
Benjamin D. Kochman,
Acting Administrator.
[FR Doc. 2025-12113 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-60-P