[Federal Register Volume 91, Number 105 (Tuesday, June 2, 2026)]
[Proposed Rules]
[Pages 32919-32927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-10969]
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DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
49 CFR Part 195
[Docket No. PHMSA-2025-1271]
RIN 2137-AG22
Pipeline Safety: Breakout Tank Inspection Rule
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Department of Transportation (DOT).
ACTION: Notice of proposed rulemaking (NPRM).
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SUMMARY: Breakout tanks are used to ``relieve surges in a hazardous
liquid pipeline system'' or to ``receive and store hazardous liquid
transported by a pipeline for reinjection and continued transportation
by pipeline.'' American Petroleum Institute Standard 653 (API Std 653)
sets industry standards for the inspection, repair, alteration, and
reconstruction of aboveground storage tanks. PHMSA currently
incorporates the 3rd edition of API Std 653 (issued December 2001) by
reference into its regulations for breakout tanks. In this rulemaking,
PHMSA is proposing to update its regulations for breakout tanks to
incorporate the 5th edition of API Std 653 (issued November 2014) by
reference. As a key part of this, PHMSA is proposing to authorize the
use of risk-based inspection (RBI) procedures for establishing the
inspection intervals of in-service breakout tanks.
DATES: Comments on this NPRM must be submitted by August 3, 2026. A
public meeting of PHMSA's statutory advisory committees will be held on
a date to be announced in the Federal Register.
ADDRESSES: You may submit comments by one of the following methods,
identifying docket number PHMSA-2025-1271 on the top of the first page:
Electronically at https://www.regulations.gov. Follow the
``submit a comment'' instructions.
Mail and hand delivery to 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 is
available to this address between 9:00 a.m. and 5:00 p.m., Monday
through Friday (except Federal holidays). Include two copies if
submitting by mail. To receive confirmation that PHMSA has received
your comments, include a self-addressed stamped postcard.
By fax to 1-202-493-2251.
Comments may be viewed at https://www.regulations.gov/docket/PHMSA-2025-1271. Comments are posted without changes or edits, including any
personal information provided. DOT's privacy statement can be reviewed
at https://www.dot.gov/privacy.
Confidential Business Information: 49 CFR 190.343 provides for the
submission of Confidential Business Information (CBI) to PHMSA. If your
comment contains commercial or financial information that is
customarily treated as private and that you actually treat as private,
you must clearly designate the submitted comments as CBI, by taking the
following steps: (1) mark as ``confidential'' each page of the original
document submission containing CBI; (2) along with the original
document, send PHMSA a redacted copy of the original document with the
CBI deleted; and (3) explain why the information you are submitting is
CBI. Send submissions containing CBI to Sayler Palabrica at the contact
information listed below. Any comment PHMSA receives that is not
specifically designated as CBI will be placed in the public docket.
FOR FURTHER INFORMATION CONTACT: Sayler Palabrica, Standards and
Rulemaking Division, by phone at 202-744-0825 or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
I. Executive Summary
API Std 653 sets standards for the inspection, repair, alteration,
and reconstruction of aboveground storage tanks. PHMSA currently
incorporates the 3rd edition of API Std 653, as issued in December 2001
with addenda and errata through April 2008, by reference into its part
195 regulations for breakout tanks. Breakout tanks are tanks that
operators use to ``relieve surges in a hazardous liquid pipeline
system'' or to ``receive and store hazardous liquid transported by a
pipeline for reinjection and continued transportation by pipeline.''
(49 CFR 195.2).
In this rulemaking, PHMSA is proposing to update its part 195
regulations for breakout tanks to incorporate the 5th edition of API
Std 653, as issued in November 2014 with addendums and errata through
July 2025, by reference. PHMSA is also proposing to revise Sec.
195.432 to authorize the use of RBI procedures for establishing the
inspection intervals of in-service breakout tanks. PHMSA estimates that
adopting this proposal will result in cost savings of between $24.5 to
$125.7 million per year using a three percent discount rate or between
$29.3 to $150.1 million per year using a seven percent discount rate.
II. Background
PHMSA's Federal safety standards at part 195 apply to breakout
tanks. Breakout tanks are used by pipeline operators to ``relieve
surges in a hazardous liquid pipeline system'' or to ``receive and
store hazardous liquid transported by a pipeline for reinjection and
continued transportation by pipeline.'' (49 CFR 195.2). Breakout tanks
are subject to certain specific requirements in part 195, including (1)
Sec. 195.205, which prescribes requirements for the repair,
alteration, and reconstruction of in-service breakout tanks; (2) Sec.
195.307, which prescribes requirements for pressure testing aboveground
breakout tanks; and (3) Sec. 195.432, which prescribes requirements
for the inspection of in-service breakout tanks. While not relevant to
the proposals at issue in this proceeding, the general requirements in
part 195 for pipeline systems and pipeline facilities also apply to
breakout tanks, subject to a conflict preemption provision.\1\
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\1\ 49 CFR 195.1(c) ``Breakout tanks that are subject to this
part must comply with requirements that apply specifically to
breakout tanks and, to the extent applicable, with requirements that
apply to pipeline systems and pipeline facilities. If a conflict
exists between a requirement that applies specifically to breakout
tanks and a requirement that applies to pipeline systems or pipeline
facilities, the requirement that applies specifically to breakout
tanks prevails.''
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PHMSA's regulations for breakout tanks date to the 1969 final rule
that prescribed the original version of the part 195 regulations.\2\
One of those regulations, codified at Sec. 195.432, established
requirements for the inspection of storage vessels. It stated that
``[e]ach carrier shall, at intervals not exceeding 12 months, inspect
each
[[Page 32920]]
storage vessel (including atmospheric and pressure tanks).'' \3\
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\2\ Requirements for Design, Construction, Operation, and
Maintenance, 34 FR 15473 (Oct. 4, 1969).
\3\ 34 FR at 15482.
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In 1981, a PHMSA predecessor, the Research and Special Programs
Administration (RSPA), issued a final rule recodifying the part 195
regulations to reflect the enactment of the Hazardous Liquid Pipeline
Safety Act of 1979 (Pub. L. 96-129).\4\ As part of the recodification,
RSPA readopted the inspection requirements in Sec. 195.432 and added a
definition for the term ``breakout tank.'' \5\ The following year, RSPA
issued another final rule adjusting the inspection interval in Sec.
195.432 to provide operators with additional scheduling flexibility.
Rather than requiring a fixed 12-month interval, RSPA amended Sec.
195.432 to permit the inspection of breakout tanks ``at intervals not
exceeding 15 months, but at least once each calendar year.'' \6\
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\4\ Transportation of Liquids by Pipeline, 46 FR 38357 (July 27,
1981).
\5\ 46 FR at 38358-59, 38372. For additional information about
the development of PHMSA's breakout tank definition, see Exxon Corp.
v. U.S. Sec'y of Transp., 978 F. Supp. 946, 949-54 (E.D. Wash.
1997).
\6\ Transportation of Natural and Other Gas and Hazardous
Liquids by Pipeline; Inspection and Test Intervals, 47 FR 46850,
46852 (Oct. 21, 1982).
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Nearly two decades later, in 1999, RSPA issued a final rule that
substantially revised the part 195 regulations for breakout tanks.\7\
The final rule incorporated 13 consensus industry standards by
reference for the design, construction, testing, repair, alteration,
and replacement of breakout tanks. One of those standards was the 2nd
edition of API Std 653, which RSPA incorporated into an amended version
of Sec. 195.432 as an alternative to the annual calendar year
inspection traditionally required.\8\ Then, in 2010, PHMSA incorporated
by reference the 3rd edition of API Std 653.\9\ Because the 3rd edition
was the first to include RBI procedures, this amendment had the effect
of authorizing operators to perform RBI inspections under section 6.4
of API Std 653.
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\7\ Pipeline Safety: Adoption of Consensus Standards for
Breakout Tanks, 64 FR 15926 (Apr. 2, 1999).
\8\ 64 FR at 15926, 15932.
\9\ Pipeline Safety: Periodic Updates of Regulatory References
to Technical Standards and Miscellaneous Edits, 75 FR 48593 (Aug.
11, 2010).
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In 2015, PHMSA issued a final rule that, among other things,
incorporated updated editions of certain referenced consensus industry
standards and made other miscellaneous amendments to part 195. PHMSA
retained the 3rd edition of API Std 653 in the final rule, which had
been incorporated by reference in an earlier rulemaking proceeding,\10\
but amended Sec. 195.432 to prohibit the use of the RBI procedures
authorized in that standard for determining alternative internal
inspection intervals. PHMSA justified that prohibition by pointing to
concerns with the RBI procedures in API Std 653, particularly use of
certain discretionary language and provisions allowing an operator to
exceed prescriptive limits on predicted bottom plate metal loss or
extend the 20-year inspection interval.\11\
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\10\ Pipeline Safety: Periodic Updates of Regulatory References
to Technical Standards and Miscellaneous Amendments, 80 FR 168, 171
(Jan. 1, 2015). PHMSA incorporated the 3rd edition of API Std 653 by
reference in a 2010 final rule, which also made a minor editorial
correction to align Sec. 195.432 with the updated provisions in
that standard. Pipeline Safety: Periodic Updates of Regulatory
References to Technical Standards and Miscellaneous Edits,75 FR
48593, 48600, 48605 (Aug. 11, 2010).
\11\ 80 FR at 171, 185.
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PHMSA did not analyze separately the costs, benefits, or other
impacts of prohibiting the use of the RBI procedures in API Std 653 in
the final rule. Rather, PHMSA simply stated that it was ``making non-
substantive edits and clarifying regulatory language in certain
provisions,'' and that ``[s]ince these editorial changes are relatively
minor, this rule would not require pipeline operators to undertake
significant new pipeline safety initiatives and would have negligible
cost implications.'' \12\
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\12\ 80 FR at 176.
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DOT and PHMSA recently asked interested stakeholders to submit
ideas to support Presidential deregulatory and energy policy
priorities. In April 2025, DOT published a request for information
(RFI), titled Ensuring Lawful Regulation; Reducing Regulation and
Controlling Regulatory Costs, 90 FR 14593 (Apr. 3, 2025), and PHMSA
published an Advance Notice of Proposed Rulemaking (ANPRM) titled
Pipeline Safety: Mandatory Regulatory Reviews to Unleash American
Energy and Improve Government Efficiency, 90 FR 23660 (June 4, 2025).
In response to the DOT RFI, API and the Liquid Energy Pipeline
Association (LEPA) submitted a joint comment that included a request
for PHMSA to update API Std 653 to the latest edition and authorize the
use of RBI procedures.\13\ In response to PHMSA's Unleashing American
Energy ANPRM, an anonymous individual recommended that PHMSA update
references to API Std 653 to the most recent version.\14\
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\13\ Associations, Comment, Docket ID DOT-OST-2025-0026-0874
(May 6, 2025).
\14\ Anonymous, Comment, Docket ID PHMSA-2025-0050-0005 (June 9,
2025).
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On May 21, 2025, PHMSA published an ANPRM titled Pipeline Safety:
Repair Criteria for Hazardous Liquid and Gas Transmission Pipelines, 90
FR 21715, which included a request for comment on the inspection
requirements for breakout tanks. Several commenters addressed the
breakout tank inspection requirements in responding to the ANPRM,
including a joint comment from API, LEPA, GPA Midstream Association,
and the American Fuel & Petrochemical Manufacturers (the Associations),
and comments from the Colonial Pipeline Company, Enterprise Products
Operating LLC, Marathon Pipe Line LLC, International-Matex Tank
Terminals LLC, California Resources Corporation, and the Pipeline
Safety Trust (PST). Commenters generally supported updating API Std 653
to the latest edition and authorizing the use of RBI procedures.\15\
The Associations noted the U.S. Environmental Protection Agency does
not restrict the use of RBI under the Spill Prevention, Control, and
Countermeasures rules in 40 CFR part 112, and cited significant costs,
environmental impacts, and worker safety hazards associated with
unnecessary internal inspections of tanks. The Associations estimated
quantified annual cost savings of $220 million based on an average
assessment interval and described improved safety performance from
operators that have applied RBI principles to plant piping at
refineries and other facilities.\16\ Individual operators provided
similar comments on the costs and consequences of internal inspections
and recommended allowing RBI procedures in accordance with recent
editions of API Std 653.\17\ PST supported extending the inspection
intervals using RBI to mitigate risk to workers when preparing for and
conducting inspections, but recommended additional robotic inspection
conditions.\18\
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\15\ E.g., California Resources Corp., Comment, PHMSA-2025-0019-
0017, at 6-7 (July 21, 2025); International-Matex Tank Terminals
LLC, Comment, Docket ID PHMSA-2025-0019-0026, at 2-3 (Aug. 1, 2025).
\16\ Associations, Comment, Docket ID PHMSA-2025-0019-0021, at
76-77 (July 21, 2025).
\17\ E.g., Colonial Pipeline Co., Comment, Docket ID PHMSA-2025-
0019-0013, at 19-20 (July 21, 2025); Enterprise Products Operating
LLC, Comment, Docket ID PHMSA-2025-0019-0015, at 8-9 (July 21,
2025); Marathon Pipe Line LLC, Comment, Docket ID PHMSA-2025-0019-
0018, at 1-2 (July 21, 2025).
\18\ PST, Comment, Docket ID PHMSA 2025-0019-0016, at 9 (July
21, 2025).
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III. Discussion
Consistent with the comments and policies described above, PHMSA
proposes to revise Sec. 195.3 to update
[[Page 32921]]
references to API Std 653; to revise Sec. 195.432 to authorize the use
of RBI procedures with upper limits on the alternative internal
inspection intervals; and to make other conforming revisions to part
195.
A. Incorporation by Reference: Update API Std 653 From the 3rd Edition
to the 5th Edition
PHMSA proposes to add API Standard 653, ``Tank Inspection, Repair,
Alteration, and Reconstruction,'' 5th edition, November 2014,
(including addendum 1 (April 2018), addendum 2 (May 2020), addendum 3
(November 2023), errata 1 (March 2020), errata 2 (February 2025), and
addendum 4 (July 2025)), to the list of incorporated-by-reference
documents at Sec. 195.3(b)(18). This updated edition would replace
existing references to the 3rd edition of API Std 653, as issued in
December 2001 with addenda and errata issued through April 2008.\19\
After the incorporation, operators would be required to follow the
specified requirements in the 5th edition of API Std 653 in complying
with the requirements for the repair, alteration, and reconstruction of
breakout tanks in Sec. Sec. 195.205(b) and 195.307(d), and the
periodic inspection requirements for atmospheric and low-pressure
aboveground storage tanks in Sec. 195.432 (addressed in section III.B
below).
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\19\ API Standard 653, Tank Inspection, Repair, Alteration, and
Reconstruction (3rd ed. Dec. 2001). All references to the 3rd
edition of API Std 653 in this document include addendum 1
(September 2003), addendum 2 (November 2005), addendum 3 (February
2008), and errata (April 2008).
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As noted in comments submitted by API and LEPA in responding to the
Repair Criteria ANPRM, the 5th edition of API Std 653 has several
revisions from the 3rd edition of API Std 653 to incorporate new or
improved technologies and practices for inspection, examination, and
repair of breakout tanks. PHMSA has preliminarily determined that these
changes enhance safety, improve operational efficiency and flexibility,
and improve clarity. Among the most comprehensive changes since the 3rd
edition are the incorporation of new requirements in section 9.2.4 for
door sheets cut out of the tank to provide temporary access to the
interior of the tank. These new requirements, which cover the design,
temporary stiffening, inspection, and restoration of door plates ensure
that the removal, reinstallation, or replacement of the door sheet does
not compromise the integrity of the tank. Safety-enhancing changes
include prohibiting door sheets from crossing vertical riveted and lap
welded seams, special design and inspection requirements for door
sheets that cross horizontal seams, and consideration for welds near
riveted seams in order to prevent heat-related leakage.
Section 9.10.2.2 was also redrafted, covering requirements for
installing new bearing plates supporting the weight of the tank roof
when the tank bottom plate is replaced. The requirements are intended
to minimize risks from wear and corrosion of the tank bottom from
bearing plates. The 5th edition has introduced more specific design and
material requirements for bearing plates based on whether the roof is
steel or aluminum, which influences both wear and corrosion risk. This
provides a higher level of safety for tanks with steel roofs while
allowing more flexible design for those with lighter aluminum roofs
unless there is evidence that certain designs would introduce corrosion
threats. The guidelines for performing settlement analysis in Annex B
were also overhauled in the 4th edition to adopt additional modern
evaluation methods that PHMSA expects will improve operators'
evaluation of settlement and the resulting strains it puts on tanks.
In addition to the more significant revisions affecting repair,
alteration, and reconstruction, cumulative edits since the 3rd edition
include a number of minor revisions and clarifications that enhance the
legibility and enforceability of the standard. These include
clarifications regarding as-built standards, adopting a definition for
``reconstruction,'' and revising cross references to other sections or
secondary references to be more specific. Similarly, revisions since
the 3rd edition regarding the applicability of hydrostatic testing
requirements in section 12.3 simplify its structure and provide more
clarity regarding when hydrostatic testing for ``major repairs or major
alterations'' is required. In general, hydrostatic testing continues to
be required for tanks that have been reconstructed, undergone major
repairs or alterations, experienced certain operational changes, or
been damaged.
B. Physical Inspection Requirements and Risk-Based Inspection (Sec.
195.432)
Section 195.432 references API Std 653 to define periodic
inspection requirements for atmospheric and low-pressure steel above-
ground breakout tanks. Section 6 of the 3rd edition of API Std 653
requires routine in-service inspections, external inspections, external
ultrasonic thickness measurements of the tank shell, exterior cathodic
protection surveys of the tank bottom (if applicable), and internal
inspections of the tank bottom and shell. These inspections are
intended to monitor the physical condition of the storage tank,
particularly to measure the extent and rate of corrosion of the tank
bottom and shell. The 3rd edition of API Std 653 also establishes a
minimum frequency for these inspections, but the standard requires an
operator to consider other factors when determining the inspection
interval. The requirements for routine in-service inspections, external
inspections, ultrasonic thickness inspections, and cathodic protection
surveys are unchanged since the 3rd edition and would therefore not be
affected by this proposed rule.
Internal inspections of in-service breakout tanks are the most
consequential of the required physical inspections because the tank
usually must be taken out of service and cleaned, and the interior of
the tank must be accessed to perform the inspection. Section 6.4.2.1 of
the 3rd edition of API Std 653 requires operators to determine the
internal inspection interval when not applying RBI based on comparing
measured corrosion growth rates against the minimum required bottom
thickness in Table 6-1, but with a maximum internal inspection interval
of 20 years, or 10 years when the corrosion growth rates are not known
per section 6.4.2.2. While section 6.4.3 of the 3rd edition of API Std
653 provides for an alternative internal inspection interval based on
RBI procedures that allow an operator to extend the internal inspection
interval beyond 20 years based on the result of the RBI analysis, Sec.
195.432(b) prohibits the application of the RBI-based alternative
inspection interval.
Based on PHMSA's review of improvements to the RBI procedures since
the 3rd edition of API Std 653 and risk-assessment information provided
in public comments, PHMSA proposes to revise Sec. 195.432 to authorize
the use of RBI for determining the internal inspection interval for
breakout tanks in accordance with the 5th edition of API Std 653. When
establishing an internal inspection interval, PHMSA proposes a maximum
timeline of 20 years for performing an initial inspection and a maximum
reinspection interval of 25 years.\20\ Due to the high cost of
performing internal inspections, this change will result in cost
savings and increased uptime for breakout tanks.
[[Page 32922]]
Doubling the time window for performing the initial inspection from the
current 10-year limit will be particularly impactful. Additional
safeguards are required in this proposal by PHMSA as a condition for
the extended inspection interval to ensure appropriate pipeline safety.
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\20\ PHMSA requests comment on these time periods and whether
any new technologies may justify longer maximum timelines, with
accompanying data.
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While the potential impact of a tank bottom failure can be severe
due to the large volume of product involved, the application of a
robust RBI is intended to and should minimize the probability of
failure.\21\ Improvements in the 5th edition of API Std 653, including
enhanced inspection and repair requirements, credits for installing
tank safeguards, and more rigorous RBI requirements, reduce the
probability and potential consequences of a release and improve the
accuracy of operators' risk analyses. PHMSA is also proposing limits to
the maximum inspection interval to further reduce risk.
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\21\ PHMSA is currently investigating an accident involving the
estimated release of 9,000 barrels of gasoline through a manmade
hole in the bottom of an aboveground storage tank in Aston,
Pennsylvania. See In the Matter of MIPC, LLC, a subsidiary of Monroe
Energy, LLC, CPF No. 1-2025-048-CAO. The preliminary results of
PHMSA's investigation do not indicate that the interval for
conducting an internal inspection of the tank caused or contributed
to the accident.
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API made significant improvements to the 5th edition of API Std 653
that address concerns raised by PHMSA during the 2015 rulemaking that
prohibited the application of RBI. The requirements for establishing
the frequency of internal inspections and RBI requirements in section
6.4 of the 5th edition of API Std 653 have been rewritten. These
changes are supplemented by two standalone recommended practices, which
PHMSA is not proposing to incorporate by reference but are referenced
in the 5th edition of API Std 653. The first, API Recommended Practice
580 Elements of a Risk-Based Inspection Program, addresses mandatory
elements of RBI procedures generally. The second, API Recommended
Practice 581 Risk-Based Inspection Methodology, provides additional
guidance on performing a semi-quantitative RBI.\22\
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\22\ API, Recommended Practice 580, Elements of a Risk-Based
Inspection Program (4th ed. Aug. 2023, Addendum 1 Mar. 2025) (API RP
580); API, Recommended Practice 581, Risk-based Inspection
Methodology, (4th ed. Jan. 2023) (API RP 581).
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Collectively, the changes in the 5th edition of API Std 653 provide
a more enforceable and rigorous standard with a clearer nexus between
operator-defined performance targets, and inspection and maintenance
decision-making. The RBI requirements in section 6.4.2.2.2 of API Std
653 now reference API RP 580 to define required elements of the
operator's RBI analysis, and section 6.4.2.2.2.1 and 6.4.2.2.2.2 of the
5th edition of API Std 653 replaces the list of attributes that
``should be considered'' with 18 likelihood factors and 13 consequence
factors that must be evaluated. RBI requirements in section 13 of API
RP 580 and guidance in API RP 581 provide more information on how to
use the risk evaluation in the RBI analysis to drive inspection and
maintenance decision-making. Section 6.4.2.2.2 of the 5th edition of
API Std 653 defines requirements for developing, reviewing, and
updating an RBI analysis, including a requirement that the analysis be
developed by subject matter experts knowledgeable in risk management
and design construction and maintenance of storage tanks. Finally,
section 6.4.2.2.2 requires an RBI analysis to be validated, ideally by
a third party, and reviewed at least once every 10 years or when
changes to processes, equipment, or consequences warrant a review.
In addition to improving RBI procedures, the 5th edition
restructures the inspection interval requirements to better distinguish
when the initial inspection interval applies and when an operator can
use an RBI approach to determine the appropriate subsequent internal
inspections interval. For example, in section 6.4.2.1 of the 5th
edition of API Std 653, newly installed tank bottoms are subject to a
more stringent initial inspection interval. However, when an operator
installs a new bottom on an existing tank, they may apply a longer
inspection interval only permissible for subsequent inspections
provided the operator satisfies all the conditions listed in section
6.4.2.1 (a) through (d). In comparison, section 6.4.2.2 of the 3rd
edition broadly applies the initial inspection interval to tanks ``when
corrosion rates are not known and similar service experience is not
available,'' a standard that is not as well-defined. PHMSA expects that
more clearly defining when the more stringent initial inspection
interval is and is not fit for purpose will enhance safety, provide
regulatory certainty, and result in potential cost savings.
Section 6.4.2.1.1 of the 5th edition of API Std. 653 prescribes a
maximum initial inspection interval of 20 years (or 30 years if a
release prevention barrier is in place), it does not place a time
limitation on subsequent inspection intervals if an operator is using
an RBI approach. PHMSA is proposing a different approach.
The 5th edition of API Std 653 provides direction on selecting
reliability targets via reference to API RP 580 and API RP 581 but does
not define what those targets should be. The 5th edition of API Std 653
and API RP 580 also describe the requirements for performing a rigorous
risk assessment, but do not prescribe reliability or total consequence
targets that would anchor the selected inspection interval. In the
absence of performance targets in the RBI procedures, PHMSA supports a
reasonable maximum interval for initial and subsequent internal
inspections. PHMSA proposes a maximum inspection interval of 20 years
for the initial inspection and 25 years for subsequent inspections.
PHMSA proposes that these are reasonable maximum intervals as they
reflect those that had been adopted into API Std 653 and applied by
industry. The proposed limits correspond to the maximum initial
inspection interval prescribed in the 5th edition of API Std 653 and
the maximum interval for subsequent internal inspections for tanks
without a release prevention barrier that appeared in section 6.4.2.2
of the 4th edition of API Std 653 prior to 2012.
Preventing a failure is the main objective of the internal
inspection program, particularly for the initial inspection that
establishes the corrosion rate. A release prevention barrier and leak
detection system can mitigate the consequences of a tank leak but do
not prevent a tank bottom failure from occurring. Releases into
containment can still be consequential, and PHMSA expects operators to
prevent product releases from occurring. While the proposal does not
allow an operator to extend an inspection interval beyond the maximum
interval based on the presence of a release prevention barrier, they
may be considered as part of the RBI risk assessment for initial and
subsequent inspections, and an operator may credit it as a tank
safeguard in accordance with Table 6.1 in the 5th edition of API Std
653. PHMSA seeks comments on whether to set minimum standards for
reliability or consequences as part of the RBI procedures within the
regulations.
Implementation, inspection, and enforcement of RBI procedures
inherently relies more heavily on the engineering judgement of
operators and Federal and State inspectors compared with the more
prescriptive standards for determining an internal inspection interval
based on corrosion rates. In the 1999 final rule that originally
adopted API Std 653 and other consensus standards for breakout tanks,
PHMSA discussed the role of engineering judgment in compliance and
inspection of programs based on consensus
[[Page 32923]]
standards. PHMSA noted that when a standard, specification, or code
calls for the use of engineering judgment, PHMSA will not object to the
use of that judgment but will compare the judgment used by operators to
make adequate risk-based decisions against what is reasonable under the
circumstances.\23\ Consistent with that intent, PHMSA retains the
authority to inspect an operator's RBI analysis and tank inspection
schedule. If PHMSA finds that an operator's procedures are unreasonable
or inconsistent with sound engineering judgment or fails to provide an
adequate minimum level of safety, PHMSA will take appropriate
enforcement action.
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\23\ Pipeline Safety: Adoption of Consensus Standards for
Breakout Tanks, 64 FR 15926, 15929 (Apr. 2, 1999).
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PHMSA does not propose to adopt the PST recommendation to condition
the use of RBI on periodic robotic inspection.\24\ PHMSA recognizes the
value that more frequent, but less invasive, inspections to measure
corrosion between out-of-service inspections could provide to risk-
based programs for managing breakout tanks. On-stream inspections may
be especially valuable for establishing a corrosion growth rate early
in the tank's lifecycle, provided the inspection includes an adequately
large sample of the tank bottom. PHMSA encourages API to consider
developing recommended practices for in-service robotic inspections and
integrating data from such inspections in future editions of API Std
653. Meanwhile, PHMSA notes that an operator may use the special permit
process under Sec. 190.341 to evaluate the viability of on-stream
inspection or other technologies as alternatives to the proposed
inspection requirements and limitations, subject to PHMSA oversight.
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\24\ PST, Comment, Docket ID PHMSA-2025-0019-0016, at 9.
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C. Reporting
PHMSA proposes minor changes to hazardous liquid pipeline
operators' annual report form (PHMSA Form F7000-1.1) and NPMS
submission requirements to identify breakout tanks and operators that
apply RBI. PHMSA will use this information to measure the safety
performance of breakout tanks using the alternative inspection
interval. PHMSA also requires this information to plan Federal
inspections since auditing RBI procedures involves different risks and
skillsets than evaluating compliance using the more prescriptive
internal inspection interval.
IV. Availability of Standards Incorporated by Reference
Pursuant to 49 U.S.C. 60102(p), ``the Secretary may not issue a
regulation pursuant to this chapter that incorporates by reference any
documents or portions thereof unless the documents or portions thereof
are made available to the public, free of charge.'' \25\ PHMSA has
negotiated an agreement with API to make viewable copies of the 5th
edition of API Std 653 available to the public at no cost during the
proceedings for this rulemaking. The standard can be accessed at:
https://publications.api.org/IBR-Documents-Under-Consideration.aspx. In
addition, the material can be reasonably obtained by interested parties
through the applicable publisher contact information listed in Sec.
195.3 of the amendatory text in this document. Additional information
regarding the availability of standards PHMSA incorporates by reference
may be found at https://www.phmsa.dot.gov/standards-rulemaking/pipeline/standards-incorporated-reference.
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\25\ Pipeline Safety, Regulatory Certainty, and Job Creation Act
of 2011, Sec. 24 (Pub. L. 112-90).
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V. Section-by-Section Analysis
Sec. 195.3 What documents are incorporated by reference partly or
wholly in this part?
Section 195.3 lists the documents incorporated by reference into
part 195. PHMSA proposes to revise Sec. 195.3(b)(18) to incorporate by
reference the 5th edition of API Std 653 with addenda and errata issued
through July 2025. This updated edition would replace existing
references to the 3rd edition of API Std 653 with addenda and errata
issued through April 2008.
Upon incorporation, the 5th edition of API Std 653 will apply in
the following contexts:
Section 195.205(b): Defining requirements for the repair,
alteration, or reconstruction of tanks designed for approximate
atmospheric pressure, constructed of carbon and low alloy steel, welded
or riveted, and non-refrigerated; and for tanks built to API Std 650 or
API Std 12C.
Section 195.307(d): Determining when repair, alteration,
or reconstruction requires hydrostatic testing for steel atmospheric
tanks designed for approximate atmospheric pressure, constructed of
carbon and low alloy steel, welded or riveted, and non-refrigerated;
and for tanks built to API Std 650 or API Std 12C built after October
2, 2000.
Section 195.432(b): Physical inspection requirements for
atmospheric and low-pressure steel above-ground breakout tanks.
The updates to the requirements for scheduling the internal
inspection of breakout tanks, including revising Sec. 195.432 to allow
RBI, are the most consequential of these changes.
Sec. 195.49 Annual Report
PHMSA does not propose any amendments to Sec. 195.49 but does
propose revising part M of the hazardous liquid pipeline annual report
form (PHMSA Form F7000-1.1) to include a count of tanks managed with
RBI by volume category.
Sec. 195.61 National Pipeline Mapping System
PHMSA does not propose any amendments to the NPMS regulations at
Sec. 195.61. However, PHMSA proposes to require operators to identify
if a breakout tank is managed with RBI when submitting geospatial
information about the location of that tank.
Sec. 195.205 Repair, alteration and reconstruction of aboveground
breakout tanks that have been in service.
Section 195.205 references API Std 653 for approved repair,
alteration, and reconstruction procedures for breakout tanks built to
API Std 650 or its predecessor API Standard 12C. Consistent with
PHMSA's proposal to allow RBI, PHMSA proposes an editorial amendment to
remove a parenthetical exclusion of RBI procedures. Since this section
addresses repair methods rather than internal inspection intervals,
reference to procedures for establishing periodic internal inspection
intervals is not necessary regardless of the policy adopted in the
final rule.
Sec. 195.432 Inspection of in-service breakout tanks
Section 195.432 requires operators to inspect in-service
atmospheric and low-pressure steel above-ground breakout tanks
physically in accordance with API Std 653. In addition to updating the
edition of API Std 653 that is incorporated by reference in this
section to the 5th edition, PHMSA proposes removing the prohibition on
using RBI procedures to determine the interval for internal inspections
of breakout tanks. PHMSA proposes allowing an operator to determine an
internal inspection interval based on an RBI analysis carried out in
accordance with the 5th edition of API Std 653, provided the operator
retains records necessary to reproduce the analysis, including
[[Page 32924]]
information for each required likelihood and consequence factor listed
in API Std 653. In addition, PHMSA proposes a maximum internal
inspection interval of 20 years for the initial inspection and 25 years
for subsequent internal inspections.
Since the deadlines for performing a new internal inspection have
passed, and RBI would be authorized under the NPRM, PHMSA proposes to
remove the regulations in Sec. 195.432(b)(1) and (2).
VI. Regulatory Analyses and Notices
A. Regulatory Planning and Review--Executive Orders 12866 and 14192,
DOT Orders 2100.6B and 2100.7, and the Pipeline Safety Laws
As required by Executive Order (E.O.) 12866 (Regulatory Planning
and Review; 58 FR 51735 (Oct. 4, 1993)) and DOT Order 2100.6B (Policies
and Procedures for Rulemaking), the Office of Information and
Regulatory Affairs (OIRA) within the Executive Office of the
President's Office of Management and Budget (OMB) has reviewed this
proposed rule and determined that it is an economically significant
regulatory action pursuant to E.O. 12866, along with being a ``major
rule'' as defined by the Congressional Review Act (5 U.S.C. 801 et
seq.).\26\ In addition, this is a deregulatory action under E.O. 14192
(Unleashing Prosperity Through Deregulation; 90 FR 9065 (Feb. 6, 2025))
and OMB guidance, including M-25-20.\27\
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\26\ This final rule does not 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; 90 FR 10583 (Feb. 25, 2025))
indicative that a regulation is ``unlawful . . . undermine[s] the
national interest.''
\27\ See OMB, M-24-20, Guidance Implementing Section 3 of E.O.
14192 (Mar. 26, 2025), available at: https://www.whitehouse.gov/wp-content/uploads/2025/02/M-25-20-Guidance-Implementing-Section-3-of-Executive-Order-14192-Titled-Unleashing-Prosperity-Through-Deregulation.pdf.
---------------------------------------------------------------------------
The Pipeline Safety Laws (49 U.S.C. 60102(b)) require that PHMSA
``prepare a risk assessment that . . . identifies the costs and
benefits associated with a proposed regulatory change.'' E.O. 12866, as
implemented by DOT Order 2100.6B and DOT Order 2100.7, 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.'' 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.''
Consistent with 49 U.S.C. 60102, E.O. 12866, and DOT Orders 2100.6B
and 2100.7, PHMSA conducted a preliminary risk assessment of the
economic impact of this proposed rule in a preliminary regulatory
impact analysis (PRIA) that is available in the docket for this
rulemaking. The PRIA details the costs, cost savings, and benefits of
this proposed rule. PHMSA has determined the cost savings and benefits
of the proposed rule justify any associated costs notwithstanding the
uncertainties identified.
PHMSA expects this proposed rule will result in significant cost
savings by reducing regulatory burdens and regulatory uncertainty for
hazardous liquid pipeline operators by incorporating by reference the
5th edition of API Std 653 and authorizing RBI. At a seven percent
discount rate, PHMSA estimates that reducing the frequency of initial
and subsequent internal inspections of breakout tanks based on the
results of an RBI analysis will save between $29.3 million to $150.1
million annually, or between $24.5 to $125.7 million annually using a
three percent discount rate. PHMSA expects these cost savings also will
result in reduced costs for the public, to whom hazardous liquid
pipeline operators generally transfer a portion of their compliance
costs. Those reduced costs to pipeline operators and the public are
consistent with E.O. 14192, which establishes a Federal policy of
alleviating ``unnecessary regulatory burdens'' by reducing compliance
costs and reducing the risks from non-compliance with burdensome
regulations.
In addition to those quantified cost savings, PHMSA expects this
proposed rule will have non-quantified benefits to public safety and
the environment arising from avoiding the environmental impacts and
workplace safety risks associated with unnecessary internal
inspections. In addition, PHMSA expects unquantified benefits to
pipeline operators and their customers from reducing downtime of tank
facilities required to perform internal tank inspections.
B. 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 the inadequate energy development, production, transportation,
refining, and generation capacity of the United States. Similarly, E.O.
14154 (Unleashing American Energy; 90 FR 8353 (Jan. 29, 2025)) asserts
a Federal policy to unleash American energy by ensuring 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. PHMSA finds this proposed rule is
consistent with each of E.O. 14156 and E.O. 14154. The proposed rule
will give hazardous liquid pipeline operators the flexibility to
establish internal inspection intervals based on a risk analysis. That
increased regulatory flexibility will in turn increase the
transportation capacity and reliability for petroleum and petroleum
products, and improve hazardous liquid pipeline operators' ability to
provide abundant, reliable, affordable energy products in response to
consumer and industrial demand.
However, while this proposed rule is a significant action under
E.O. 12866, it 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)). The proposal
will not have a significant adverse effect on supply, distribution, or
energy use, as further discussed in the PRIA.
C. Executive Order 13132: Federalism
PHMSA analyzed this proposed 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; 74 FR 24693 (May
22, 2009)). While the proposed rule may operate to preempt some State
requirements, it would 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. In that instance, the preemptive effect of the proposed rule
would be limited to the minimum level necessary to achieve the
objectives of the statutory authority under which the proposed rule is
[[Page 32925]]
promulgated. Therefore, the consultation and funding requirements of
E.O. 13132 do not apply.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 603) requires Federal
agencies to consider the impact of their rules on small entities, to
analyze alternatives that minimize those impacts, and to make their
analyses available for public comment. Regulatory flexibility analysis
is not required, however, where the agency head certifies that the
rule, if promulgated, will not have a significant economic impact on a
substantial number of small entities. DOT's implementing guidance--
established consistent with E.O. 13272 (Proper Consideration of Small
Entities in Agency Rulemaking; 67 FR 53461 (Aug. 16, 2002))--is
available online at https://www.transportation.gov/regulations/rulemaking-requirements-concerning-small-entities.
PHMSA has considered the anticipated impact that this rule would
have and certifies that, if adopted, it will not have a significant
economic impact on a significant number of small entities. See 5 U.S.C.
605. The proposal allows the use of RBI procedures to schedule initial
and subsequent internal inspections within defined technical and safety
limits under API Standard 653, while preserving existing compliance
pathways for operators that elect not to use RBI. The proposed rule's
main impacts are cost savings resulting from additional flexibility to
extend the interval between internal inspections where a risk
assessment demonstrates that a longer interval is justified given
safeguards in place. The cost savings and regulatory flexibility from
the proposed rule equally will apply to all entities who may elect to
use an RBI procedure and do not disproportionately affect small
entities. See SBA, How to Comply with the Regulatory Flexibility Act,
table 1 (Aug. 2017), available at: https://advocacy.sba.gov/wp-content/uploads/2019/06/How-to-Comply-with-the-RFA.pdf. The cost savings and
regulatory flexibility from this proposed rule should reduce burdens on
small entities, as with other operators, and PHMSA does not expect this
proposed rule adversely to impact small entities. See DOT, Rulemaking
Requirements Concerning Small Entities (May 18, 2012), available at:
https://www.transportation.gov/regulations/rulemaking-requirements-concerning-small-entities. Moreover, use of the RBI approach that would
be permitted by this rule remains elective by those small entities who
choose it, and the rule does not impact an operator that does not wish
to employ these procedures. Accordingly, a regulatory flexibility
analysis was not prepared, though PHMSA is requesting comment on the
certification.
E. Unfunded Mandates Reform Act of 1995 (UMRA)
UMRA (2 U.S.C. 1501 et seq.) requires agencies to assess the
effects of Federal regulatory actions on State, local, and Tribal
governments, as well as the private sector. UMRA establishes a
statutory threshold requiring additional analysis for mandates on the
private sector of $100 million or more in 1996 dollars ($203 million in
2024 dollars) in any given year. As explained further in the PRIA,
PHMSA does not expect that the proposed rule will impose unfunded
mandates under the UMRA.
F. 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 impacts of
major Federal actions on the human and natural environment. PHMSA has
prepared a draft environmental assessment (DEA) considering the
reasonably foreseeable environmental impacts of the proposed rule. A
copy is available in the docket for this rulemaking. PHMSA invites
comments on the environmental impacts of this proposed rule. Following
the public comment period, PHMSA will consider substantive comments
before making a final determination. All comments received during this
period will be addressed and included in the final NEPA document.
G. Executive Order 13175
PHMSA analyzed this proposed 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 Policies and
Procedures), which require agencies to assure meaningful and timely
input from Tribal government representatives when developing 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 proposed rule and does not expect
it will affect Tribal communities or Indian Tribal governments
significantly or uniquely, such that the consultation requirements of
E.O. 13175 and DOT Order 5301.1A do not apply. The proposed
rulemaking's regulatory amendments have a broad, national scope and
should not affect Tribal communities significantly or uniquely, much
less impose substantial compliance costs on Native American Tribal
governments or mandate Tribal action. Further, consultation with
stakeholders was made available under E.O. 12866.
H. 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 interested
members of the public and affected agencies have an opportunity to
comment on information collection and recordkeeping requests. The
following provisions of this rulemaking will result in minor changes to
report forms and trigger recordkeeping requirements when an operator
chooses to use RBI.
First, PHMSA proposes to revise the hazardous liquid pipeline
annual report form (PHMSA Form F7000.1-1) to include a count of tanks
managed under RBI. Second, PHMSA proposes to require the operator to
identify if a breakout tank is managed under RBI when submitting
geospatial information on breakout tanks to the National Pipeline
Mapping System in accordance with Sec. 195.61. Third, operators who
elect to use an RBI would have to make and retain records documenting
the risk assessment in accordance with the 5th edition of API Std 653.
PHMSA will submit information collection requests to OMB for
approval based on the requirements in this rule. The following
information is provided for each information collection request: (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. Requests for a copy of these information
collection requests should be directed to Angela Hill by email at
[email protected].
The information collection burden is estimated as follows:
1. Title: Hazardous Liquid Pipeline Operator Annual Reports.
OMB Control Number: 2137-0614.
Current Expiration Date: 03/31/2026.
Type of Request: Revision.
Abstract: This mandatory information collection requires the
operators to submit data on the preceding year electronically by June
15th of each
[[Page 32926]]
calendar year. This information is used by PHMSA to identify trends in
hazardous liquid pipeline accidents and to identify operators who have
poor safety records. PHMSA is revising the hazardous liquid pipeline
annual report form (PHMSA Form F7000.1-1) to include a count of
breakout tanks managed under RBI.
Affected Public: Owners and operators of hazardous liquid
pipelines.
Annual Reporting Burden:
Total Annual Responses: 950.
Total Annual Burden Hours: 18,050.
Frequency of Collection: Annually.
2. Title: National Pipeline Mapping Program.
OMB Control Number: 2137-0596.
Current Expiration Date: 3/31/2026.
Type of Request: Revision.
Abstract: The Pipeline Safety Improvement Act of 2002 (Pub. L. 107-
355), 49 U.S.C. 60132, ``National Pipeline Mapping System,'' requires,
the operator of a pipeline facility (except distribution lines and
gathering lines) to provide information to PHMSA. Each operator is
required to submit geospatial data appropriate for use in the National
Pipeline Mapping System or data in a format that can be converted to
geospatial data; the name and address of the person with primary
operational control (to be known as its operator); and a means for a
member of the public to contact the operator for additional information
about the pipeline facilities it operates. This revision will require
operators to identify if a breakout tank is managed under RBI when
submitting geospatial information on breakout tanks to the National
Pipeline Mapping System in accordance with Sec. 195.61. The new data
elements will strengthen the effectiveness of PHMSA's risk rankings and
evaluations, which are used as a factor in determining pipeline
inspection priority and frequency; allow for more effective assistance
to emergency responders by providing them with a more reliable,
complete data set of pipelines and facilities; and provide better
support to PHMSA's inspectors by supplying more accurate pipeline
locations and additional pipeline-related geospatial data that can be
linked to tabular data in PHMSA's inspection database.
Affected Public: Owners and operators of gas transmission pipeline
systems.
Annual Reporting Burden:
Total Annual Responses: 1,346.
Total Annual Burden Hours: 162,208.
Frequency of Collection: Annual.
3. Title: Transportation of Hazardous Liquids by Pipeline: Record
keeping and Accident Reporting.
OMB Control Number: 2137-0047.
Current Expiration Date: 04/30/2026.
Type of Request: Revision.
Abstract: This mandatory information collection covers the
recordkeeping requirements and the collection of accident data from
operators of hazardous liquid and carbon dioxide pipelines. Part 195
requires hazardous liquid operators to file an accident report as soon
as practicable, but not later than 30 days after discovery of the
accident on form ``PHMSA F 7000-1'' whenever there is a reportable
accident. Sec. 195.52 requires operators of hazardous liquid and
carbon dioxide pipeline systems to make immediate telephonic or online
notice to the National Response Center (NRC) in the event of a
reportable accident. PHMSA proposes to require operators who elect to
use an RBI to make and retain records documenting the risk assessment
in accordance with the 5th edition of API Std 653. PHMSA estimates that
operators of 211 breakout tanks will elect to use RBI procedures, with
operators needing approximately 480 hours to develop a plan for each
tank. The 5th edition of API Std 653 requires operators to review and
approve these plans at least once every 10 years, or when warranted by
process, equipment, or consequence changes. PHMSA estimates that three
operators per year will spend one hour reviewing RBI plans.
Accordingly, PHMSA is revising the recordkeeping burden of this
information collection to account for this added burden.
Affected Public: Operators of hazardous liquid and carbon dioxide
pipeline facilities.
Annual Reporting and Recordkeeping Burden:
Estimated number of responses: 1,860.
Estimated annual burden hours: 155,060 hours.
Frequency of Collection: On occasion.
Comments on these information collections are invited on: (a) the
need for the proposed collection of information for the proper
performance of the functions of the agency; (b) ways to enhance the
quality, utility, and clarity of the information to be collected; (c)
ways to minimize the burden of information collection on those who are
to respond, including the use of appropriate automated, electronic,
mechanical, or other technological collection techniques; and (d) the
accuracy of the agency's estimate of the burden of the revised
collection of information. Send comments to the Office of Management
and Budget, Office of Information and Regulatory Affairs, Attn: Desk
Officer for the Department of Transportation, 725 17th Street NW,
Washington, DC 20503. Submitted comments on or before August 3, 2026.
I. Executive Order 13609 and International Trade Analysis
E.O. 13609 (Promoting International Regulatory Cooperation; 77 FR
26413 (May 4, 2012)) requires agencies to 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.
Similarly, the Trade Agreements Act of 1979 (Pub. L. 96-39, as amended
by 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. The statute
also requires consideration of international standards and, where
appropriate, that they be the basis for U.S. standards. While PHMSA
engages with international standards setting bodies to protect the
safety of the American public, PHMSA has determined that the proposed
regulatory amendments will not cause unnecessary obstacles to foreign
trade.
J. Cybersecurity and Executive Order 14028
E.O. 14028 (Improving the Nation's Cybersecurity; 86 FR 26633 (May
17, 2021)) directs 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 proposed rule and expects that its regulatory amendments
would not affect materially the cybersecurity risk profile for pipeline
facilities or require pipeline operators to generate new security-
sensitive records. This rule provides an additional option that
pipeline operators may choose to schedule internal inspections for
breakout tanks. Ultimately operators can adopt or decline this option.
It is highly likely that operators electing it are already familiar
with operation and maintenance plan requirements and have evaluated
their cybersecurity risks.
Further, operators are encouraged to consult ongoing efforts by the
Transportation Security Administration to strengthen cybersecurity and
resiliency in the pipeline sector, and review cybersecurity guidance
for pipeline operators issued by the Cybersecurity & Infrastructure
Security Agency and the Pipeline Cybersecurity Initiative, which
conduct ongoing activities to address cybersecurity risks
[[Page 32927]]
to U.S. pipeline infrastructure. This guidance is available at
www.cisa.gov/uscert/ncas/alerts.
List of Subjects in 49 CFR Part 195
Energy, Incorporation by reference, Petroleum, Pipeline Safety.
In consideration of the foregoing, PHMSA proposes to amend 49 CFR
part 195 as follows:
PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE
0
1. The authority citation for part 195 continues to read as follows:
Authority: 30 U.S.C. 185(w)(3), 49 U.S.C. 5103, 60101 et seq.,
and 49 CFR 1.97.
0
2. In Sec. 195.3 republish the introductory text of paragraph (b) and
revise paragraph (b)(18) to read as follows:
Sec. 195.3 What documents are incorporated by reference partly or
wholly in this part?
* * * * *
(b) American Petroleum Institute (API), 200 Massachusetts Avenue
NW, Suite 1100, Washington, DC 20001-5571; phone: 202-682-8000;
website: www.api.org/.
* * * * *
(18) API Standard 653, Tank Inspection, Repair, Alteration, and
Reconstruction, 5th edition, November 2014, (including addendum 1
(April 2018), addendum 2 (May 2020), addendum 3 (November 2023), errata
1 (March 2020), errata 2 (February 2025), and addendum 4 (July 2025),
(API Std 653); IBR approved for Sec. Sec. 195.205(b), 195.307(d), and
195.432(b).
* * * * *
Sec. 195.205 [AMENDED].
0
3. Amend Sec. 195.205(b)(1) by removing the phrase ``(except section
6.4.3)''.
0
4. Revise Sec. 195.432(b) to read as follows:
Sec. 195.432 Inspection of in-service breakout tanks.
* * * * *
(b) Each operator must inspect the physical integrity of in-service
atmospheric and low-pressure steel above-ground breakout tanks
according to API Std 653 (incorporated by reference, see Sec. 195.3).
In order to use Risk Based Inspection (RBI) procedures in API Std 653,
the operator must make and retain records for all of the likelihood and
consequence factors listed in section 6.4.2.2.2.1 and 6.4.2.2.2.2 of
API Std 653 and other data used in the RBI assessment. The internal
inspection intervals established under 6.4.2 of API Std 653 may not
exceed 20 years for the initial inspection and 25 years for subsequent
internal inspections. If structural conditions prevent access to the
tank bottom, its integrity may be assessed according to a plan included
in the operations and maintenance manual under Sec. 195.402(c)(3).
* * * * *
Issued in Washington, DC, on May 29, 2026 under authority
delegated in 49 CFR 1.97.
Linda Daugherty,
Acting Associate Administrator for Pipeline Safety.
[FR Doc. 2026-10969 Filed 6-1-26; 8:45 am]
BILLING CODE 4910-60-P