PHMSA Proposes New Inspection Standards for Pipeline Oil Storage Tanks

A proposed federal rule could change how pipeline operators inspect and maintain breakout tanks, potentially affecting compliance practices across the hazardous liquids sector.

(P&GJ) — The Pipeline and Hazardous Materials Safety Administration (PHMSA) has proposed changes to federal inspection requirements for hazardous liquid pipeline breakout tanks, a move the agency says would align regulations with current industry standards while reducing compliance costs.

The proposed rule would incorporate the fifth edition of American Petroleum Institute (API) Standard 653, which outlines inspection, repair and maintenance practices for aboveground storage tanks used in pipeline operations.

According to PHMSA, adopting the updated standard would allow operators to follow more current integrity management and inspection procedures while eliminating certain requirements the agency considers outdated.

PHMSA estimates the proposal could generate more than $125 million in industry savings over time. The agency said the changes are intended to improve inspection safety and streamline regulatory compliance without reducing safety protections.

"Modernizing outdated regulations can improve efficiency while maintaining safety," PHMSA Administrator Paul Roberti said in a statement announcing the proposal.

The rulemaking is open for public comment through Aug. 3, 2026. If finalized, the changes would affect operators of hazardous liquid pipeline systems that utilize breakout tank facilities for storage and transportation operations.