[Docket No. PHMSA-2025-1271]
PHMSA has published a Notice of Proposed Rulemaking (NPRM) that would update the agency’s breakout tank inspection regulations under 49 CFR Part 195. The proposal would incorporate the 5th Edition of API Standard 653, replacing the currently referenced 3rd Edition, and would authorize operators to use Risk-Based Inspection (RBI) procedures when establishing inspection intervals for in-service breakout tanks.
A key feature of the proposal is the ability for operators to extend internal inspection intervals based on a documented RBI assessment. PHMSA is proposing a maximum interval of 20 years for an initial internal inspection and 25 years for subsequent inspections when supported by an RBI analysis. Operators choosing this approach would be required to maintain records supporting the assessment and identify RBI-managed tanks in annual reporting and NPMS submissions.
PHMSA estimates the proposed changes could save the industry between approximately $25 million and $150 million annually by reducing unnecessary internal inspections while maintaining safety through risk-informed decision-making. The agency is accepting comments on the proposal for 60 days following publication in the Federal Register.
Please message Jessica Foley for a copy of this NPRM.
Expert Insight from John Gale, Senior Executive Consultant
RCP’s SME Mr. John Gale provides his insight on this rule change:
“PHMSA isn’t slowing down on storage tank oversight.
In this rulemaking, PHMSA is proposing to update Part 195 to incorporate the 5th Edition of API Standard 653 for breakout tanks. The agency is also proposing revisions to §195.432 that would formally authorize the use of Risk-Based Inspection (RBI) procedures to establish inspection intervals for in-service breakout tanks.
For operators, this signals continued movement toward modern risk management practices. Incorporating API 653 (5th Edition) aligns federal regulations with current industry standards, while RBI flexibility could allow operators to tailor inspection intervals based on actual risk, not just fixed timelines.
If adopted as proposed, these updates could have practical implications for inspection planning, documentation, and integrity programs. Now is the time to evaluate how your breakout tank program aligns with API 653 (5th Edition) and whether RBI methodologies are ready to support compliance under Part 195.”