PHMSA’s NPRM and Corrections and California’s Emergency CO2 Regulations
From May 5th to June 11th PHMSA and the California State Fire Marshal published corrections, NPRMs, and a Notice of Emergency Regulation. Subscribe to this Newsletter to get updates straight to your inbox.
Proposed Rule Correction - Operator ID
On May 5th PHMSA issued a correction to the Proposed Rule on gas pipeline safety notification thresholds. The new thresholds are $20 million for pipeline replacement/modification and $300,000 for certain underground storage maintenance. The earlier proposed rule incorrectly listed $15 million instead of $20 million and $250,000 instead of $300,000. These thresholds determine when operators must notify the agency. Find Elemental’s breakdown of the uncorrected Proposed Rule here.
Final Rule Correction - Class Location
On May 29th PHMSA issued a correction to the January 2026 Final Rule on gas Class Location changes and MAOP restoration. Operators must complete required actions within 24 months when a class location change occurs, including any MAOP confirmation. The 24-month clock for restoring MAOP using IM alternative starts from either (1) the effective date of the rule, or (2) when the operator decides to initiate MAOP restoration (whichever is later). The rule explicitly states the date of the decision to restore MAOP is treated as the date of the class location change (192.611(d)).
View Elemental’s breakdown of the uncorrected Final Rule here
Notice of Proposed Rulemaking - Breakout Tanks
On June 2nd PHMSA issued a NPRM applying to hazardous liquid breakout tanks, replacing the currently incorporated API 653, Tank Inspection, Repair, Alteration, and Reconstruction (3rd Edition) with the 5th Edition (November 2014), including addenda and errata through July 2025.
Currently, Risk-based Inspections (RBI) are prohibited for determining breakout tank internal inspection intervals under 195.432. This proposal would allow operators to use RBI methodologies from API 653, 5th Edition, to determine internal inspection intervals.
PHMSA is proposing a maximum inspection interval of 20 years for initial internal inspection and 25 years for subsequent internal inspections. If RBI is used, all RBI documentation will become a compliance requirement. (see 195.432(b)).
The 5th Edition of API 653 requires 18 likelihood factors and 13 consequence factors to be evaluated. RBI analyses must be periodically reviewed, and the 5th Edition of API 653 requires that the analyses be:
Developed by a qualified subject matter expert,
Validated (ideally by a third party),
Reviewed at least every 10 years, and
Updated when equipment, processes, or consequences change.
PHMSA states that it, “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”.
Comments on this NPRM must be submitted by August 3, 2026
California State Fire Marshal CO2 Proposed Rule
On June 11th, and in response to a mandate from the State of California to the State Fire Marshal, the OSFM announced it is developing Emergency Regulations for the transportation of carbon dioxide in pipelines. The mandate (Government Code Section 51011.5) requires that the regulations at least meet the regulatory standard set in the now-removed Notice of Proposed Rulemaking released by PHMSA in January of 2025 (RIN 2137-AF60). The final rules are projected to be released on July 1, 2026, and would apply to intrastate pipelines except for production, extraction, recovery, lifting, stabilization, separation, or treatment of carbon dioxide, or the preparation of carbon dioxide for transportation by pipeline at production, refining, or manufacturing facilities.
Major topics and requirements of the regulations include the following:
Carbon dioxide safety program
Operators must have a manual for operations by January 1, 2027, including signage, security, smoking and open flames, trenches, right-of-way inspections, land movement, depth-of-cover survey, internal corrosion control
Required to develop and implement an engagement program with external stakeholders in accordance with API RP 1185 starting when the pipeline is under construction and continuing for the life of the pipeline
Notification requirements and records retention
Design requirements
All pipe and components must be new
All pipe must be constructed of steel
Requirements for the suitability of materials used
Requirements concerning fracture mechanics and material toughness
Valve requirements including RMVs, EFRD analysis for certain pipelines that include vapor dispersion analysis
Leak detection rules including required CPM and compliance with API RP 1130, fixed vapor detection, and alarm systems
Construction requirements
New construction must conform to ASME B31.4
Required geotechnical analysis
Requirements around right-of-way selection
NDE required for all girth welds
48 inches of cover required
Construction must be done under a quality assurance plan
Integrity testing - pressure and spike testing
Water required as test medium
Operators must have procedures for drying pipe after testing
Spike testing is required
Emergency Planning Zone (area within two miles of either side of a CO2 pipeline)
Operators must supply to OSFM and lead agency for CA Environmental Quality Act:
A list of sensitive receptors (any place that people work, live, or gather) within the Emergency Planning Zone
Maps showing locations of sensitive receptors
A graphic representation of vapor dispersion analysis
Vapor dispersion analysis requirements
Emergency training and equipment related to CO2 pipelines must be provided for state and local emergency responders Requires that operators develop and distribute preparedness materials to stakeholders in emergency planning zones
Requirements for internal corrosion control
Requirements also include notifications to OSFM of construction and ruptures.
Comments must be submitted by June 23rd to the OFSM. The link to the OFSM’s current rulemaking activities page can be found here.
If you need help tracking the onslaught of changes and updates sign up for our Newsletter, follow us on LinkedIn, or check out our Industry Updates page on our website. We have experts standing by to lighten the regulatory load. Contact Lauren.Tipton@ElementalCompliance.com for 2026 support!