S. 2661: To allow for the use of risk-based inspections for in-service breakout tanks.

This bill proposes allowing owners or operators of pipeline facilities to use risk-based inspections for in-service breakout tanks. A breakout tank is a storage tank in a pipeline system that temporarily holds liquids and is designed to prevent any product from being released into the environment during transport.

Key Provisions

• Implementation of Risk-Based Inspections: The bill enables facility owners to comply with existing inspection requirements under federal law by applying a risk-based approach. This method focuses on evaluating potential risks and determining inspection frequency and methods accordingly, rather than following a uniform schedule for all tanks.
• Regulation Revision: The Secretary of Transportation, through the Pipeline and Hazardous Materials Safety Administration, is tasked with updating existing regulations to facilitate these risk-based inspections. This revision aims to clarify the implementation of risk-based strategies in managing and inspecting in-service breakout tanks efficiently.

Purpose of the Bill

The main goal of this legislation is to enhance safety and operational efficiency by allowing more flexible inspection protocols. Risk-based inspections may help focus resources on tanks that pose greater risks, potentially improving overall safety and compliance in the pipeline industry.

Expected Outcomes

By adopting a risk-based inspection approach, the bill is expected to lead to better identification of problems in breakout tanks, as inspections could become more focused on high-risk situations. This could potentially reduce safety incidents and leaks in the pipeline sector.

Compliance with Existing Laws

The bill maintains that all inspections still must comply with the relevant federal laws and regulations governing pipeline safety, ensuring that safety standards remain a priority even with the introduction of risk-based methods.

Timeframe for Implementation

The bill requires the Secretary of Transportation to act as soon as practicable after its enactment, indicating a prompt move toward implementing risk-based inspections once the bill is passed.

Relevant Companies

• OKE - OneMain Pipeline Company: As an operator of pipeline facilities, this company would need to adapt its inspection protocols and safety management in response to the new risk-based approaches.
• DCP - DCP Midstream, LP: Similar to OKE, DCP operates pipelines and would be affected by the regulatory changes associated with implementing risk-based inspections.