PHMSA Modernizes Bobtail Inspection Rules for 2026
Federal Update Expands Technology Use, Signals Cost Relief for Fleets
The Pipeline and Hazardous Materials Safety Administration (PHMSA) has finalized amendments to the Hazardous Materials Regulations that materially affect propane bobtail operators nationwide. Effective February 13, 2026, PHMSA is formally allowing the use of advanced inspection technologies, including video optics and remote visual systems, in cargo tank inspections.
For propane marketers running MC 331 cargo tanks, this is not a minor clarification. It represents a meaningful shift in how inspections may be performed going forward.
What Changed
The rule modernizes visual inspection requirements by permitting alternative technologies that meet PHMSA safety standards. Inspectors are no longer confined to traditional human-entry methods in situations where qualified remote systems can achieve equivalent results.
The agency frames the update as part of a broader effort to reduce regulatory burden without compromising safety outcomes. Across hazardous materials transport sectors, PHMSA estimates annualized savings of approximately $145 million tied to the inspection modernization provisions.
• For propane fleets, that translates to potential reductions in:
• Inspection downtime
• Labor exposure
• Administrative documentation burdens
• Confined space entry risks
The inspection intervals themselves remain unchanged.
MC 331 cargo tanks under 3,500 gallons water capacity in dedicated propane service and constructed of non-quenched and tempered SA-612 steel continue to qualify for the established 10-year hydrostatic test requalification period. All other applicable cargo tanks remain subject to annual external visual inspections and five-year pressure testing requirements.
Operational Implications
This rule does not eliminate compliance. Rather, it introduces flexibility. Fleet operators should expect increased adoption of certified remote visual technologies and inspection service providers equipped with approved systems. Companies that proactively evaluate these tools may realize efficiency gains sooner than competitors who maintain legacy inspection processes.
Beyond direct cost savings, the modernization reduces exposure associated with confined space entry, a long-standing operational risk point.
Executive Takeaway
PHMSA’s 2026 amendment signals a significant regulatory posture shift toward performance-based compliance rather than prescriptive methodology.
For propane marketers, the opportunity lies in:
• Reviewing inspection vendor capabilities
• Updating written inspection protocols
• Training maintenance teams on permissible technology use
• Capturing operational efficiencies without sacrificing documentation rigor
The compliance calendar remains intact. The pathway to meeting it just became more flexible. For fleet-focused propane businesses, this is a modernization moment worth acting on early.
