Alcor,
You are entirely wrong.
Read again and carefully ASME B31.3 Code, Para. 345.2.1(a) / "Testing / General Requirements for Leak Tests / Limitations on Pressure / Reduced Test Pressure":
<< If the test pressure would produce a circumferential or longitudinal stress (based on minimum pipe wall thickness) in excess of yield strength at test temperature or is greater than 1.5 times the component rating at test temperature, the test pressure may be reduced to the maximum pressure that will not exceed the lesser of the yield strength or 1.5 times a component rating at test temperature.>>
B31.3 and B31.1 have different requirements for pipe stress limitation under Hydrotest Conditions. Caesar II stress compliance checks are set accordingly. Just follow them (if you do not have direct access to B31 Codes) and avoid speculations.
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Dorin Daniel Popescu
Lead Piping Stress Engineer