PHMSA Publishes LNG by Rail Suspension Final Rule
Today, DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) a final rule in the Federal Register (88 FR 60356-60375) for “Hazardous Materials: Suspension of HMR Amendments Authorizing Transportation of Liquefied Natural Gas by Rail”. The notice of proposed rulemaking for this final rule was published on November 7th, 2021. The final rule will suspend the current authorization to transport liquified natural gas by rail until a second rulemaking (RIN 2137–AF54) on the matter is completed or June 30th, 2025, whichever comes first.
This rule is effective on October 31st, 2023.
Purpose
According to the preamble to this rule will:
Avoid potential risks to public health and safety or environmental consequences (to include direct and indirect greenhouse gas (GHG) emissions) that are being evaluated in the companion rulemaking,
Allow for the completion of ongoing testing and evaluation efforts undertaken in collaboration with FRA, as well as further consideration of the recommendations from external technical experts of the National Academy of Sciences, Engineering, and Medicine (NASEM),
Assure an opportunity for the potential development of any mitigation measures and operational controls for rail tank car transportation of LNG,
Reduce the potential for economic burdens by ensuring that entities avoid ordering rail tank cars for transporting LNG compliant with current HMR requirements when the companion rulemaking may adopt alternative requirements, and
Enable potential opportunities for stakeholders and the public to be apprised of, and comment on, the results of ongoing testing and evaluation efforts.
Details of the Suspension
This rule will:
Amend the table at 49 CFR 172.101, by adding a new special provision (#439) to the entry for Methane, refrigerated liquid (cryogenic liquid) or Natural gas, refrigerated liquid (cryogenic liquid, with high methane content), UN 1972, and amend §172.102 adding Special Provision 439.
The ‘no later than’ date of ‘June 30th, 2025’ is one year later than the date proposed in the NPRM. The preamble explains this by noting that:
“PHMSA is also adopting a modest extension (until June 30, 2025, at the latest) of the sunset for the temporary suspension period identified in its November 2021 notice of proposed rulemaking in this proceeding, consistent with comments received on the NPRM and information obtained after its publication evincing greater uncertainty regarding the near-term commercial viability and potential environmental and safety risks associated with rail tank car transportation of LNG as authorized by the July 2020 Final Rule.”
Response to Public Comments
A major portion of the preamble to this rule is taken up by the PHMSA analysis and response to public comments received on the NPRM. Topics covered include:
Comments requesting an immediate, permanent ban of LNG by Rail,
Comments requesting the removal of the June 30, 2024, Sunset Date,
Comments of general support for the NPRM,
Comments alleging chilling of near-term demand for LNG transportation by rail tank car pursuant to the July 2020 Final Rule,
Comments contending that the LNG by rail improves safety,
Comments alleging environmental benefits from LNG by rail,
Comments alleging PHMSA is overstepping its authority by attempting to regulate oil and gas production,
Comments alleging PHMSA did not meet its evidentiary burden under the apa for temporary suspension of the July 2020 Final Rule,
Comments alleging That PHMSA's proposal will have miscellaneous adverse consequences for regulated entities, the u.s. economy, and national security, and
Comments beyond the scope of this rulemaking.