WASHINGTON – Federal regulators have suspended a rule that would have allowed the shipment of liquefied natural gas in railroad tank cars.
The Pipeline and Hazardous Materials Safety Administration, in coordination with the Federal Railroad Administration, last week said the rule adopted in 2020 would be shelved until whichever comes first: June 30, 2025 or completion of a new rulemaking process determines whether any modifications to the 2020 rule are required.
PHMSA said suspending the current rule would:
- Avoid potential risks to public health and safety.
- Allow for the completion of ongoing testing and evaluation efforts being conducted by the FRA and the National Academy of Sciences, Engineering, and Medicine.
- Provide the opportunity for the potential development of mitigation measures and operational controls for movement of LNG.
- Help prevent shippers from ordering LNG tank cars that may not meet whatever new guidelines are proposed.
- Enable public comment on ongoing testing and evaluation efforts.
Rail transport of LNG will still be permitted under an existing special permit or in ISO tanks. The 2020 LNG rule would have allowed DOT–113-C120W9 tank cars to carry LNG.
The 2020 rule was controversial and prompted six environmental groups, 14 states, and a Native American tribe to challenge the decision in federal courts.
PHMSA said it is working with the National Transportation Safety Board to learn all it can from the East Palestine, Ohio, hazardous materials derailment and to determine whether lessons from the Feb. 3, 2023, wreck should be applied to rail shipment of LNG.
CSX Transportation told PHMSA that potential LNG projects along its lines had been shelved due to regulatory uncertainty.
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