US Department of Transportation Halts Trump-Era Regulation Enabling Rail Transport of Liquefied Natural Gas
Introduction:
The U.S. Department of Transportation (DOT) will be suspending a Trump-era rule that allowed liquefied natural gas (LNG) to be transported by rail in specialized tank cars. The rule, which was issued in April 2019, required LNG to be treated the same as other cryogenic liquids. However, this rule has faced legal challenges from a group of 14 states, six environmental organizations, and the Puyallup Tribe of Indians. These legal challenges, along with a PHMSA notice in November 2021, effectively froze the industry’s efforts to use this shipping method. One company did receive a special permit in 2019, but that permit extension request was denied in April 2023.
Full Article: US Department of Transportation Halts Trump-Era Regulation Enabling Rail Transport of Liquefied Natural Gas
Trump-era Rule Suspending Liquefied Natural Gas (LNG) Transportation by Rail
The U.S. Department of Transportation (DOT) has announced the suspension of a Trump-era rule allowing the transportation of liquefied natural gas (LNG) by rail in specialized tank cars. The suspension will take effect on October 31, 2023.
Background of the Rule
The rule was issued on April 19, 2019, through an executive order that required LNG to be treated the same as other cryogenic liquids. Before this rule, LNG and similar cryogenic liquids could only be transported by highway and rail with a special permit, as the federal Hazardous Materials Regulations didn’t authorize bulk transport in rail tank cars.
Legal Challenges and Frozen Industry Efforts
Legal challenges from a group of 14 states, six environmental organizations, and the Puyallup Tribe of Indians arose against this rule. The states involved were California, Delaware, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and the District of Columbia. The environmental organizations included Sierra Club, Center For Biological Diversity, Clean Air Council, Delaware Riverkeeper Network, Environmental Confederation of Southwest Florida, and Mountain Watershed Association.
Due to these legal challenges, industry efforts to use this shipping method were effectively frozen. In November 2021, PHMSA issued a notice suggesting that the rule might be suspended.
Denied Permit Extension
While one company did receive a special permit in 2019 to ship LNG by rail, their request for a permit extension was denied by the DOT in April 2023.
With the suspension of the Trump-era rule, future transportation of LNG by rail in specialized tank cars will not be allowed. This suspension may have impacts on the overall transportation and distribution of LNG in the United States.
Summary: US Department of Transportation Halts Trump-Era Regulation Enabling Rail Transport of Liquefied Natural Gas
The U.S. Department of Transportation (DOT) will suspend a Trump-era rule that allowed the transportation of liquefied natural gas (LNG) by rail in specialized tank cars starting Oct. 31, 2023. The rule was issued in 2019 but faced legal challenges from states, environmental organizations, and tribes. LNG and similar cryogenic liquids have been transported by highway and rail in the U.S. for years, but bulk transport in rail tank cars required a special permit. The suspension of the rule has hindered industry efforts to utilize this shipping method, with one company’s permit extension request being denied.
Frequently Asked Questions:
Frequently Asked Questions: Trump-era rule allowing liquefied natural gas to be transported by rail suspended by U.S. DOT
Q1: What is the recent suspension of the Trump-era rule allowing liquefied natural gas (LNG) to be transported by rail?
The U.S. Department of Transportation (DOT) recently suspended a rule implemented during the Trump-era that allowed the transportation of liquefied natural gas (LNG) by rail. This decision temporarily halts the authorization for LNG shipments via rail tank cars.
Q2: Why did the U.S. DOT suspend the Trump-era rule allowing LNG transportation by rail?
The DOT made the decision to suspend the Trump-era rule due to concerns regarding safety and potential risks associated with transporting LNG by rail. This move allows the department to thoroughly evaluate the safety measures currently in place and reassess the potential hazards involved in LNG transportation via rail tank cars.
Q3: How long will the suspension of the Trump-era rule on LNG transportation by rail last?
The duration of the suspension period is currently unclear. The U.S. DOT has not provided a specific timeline for reevaluating the rule. It will likely depend on the findings and recommendations resulting from the safety assessment conducted by the department.
Q4: What impacts could the suspension of this rule have on the liquefied natural gas industry?
The suspension could potentially affect the liquefied natural gas industry as it restricts the transportation options available. While LNG can still be transported through other means such as pipelines or ships, the rail option offered a flexible and efficient alternative. The impact on the industry will largely depend on the duration of the suspension and any subsequent regulations that might be put in place.
Q5: What are the concerns surrounding the transportation of liquefied natural gas by rail?
The concerns revolve around the safety risks associated with transporting LNG by rail. LNG is highly flammable and requires stringent safety measures during transportation to avoid accidents or incidents. Rail transport comes with its own set of challenges, including the potential for derailments, collisions, or leaks, which pose a significant risk to both public safety and the environment.
Q6: Will the suspension impact the availability of liquefied natural gas in certain regions?
Currently, it is unlikely that the suspension will have a major impact on the availability of liquefied natural gas in most regions. The industry still has alternative transportation methods in place, such as pipelines and ships, which can continue to supply LNG to meet demand. However, regions heavily reliant on rail transportation for LNG may experience some disruptions or increased costs, depending on the duration of the suspension.
Q7: Is the suspension permanent, or will the rule allowing LNG transportation by rail be reinstated?
The suspension is temporary, and it remains uncertain if the Trump-era rule will be permanently revoked or modified. The U.S. DOT’s decision to suspend the rule indicates a reassessment of its safety implications. Depending on the findings of the assessment, the regulations regarding LNG transportation by rail may be revised, reinstated with additional safety measures, or permanently discarded.
