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Federal Register / Vol. 86, No. 213 / Monday, November 8, 2021 / Proposed Rules
SUPPLEMENTARY INFORMATION:

Table of Contents
lotter on DSK11XQN23PROD with PROPOSALS1

I. Overview II. Background A. LNG by Rail Final Rule B. Pending Petitions for Review of the LNG
by Rail Final Rule C. PHMSA/FRA LNG Task Force D. Transportation Research Board Study E. Executive Order 13990
III. Basis for Suspension A. Development of a More Complete Understanding of the Risks and Benefits Associated With Rail Tank Car Transportation of LNG
B. No Material Adverse Impact on Reliance Interests IV. Regulatory Analyses and Notices A. Statutory/Legal Authority B. Executive Order 12866 and DOT
Regulatory Policies and Procedures C. Executive Order 13132
D. Executive Order 13175
E. Regulatory Flexibility Act and Executive Order 13272
F. Paperwork Reduction Act G. Unfunded Mandates Reform Act of 1995
H. Environmental Assessment I. Executive Order 12898
J. Privacy Act K. Executive Order 13609 and International Trade Analysis L. Executive Order 13211
List of Subjects
I. Overview PHMSA, in coordination with FRA, proposes to suspend recent amendments to the Hazardous Materials Regulations HMR; 49 CFR parts 171180
authorizing transportation of Methane, refrigerated liquid, commonly known as LNG in DOT113C120W9
specification rail tank cars while it conducts a thorough evaluation of the HMRs regulatory framework for rail transportation of LNG in a companion rulemaking under RIN 2137AF54, and determines if any modifications are necessary. Transportation of LNG by rail tank car has not occurred and there is considerable uncertainty regarding whether any would occur in the time it takes for PHMSA to consider potential modifications to the existing, pertinent HMR requirements. However, PHMSAs proposed temporary suspension of the HMR provisions authorizing transportation of LNG in rail tank cars guarantees no such transportation will occur before its companion rulemaking has concluded or June 30, 2024, whichever is earlier, thereby: 1
Avoiding any risks to public health and safety or environmental consequences to include direct and indirect greenhouse gas GHG emissions 1 that 1 PHMSA distinguishes between direct and indirect GHG emissions herein consistent with
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are being evaluated in the companion rulemaking and in ongoing research efforts undertaken in collaboration with FRA and external technical experts; 2
assuring timely implementation of any mitigation measures and operational controls for rail tank car transportation of LNG identified in the companion rulemaking or those ongoing research efforts; 3 reducing the potential for economic burdens by ensuring that entities avoid ordering rail tank cars compliant with the current requirements when the companion rulemaking may adopt alternative requirements; and 4 enabling meaningful opportunity for consideration of the perspectives of diverse stakeholders.
PHMSA proposes to add a new special provision 439 that prohibits LNG transportation in rail tank cars until issuance of a final rule concluding the rulemaking proceeding under RIN
2137AF54, or June 30, 2024, whichever is earlier. Therefore, if the temporary suspension is adopted in a final rule, the HMR will not authorize the transportation of LNG in rail tank cars until completion of the companion rulemaking or June 30, 2024, whichever is earlier. Rail transport of LNG may still be permitted on an ad hoc basis as authorized by the conditions of a PHMSA special permit 107.105, or in a portable tank secured to a rail car pursuant to the conditions of an FRA
approval 174.63.
II. Background A. LNG by Rail Final Rule On May 7, 2018, PHMSA accepted a petition for rulemaking 2 from the Association of American Railroads AAR to allow the transportation of LNG by rail in DOT113 tank cars and began drafting a notice of proposed rulemaking NPRM in consultation with FRA. On April 10, 2019, Executive Order 13868 Promoting Energy Infrastructure and Economic Growth 3
was published, which directed the Secretary of Transportation to propose the meaning of those terms in pertinent ObamaAdministration Council on Environmental Quality CEQ guidance. See CEQ, Final Guidance for Federal Departments and Agencies on Consideration of Greenhouse Gas Emissions and the Effects of Climate Change in National Environmental Policy Act Reviews at 16 & n. 42
Aug. 1, 2016; CEQ, National Environmental Policy Act Guidance on Consideration of Greenhouse Gas Emissions 86 FR 10252 Feb. 19, 2021 encouraging agencies to use CEQs 2016
guidance until CEQ issues an updated version of that guidance.
2 Docket No. PHMSA201700200002.
3 84 FR 15495 Apr. 15, 2019.

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regulations that treat LNG the same as other cryogenic liquids and permit LNG
to be transported in approved rail tank cars and finalize that rulemaking within 13 months.4 In October 2019, PHMSA issued the LNG by Rail NPRM, which proposed to amend the HMR to allow LNG to be transported in existing DOT113 tank cars and sought comments due within 60 days on the potential need for additional operational controls.5
On December 5, 2019, PHMSA issued a DOT special permit SP 20534 to Energy Transport Solutions, LLC ETS
to allow the transportation of LNG in existing DOT113 tank cars from Wyalusing, PA, to Gibbstown, NJ, with no intermediate stops.6 DOTSP 20534
includes several safety control measures, including a requirement to conduct remote sensing for detecting and reporting internal pressure, location, and leakage, and a requirement to provide training to emergency response agencies that could be affected prior to the initial shipment of a tank car under the SP. ETS applied for the SP
before the LNG by Rail NPRM was initiated. After issuing the SP, PHMSA
re-opened the comment period on the proposed rule until January 13, 2020.7
On July 24, 2020, PHMSA published a final rule in the Federal Register revising the HMR to allow for the bulk transport of LNG in rail tank cars.8 In the LNG by Rail final rule, the Final Environmental Assessment FEA, and the Final Regulatory Impact Analysis RIA, PHMSA evaluated the potential benefits of rail tank car transportation of LNG and weighed them against the potential public safety and environmental risks.9 PHMSA
coordinated with FRA to determine that those potential risks from rail tank car transportation of LNG would be at safe levels if such transportation were: 1 In DOT113C120W specification rail tank carsindicated by the new specification suffix 9 DOT113C120W9with 4 The Secretary has delegated such rulemaking duties to the PHMSA Administrator. See 49 CFR
1.97.
5 84 FR 56964 Oct. 24, 2019.
6 DOTSP 20534 expires by its terms on November 30, 2021. However, ETS may request a renewal in accordance with 107.109. See https
cms7.phmsa.dot.gov/approvals-and-permits/
hazmat/file-serve/offer/SP20534.pdf/2017088295/
SP20534.
7 84 FR 70491 Dec. 23, 2019.
8 85 FR 44994 Jul. 24, 2020 LNG by Rail final rule.
9 See, e.g., id. at 45024; FEA, Docket No. PHMSA
201800250478; RIA, Docket No. PHMSA2018
00250479.

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