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Federal Register / Vol. 86, No. 213 / Monday, November 8, 2021 / Proposed Rules
lotter on DSK11XQN23PROD with PROPOSALS1

the underlying economic dynamics driving the potential benefits and public safety and environmental risks considered in the LNG by Rail final rule have increased e.g., the quantity of LNG
that will move by rail, the routes involved, and whether new transportation capacity would induce more natural gas extraction. PHMSA
believes these increased uncertainties cast doubt on the continued validity of the balance between potential benefits and public safety and environmental risks underpinning the LNG by Rail final rule.
A temporary suspension, however, will give PHMSA and FRA the opportunity to complete a comprehensive evaluation of the benefits and risks of rail tank car transportation of LNG in the companion rulemaking before any LNG moves by rail under the HMR. Althoughas explained belowPHMSA and FRA
understand that rail tank car transportation of LNG is neither occurring nor expected to occur in the near future, temporary suspension of the LNG by Rail final rule ensures avoidance of potential risks to public and worker safety and the environment from such transportation while that parallel rulemaking proceeds.
Suspension would also ensure HMR
authorization of rail transportation of LNG reflects the best science available,36 including additional information obtained from the ongoing and delayed research efforts of the LNG
Task Force, the forthcoming TRB Phase II Report expected in mid-2022, and continuing developments in scientific understanding of the near-term risks of climate change from enhanced natural gas transportation investments.
Suspension would allow consideration of additional public comment, particularly on issues such as public and worker safety, environmental risks, and environmental justice, as well as on any additional testing or other information generated by PHMSA, FRA, and the TRB.
Therefore, PHMSA proposes to add a new special provision 439 prohibiting particular, short-term contributors such as methane; Intl. Energy Agency, Net Zero by 2050:
A Roadmap for the Global Energy Sector at 99
May 2021 noting the urgency of avoiding new natural gas production fields in order to meet netzero policy goals.
36 See Presidential Memorandum on Restoring Trust in Government Through Scientific Integrity and Evidence-Based Policymaking Jan. 27, 2021, https www.whitehouse.gov/briefing-room/
presidential-actions/2021/01/27/memorandum-onrestoring-trust-in-government-through-scientificintegrity-and-evidence-based-policymaking/
requiring Federal agencies to make evidencebased decisions informed by the best available science and data in their regulatory activity.

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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.
B. No Material Adverse Impact on Reliance Interests PHMSA does not expect temporary suspension of transporting LNG by rail tank car will have a material adverse impact on serious reliance interests.
Despite issuance of the LNG by Rail final rule in July 2020, LNG has not been transported in rail tank cars, and PHMSA is unaware of any planned movements in the near future. The development of the necessary infrastructurein particular, construction of DOT113C120W9 tank carsto transport LNG by rail under the HMR demands significant financial investment, long-term commitment, and considerable planning. The DOT
113C120W9 tank car was introduced for LNG transport and would be impractical for use with other hazardous materials because another, more feasible specification i.e., DOT113C120W is already available for other Class 2
cryogenic flammable liquids that are authorized to be transported by rail.
Therefore, a dedicated LNG tank car fleet would need to be built, and there may be construction delays because of limited capacity in the rail car manufacturing industry. At this time, PHMSA is unaware of any orders having been placed for manufacture of new DOT113C120W9 tank cars.
Nor are PHMSA and FRA aware of near-term plans to transport LNG in existing DOT113 rail tank cards under DOTSP 20534. ETS, the holder of DOTSP 20534, is a subsidiary of New Fortress Energy Inc. NFE according to documents filed with the U.S. Securities and Exchange Commission SEC. NFE
develops and operates energy infrastructure, including LNG terminals, power generation facilities, and natural gas logistics infrastructure, and provides supply and logistics services to customers both domestically and internationally. NFE noted in its Q2
2021 Form 10Q: Quarterly Report filed in August with the SEC that it has not yet issued a final notice to proceed to its engineering, procurement, and construction contractors for its liquefaction facility in Wyalusing, PA
an origination-point for the route authorized by PHMSA in DOTSP
20534.37 Further, noting the volatility of 37 New Fortress Energy Inc. 10Q Quarterly Report for Quarter Ending June 30, 2021, Aug. 6, 2021, https sec.report/Document/0001140361-21027401/. PHMSA also notes that ETS is required by
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the current LNG market, NFE admits there can be no assurances that it will complete the Pennsylvania Facility or be able to supply its Facilities with LNG produced at its own Liquefaction Facilities. PHMSA also understands that NFEs Wyalusing, PA, facility is the subject of a pending, contested petition for Declaratory Order filed with the Federal Energy Regulatory Commission FERC that may determine whether that facility requires a FERC certificate before operating as an LNG export terminal.38
Nevertheless, while PHMSA does not expect the transport of LNG by rail tank car in the near future for the reasons discussed above, shippers may continue to seek authorization to transport LNG
by rail in rail tank cars pursuant to a DOT SP issued by PHMSA or in portable tanks subject to an approval by FRA. PHMSAs SP procedures thoroughly explain the information applicants must include in their application and PHMSAs process, which includes public docketing, an opportunity for public comment, and an explanation for why an application is granted or denied.39 The procedures also include an opportunity for reconsideration and an appeal process, after which a decision is the final administrative action.40 FRAs approval process has similar procedures. Indeed, FRA recently received a petition from Alaska Railroad Corporation to extend an FRA approval to ship LNG by rail in portable tanks. In response to the requested extension, FRA published a notice of conditional approval and initiated a 60-day comment period ending on August 23, 2021, to ensure that FRA had opportunity to consider any additional views or information that stakeholders provided.41 As PHMSA is unaware of any potential near-term movement of LNG by rail tank cars and any potential shippers could avail themselves of the SP for the potential transportation of LNG by rail tank car or FRA approval processes for the potential transportation of LNG by portable tank on rail cars, PHMSA
expects the proposed suspension of LNG by rail transportation to have a minimal economic impact. For more 12 of DOTSP 20534 to provide periodic reports on the status of efforts to manufacture and deliver tank cars intended for use pursuant to that SP.
38 See FERC Docket No. CP20524 in re Petition for Declaratory Order of Bradford County Real Estate Partners LLC. Should FERC declare that an export facility certificate is needed, it could take an additional two years or longer to obtain that certificate from FERC.
39 49 CFR part 107, subpart B.
40 49 CFR part 107, subpart B.
41 FRA, Notice of Conditional Approval, 86 FR
33472 Jun. 24, 2021.

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