Building off of an Executive Order issued by President Donald Trump earlier this year, the United States Department of Transportation (USDOT) has proposed a change to the Hazardous Materials Regulations (HMR) to allow transportation of liquefied natural gas (LNG) by rail tank cars.
Currently, LNG can only be transported by rail using a portable tank with prior approval from the Federal Railroad Administration (FRA), though the HMR allows DOT 113 specification tank cars to be used for hauling other flammable liquids. Under a notice of proposed rulemaking (NPRM), the USDOT’s Pipeline and Hazardous Material Safety Administration (PHMSA) now seeks comment on changes that would allow LNG to use these cars as well.
“Safety is the number one priority of PHMSA and we understand the importance and will make it a top priority to evaluate all public comments and concerns raised throughout the rulemaking process,” PHMSA Administrator Skip Elliott said. “This major rule will establish a safe, reliable, and durable mode of transportation for LNG, while substantially increasing economic benefits and our nation’s energy competitiveness in the global market.”
Back in April, the president issued an Executive Order recognizing the growth of energy production in the United States, along with a growing domestic and international demand for natural gas. He noted the U.S. role in supplying LNG and the need to transport it safely. The U.S. DOT now views allowing LNG transportation by DOT 113 specification tank cars as a potentially viable alternative to pipelines that could allow the country to meet demand better. The department claims such transportation could provide better fuel efficiency, fuel accessibility for remote areas, lower emissions, and increased U.S. energy competitiveness at large.
“FRA shares regulatory oversight responsibility for the safe transportation of hazardous materials by rail,” FRA Administrator Ronald Batory said. “This rulemaking is consistent with our systemic approach to accident prevention, mitigation, and emergency response preparedness.”