Friday, May 10, 2019

LNG Railcar NPRM to OMB

Yesterday the OMB’s Office of Information and  Regulatory Affairs (OIRA) announced that it had received a notice of proposed rulemaking (NPRM) from the DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) regarding the regulation of shipping liquified natural gas, (LNG) by rail.

This rulemaking first showed up on the Unified Agenda in the Spring of 2018, so it looks like this is a Trump administration initiative. According to the latest version of the Agenda:

Liquefied natural gas (LNG) is a critical energy resource for the 21st century. Currently, the Hazardous Materials Regulations (HMR) do not contain the necessary provisions to allow for the bulk transport of LNG in rail tank cars. PHMSA, in collaboration with the Federal Railroad Administration (FRA), believe this is a potential area for industry innovation and support infrastructure development while maintaining a high level of safety. This rulemaking intends to develop a framework for the safe transport of LNG in rail tank cars.

This could take six-months to a year to make it through the OIRA review and into the Federal Register.

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