Last month, Sen Cruz (R,TX) introduced S 1012,
a bill to prohibit the Secretary of Transportation from prohibiting the transportation
of liquefied natural gas by rail, and for other purposes. The bill would stop
DOT from modifying last summer’s final
rule allowing the shipment of LNG by rail. A similar bill, HR 2100 was
introduced in the House.
The Language
The bill is a short piece of legislation, only one section
and no fancy title. It would not only stop DOT from initiating rulemakings to prohibit
the transportation of LNG by rail, it would also prevent any rulemakings that “restricts
or contracts the scope of allowance provided by the final rule of the Pipeline
and Hazardous Materials Safety Administration, titled “Hazardous Materials:
Liquefied Natural Gas by Rail”, which was published in the Federal Register on
July 24, 2020 (85 Fed. Reg. 44994)” {§1(a)(2)}.
It would, however, allow DOT “to issue short-term emergency orders related to
the transportation of liquefied natural gas by rail” {§1(b)}.
Moving Forward
Cruz is a member of the Senate Commerce, Science, and
Transportation Committee to which this bill was assigned for consideration.
This could mean that there would be enough influence to have this bill
considered in Committee. In this case, however, I think that opposition for
Democrats would be sufficient to stop the bill from being considered. If it
were considered it would fail on a party line vote or maybe even have one or
two Republicans vote against it. It could never make it to the floor of the
Senate for consideration.
Commentary
Cruz and his two cosponsors {Sen Kennedy (R,LA) and Sen
Cramer (R,ND)} are all from natural gas producing states. They are very aware
of the general opposition in the Democratic Party to the shipment of natural
gas by rail, and really, almost anything to do with natural gas in general. It
is very likely that DOT will start some sort of rulemaking limiting LNG
shipments or flatly overturning the Trump Administration’s rule allowing such
shipments.
The three Senators know that there is no possible way for
this bill to move forward in the Senate in this session. Even in a narrowly
Republican Senate, this bill would face too much stiff opposition from
Democrats to be able to get anywhere. The same will hold true on HR 2100 in the
House. This bill and it’s House counterpart were introduced just to show the
member’s constituents that they were trying to do something to protect the
interests of natural gas shippers, the two bills are political gestures,
nothing more.
Frankly, I am surprised that we have not seen a bill
directing DOT to vacate the LNG by rail rule; something along the lines of §8202
of HR 2, the INVEST in America Act in the 116th Congress. Such a
bill would be very unlikely to be considered in a split Senate, but it would be
an important notice to environmental activists and chemical safety supporters
of the Democratic Party.
One thing is for sure, this is not the last we have heard
about LNG by rail in the 117th Congress.