{"operation":"document","citation":"80 FR 26644","title":"Hazardous Materials: Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Trains","source_type":"rulemaking","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2015-05-08","effective_on":"2015-07-07","summary":"In this final rule, the Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), is adopting requirements designed to reduce the consequences and, in some instances, reduce the probability of accidents involving trains transporting large quantities of flammable liquids. The final rule defines certain trains transporting large volumes of flammable liquids as \"high-hazard flammable trains\" (HHFT) and regulates their operation in terms of speed restrictions, braking systems, and routing. The final rule also adopts safety improvements in tank car design standards, a sampling and classification program for unrefined petroleum-based products, and notification requirements. These operational and safety improvements are necessary to address the unique risks associated with the growing reliance on trains to transport large quantities of flammable liquids. They incorporate recommendations from the National Transportation Safety Board (NTSB) and from the public comments, and are supported by a robust economic impact analysis.","machine_formats":{"json":"https://regulus.evalyn.ai/document/federal-register-2015-10670.json","markdown":"https://regulus.evalyn.ai/document/federal-register-2015-10670.md"},"app_url":"https://regulus.evalyn.ai/document/federal-register-2015-10670","source_url":"https://www.federalregister.gov/documents/2015/05/08/2015-10670/hazardous-materials-enhanced-tank-car-standards-and-operational-controls-for-high-hazard-flammable","body":"Federal Register, Volume 80 Issue 89 (Friday, May 8, 2015) [Federal Register Volume 80, Number 89 (Friday, May 8, 2015)] [Rules and Regulations] [Pages 26644-26750] From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ] [FR Doc No: 2015-10670] [[Page 26643]] Vol. 80 Friday, No. 89 May 8, 2015 Part II Department of Transportation ----------------------------------------------------------------------- Pipeline and Hazardous Materials Safety Administration 49 CFR Parts 171, 172, 173, et al. Hazardous Materials: Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Trains; Final Rule Federal Register / Vol. 80 , No. 89 / Friday, May 8, 2015 / Rules and Regulations [[Page 26644]] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration 49 CFR Parts 171, 172, 173, 174, and 179 [Docket No. PHMSA-2012-0082 (HM-251)] RIN 2137-AE91 Hazardous Materials: Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Trains AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), Department of Transportation (DOT). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: In this final rule, the Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), is adopting requirements designed to reduce the consequences and, in some instances, reduce the probability of accidents involving trains transporting large quantities of flammable liquids. The final rule defines certain trains transporting large volumes of flammable liquids as ``high-hazard flammable trains'' (HHFT) and regulates their operation in terms of speed restrictions, braking systems, and routing. The final rule also adopts safety improvements in tank car design standards, a sampling and classification program for unrefined petroleum-based products, and notification requirements. These operational and safety improvements are necessary to address the unique risks associated with the growing reliance on trains to transport large quantities of flammable liquids. They incorporate recommendations from the National Transportation Safety Board (NTSB) and from the public comments, and are supported by a robust economic impact analysis. DATES: Effective Date: This final rule is effective July 7, 2015. Incorporation by reference Date: The incorporation by reference of the publication listed in this rule is approved by the Director of the Federal Register as of July 7, 2015. ADDRESSES: You may find information on this rulemaking (Docket No. PHMSA-2012-0082) at Federal eRulmaking Portal: http://www.regulations.gov . FOR FURTHER INFORMATION CONTACT: Rob Benedict and Ben Supko, (202) 366- 8553, Standards and Rulemaking Division, Pipeline and Hazardous Materials Safety Administration or Karl Alexy, (202) 493-6245, Office of Safety Assurance and Compliance, Federal Railroad Administration, 1200 New Jersey Ave. SE., Washington, DC 20590. SUPPLEMENTARY INFORMATION: Table of Contents of Supplementary Information I. Executive Summary II. Background and Approach to Rail Safety A. Braking B. Speed Restrictions C. Track Integrity, Securement, Engineer and Conductor Certification, Crew Size and the Safety of Freight Railroad Operations D. Routing E. Notification F. Oil Spill Response Planning G. Classification H. Packaging/Tank Car III. Recent Regulatory Actions Addressing Rail Safety A. Rulemaking Actions B. Emergency Orders IV. Non-Regulatory Actions Addressing Rail Safety A. Safety Alerts and Advisories B. Operation Classification C. Call to Action D. Stakeholder Outreach V. NTSB Safety Recommendations VI. Incorporation by Reference Discussion Under 1 CFR part 51 VII. Summary and Discussion of Public Comments A. Miscellaneous Relevant Comments 1. Harmonization 2. Definition of High-Hazard Flammable Train 3. Crude Oil Treatment 4. Scope of Rulemaking B. Tank Car Specification 1. New Tank Car Construction 2. Retrofit Standard 3. Performance Standard 4. Implementation Timeline C. Speed Restrictions D. Advanced Brake Signal Propagation Systems E. Classification F. Routing G. Notification VIII. Section by Section Review IX. Impact of Adopted Regulation on Existing Emergency Orders X. Regulatory Review and Notices A. Executive Order 12866, Executive Order 13563, Executive Order 13610, and DOT Regulatory Policies and Procedures B. Unfunded Mandates Reform Act C. Executive Order 13132 D. Executive Order 13175 E. Regulatory Flexibility Act, Executive Order 13272, and DOT Policies and Procedures F. Paperwork Reduction Act G. Environmental Assessment H. Privacy Act I. Executive Order 13609 and International Trade Analysis J. Statutory/Legal Authority for this Rulemaking K. Regulation Identifier Number (RIN) L. Executive Order 13211 XI. Regulatory Text I. Executive Summary The Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), is issuing this final rule, titled ``Hazardous Materials: Enhanced Tank Car Standards and Operational Controls for HHFTs,'' in order to increase the safety of flammable liquid shipments by rail. The final rule is necessary due to the expansion in United States (U.S.) energy production, which has led to significant challenges for the country's transportation system. PHMSA published a notice of proposed rulemaking (NPRM) on August 1, 2014. See 79 FR 45015. This final rule addresses comments to the NPRM and amends the existing hazardous materials regulations (HMR; 49 CFR parts 171-180) pertaining to tank car designs, speed restrictions, braking systems, routing, sampling and classification, and notification requirements related to certain trains transporting large quantities of flammable liquids. Expansion in oil production has resulted in a large volume of crude oil being transported to refineries and other transport-related facilities, such as transloading facilities throughout the country. With a growing domestic supply, rail transportation has emerged as a flexible alternative to transportation by pipeline or vessel, which have historically delivered the vast majority of crude oil to U.S. refineries. The volume of crude oil carried by rail increased 423 percent between 2011 and 2012. 1 2 In 2013, the number of rail carloads of crude oil surpassed 400,000. 3 4 Further, based on information provided by the Association of American Railroads (AAR), the U.S. Energy Information Administration (U.S. EIA) asserts the amount of crude oil and refined petroleum products moved by U.S. railroads continued to increase by nine percent during the first seven months of 2014, when compared with the same period in 2013. --------------------------------------------------------------------------- \\1\\ See U.S. Rail Transportation of Crude Oil: Background and Issues for Congress; http://fas.org/sgp/crs/misc/R43390.pdf . \\2\\ See Table 9 of EIA refinery report http://www.eia.gov/petroleum/refinerycapacity/ . \\3\\ http://www.stb.dot.gov/stb/industry/econ_waybill.html . \\4\\ http://www.eia.gov/todayinenergy/detail.cfm?id=17751 . --------------------------------------------------------------------------- [[Page 26645]] [GRAPHIC] [TIFF OMITTED] TR08MY15.000 Figure 1 visually demonstrates the considerable increase in crude oil and petroleum shipments by rail.\\5\\ --------------------------------------------------------------------------- \\5\\ http://www.eia.gov/todayinenergy/detail.cfm?id=17751 . --------------------------------------------------------------------------- U.S. ethanol production has also increased considerably during the last 10 years and has generated similar growth in the transportation of ethanol by rail.\\6\\ Ethanol constitutes 26 percent of the total number of rail hazardous materials shipments, and is 1.1 percent of all railroad shipments.\\7\\ --------------------------------------------------------------------------- \\6\\ Association of American Railroads. 2013. Railroads and Ethanol. Available online at https://www.aar.org/BackgroundPapers/Railroads%20and%20Ethanol.pdf . \\7\\ http://ethanolrfa.org/page/-/rfa-association-site/Industry%20Resources/RFA.Ethanol.Rail.Transportation.and.Safety.pdf?nocdn=1 . --------------------------------------------------------------------------- Crude oil and ethanol comprise approximately 68 percent of the flammable liquids transported by rail. The inherent risk of flammability of these materials is compounded in the context of rail transportation because petroleum crude oil and ethanol are commonly shipped in large quantities, either as large blocks of material in a manifest train or as a single commodity train (commonly referred to as a ``unit train''). As detailed in the NPRM, in recent years, train accidents/incidents (train accidents) involving the release of a flammable liquid and resulting in fires and other severe consequences have occurred. See the Regulatory Impact Analysis, posted in the docket, for a detailed description of the accidents considered for this rulemaking. Federal hazardous materials transportation law (49 U.S.C. 5101- 5128) authorizes the Secretary of Transportation (Secretary) to ``prescribe regulations for the safe transportation, including security, of hazardous material in intrastate, interstate, and foreign commerce.'' The Secretary delegated this authority to PHMSA. 49 CFR 1.97(b). PHMSA is responsible for overseeing a hazardous materials safety program that minimizes the risks to life and property inherent in transportation in commerce. On a yearly basis the HMR provides safety and security requirements for more than 2.5 billion tons of hazardous materials (hazmat), valued at about $2.3 trillion, and hazmat was moved 307 billion miles on the nation's interconnected transportation network.\\8\\ In addition, the HMR include operational requirements applicable to each mode of transportation. The Secretary also has authority over all areas of railroad transportation safety (Federal railroad safety laws, principally 49 U.S.C. chapters 201-213), and this authority is delegated to FRA. 49 CFR 1.89. FRA inspects and audits railroads, tank car facilities, and hazardous material offerors for compliance with both FRA and PHMSA regulations. FRA also has an extensive, well-established research and development program to enhance all elements of railroad safety, including hazardous materials transportation. As a result of the shared role in the safe and secure transportation of hazardous materials by rail, PHMSA and FRA work very closely when considering regulatory changes and the agencies take a system-wide, comprehensive approach consistent with the risks posed by the bulk transport of hazardous materials by rail. --------------------------------------------------------------------------- \\8\\ 2012 Commodity Flow Survey, Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BTS). See http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=CFS_2012_00H01&prodType=table . --------------------------------------------------------------------------- This rulemaking is intended to reduce the likelihood of train accidents involving flammable liquids, and mitigate the consequences of such accidents should they occur. In this final rule, PHMSA is revising the HMR to establish requirements for any ``high-hazard flammable train'' (HHFT) that is transported over the U.S. rail network. Based on analysis of the risk of differing train compositions, this rule defines an HHFT as a train comprised of 20 or more loaded tank cars of a Class 3 flammable liquid in a continuous block or 35 or more loaded tank cars of a Class 3 flammable liquid across the entire train. For the purposes of advanced braking systems, this rule also defines a ``high-hazard flammable unit train'' (HHFUT) as a train comprised of 70 or more loaded tank cars containing Class 3 flammable liquids traveling speeds at greater than 30 mph. The rule ensures that the requirements are closely aligned with the risks posed by the operation of trains that are transporting large quantities of flammable liquids. As discussed further in this preamble and in the accompanying RIA, this rule primarily impacts trains transporting large quantities of ethanol and crude oil, because ethanol and crude oil are most frequently transported in high-volume shipments than when transported in a single train, and such trains would meet the definition of an HHFT. By revising the definition of HHFT from that which was proposed in the NPRM, we have clarified the scope of the final rule and focused on the highest-risk shipments, while not affecting lower-risk trains that [[Page 26646]] are not transporting similar bulk quantities of Class 3 flammable liquids.\\9\\ --------------------------------------------------------------------------- \\9\\ In the August 1, 2014, NPRM, an HHFT was defined as a train comprised of 20 or more carloads of a Class 3 flammable liquid. This rule defines an HHFT as a train comprised of 20 or more tank car loads of a Class 3 flammable liquid in a continuous block or 35 tank car loads of a Class 3 flammable liquid across the entire train. \\10\\ As defined the Transportation Security Administration's regulations at 49 CFR 1580.3--High Threat Urban Area (HTUA) means an area comprising one or more cities and surrounding areas including a 10-mile buffer zone, as listed in appendix A to 49 CFR Part 1580. The 50-mph maximum speed restriction for HHFTs is consistent with the speed restrictions that the AAR issued in Circular No. OT-55-N on August 5, 2013. The 40-mph builds on an industry imposed voluntary restriction that applies to any ``Key Crude Oil Train'' with at least one non-CPC 1232 tank car or one non-DOT specification tank car while that train travels within the limits of any high- threat urban area (HTUA) as defined by 49 CFR 1580.3. \\11\\ A ``high-hazard flammable unit train'' (HHFUT) means a train comprised of 70 or more loaded tank cars containing Class 3 flammable liquids traveling at greater than 30 mph. --------------------------------------------------------------------------- PHMSA and FRA have used a variety of regulatory and non-regulatory methods to address the risks of the bulk transport of flammable liquids, including crude oil and ethanol, by rail. These efforts include issuing guidance, conducting rulemakings, participating in rail safety committees, holding public meetings, enhancing enforcement efforts, and reaching out to the public. All of these efforts are consistent with our system-wide approach. PHMSA and FRA focus on prevention, mitigation and response to manage and reduce the risk posed to people and the environment by the transportation of hazardous materials by rail. When addressing these issues, PHMSA and FRA focus on solutions designed to reduce the probability of accidents occurring and to minimize the consequences of an accident should one occur. In this final rule, we are revising the HMR to establish requirements specific to HHFTs. As described in greater detail throughout this document, the final rule takes a system-wide, comprehensive approach consistent with the risks posed by HHFTs. Specifically, Table 1 describes the regulatory changes implemented in this final rule and identifies entities affected by this final rule. Table 1--Affected Entities and Requirements ------------------------------------------------------------------------ Adopted requirement Affected entity ------------------------------------------------------------------------ Enhanced Standards for Both New and Tank Car Manufacturers, Tank Existing Tank Cars Used in HHFTs. Car New tank cars constructed Owners, Shippers/Offerors after October 1, 2015 are required to and Rail Carriers. meet enhanced DOT Specification 117 design or performance criteria. Existing tank cars must be retrofitted in accordance with the DOT-prescribed retrofit design or performance standard. Retrofits must be completed based on a prescriptive retrofit schedule and a retrofit reporting requirement is triggered if initial milestone is not achieved. More Accurate Classification of Unrefined Offerors/Shippers of Petroleum-Based Products. unrefined petroleum-based Develop and carry out sampling products. and testing program for all unrefined petroleum-based products, such as crude oil, to address:. (1) Frequency of sampling and testing that accounts for any appreciable variability of the material. (2) Sampling prior to the initial offering of the material for transportation and when changes that may affect the properties of the material occur; (3) Sampling methods that ensures a representative sample of the entire mixture, as offered, is collected; (4) Testing methods that enable classification of the material under the HMR; (5) Quality control measures for sample frequencies; (6) Duplicate samples or equivalent measures for quality assurance; (7) Criteria for modifying the sampling and testing program; (8) Testing or other appropriate methods used to identify properties of the mixture relevant to packaging requirements. Certify that program is in place, document the testing and sampling program outcomes, and make information available to DOT personnel upon request. Rail routing--Risk assessment............. Rail Carriers, Emergency Responders. Perform a routing analysis that considers, at a minimum, 27 safety and security factors and select a route based on its findings. These planning requirements are prescribed in 49 CFR Sec. 172.820. Rail routing--Notification................ Ensures that railroads notify State and/or regional fusion centers and State, local, and tribal officials who contact a railroad to discuss routing decisions are provided appropriate contact information for the railroad in order to request information related to the routing of hazardous materials through their jurisdictions. This replaces the proposed requirements to notify State Emergency Response Commissions (SERCs) or other appropriate state delegated entity about the operation of these trains through their States. Reduced Operating Speeds.................. Rail Carriers. Restrict all HHFTs to 50-mph in all areas. Require HHFTs that contain any tank cars not meeting the enhanced tank car standards required by this rule operate at a 40-mph speed restriction in high-threat urban areas \\10\\. Enhanced Braking.......................... Rail Carriers. Require HHFTs to have in place a functioning two-way end-of- train (EOT) device or a distributed power (DP) braking system. Require trains meeting the definition of a ``high-hazard flammable unit train'' (HHFUT) \\11\\ be operated with an electronically controlled pneumatic (ECP) braking system by January 1, 2021, when transporting one or more tank cars loaded with a Packing Group I flammable liquid. [[Page 26647]] Require trains meeting the definition of a HHFUT be operated with an ECP braking system by May 1, 2023, when transporting one or more tank cars loaded with a Packing Group II or III flammable liquid. ------------------------------------------------------------------------ PHMSA and FRA received over 3,200 public comments representing over 182,000 signatories in response to the NPRM and initial RIA. We carefully considered each comment and revised, as appropriate, the final rulemaking to reflect those comments. Table 2 below provides a high-level overview of what was originally proposed in the NPRM versus the amendments being adopted in this final rule. Table 2--NPRM vs. Final Rule Comparison ---------------------------------------------------------------------------------------------------------------- Topic NPRM proposal Final rule amendment Justification ---------------------------------------------------------------------------------------------------------------- Scope--High-Hazard Flammable Train... High-hazard flammable A continuous block of PHMSA and FRA modified train means a single 20 or more tank cars the proposed train carrying 20 or loaded with a definition to capture more carloads of a flammable liquid or 35 the higher-risk bulk Class 3 flammable or more tank cars quantities transported liquid. loaded with a in unit trains, while flammable liquid excluding lower-risk dispersed through a manifest trains. This train. revision better captures the intended trains. Tank Car--New Construction........... Three options for new A modified version of These design tank car standards Tank Car Option #2 enhancements will (See table 13). from the NPRM. reduce the consequences of accidents involving an HHFT. These enhancements will improve puncture resistance and thermal survivability when exposed to fire. There will be fewer car punctures, fewer releases from the service equipment (top and bottom fittings). See RIA. Tank Car--Existing Fleet............. Consistent with Tank Car Option #3 from Provides incremental proposed new tank car the NPRM for retrofits. safety benefit over standards, the same the current fleet three options for while minimizing cost. retrofitted tank car These design standards. It was enhancements will proposed that both new reduce the and retrofitted cars consequences of a would meet the same derailment of an HHFT. standard. There will be fewer car punctures, and fewer releases from the service equipment (top and bottom fittings). See RIA. Tank Car--Retrofit Timeline.......... A five-year retrofit A risk-based ten-year Provides for greater schedule based solely retrofit schedule risk reduction by on packing group. based on packing group focusing on the and tank car. A highest risk tank car retrofit reporting designs and requirement is commodities first. triggered if initial Accounts for industry milestone is not retrofit capacity. achieved. Speed Restrictions................... A 50 mph restriction A 50 mph restriction Decreases the kinetic across the board for across the board for energy involved in HHFTs and three HHFTs and a 40 mph accidents. Adopts the options for a 40 mph restriction in HTUA. most cost-effective restriction in solution and limits specific areas. the impact of rail congestion. Braking.............................. The scaling up of (1) Requires HHFTs to Provides a two-tiered, braking systems have in place a cost-effective and culminating in ECP functioning two-way risk-based solution to braking for HHFTs or a EOT device or a DP reduce the number of speed limitation for braking system. cars and energy those not meeting the (2) Requires any HHFUT associated with train braking requirements. transporting at least accidents. Focuses on one PG I flammable the highest-risk train liquid be operated sets with an ECP braking system by January 1, 2021. (3) Requires all other HHFUTs be operated with an ECP braking system by May 1, 2023. [[Page 26648]] Classification....................... A classification plan A classification plan Addresses comments for mined liquids and for unrefined seeking clarity of gases. petroleum products. requirements. We Clarified the expect the materials subject to a requirements would plan. reduce the expected damages and ensure that materials are properly classified in accordance with the HMR. Routing.............................. Require railroads Require railroads Track type, class, and operating HHFTs to operating HHFTs to maintenance schedule conduct a routing conduct a routing as well as training analysis considering, analysis considering, and skill level of at a minimum, 27 at a minimum, 27 crews are included in factors. factors. the 27 risk factors identified that need to be considered, at a minimum, in a route analysis. Evaluation of these factors could result in prevention of an accident due to either rail defects or human factors/errors. Notification......................... Require trains carrying Use the notification Addresses concerns over 1,000,000 gallons or portion of the routing security sensitive and more of Bakken Crude requirements (i.e. confidential business oil to notify SERCs. notification to state/ information. Addresses regional fusion the need for action in centers) to satisfy the form of additional need for pertinent communication between information. railroads and emergency responders to ensure that the emergency responders are aware of the appropriate contacts at railroads to discuss routing issues with. ---------------------------------------------------------------------------------------------------------------- With regard to the construction of new tank cars and retrofitting of existing tank cars for use in HHFTs, PHMSA and FRA are requiring new tank cars constructed after October 1, 2015 to meet the new design or performance standard, if those tank cars are used as part of an HHFT.\\12\\ In addition, PHMSA and FRA have revised our retrofit timeline. In the NPRM, the retrofit timeline was based on a single risk factor, the packing group. In the final rule, the retrofit timeline is revised to focus on two risk factors, the packing group and differing types of DOT-111 and CPC-1232 tank car. This revision is based on comments to the NPRM and the development of a model to demonstrate industry capacity and learning rates. The revised timeline provides an accelerated risk reduction that more appropriately addresses the overall risk. PHMSA and FRA also modified the overall length of the retrofit to account for issues raised by commenters that were not considered in the NPRM stage. In this final rule, PHMSA is adopting a risk-based timeline for the retrofit of existing tank cars to meet an enhanced CPC-1232 standard (Option #3) when used as part of an HHFT. The timeline is provided in the following table: --------------------------------------------------------------------------- \\12\\ Other authorized tank specification as specified in part 173, subpart F will also be permitted however, manufacture of a DOT specification 111 tank car for use in an HHFT is prohibited. Table 3--Timeline for Continued Use of DOT Specification 111 (DOT-111) Tanks for Use in HHFTs ------------------------------------------------------------------------ Tank car type/service Retrofit deadline ------------------------------------------------------------------------ Non Jacketed DOT-111 tank cars in (January 1, 2017 *). PG I service. January 1, 2018. Jacketed DOT-111 tank cars in PG March 1, 2018. I service. Non-Jacketed CPC-1232 tank cars April 1, 2020. in PG I service. Non Jacketed DOT-111 tank cars in May 1, 2023. PG II service. Jacketed DOT-111 tank cars in PG May 1, 2023. II service. Non-Jacketed CPC-1232 tank cars July 1, 2023. in PG II service. Jacketed CPC-1232 tank cars in PG May 1, 2025. I and PG II service** and all remaining tank cars carrying PG III materials in an HHFT (pressure relief valve and valve handles). ------------------------------------------------------------------------ * The January 1, 2017 date would trigger a retrofit reporting requirement, and tank car owners of affected cars would have to report to DOT the number of tank cars that they own that have been retrofitted, and the number that have not yet been retrofitted. ** We anticipate these will be spread out throughout the 120 months and the retrofits will take place during normal requalification and maintenance schedule, which will likely result in fleet being retrofit sooner. This final rule takes a system-wide, comprehensive approach to rail safety commensurate with the risks associated with HHFTs. Specifically, the requirements in this final rule address: Tank Car Specifications Advanced Brake Signal Propagation Systems Speed Restrictions Routing Requirements [[Page 26649]] Notification Requirements Classification of unrefined petroleum-based products In this final rule, the proposals in the NPRM have been revised in response to the comments received and the final RIA has been revised to align with the changes made to the final rule. Specifically, the RIA explains adjustments to the methodology used to estimate the benefits and costs resulting from the final rule. The revised RIA is in the docket and supports the amendments made in this final rule. Table 4 shows the costs and benefits by affected section and rule provision over a 20-year period, discounted at a 7% rate. Table 4 also shows an explanation of the comprehensive benefits and costs (i.e., the combined effects of individual provisions), and the estimated benefits, costs, and net benefits of each amendment. Please also note that, given the uncertainty associated with the risks of HHFT shipments, Table 4 contains a range of benefits estimates. The low-end of the range of estimated benefits estimates risk from 2015 to 2034 based on the U.S. safety record for crude oil and ethanol from 2006 to 2013, adjusting for the projected increase in shipment volume over the next 20 years. The upper end of the range of estimated benefits is the 95th percentile of a Monte Carlo simulation. Table 4--20 Year Costs and Benefits by Stand-Alone Regulatory Amendments 2015-2034 \\13\\ ---------------------------------------------------------------------------------------------------------------- Affected section \\14\\ Provision Benefits (7%) Costs (7%) ---------------------------------------------------------------------------------------------------------------- 49 CFR Sec. 172.820............. Rail Routing +....... Cost effective if $8.8 million. routing were to reduce risk of an incident by 0.41%. 49 CFR Sec. 173.41.............. Classification Plan.. Cost effective if $18.9 million. this requirement reduces risk by 1.29%. 49 CFR Sec. 174.310............. Speed Restriction: 40 $56 million-$242 $180 million. mph speed limit in million **. HTUA *. Advanced Brake Signal $470.3 million- $492 million. Propagation Systems. $1,114 million **. 49 CFR part 179................... Existing Tank Car $426 million-$1,706 $1,747 million. Retrofit/Retirement. million **. New Car Construction. $23.9 million-$97.4 $34.8 million. million **. Cumulative Total.................. ..................... $912 million-$2,905 $2,482 million. million **. ---------------------------------------------------------------------------------------------------------------- ``*'' indicates voluntary compliance regarding crude oil trains in high-threat urban areas (HTUA) ``+'' indicates voluntary actions that will be taken by shippers and railroads ``**'' Indicates that the low end of the benefits range is based solely on lower consequence events, while the high end of the range includes benefits from mitigating high consequence events. II. Background and Approach to Rail Safety As noted above the HMR provide safety and security requirements for shipments valued at more than $2.3 trillion annually.\\15\\ The HMR are designed to achieve three goals: (1) To ensure that hazardous materials are packaged and handled safely and securely during transportation; (2) to provide effective communication to transportation workers and emergency responders of the hazards of the materials being transported; and (3) to minimize the consequences of an incident should one occur. The hazardous material regulatory system is a risk management system that is prevention-oriented and focused on identifying a safety or security hazard, thus reducing the probability and quantity of a hazardous material release. --------------------------------------------------------------------------- \\13\\ All costs and benefits are in millions over 20 years, and are discounted to present value using a seven percent rate and rounded. \\14\\ All affected sections of the Code of Federal Regulations (CFR) are in Title 49. \\15\\ 2012 Commodity Flow Survey, RITA, BTS. See http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=CFS_2012_00H01&prodType=table . --------------------------------------------------------------------------- Under the HMR, hazardous materials are categorized by analysis and experience into hazard classes and, for some classes, packing groups based upon the risks that they present during transportation. The HMR specify appropriate packaging and handling requirements for hazardous materials based on such classification, and require an offeror to communicate the material's hazards through the use of shipping papers, package marking and labeling, and vehicle placarding. The HMR also require offerors to provide emergency response information applicable to the specific hazard or hazards of the material being transported. Further, the HMR (1) mandate training for persons who prepare hazardous materials for shipment or who transport hazardous materials in commerce, and (2) require the development and implementation of plans to address the safety and security risks related to the transportation of certain types and quantities of hazardous materials in commerce. The HMR also include operational requirements applicable to each mode of transportation and the FRA inspects and audits railroads, tank car facilities, and offerors of hazardous materials for compliance with PHMSA regulations as well as its own rail safety regulations. Additionally FRA's research and development program seeks to enhance all elements of railroad safety, including hazardous materials transportation. To address our shared concerns regarding the risks associated with rail carriage of flammable liquids, and the large volumes of flammable liquids transported in HHFTs, PHMSA and FRA are focusing on three areas: (1) Proper classification and characterization; (2) operational controls to lessen the likelihood and consequences of accidents; and (3) improvements to tank car integrity. This approach is designed to minimize the occurrence of train accidents and mitigate the damage caused should an accident occur. This overview section provides a general discussion of the major regulations currently in place that affect the safe transportation of hazardous materials by rail. These regulations pertain to issues such as: (1) Braking; (2) speed restrictions; (3) routing; (4) notification requirements; (5) oil spill response planning; (6) classification; and (7) packaging requirements. A. Braking The effective use of braking on a freight train can result in accident avoidance. In addition, the effective use of braking on a freight train can potentially lessen the consequences of an accident by diminishing in-train forces, which can reduce the likelihood of a tank car being punctured and [[Page 26650]] decrease the likelihood of a derailment. The FRA has promulgated brake system safety standards for freight and other non-passenger trains and equipment in 49 CFR part 232. Specifically, part 232 provides requirements for (1) general braking, (2) inspection and testing, (3) periodic maintenance and testing, (4) end-of-train (EOT) devices, (5) introduction of new brake system technologies and (6) electronically controlled pneumatic braking (ECP) systems. FRA's brake system safety standards incorporate longstanding inspection and maintenance requirements related to a train's braking systems--air brakes and handbrakes--that have been in existence for well over 100 years. However, FRA's brake system safety standards also anticipate and allow for new technology. See 49 CFR part 232, subpart F. In 1996, FRA published regulations establishing requirements pertaining to the use and design of two-way EOT devices. 62 FR 278 (Jan. 2, 1997). In 2008, FRA published subpart E to part 232, which established design, inspection, maintenance, and training standards for railroads implementing ECP brake system technology. 73 FR 61512 (Oct. 16, 2008). Two-way EOT devices and ECP braking systems have the potential to provide enhanced braking during emergency braking and ECP brakes allow for enhanced braking and better train control during normal operational brake applications. Moreover, in recent years, certain railroads, particularly those in the western half of the U.S., have shifted to using distributed power (DP), to move longer trains. While DP is technically not a braking system, it can provide some enhanced braking during an emergency braking application over conventional braking systems because it provides an additional signal source to speed the application of air brakes. Three types of braking systems relevant to this rulemaking, two-way end-of-train (EOT) devices, distributed power (DP) systems, and electronically controlled pneumatic (ECP) braking systems, and briefly introduced below. They are discussed in greater detail in the ``Advanced Braking Signal Systems'' section of this rulemaking. Two-way EOT devices include two pieces of equipment linked by radio that initiate an emergency brake application command from the front unit located in the controlling (``lead'') locomotive, which then activates the emergency air valve at the rear of the train within one second. The rear unit of the device sends an acknowledgment message to the front unit immediately upon receipt of an emergency brake application command. A two-way EOT device is slightly more effective than conventional air brakes because the rear cars receive the emergency brake command more quickly in an engineer induced emergency brake application. DP systems use multiple locomotives positioned at strategic locations within the train consist (often at the rear of the train) to provide additional power and train control in certain operations. For instance, a DP system may be used to provide power while climbing a steep incline and to control the movement of the train as it crests the incline and begins its downward descent. The DP system works through the control of the rearward locomotives by command signals originating at the lead locomotive and transmitted to the remote (rearward) locomotives. While distributed power technically is not a braking system, the additional power source in or at the rear of the train consist do provide enhanced braking for a train. The addition of a DP locomotive allows for the braking effort to be distributed throughout the train and allows for a more uniform braking effort than with a conventional air brake system. ECP brake systems simultaneously send an electronic braking command to all equipped cars in the train, reducing the time before a car's pneumatic brakes are engaged compared to conventional air brakes. They can be installed as an overlay to a conventional air brake system or replace it altogether; however, FRA regulations do require that ECP brake systems be interoperable pursuant to the AAR S-4200 standard, which allows for interchange among the Class I railroads. 49 CFR 232.603. The simultaneous application of ECP brakes on all cars in a train also significantly improves train handling by substantially reducing stopping distances as well as buff and draft forces within the train, which under certain conditions can result in a derailment. Because ECP brakes do not rely on changes in air pressure passing from car to car, there are no delays related to the depletion and recharging of a train's air brake system. These factors provide railroads with the ability to decrease congestion or to increase volume by running longer trains closer together. B. Speed Restrictions High speeds can increase the kinetic energy involved in and the associated damage caused by an accident. With respect to operating speeds, FRA has developed a system of classification that defines different track classes based on track quality. The track classes include Class 1 through Class 9 and ``excepted track.'' See 49 CFR 213.9 and 213.307. Freight trains transporting hazardous materials currently operate at track speeds associated with Class 1 through Class 5 track and, in certain limited instances, at or below ``excepted track'' speed limits. Section 213.9 of the FRA regulations on Track Safety Standards provides the ``maximum allowa","truncated":true,"body_characters":721629}