# Hazardous Materials: Liquefied Natural Gas by Rail

- **operation:** document
- **citation:** 85 FR 44994
- **title:** Hazardous Materials: Liquefied Natural Gas by Rail
- **source type:** rulemaking
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2020-07-24
- **effective on:** 2020-08-24
- **summary:** PHMSA, in coordination with the Federal Railroad Administration (FRA), is amending the Hazardous Materials Regulations (HMR) to allow for the bulk transport of "Methane, refrigerated liquid," commonly known as liquefied natural gas (LNG), in rail tank cars. This rulemaking authorizes the transportation of LNG by rail in DOT-113C120W specification rail tank cars with enhanced outer tank requirements, subject to all applicable requirements and certain additional operational controls. The enhancements to the outer tank are indicated by the new specification suffix "9" (DOT-113C120W9).
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- **markdown:** https://regulus.evalyn.ai/document/federal-register-2020-13604.md
- **app url:** https://regulus.evalyn.ai/document/federal-register-2020-13604
- **source url:** https://www.federalregister.gov/documents/2020/07/24/2020-13604/hazardous-materials-liquefied-natural-gas-by-rail
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Federal Register, Volume 85 Issue 143 (Friday, July 24, 2020) [Federal Register Volume 85, Number 143 (Friday, July 24, 2020)] [Rules and Regulations] [Pages 44994-45030] From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ] [FR Doc No: 2020-13604] [[Page 44993]] Vol. 85 Friday, No. 143 July 24, 2020 Part III Department of Transportation ----------------------------------------------------------------------- Pipeline and Hazardous Materials Safety Administration ----------------------------------------------------------------------- 49 CFR Parts 172, 173, 174, et al. Hazardous Materials: Liquefied Natural Gas by Rail; Final Rule Federal Register / Vol. 85, No. 143 / Friday, July 24, 2020 / Rules and Regulations [[Page 44994]] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration 49 CFR Parts 172, 173, 174, 179, and 180 [Docket No. PHMSA-2018-0025 (HM-264)] RIN 2137-AF40 Hazardous Materials: Liquefied Natural Gas by Rail AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), Department of Transportation (DOT). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: PHMSA, in coordination with the Federal Railroad Administration (FRA), is amending the Hazardous Materials Regulations (HMR) to allow for the bulk transport of ``Methane, refrigerated liquid,'' commonly known as liquefied natural gas (LNG), in rail tank cars. This rulemaking authorizes the transportation of LNG by rail in DOT-113C120W specification rail tank cars with enhanced outer tank requirements, subject to all applicable requirements and certain additional operational controls. The enhancements to the outer tank are indicated by the new specification suffix ``9'' (DOT-113C120W9). DATES: Effective date: This rule is effective August 24, 2020. Voluntary compliance date: Voluntary compliance is authorized July 24, 2020. FOR FURTHER INFORMATION CONTACT: Michael Ciccarone, Standards and Rulemaking Division, (202) 366-8553, Pipeline and Hazardous Materials Safety Administration, or Mark Maday, Federal Railroad Administration, (202) 366-2535, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-0001. SUPPLEMENTARY INFORMATION: Abbreviations and Terms AAR Association of American Railroads APA Administrative Procedure Act ASNT American Society of Non-destructive Testing ASTM American Society of Testing and Materials AWS American Welding Society BLET Brotherhood of Locomotive Engineers and Trainmen BLEVE Boiling Liquid Expanding Vapor Explosion BNSF Burlington Northern Santa Fe CEQ Council on Environmental Quality CFR Code of Federal Regulations CPUC California Public Utilities Commission CTMV Cargo Tank Motor Vehicle DOT Department of Transportation DOT-SP Department of Transportation Special Permit DP Distributed Power EA Environmental Assessment ECP Electronically Controlled Pneumatic EIS Environmental Impact Statement E.O. Executive Order EOT End of Train ERG Emergency Response Guidebook ETS Energy Transport Solutions, LLC FEMA Federal Emergency Management Agency FRA Federal Railroad Administration FRSA Federal Railroad Safety Act GHG Greenhouse Gas GRL Gross Rail Load HHFT High-Hazard Flammable Train HLRW High Level Radioactive Waste HMEP Hazardous Materials Emergency Preparedness HMT Hazardous Materials Table HMTA Hazardous Materials Transportation Act HMR Hazardous Materials Regulations IAFC International Association of Fire Chiefs IAFF International Association of Fire Fighters IBR Incorporation by Reference IFR Interim Final Rule LNG Liquefied Natural Gas LPG Liquefied Petroleum Gas MLI Multi-Layer Insulation NASFM National Association of State Fire Marshals NEPA National Environmental Policy Act NFPA National Fire Protection Association NGO Non-Governmental Organization NJDEP New Jersey Department of Environmental Protection NPRM Notice of Proposed Rulemaking NTSB National Transportation Safety Board NYDEC New York State Department of Environmental Conservation NYDHSES New York State Division of Homeland Security and Emergency Services NYDOT New York State Department of Transportation OIRA Office of Information and Regulatory Affairs OMB Office of Management and Budget PHMSA Pipeline and Hazardous Materials Safety Administration PRD Pressure Relief Device PRV Pressure Relief Valve PSR Physicians for Social Responsibility RSI Railway Supply Institute RFA Regulatory Flexibility Act RIA Regulatory Impact Analysis RIN Regulatory Identifier Number RSI-CTC Railway Supply Institute Committee on Tank Cars SNF Spent Nuclear Fuel SI Super Insulation TTD Transportation Trades Department, AFL-CIO The Center The Center for Biological Diversity TC Transport Canada TDG Transportation of Dangerous Goods UMRA Unfunded Mandates Reform Act UN United Nations U.S.C. United States Code VCE Vapor Cloud Explosion Table of Contents I. Overview II. NPRM and Background A. Petition for Rulemaking (P-1697) B. Regulatory Review C. DOT Special Permit 20534 III. Amendments to the HMR Adopted in This Final Rule A. Existing HMR Requirements for Rail Transport of Flammable Cryogenic Material B. The DOT-113C120W Specification Tank Car C. Additional Operational Controls for LNG Transportation IV. Summary and Discussion of Comments to the Rulemaking Docket A. Tank Car Design B. Operational Controls C. Environmental Impacts D. Economic Analysis E. Emergency Response F. Comments of General Opposition G. Comments From the Puyallup Tribe H. Comments Beyond the Scope of This Rulemaking V. Section-by-Section Review VI. Regulatory Analyses and Notices A. Statutory/Legal Authority for This Rulemaking B. Executive Order 12866 and DOT Regulatory Policies and Procedures C. Executive Order 13771 D. Executive Order 13132 E. Executive Order 13175 F. Regulatory Flexibility Act, Executive Order 13272, and DOT Policies and Procedures G. Paperwork Reduction Act H. Regulation Identifier Number (RIN) I. Unfunded Mandates Reform Act J. Environmental Assessment K. Privacy Act L. Executive Order 13609 and International Trade Analysis M. Executive Order 13211 List of Subjects I. Overview In this final rule, PHMSA is authorizing the transportation of LNG by rail tank car, pursuant to Federal Hazardous Materials Transportation law (Federal hazmat law; 49 U.S.C. 5101 et seq.), because we have determined that bulk rail transport is a safe alternative for this energy product. The final rule authorizes the transportation of LNG by rail in DOT-113 tank cars, which have an established track record of safety in transporting other cryogenic flammable materials. The DOT-113 tank car authorized for LNG service will be enhanced with an outer tank that is thicker and made of steel with a greater puncture resistance to provide an added measure of safety and crashworthiness. Additionally, there will be operational controls in the form of enhanced braking requirements, remote [[Page 44995]] monitoring, and route analysis, which are intended to exceed current safety requirements for other flammable cryogenic materials. PHMSA's mission is to protect people and the environment by advancing the safe transportation of energy products and other hazardous materials that are essential to our daily lives. To do this, the agency establishes national policy, sets and enforces standards, conducts research to prevent incidents, and prepares the public and first responders to reduce consequences if an incident does occur. PHMSA and FRA share responsibility for regulating the transportation of hazardous materials by rail and take a system-wide, comprehensive approach that focuses on prevention, mitigation, and response to manage and reduce the risk posed to people and the environment. In line with PHMSA's mission and shared responsibility with FRA for oversight of the rail transport of hazardous materials, PHMSA is issuing this final rule to authorize the transportation of LNG by rail in DOT-113C120W specification rail tank cars with enhanced outer tank material and thickness (those enhancements to be indicated by the specification suffix ``9''), subject to operational controls for braking, monitoring, and route analysis. This authorization conforms to the intent and purpose of the HMR (49 CFR parts 171-180), which are designed to ensure the safe transportation of all hazardous materials packagings (including tank cars). Collectively, the HMR combine packaging design and maintenance, operational controls, package handling, employee training, hazard communication, emergency response information, and security plan requirements to safeguard transportation. These measures help ensure that hazardous contents safely remain within a package during the course of transportation while also providing for public awareness and appropriate response mechanisms. Supplemental to the HMR, PHMSA oversees a Hazardous Materials Emergency Preparedness (HMEP) grant program that provides funding to the emergency response community for training and planning purposes, furthering appropriate response efforts. The United States leverages domestic technology improvements to transform American life through increased natural gas production and energy independence. As a result, the United States is today the world's largest natural gas producer through economical production from shale and other unconventional formations.\1\ Transportation of natural gas, however, can be constrained by the capacity of existing transportation infrastructure, which negatively affects regions with insufficient access to pipelines or ports. This constraint on capacity, coupled with increased natural gas production in the United States, has resulted in the consideration of using rail transport to help efficiently deliver natural gas to domestic U.S. and international markets. --------------------------------------------------------------------------- \1\ CRS, ``An Overview of Unconventional Oil and Natural Gas: Resources and Federal Actions,'' 7-5700, Summary, (2015). --------------------------------------------------------------------------- Authorizing the use of proven DOT-113C120W-specification tank cars to transport LNG will allow the rail industry to play a role in the safe, efficient transport of this important energy product for the 21st century. LNG--referred to as ``Methane, refrigerated liquid'' \2\ within the HMR--has been transported safely by trucks on highways and by marine vessels for over 40 years in the United States, and over 50 years internationally. However, the HMR did not authorize the bulk transport of LNG in rail tank cars prior to this rulemaking action, instead permitting rail transport of LNG only on an ad hoc basis as authorized by the conditions of a PHMSA special permit (49 CFR 107.105) or in a portable tank secured to a rail car pursuant to the conditions of an FRA approval. The recent expansion in U.S. natural gas production has increased interest in a programmatic approach to using appropriately the nation's rail infrastructure to facilitate efficient transportation of LNG. In response to that interest, PHMSA, in coordination with the FRA, issues this final rule to amend the HMR to permit the bulk transport of LNG in DOT-113C120W specification rail tank cars with enhanced outer tank requirements (those enhancements to be indicated by the specification suffix ``9''), subject to operational controls for braking, monitoring, and routing. --------------------------------------------------------------------------- \2\ Use of this description in quotes and with methane capitalized reflects the proper shipping name as listed in the Sec. 172.101 Hazardous Materials Table. --------------------------------------------------------------------------- In addition, this final rule satisfies the directive in Executive Order (E.O.) 13868 [84 FR 15495, April 19, 2019] to propose, consistent with applicable law, regulations that ``treat LNG the same as other cryogenic liquids and permit LNG to be transported in approved rail tank cars.'' \3\ E.O. 13868 recognizes the leading role that the United States plays in producing natural gas, the importance of improving the United States' capacity to supply natural gas, including LNG, to domestic and international markets, and the need to continue to transport this energy product in a safe and efficient manner. In issuing this final rule, PHMSA furthers the purposes and policies set forth in E.O. 13868 by enabling an additional safe, reliable, and efficient transportation alternative for bringing domestically produced natural gas to existing, and potentially new, markets. --------------------------------------------------------------------------- \3\ PHMSA notes that it first announced in the ``Spring 2018 Unified Agenda of Federal Regulatory and Deregulatory Actions'' [83 FR 27085] that it had initiated a ``pre-rule'' action on LNG by Rail, and subsequently announced that it would proceed with an NPRM in the ``Fall 2018 Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions'' [83 FR 57803]. While these actions notified the public of PHMSA's intention to develop propose a regulatory framework for the safe rail transportation of LNG, PHMSA had not published a proposed rulemaking by the time the President issued E.O. 13868 on April 10, 2018. --------------------------------------------------------------------------- The present action is based on a longstanding understanding of the properties of LNG and an evidence-based approach to the safety of the DOT-113 tank cars designed and used to transport flammable cryogenic materials. At the same time, in promulgating this final rule, and as it does with other hazardous materials, PHMSA recognizes that there is ongoing and potential future research related to the transportation of LNG by all modes. The Agency will continue to use this research to inform potential future regulatory activity, as appropriate. In the following table, PHMSA provides an overview of: (1) The requirements for LNG transportation in tank cars pursuant to DOT Special Permit 20534 (DOT-SP 20534),\4\ issued to Energy Transport Solutions, LLC (ETS) during the Notice of Proposed Rulemaking (NPRM) \5\ comment period to authorize ETS's rail transportation of LNG along specific routes; (2) the requirements proposed in the October 24, 2019 NPRM; and (3) the requirements adopted in this final rule. Requirements related to the thermal performance of the DOT-113C120W tank car are unchanged from the NPRM (75 psig maximum start to discharge pressure; maximum pressure when offered; and design service temperature). But this final rule, after consideration of comments received in the docket and to provide additional operational controls and crashworthiness for LNG tank cars, adopts supplemental requirements to those initially proposed in the NPRM: Remote monitoring of pressure and location for LNG tank cars in [[Page 44996]] transportation; two-way end-of-train (EOT) or distributed power (DP) system for trains transporting 20 or more loaded tank cars of LNG in a continuous block, or 35 or more loaded tank cars of LNG throughout the train; and a requirement that railroads comply with Sec. 172.820 route planning requirements. In addition, to account properly for the properties of LNG, this final rule raises the maximal filling density limit to 37.3% from the proposed 32.5%. Finally, in this final rule PHMSA is also adopting enhanced outer tank requirements compared with the requirements that apply to other DOT-113C120W-specification tank cars, including a thicker 9/16th inch outer tank made from high quality TC-128B normalized steel. Compliance with these enhanced outer tank requirements will be indicated by the new specification suffix ``9'' (DOT-113C120W9). --------------------------------------------------------------------------- \4\ https://www.regulations.gov/document?D=PHMSA-2019-0100-3006 . \5\ Hazardous Materials: Liquefied Natural Gas by Rail NPRM [84 FR 56964]. Table 1--Summary of DOT-SP 20534, NPRM Proposals, and Final Rule Components ---------------------------------------------------------------------------------------------------------------- LNG requirements ----------------------------------------------------------------------------------------------------------------- DOT special permit Topics 20534 NPRM Final rule ---------------------------------------------------------------------------------------------------------------- Approval of LNG...................... Permitted between Permitted Nationwide... Permitted Nationwide. Wyalusing, PA and Gibbstown, NJ, with no intermediate stops. Remote Monitoring.................... Required as a condition Not Required........... Required as a Special of the DOT-SP. Provision for LNG. Maximum Start to Discharge Pressure.. Not Specified.......... 75 psig................ 75 psig. Maximum Pressure when Offered for 15 psig................ 15 psig................ 15 psig. Transportation. Design Service Temperature........... Not Specified.......... Minus 260 [deg]F....... Minus 260 [deg]F. Maximum Permitted Filling Density 32.5%.................. 32.5%.................. 37.3%. (percent by weight). When is a two-way end-of-train (EOT) Required when a train Not Proposed........... Required when a train or a distributed power (DP) system is transporting 20 or is transporting 20 or required. more tank cars more loaded tank cars authorized under this of LNG in a continuous special permit. block or 35 or more loaded tank cars of LNG throughout the train. Route Controls....................... Authorized only on one Not Proposed........... Must comply with route. 172.820. Minimum Wall Thickness of the Outer Shell: \7/16\''........ Shell: \7/16\''........ Shell and Tank Head: Tank Shell and the Outer Tank Heads. Tank Head: \1/2\''..... Tank Head: \1/2\''..... Enhanced \9/16\''. Required Outer Tank Steel Type(s).... As specified in AAR As specified in AAR AAR TC 128, Grade B Specifications for Specifications for normalized steel Tank Cars, Appendix M. Tank Cars, Appendix M. plate. ---------------------------------------------------------------------------------------------------------------- II. NPRM and Background PHMSA on October 24, 2019, in consultation with the FRA, published the NPRM proposing to authorize the transport of LNG by rail. PHMSA issued the NPRM in response to a petition for rulemaking (P-1697) \6\ from the Association of American Railroads (AAR) and a review of existing regulations. --------------------------------------------------------------------------- \6\ PHMSA-2017-0020-0002. --------------------------------------------------------------------------- The NPRM proposed a framework for transporting LNG by rail safely by designating an authorized packaging, and by determining how the packaging would be filled safely. PHMSA chose the DOT-113C120W specification tank car packaging designed for flammable cryogenic material. This packaging has been transporting similar flammable cryogenic materials for decades with no fatalities or serious injuries. As for the filling/loading controls, PHMSA proposed a maximum start-to- discharge pressure of 75 psig, a maximum permitted filling density of 32.5 percent by weight, a maximum pressure when offered for transportation of 15 psig, and a design service temperature of minus 260 degrees Fahrenheit. The maximum offering pressure of 15 psig proposed in the NPRM is consistent with the 20-day transportation requirement for cryogenic materials and the allowable average daily pressure rise of 3 psig per day during transportation. In the NPRM, PHMSA also proposed operational controls consistent with the existing requirements of the HMR, and invited comment on whether existing regulations and the operational controls in AAR's Circular OT-55 entitled ``Recommended Railroad Operating Practices For Transportation of Hazardous Materials'' \7\ are sufficient. The NPRM also sought comment on the potential need for additional operating controls. Beyond the operational controls already included for other flammable cryogenic materials transported by rail, PHMSA specifically referenced train length and composition, speed restrictions, braking requirements, and routing requirements as potential areas of interest to provide for enhanced operational control requirements. PHMSA also encouraged commenters to provide data on the safety or economic impacts associated with any additional operational controls, including analysis of the safety justification or cost impact of their implementation. --------------------------------------------------------------------------- \7\ The freight rail industry developed the first edition of OT- 55, which details railroad operating practices for hazardous materials, in the late 1980s, as part of an inter-industry hazardous materials rail safety task force that also included the Chemical Manufacturers Association (now the American Chemistry Council) and the Railway Progress Institute (now the Railway Supply Institute). --------------------------------------------------------------------------- PHMSA also received a request from the Offices of the Attorneys General of New York and Maryland to extend the 60-day comment period for the NPRM an additional 30 days. PHMSA issued a notice \8\ on December 23, 2019, extending the comment period until January 13, 2020. --------------------------------------------------------------------------- \8\ Hazardous Materials: Liquefied Natural Gas by Rail; Extension of Comment Period [84 FR 70491], https://www.federalregister.gov/documents/2019/12/23/2019-27656/hazardous-materials-liquefied-natural-gas-by-rail-extension-of-comment-period . --------------------------------------------------------------------------- [[Page 44997]] A. Petition for Rulemaking (P-1697) 1. AAR's Petition for Rulemaking and the NPRM On January 17, 2017, AAR submitted a petition for rulemaking to PHMSA, entitled ``Petition for Rulemaking to Allow Methane, Refrigerated Liquid to be Transported in Rail Tank Cars'' (P-1697), requesting revisions to the Hazardous Materials Table (HMT; Sec. 172.101) and Sec. 173.319 of the HMR that would permit the transportation of LNG by rail in DOT-113 tank cars. The Administrative Procedure Act (APA), 5 U.S.C. 551, et seq. requires Federal agencies to give interested persons the right to petition an agency to issue, amend, or repeal a rule. 5 U.S.C. 553(e). PHMSA's rulemaking procedures at Sec. 106.95 allow interested persons to ask PHMSA to add, amend, or repeal a regulation by filing a petition for rulemaking along with information and arguments supporting the requested action. In May 2018, PHMSA accepted P-1697 in accordance with Sec. 106.105 by notifying AAR that the request merited consideration in a future rulemaking.\9\ --------------------------------------------------------------------------- \9\ PHMSA-2017-0020-0005. --------------------------------------------------------------------------- In its petition, AAR proposed that PHMSA amend the entry for ``United Nations (UN) 1972, Methane, refrigerated liquid'' in the HMT to add a reference to Sec. 173.319 in Column (8C) authorizing transport in rail tank cars. Additionally, AAR proposed that PHMSA amend Sec. 173.319 to include specific requirements for DOT-113 tank cars used for the transportation of LNG, and suggest that the authorized tank car specifications be DOT-113C120W and DOT- 113C140W.\10\ AAR further proposed amending Sec. 173.319(d)(2) to include maximum filling densities comparable to those specified for cargo tanks containing LNG in Sec. 173.318(f)(3). AAR argued that ``LNG should be authorized for rail transportation because it is a safe method of transporting this commodity, LNG shippers have indicated a desire to use rail to transport it, and because railroads potentially will need to transport LNG for their own use as a locomotive fuel.'' With respect to shipper demand, AAR contended the following: --------------------------------------------------------------------------- \10\ The HMR do not authorize the DOT-113C140W specification tank car for hazardous materials transportation. See section ``III. A. Tank Car Specification'' of the NPRM for further discussion. The only way to transport LNG is by obtaining special approval from PHMSA for rail transport, or by transporting it via highway; and that notwithstanding the requirement for a special approval, customers have expressed interest in shipping LNG by rail from Pennsylvania to New England, and between the U.S. and Mexico. Authorizing transportation of LNG by rail likely would stimulate more interest. In addition, several railroads are actively exploring LNG as a locomotive fuel. If railroads are to use LNG-powered locomotives, they would need to supply LNG along their networks. Transporting LNG in tank cars would be an optimal, if not essential, --------------------------------------------------------------------------- way to transport LNG to those locations. Furthermore, with respect to rail as a safe method of transportation, AAR noted: Rail is undeniably safer than over-the-road transportation of LNG, and transport via that mode should be facilitated. The reason the hazardous materials regulations do not currently authorize the transportation of LNG by rail is simply that there was a lack of demand for rail transport of LNG when PHMSA authorized DOT-113 tank cars for the transportation of cryogenic liquids and listed the cryogenic liquids that could be transported in those cars. There was no determination that rail was an unsuitable mode of transporting LNG. In the NPRM, PHMSA noted that AAR's requested action fits generally into the existing structure of the HMR, which combines packaging design and maintenance, operational controls, package handling, employee training, hazard communication, emergency response information, and security plan requirements to ensure safe transportation of hazardous materials. In the NPRM, PHMSA also requested public comment on the proposals present in AAR's petition, including their potential to reduce regulatory burdens, enhance domestic energy production, and impact safety. 2. The Center for Biological Diversity's Response to P-1697 On May 15, 2017, the Center for Biological Diversity (the Center) submitted a comment to P-1697, recommending that PHMSA deny AAR's petition for rulemaking because of potential environmental impacts of transporting LNG. The Center commented that PHMSA should not proceed in evaluating the petition request until the Agency has conducted a National Environmental Policy Act (NEPA) evaluation, prepared an Environmental Impact Statement (EIS) or Environmental Assessment (EA), and provided opportunity for public review and comment in accordance with Federal hazmat law, as applicable. PHMSA regulations do not require PHMSA to conduct a NEPA evaluation at the time it responds to a petition, and PHMSA has not taken such actions historically as part of its decision whether to accept or deny a petition for rulemaking. As result, PHMSA did not prepare an EA or EIS prior to responding to P- 1697. This decision was made with the knowledge that PHMSA would be required to conduct a NEPA analysis as part of a potential rulemaking. When PHMSA published the NPRM, it prepared a draft EA, see Section V. J. ``Environmental Assessment'' of the NPRM. A final EA for the rulemaking is included in the rulemaking docket as part of the analysis for the final rule. B. Regulatory Review On October 2, 2017, DOT published a notice \11\ in the Federal Register expressing Department-wide plans to review existing regulations and other agency actions to evaluate their continued necessity, determine whether they are crafted effectively to solve current problems, and evaluate whether they potentially burden the development or use of domestically produced energy resources. As part of this review process, DOT invited the public to provide input on existing rules and other agency actions that have potential for repeal, replacement, suspension, or modification. --------------------------------------------------------------------------- \11\ Notification of Regulatory Review, Docket No. DOT-OST-2017- 0069 [82 FR 45750]. --------------------------------------------------------------------------- The Interested Parties for Hazardous Materials Transportation (Interested Parties) submitted a comment \12\ supporting the authorization of LNG for rail tank car transport. Specifically, the Interested Parties noted in its comment that LNG shares similar properties to other flammable cryogenic materials currently authorized by rail tank car and [[Page 44998]] has already been moved in the United States under a special permit. Additionally, they noted that Transport Canada authorizes LNG for transportation by rail in DOT-113-equivalent rail cars and that there is increased commercial demand for rail transport of LNG within the United States and between the United States and Mexico. --------------------------------------------------------------------------- \12\ Comment from Interested Parties for Hazardous Materials Transportation, Document No. DOT-OST-2017-0069-2591, at: https://www.regulations.gov/document?D=DOT-OST-2017-0069-2591 . The Interested Parties is a volunteer-run coalition of organizations that share an interest in legislative and regulatory issues related to the safe and secure domestic and international transportation of hazardous materials. Interested Parties members include associations representing hazardous materials shippers, carriers, packaging manufacturers and other related groups, including the Agricultural Retailers Association; American Chemistry Council; American Fuel & Petrochemical Manufacturers; American Trucking Associations; American Pyrotechnics Association; Association of HazMat Shippers; The Chlorine Institute; Compressed Gas Association; Council on the Safe Transportation of Hazardous Articles; Dangerous Goods Advisory Council; The Fertilizer Institute; Gases and Welding Distributors Association; Institute of Makers of Explosives; International Liquid Terminals Association; International Vessel Operators Dangerous Goods Association; Medical Device Battery Transport Council; National Association of Chemical Distributors; National Private Truck Council; National Tank Truck Carriers; Plastics Industry Association; Petroleum Marketers Association of America; Radiopharmaceutical Shippers & Carriers Conference; Railway Supply Institute, Inc.; Reusable Industrial Packaging Association; Sporting Arms Ammunition Manufacturers Institute; The Sulphur Institute; and the Utility Solid Waste Activities Group. --------------------------------------------------------------------------- After consideration of the issues, PHMSA is acting on the comment from the Interested Parties by amending the HMR to allow for bulk transport of LNG by rail in a DOT-113 specification tank car. Additionally, this action supports the objectives of the Notification of Regulatory Review because it is expected to ``promote [the] clean and safe development of our Nation's vast energy resources, while avoiding regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation.'' C. DOT Special Permit 20534 On August 21, 2017, PHMSA received an application for a special permit from ETS to authorize the transportation in commerce of ``Methane, refrigerated liquid'' in DOT-113C120W tank cars. Upon completion of its preliminary evaluation of the application, PHMSA published for public comment a Notice of Draft Environmental Assessment for a Special Permit Request for Liquefied Natural Gas by Rail in the Federal Register on June 6, 2019.\13\ The notice requested comment on potential safety, environmental, and any additional impacts that should be considered as part of the special permit evaluation process. The docket for the draft Environmental Assessment enclosed a draft special permit. The notice was initially published with a 30-day comment period and was extended an additional 30 days after requests from numerous stakeholders, including non-governmental organizations (NGOs) and private individuals. The extended comment period closed on August 7, 2019 and PHMSA received 2,994 comments. --------------------------------------------------------------------------- \13\ Hazardous Materials Safety: Notice of Availability of the Draft Environmental Assessment for a Special Permit Request for Liquefied Natural Gas by Rail [84 FR 26507]. --------------------------------------------------------------------------- On December 5, 2019, PHMSA granted DOT-SP 20534 to ETS authorizing the transportation of LNG in DOT-113C120W tank cars between Wyalusing, Pennsylvania, and Gibbstown, New Jersey, with no intermediate stops, and subject to certain operational controls. Some of the operational controls required by the special permit had not been proposed in the draft special permit; PHMSA introduced those additional operational controls in response to comments received and additional documentation provided by the applicant, as well as to further reduce risk by supplementing the robust safety regime established by the HMR. Those information requests also were intended to increase PHMSA and FRA's knowledge of ETS's operations to inform later decisions on DOT-SP 20534 and the HMR. Specifically, PHMSA added the following requirements to the special permit: (1) Each tank car must be operated in accordance with Sec. 173.319 except for the identified maximum permitting filling density, maximum operating pressure, and remote sensing equipment as specified in the special permit; (2) Shipments are authorized between Wyalusing, Pennsylvania, and Gibbstown, New Jersey, with no intermediate stops. (3) Within 90 days after issuance, the grantee shall prepare and submit a plan providing per shipment quantities, timelines, and other actions to be taken for moving from single car shipments to multi-car shipments, and subsequently to unit trains (20 or more tank cars). (4) Trains transporting 20 or more tank cars authorized under this special permit must be equipped and operated with a two-way end of train device as defined in 49 CFR 232.5 or distributed power as defined in 49 CFR 229.5. (5) Prior to the initial shipment of a tank car under this special permit, the grantee must provide training to emergency response agencies that could be affected between the authorized origin and destination. The training shall conform to NFPA-472, a voluntary consensus standard developed by the National Fire Protection Association (NFPA) establishing minimum competencies for responding to hazardous materials emergencies, including known hazards in emergencies involving the release of LNG, and emergency response methods to address an incident involving a train transporting LNG. (6) While in transportation, the grantee must remotely monitor each tank car for pressure, location, and leaks. Following issuance of DOT-SP 20534, PHMSA published a notice \14\ in the Federal Register that PHMSA had added DOT-SP 20534 and documents supporting the special permit decision--the Special Permit Evaluation Form and Final Environmental Assessment--to the docket for the HM-264 NPRM (Docket No. PHMSA-2018-0025) for consideration by the public because of the overlapping subject matter. PHMSA invited comments on DOT-SP 20534 operational controls to be submitted to the HM-264 rulemaking docket by December 23, 2019.\15\ PHMSA noted it would consider any additional comments on the operational controls included in DOT-SP 20534, which was posted to the HM-264 rulemaking docket to aid in determining appropriate operational controls for this final rule. PHMSA encouraged commenters to provide data on the safety or economic impacts associated with operational controls in the special permit, including analysis of the safety benefits and the potential cost-benefit impact of implementing those or other operational controls. --------------------------------------------------------------------------- \14\ Hazardous Materials: Notice of Issuance of Special Permit Regarding Liquefied Natural Gas [84 FR 67768]. \15\ On December 23, 2019, PHMSA extended the comment period to January 13, 2020 [84 FR 70491]. --------------------------------------------------------------------------- III. Amendments to the HMR Adopted in This Final Rule In this final rule, PHMSA is authorizing LNG, a well characterized and understood material, for transportation in a specific rail car packaging that has a long, safe record carrying similar cryogenic materials, including flammable materials. Additionally, to provide an additional level of safety and in response to comments, PHMSA is adopting certain supplemental packaging integrity enhancements and operational controls. A. Existing HMR Requirements for Rail Transport of Flammable Cryogenic Material Federal hazmat law, 49 U.S.C. 5103, requires PHMSA \16\ to designate material or a group or class of material as hazardous when it determines that transporting the material in commerce in a particular amount and form may pose an unreasonable risk to health and safety or property, and to prescribe regulations for the safe transportation of hazardous material in commerce. Transportation includes the movement of that hazardous material and any loading, unloading, or storage incidental to the movement.\17\ These statutory provisions are implemented within PHMSA regulations at 49 CFR parts 171 to 180 (i.e., the HMR). --------------------------------------------------------------------------- \16\ The authority was delegated by the Secretary of Transportation in 49 CFR 1.97. \17\ 49 U.S.C. 5102(13). --------------------------------------------------------------------------- The HMR prescribe a comprehensive suite of requirements for hazardous material classification, hazard communication, emergency response [[Page 44999]] information, training, packaging, and material handling. These requirements are designed to prevent the release of hazardous materials in transportation, and in the event of a release, to provide emergency responders and the public with necessary information to protect themselves and mitigate the consequences of the release to the greatest extent possible. The HMR are a proven hazardous material regulatory system well suited to manage the risks of LNG transportation in rail tank cars. The robust requirements already in place in the HMR for packaging, rail car handling, hazard communication and training address many of the safety concerns related to the transportation of LNG by rail. Moreover, PHMSA works closely with other Federal and State partners to enforce the requirements of the HMR. 1. Packaging Selecting proper packaging for a hazardous material is a critical step in the HMR safety system. Hazardous materials packaging must be chemically and physically compatible with the material contained in the package, also known as the lading. The packaging must be able to withstand all conditions normally encountered during transportation, which include humidity and pressure changes, shocks, and vibrations. The HMR authorize many types of packagings for hazardous materials, ranging in size from 1 milliliter glass sample tubes, to 30,000-gallon railroad tank cars. Different modes of transportation (highway, air, rail, and vessel) and varying volumes of hazardous materials present different challenges, and require a variety of packaging designs to account for different conditions encountered in transportation. Tank cars used for rail transportation must be designed to withstand exposure to weather, in-train forces and switching, vibrations, dynamic forces, and exposure to the lading they transport. Cryogenic materials pose 
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